Lubando Gold Project

LOCATION

Lubando, comprising prospecting licence PL6248/2009, is a gold project located in the Lake Victoria Goldfields region of northern Tanzania, approximately 75 km directly southwest of the city of Mwanza in northern Tanzania (approximately 160 km west-southwest by road) and 10 km south of the town of Kasama. The towns of Geita and Katoro lie respectively 22 km to the west and 57 km to the west-southwest. The eastern margin of the AngloGold Ashanti Geita Gold Mine holdings lies approximately 18 km to the northwest of the Project, and the Bulyanhulu Gold Mine, belonging to Acacia Mining PLC, lies approximately 35 km south of Lubando.

Project Geology

The Mineral Resources reporting for the Lubando licence portfolio occur exclusively within PL1648/2009, which contains the Lubando Project. A Lower Nyanzian System mafic volcanic dominated suite, roughly 500 to 800 metres wide underlies the area, bounded to the south by fine grained, massive highly potassium feldspar rich foliated granite and to the north by tonalite. The tonalite is massive and occurs in contact with dolerite and basalt (interpretation based upon drillhole logs). This consists of 40% medium grained plagioclase + <25% quartz + 30% pyroxene + 5% biotite.
The greenstones strike approximately northwest to southeast to west-northwest to east-southeast towards the east end with a flexure (also possibly a fault). Dip is interpreted to occur towards the northeast. This unit underlies the main target area making up the Project. This unit can be further subdivided into two distinct parallel horizons that are intruded by mafic dykes parallel to stratigraphy.
The basalt in contact with the granite in the southern area of the Project is intercalated with siltstone, tuff, and argillite and is intruded by quartz feldspar porphyry (“QFP”) dykes. Pyrrhotite is mostly associated within strongly foliated mafic volcanics while pyrite occurs predominantly within the QFP. Approximately 200 m north of the granite the basalt interflow sediments and felsic dykes become rare.
The mineralised zone appears to consist of up to four sub-parallel shears or shear zones which dip to the northeast at approximately 75°and strike northwest to southeast.

Mineral Resources

The Mineral Resources for Lubando are stated at a 0.4 g/t Au pay limit by Minxcon in conjunction with the application of an optimised economic pit depth cut-off. The depth cut-off for the Lubando Project is 200m below surface. Mineral Resources occurring below the 200 m depth cut-off are stated at a 1.3 g/t pay limit. The Mineral Resources have also taken cognisance of a 5% geological loss, which is deemed appropriate for this type of mineralised body and for the envisaged mining methodology, namely both open pit and underground at depth.

The Mineral Resources for the Lubando Project as calculated by Minxcon as at 2017 are presented in the table below.

Lubando Project Mineral Resources as at 10 March 2017

Mineral Resource
Category
AreaCut-off Grade
(g/t)
Tonnes
(Mt)
Density
(t/m3)
Au
(g/t)
Au
(kg)
Au
(koz)
Inferred0 m to 200 m Depth 0.406.7372.911.097,343236.10
Inferred>200 m Depth 1.300.0403.022.901173.78
Total Inferred6.782.911.107,461239.87

Notes:

  1. Gold content conversion: 1 kg = 32.15076 oz.
  2. Columns may not add up due to rounding.
  3. Pay Limit: 0.4 g/t to depth cut-off of 200 m, 1.3 g/t below 200 m depth cut-off.
  4. The open pit depth cut-off utilised is 200 m.
  5. Geological loss of 5 % has been applied.
  6. All figures are in metric tonnes.