AMN - TANZANIA: Mkuvia gold evaluation under way

Zanzibar Gold Inc’s consultants have initiated their exploration evaluation of the Mkuvia Gold Project in the Nachengwea area of southern Tanzania. In 2009, an NI 43-101-compliant resource report was calculated on the central portion of the main producing area that outlined an inferred reserve of 6 million grams of gold.

The Mkuvia property has had small-scale local placer operators mining gold from the property since 2005.

The initial exploration assessment is to determine that the identified reserve is intact and the purity of the gold being recovered.

A field visit to the property and the collection of the alluvial gold for analysis is being completed by the report’s original author.

“This work will determine how much of a gold bullion inventory can be established for the company by a low-cost placer operation,” company president SA Farrage outlined, “as well as enabling the company to evaluate other gold prospects in the region.”

Tanzania has moved from an insignificant gold producing country in the last century to a 50-tonnes per year producer in the early part of the 21st century.

This is primarily due to Anglo Since Ashanti’s Geita gold mine (7 million ounces produced since 2000 with reserves estimated at 7.7 million ounces) and Acacia’s (Barrick Gold) Buylanhulu (initial reserves 17 million ounces) as the forefront operations.

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