Douglas Lake Minerals Inc DLKM

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Tanzanian Mining Act

Presented here is a brief summary of the two types of mineral rights granted under the Mining Act, 1998, supplemented as necessary from the Mining Regulations, 1999.

Prospecting Licenses : Pursuant to Division A of Part IV Section 24 of the Mining Act, Prospecting Licenses can be obtained for
a) all minerals other than building materials and gemstones,
b) building materials, and
c) gemstones.

Prospecting Licenses granted under Division A of Part IV Section 29 of the Mining Act consist of a) a preliminary reconnaissance period not exceeding two years, or b) the initial prospecting period not exceeding three years. A preliminary reconnaissance period license can cover an area up to 5,000 km², whereas the maximum size for an initial prospecting period license is 200 km² and the maximum size for a gemstone prospecting license is 10 km². A preliminary reconnaissance period license can be renewed for the initial prospecting period, however if the area covered exceeds the maximum size then a portion will have to be relinquished. An initial period license can be renewed for two successive periods of two years, however, 50% of the area must be relinquished on each renewal. Following the end of the second renewal, a prospecting license can be renewed for a further period in order to complete a feasibility study already commenced.

Special Mining License : Pursuant to Section 40 a Special Mining License shall be granted for a period not exceeding twenty five years, and is renewable in accordance with Section 42 for a period not exceeding twenty five years. The holder of a Special Mining License in accordance with Section 43 has exclusive right to carry on mining operations in the area covered by the License for the minerals specified in the license.