Douglas Lake Minerals Inc DLKM

Here is some info, sent to me from IR

[Des1302]

I basically copied the PDF that was sent to me.  Give me ur email and I'll forward the pdf to you.

REPORT ON INITIAL TECHNICAL

ASSESSMENT

OF

MBWEMKURU PROPERTY,

SOUTHEAST TANZANIA

DAVID GROVES

Ore Busters

4 Handley Close

Leeming WA Australia

IAIN GROVES

Insight Geology

PO Box 2695 Rowville Victoria

3178 Australia

1

Executive Summary

This report is based on a 24 hour field visit to the Mbwemkuru Prospect organized by Harp Sangha

and facilitated by Charles Mnguto of Douglas Lake Minerals. The greenfields project is in an early

stage of exploration, with no reliable assay data from geologically controlled samples, as yet.

However, inspection of available artisanal workings and exploration pits over 20 km strike length,

combined with panning of exposed units and analysis of three grab samples of conglomerate, sand

and panned concentrate, suggests the potential for a multi-million ounce gold resource with the strong

possibility of U-Th credits and possibility of gem-quality garnets and sapphires locally.

The potential size of the deposit is >15 km length and several hundred meters width with 1 to 3 m of

low-grade sand overlying a minimum of 0.5 to 2 m higher-grade conglomerate. The deposit is a

paleoplacer that is slightly reworked in the present drainage (Fig. 1), but its age is unclear.

The best current model is that the Au-U-Th paleoplacer mineralization represents reworking in the

Tertiary/Quaternary of a basal Karoo-age continental sedimentary sequence enriched in Au and U-Th

near the regional contact (shoreline?) with Proterozoic basement rocks. The paleoplacer probably

occupies the ancestral valley to the recent river

It appears to represent an exciting new style of gold mineralization in Tanzania with world-class

potential.

Figure 1 Artisanal miners at Mkilikage in the eastern part of the claim, mining through mbuga, recent

cross bedded alluvium, and into the favourable conglomerate units of the paleoplacer at about 6m

below surface.

2

INTRODUCTION

This report is based on a 24 hour visit to the Mbwemkuru Prospect in southern Tanzania on 8-9 July,

2008. The visiting geological team were David Groves, Iain Groves and Andrew Lee Smith. The field

inspection was at the request of Harp Sangha of Douglas Lake Minerals and was facilitated by Charles

Mnguto and his staff, including Lawrence Kabila, Aron Napegwa and Douglas Luoga.

The visit included inspection of artisanal workings and exploration pits/shafts spaced over 15km along

the Mbwemkuru River from Old Matadani in the west to Mkilikage in the east. Geological traverses of

several hundred meters, broadly perpendicular to the river, were made at several points along the river

between the two extremities of the artisanal workings.

This report was requested by Harp Sangha as an initial technical assessment of the greenfields

project.

Figure 2 – Technical group at Mbwemkuru (left to right – Professor David Groves, Lawrence Kabila,

Andrew Lee Smith and Charles Mngutu – photo by Iain Groves)

GEOLOGY

Based on existing geological maps and aeromagnetic data, the Mbwemkuru Prospect lies adjacent at

the exposed contact of the regional unconformity between Karoo continental sedimentary sequences

of the Selous Basin (and some unspecified younger sequences) and Proterozoic high-grade

metamorphic rocks of the Mozambique Belt (Fig 3). It is part of a previously described gold district,

the Kitowero Prospect in which STAMICO reported volumes of up to 12 g/t Au in heavy mineral

concentrates in the current rivers, including the Mbwemkuru River.

Based on the reconnaissance traverses made during this visit, it appears that the gold (and potentially

U-Th) are associated with a regionally-consistent sequence of poorly-consolidated red-brown and

white sands overlying polymictic pebble, cobble to boulder conglomerates that extend upslope for

approximately 200-500 m (perhaps further, but not tested) from the present Mbwemkuru River. Where

the base on the conglomerate is exposed in current pitting by Douglas Lake in the east, there is

saprolitic porphyritic granite, probably containing garnet-rich pegmatite in places.

3

The red-brown sands are massive with no obvious bedding. They comprise subangular quartz grains

with a matrix of hematite clay. They range from <1 m up to 3 m thickness, and generally appear to be

thicker upslope, particularly at the western extremity of the property. They have been reworked in the

current river bed, with removal of the clay, to produce white friable sands that extend for up to 300 m,

but generally less, upslope. These are clearly gold-bearing as they have been extensively mined by

artisanals, but panning suggests that they are low grade. There are no reliable assays, but visual

estimates suggest that the grade is <1-2 g/t Au (one sample taken by Douglas Lake reports 1.6g/t Au

from these sands). This needs verification from multielement analysis.

The sands overlie a polymictic conglomerate sequence that comprises several clay-rich, horizontally

bedded units interlayered with sandy beds. The clasts range from pebbles through cobbles to

boulders, the latter being only sporadically developed, but suggesting that there may be distinct

channels in the conglomerate sequence upslope from the present river. Artisanal activity and panning

indicate that the conglomerates have higher gold grades than the overlying sands. Grades are yet to

be determined, but visual estimates, combined with a reported grade of about 60 g/t for the most goldrich

locality seen on the visit, suggest that it is several g/t.

Gold is very fine-grained in general, suggesting a distal source, although some coarser-grained flakes

are present. The gold is associated with the black sands that comprise fine-grained ilmenite and pink

garnet and minor magnetite. These may be represented by distinct ferruginous layers in the

conglomerate sequence. Assays of this type of sample reported to give 60 g/t Au (which may be a

concentrate, but the authors are unsure of the true nature of this sample), indicate high U (301 ppm),

Th (527 ppm) and La (300 ppm) suggesting the presence of monazite, and indicating U-Th potential

for the deposit.

Artisanal workings at the eastern extent of the traverse at Mkilikage clearly indicate that the prospect is

a paleoplacer that is not directly related to the current drainage. Here, beneath mbuga, the massive

sand layer and conglomerate sequence that contain the detrital gold are unconformably overlain by

well-bedded, in places cross-bedded, sands that relate to the present drainage system (Fig 1). These

have extremely low concentrations of gold according to the local artisanal miners and clearly post-date

the paleoplacer, but appear to have concentrations of gemstones including green and red garnet and

a variety of sapphires near their base.

A study of the data provided by Charles Mngutu of two traverses of shafts/pits dug perpendicular to

the river (see Table 1) near the main village workings at Mbwemkuru shows the following;

• Peak gold occurs in the conglomerate units;

• Lower grade gold occurs in the overlying sands, but not everywhere;

• Grade and thickness of conglomerate broadly increases toward the modern drainage;

• Gold is everywhere present in the conglomerate units showing that mineralization extends

for at least 500m width, including the current drainage.

444000000000000000 mmmEEE

555000000000000000 mmmEEE

666000000000000000 mmmEEE

888999000000000000000 mmmNNN

888888000000000000000 mmmNNN

999000000000000000000 mmmNNN

333000000000000000 mmmEEE

111000000000000000 mmmEEE

222000000000000000 mmmEEE

Mbwemkuru Project

TMI 1VD plus

Tenement Location

Karoo Basin

Mozambique Belt

Proterozoic Basement

Mbbbweeemkkkuuurrruuu

%

Ollld Maaatttaaandaaaniii Mbweeemkkkurrru

Mkkkiiillliiikkkaaageee

Ngurrrumaaahiiingaaa Riiivvveeerrr Worrrkkkiiingsss

333777666000000000 mmmEEE

333777888000000000 mmmEEE

333888000000000000 mmmEEE

333555666000000000 mmmEEE

333444888000000000 mmmEEE

333555000000000000 mmmEEE

333555222000000000 mmmEEE

333555444000000000 mmmEEE

888888666000000000000 mmmNNN

888888555222000000000 mmmNNN

888888555444000000000 mmmNNN

888888555666000000000 mmmNNN

888888555888000000000 mmmNNN

333666444000000000 mmmEEE

333666666000000000 mmmEEE

333666888000000000 mmmEEE

888888555000000000000 mmmNNN

333555888000000000 mmmEEE

333666000000000000 mmmEEE

333666222000000000 mmmEEE

888888444888000000000 mmmNNN

888888666222000000000 mmmNNN

888888666444000000000 mmmNNN

888888666666000000000 mmmNNN

888888444444000000000 mmmNNN

888888444666000000000 mmmNNN

Mbwemkuru Project

Location Map over

Google Image

%

Correct Tenement

Workings from

other source

Workings Visited

Incorrect Tenement?

4

Table 1. Data for two traverses of pits/shafts at Mbwemkuru showing the correlation of gold to

conglomerate (grav, pebb) and the variability of gold in sand (data from Charles Mguntu).

Pit ID

UTM

East

UTM

North

RL

m Depth From To Interval Color

Grain

Size Condition Lithology

Visible

gold

grains

per

Pan

MBPT0001 361000 8857250 599 5 0 0.9 0.9 gy fgr dry sand 1

MBPT0001 0.9 3.6 2.7 or,rd mgr dry sand 1

MBPT0001 3.6 5 1.4 gy cgr moist sand 2

MBPT0002 361000 8857300 596 4 0 1 1 gy,br fgr dry sand 2

MBPT0002 1 1.8 0.8 rd,br cgr dry pebb 6

MBPT0002 1.8 2.3 0.5 gy,yw cgr dry sand 4

MBPT0002 2.3 4 1.7 gy cgr moist sapr/granite 0

MBPT0003 361000 8857350 594 6 0 2.3 2.3 gy fgr dry sand 2

MBPT0003 2.3 2.7 0.4 gy,br cgr dry grav 4

MBPT0003 2.7 3.8 1.1 br cgr dry pebb 6

MBPT0003 3.8 5.5 1.7 dkgy cgr moist pebb 11

MBPT0003 5.5 6 0.5 gywh cgr moist sapr/granite 0

MBPT0004 361000 8857500 590 2 0 1.2 1.2 gy fgr dry sand 0

MBPT0004 1.2 2 0.8 gy,br mgr wet sand 0

MBPT0005 360996 8857550 592 4 0 1 1 gy fgr moist sand 1

MBPT0005 1 1.3 0.3 gy,br fgr moist sand 2

MBPT0005 1.3 1.5 0.2 gy,br cgr moist pebb 4

MBPT0005 1.5 2.4 0.9 yw,gy mgr moist mott 1

MBPT0005 2.4 4 1.6 gy,br cgr moist sapr/granite 0

MBPT0007 361000 8857650 599 5 0 0.9 0.9 gy mgr dry sand 0

MBPT0007 0.9 1.4 0.5 gy,br cgr dry pebb 3

MBPT0007 1.4 2.5 1.1 gy,br cgr dry sand 2

MBPT0007 2.5 3.6 1.1 gy,yw fgr moist clay 0

MBPT0007 3.6 5 1.4 gywh cgr moist sapr/granite 0

MBPT0008 361000 8857700 600 5 0 1.4 1.4 gy fgr dry sand 0

MBPT0008 1.4 1.7 0.3 br cgr dry pebb 1

MBPT0008 1.7 3.8 2.1 gy,rd cgr dry sand 1

MBPT0008 3.8 5 1.2 gywh cgr moist sapr/granite 0

MBPT0009 361500 8857250 593 5 0 1.8 1.8 gy fgr dry sand 1

MBPT0009 1.8 2.4 0.6 ywgy cgr moist grav 1

MBPT0009 2.4 3.4 1 ywgy cgr wet pebb 3

MBPT0009 3.4 5 1.6 ywgy cgr wet sapr/granite 0

MBPT0009 4 5 1 ywgy cgr wet sapr/granite 0

MBPT0010 361500 8857300 592 5 0 1 1 ywgy fgr dry sand 0

MBPT0010 1 2 1 ywgy mgr moist sand 2

MBPT0010 2 3 1 gy cgr moist pebb 7

MBPT0010 3 4 1 ywgy cgr wet sand 4

MBPT0010 4 5 1 ywgy fgr wet sapr/granite 0

MBPT0011 361500 8857550 590 3 0 1 1 gy mgr dry pebb 1

MBPT0011 1 2 1 gywh cgr dry sapr/granite 0

MBPT0011 2 3 1 gywh cgr dry sapr/granite 0

MBPT0012 361500 8857600 592 3 0 1 1 gy fgr dry sand 0

MBPT0012 1 2 1 rdbr cgr dry pebb 2

MBPT0012 2 3 1 gywh cgr dry sapr/granite 0

MBPT0013 361500 8857650 593 4 0 1 1 ywgy fgr dry sand 0

MBPT0013 1 2 1 rdbr cgr dry grav 0

MBPT0013 2 3 1 gybr cgr dry pebb 1

MBPT0013 3 4 1 gywh cgr moist sapr/granite 0

5

INITIAL MODEL FOR THE PALEOPLACER

A number of features suggest that the paleoplacer is Tertiary/Quaternary in age, and was derived from

reworking of an earlier Karoo-age or older continental sequence that contained lower concentrations

of detrital gold and (?) monazite (U-Th) derived from a distal source.

The distal source is inferred from:

• The extremely fine-grained nature of the vast majority of the gold grains;

• The association of gold with monazite (?) and black sands (c.f. Witwatersrand with finegrained

gold, uraninite, and clastic pyrite); and

• The lack of vein-quartz pebbles (which are dominant in most paleoplacers, (e.g.

Witwatersrand), but with an abundance of quartzite, quartz-sandstone, or chert pebbles in

the Au-bearing conglomerates.

However, minor local input is indicated by rare (1%) angular quartz-vein clasts to the west and more

common (10%) angular pegmatite clasts, combined with coarse-grained gem-quality brown and green

garnets and possibly sapphires, at the eastern extremity of the artisanal workings, although these may

relate more to the modern drainage.

A post-Karoo age for the paleoplacer is favoured by:

• The consistently thin nature of the sand-conglomerate sequence over the area;

• The regional restriction of the known occurrence of this sequence to about 300 m from the

current Mbwemkuru River, suggesting that the present river is broadly following an earlier

palaeochannel; and

• The high concentration of black sands and visual estimates of at least local high gold grades:

there are unlikely to be developed in a single sedimentary cycle except in a syn-tectonic

basin such as a foreland basin (e.g. Witwatersrand).

A previous concentration of gold and heavy minerals in the Karoo continental sequence is suggested

by:

• The occurrence of the auriferous paloplacer adjacent to a geometrical irregularity in the

regional contact between the Karoo sequence and Proterozoic basement (Fig 3): a likely

heavy mineral sand trap near a Karoo-age shoreline (?);

• The maturity of the rounded clasts and their largely quartzitic provenance when the local

Precambrian rocks are largely granites, granite gneisses, amphibolites, and biotite schists,

cut by swarms of pegmatites;

• The lack of any reasonable source of gold in the basement rocks of the Mozambique Belt,

with no artisanal workings known from bedrock in the area; and

• The likely occurrence of anomalous concentrations of U-Th minerals, as the continental

sandstones of the Karoo contain uranium deposits elsewhere in Africa.

CONCLUSION

The Mbwemkuru Prospect appears to be a new style of paleoplacer gold (+U-Th?) mineralization in

Tanzania. It has some similarities in terms of Au-U association and its fine-grained distal gold to the

Witwatersrand deposits, but is much younger (Late-Archean to Tertiary/Quaternary), the sequence is

much thinner (kms vs a few meters), and the clasts are largely quartzite not vein quartz. It probably

represents a restricted fluvial basin that was ancestral to the current, much narrower Mbwemkuru

6

River system, but the possibility of a more extensive Karoo or pre-Karoo palaeoplacer cannot be ruled

out.

TECHNICAL RECOMMENDATIONS

There is an urgent need to determine the Au and U-Th grade of the sand and conglomerate on a

regional basis to provide an initial overview of grade potential. It is proposed that sampling (two to

three kilogram vertical channel samples from a variety of pits and exposures) is carried out from the

western extremity of the known mineralization at Old Matindani to the eastern extremity at Mkilikage.

This will be completed by Iain Groves with assay turnaround as soon as possible.

Further exploration using pits/shafts should be continued (rather than RAB drilling) because they

provide geological control on assay data, employ the local population, and are more cost effective.

However, 50kg samples currently being collected are too large for cost-effective transport and assay,

the current spacing of 500m x 50m is too restricted for initial exploration and evaluation, and the 1m

sampling (regardless of geological control) will not allow an accurate knowledge of grade distribution

and mixing and dilution will occur. Standard sample submission (QAQC) is critical to the program and

duplicate sampling in homogeneous mediums is important.

The following work program is recommended:

• GPS locate the extent of all artisanal workings on the property, mapping the artisanal

mining type, depth and material mined;

• Acquire IKONOS stereo-pairs to help locate workings, drainage and to produce a 1m

detailed topographic map;

• Create a detailed topographic map from the IKONOS images;

• Conduct stream sediment sampling in the headwaters of the mineralized drainage (using

1 to 3 m deep shafts in modern drainage) to test the extent of mineralization to the west;

• Conduct mapping of all known outcrops and, interpreted outcrops from photos, with

particular emphasis on the Karoo group rocks.

PITTING

• Conduct regional pit traverses every 2 to 4 km along the 22km strike of the target with

initial spacing of 100m closing in areas of potential. Include the current river environment,

even if shaft location is up to 50m off line to sample an undisturbed area;

• Extend the pitting to at least 500m away from the current river channel and pit until gold

bearing sand and conglomerate is absent for at least two pits;

• Assess all of the pits in the following way:

o When each pit is dug (at least 1m into saprolitic basement is recommended), use a

ladder to mark the distinct geological features with spray marker paint and record

information on a log sheet.

o Sample these geological intervals using vertical channel sampling with accurate

measurement of the interval from/to and width. 3 to 5kg samples are recommended.

Where the intervals are >1m, split the sample into two equal parts (i.e. a 1.5m sand

interval should be samples using two 0.75m samples). The basal sample should

include 20cm of the underlying basement to include coarse gold collection on the

irregular basement contact. At least two samples of conglomerate should be taken

from each pit.

o The geological log should include the following:

?? Rock type (SAND, CGL, GRT etc);

?? Average grainsize (fine sand, coarse sand, pebbles, cobbles, boulders);

?? Maximum grainsize (i.e. the size of the largest boulder in cm);

?? Sample Maturity, including degree of sorting and rounding;

7

?? Ratio of angular to rounded clasts;

?? Rock types of pebbles;

?? Magnetic susceptibility of each 10cm down pit; and

?? Scintillometer down hole to locate concentrations of U-Th layers.

o Pan a duplicate geologically controlled sample and recording the following:

?? Gold grain count;

?? Gold grain size (vf, f, m, c, vc);

?? Volume of black sands on scale of 1 – 10 (10 being a large amount and 1

being trace); and

?? Abundance of other heavies (sapphires, garnets etc).

o Spray mark the sample number on to every interval in the pit;

o Take a photograph of every sample interval. These can be stitched together to form a

complete down pit photo and interpreted externally;

o Send all samples to a reputable lab including high-grade gold standards every 30

samples and duplicate samples of homogenous gold-bearing material every 40

samples (i.e. 5% QAQC). Assays should include Au for every sample;

o U-Th should be assayed for initially, and guided by scintillometer results;

o The final record should be a photographic section per shaft, complete with all of the

above data.

• As the database expands, make a three dimensional model of the area using the

topography, depth to sand level, depth to conglomerate, thickness of conglomerate, style

of conglomerate, and depth to basement.

• As exploration proceeds, gradually reduce spacing of pits to 500 x 50m in critical areas.

Ore resource pitting is probably required at 100 x 25m and RAB/Aircore will be required

where pitting cannot penetrate to the basement.

PURCHASES

The following are required for efficient exploration:

• Insect proof office;

• A lock-up shed or enclosure for sample storage;

• Magnetic susceptibility meter (not critical);

• A scintillometer;

• Digital camera dedicated to pit mapping

RESEARCH

The heavy mineral fractions need to be examined mineralogically to determine which potential

economic minerals are present, particularly the U-Th minerals present. Care is required to

ensure that concentrate samples sent for mineralogy are not over-panned (panned

concentrates recorded by Douglas Lake Minerals have lower U, Th, La, Ti, Zr)