CDQ up 26 cents in 2 daysAcquires Gold properties in Tanzania
Challenger DevelopmentCorp. (the “Company”) is pleased to announce that it has entered into an Option Agreement with Harbour Green Investment Limited to acquire a 70-per-centinterest in the Buziba-Busolwagold claims inthe prolific Lake Victoria Gold Fields of Tanzania. The property is located within the Rwamagaza area Nyanzian greenstone beltapproximately 100 km south west of Mwanza,Tanzania. The Buziba-Busolwa gold claims are located 100 kilometers south west of Mwanza and consistof thirty primary mining licenses with a total area of 2.385 square kilometers.
Tanzania is now thethird-largest gold producer in Africa, after SouthAfrica and Ghana. This has been achieved withthe opening of three major open-pit mines (Golden Pride, Geita and North Mara)and one major underground mine (Bulyanhulu) in recent years. These mines areall located in the Nyanzian greenstone belt, in the Lake Victoria Goldfields.
IAMGOLD reportedlyundertook a drilling program consisting of reverse circulation (RC) and diamonddrilling (DDH). The most significantresults came from a RC hole which was later twinned by a diamond drill hole:
KM01 (RC) 12m @19.48g/t gold from 4m to 16m including 198.9g/t from 12 to13 m.
KM02 (DDH) 2m@22.0g/tfrom 12m to 14m including 1m@42.1g/t
Smallscale, active artisanal mining operations within the Buziba-Busolwa claims,indicate a good potential for discovery of further gold mineralisation. Althoughartisanal miners are typically targeting alluvial gold mineralisation, thistype of gold mineralisation may overlie larger zones of yet undiscovered goldmineralisation in depth.
Consideration for the acquisition is a cash payment ofCDN$350,000 and incurring exploration expenditures of CDN$1,500,000 on theproperty over a three-year period. Upon TSXVenture Exchange approval and company’s due diligence the Company will issue 2,000,000common shares from treasury to the vendor.The vendor retains a 2-per-cent Net Smelter Return, up to one percent ofwhich may be purchased by the Company for CDN$2-million.