The Company is pleased to announce the results of a Preliminary Economic Assessment (“PEA”) for the Buckreef Project located in the Mwanza Provincial District, Tanzania. The results of the PEA are contained in a Technical Memorandum prepared by Venmyn Independent Projects which has reviewed and approved the contents of this press release. The Company plans to file a National Instrument 43-101 compliant Independent Technical Report on the PEA results within 45 days. The Board of Directors has approved the PEA and has directed management to proceed to a pre-feasibility study. All references herein to “$” are United States dollars.
The Buckreef Project has Measured and Indicated Resources of 44.2 million tonnes at a grade of 1.23g/t gold (at a 0.5g/t gold cut-off grade) that contain 1.74 million ounces of gold and the main shear hosted gold deposit is open along strike and down dip. The PEA is based on a mining schedule to produce at least 100,000 oz of gold per year; initially from plant feed of 1.8 million tonnes per year which increases in year six to a plant feed of to 3.6 million tonnes per year. Over the estimated 12 year production life the Buckreef Project produces 1.35 million ounces of recovered gold.
The five deposits consist of upper, weathered, oxidized zone overlying variable transition zones and lower, primary, fresh sulphide zone at depth. The mineralization is free milling with direct leach recoveries in the lower 90% range and is amenable to gravity recovery.
The mine designs consist of a number of conventional open pits, the largest of which is 1.8 km in length and extends to a depth of 210 metres below surface. Mining consists of excavator loading of run of mine material (“RoM”) and waste, and Articulated Dump Truck hauling via planned access ramps. The possible pit deepening and/or underground extensions of the mine design have not been included in the PEA. The initial capital cost of the mining equipment is $61.5 million.