Tanzanian Gold outlines new gold zone at Buckreef
Tanzanian Gold Corp. [TNX-TSX; TRX-NYSE American] and its joint venture partner, The State Mining Company (STAMICO) on Monday June 21 reported the discovery of three closely-spaced parallel gold-bearing structures at the Buckreef Gold Company Ltd.’s project, collectively known as the Anfield zone.
Tanzanian Gold, along with its joint venture partner the state mining company STAMICO is building a significant gold project at Buckreef in Tanzania that is based on an expanded mineral resource base and the treatment of mineable mineral reserves in two stand-alone plants.
STAMICO, which is 100%-owned by the United Republic of Tanzania, owns a 45% non-dilutable equity interest in Buckreef Gold Co., the company that owns the project.
The Buckreef Gold Mine was an underground mine operated by the Tanzanian State during the 1980s.
The project is located in north-central Tanzania, immediately south of Lake Victoria and 110 km southwest of Mwanza. The project area consists of the dormant Buckreef Gold Mine and four prospects with known mineralization: Buckreef, Buziba, Tembo and Bingwa.
On Monday, the company said the new prospective gold mineralized zones, cover a combined 2.9-km strike length, and were identified through geological (field) mapping, sampling and examination of artisanal workings.
Grab samples of mineralized bed (fresh) rock have been assayed. Highlights include 37.52 g/t gold, 28.55 g/t and 14.42 g/t. This new discovery has been made approximately 500 metres to the east of the Buckreef Gold Mine Main Zone
Buckreef hosts a measured and indicated mineral resource of 36 million tonnes at 1.77 g/t gold or 2.03 million ounces. On top of that is an inferred resource of 17.8 million tonnes at 1.11 g/t gold or 635,540 ounces.
The company said the Anfield Zone is the company’s second new discovery in less than two months. The first was the Buck Reef West Shear Zone – a splay off the well mineralized Buckreef Main Zone.
“Combined with the positive metallurgical results in conjunction with the Buckreef Gold Main Zone, these discoveries provide us with continued confidence that Buckreef Gold will develop into a significant gold-producing asset,” said Tanzanian Gold CEO Stephen Mullowney.
Meanwhile, he said the company is advancing on three value-creation tracks, including the strengthening of its balance sheet by expanding near-term production to 15,000 to 20,000 ounces of gold per year from the processing of oxide material from an expanded oxide plant.
It is also advancing the final feasibility study for a stand-alone sulphide treating plant that is substantially larger than previously modelled and targeting significant annual production.
In addition, the company will continue drilling to further test the potential of the property. The program is expected to include infill drilling to upgrade mineral resources that are currently in the inferred category.
Tanzanian Gold shares eased 1.56% or $0.01 to 63 cents in light trading. The shares are currently trading in a 52-week range of $2.12 and 60 cents.