High-grade Gold Exploration. High-grade Team. High-grade Neighbour.

Tanzania, particularly known for its vast wilderness areas and world-renowned national parks, happens also to be the 6th largest gold producer in Africa1 and 19th in the world (2019). Mineral export values from this resource packed East African country, have been growing each year. Tanzania’s mining industry has been changing, with intent on attracting more growth in this sector. Barrick Gold Corporation (BC) (TSX.ABX) – the world's second largest gold producer, operating mines in North America, South America, Australia, and Africa, is a significant contributor to this growth.

Barrick’s announcement in the fall of 2020, of making the North Mara and Bulyanhulu mines the seventh Tier One asset in the Barrick portfolio, was addressed again in January, 2021, with strategies to optimize this plan. Note to reader: Barrick defines a Tier One mine as one that produces in excess of 500,000 ounces of gold per annum and has a life of at least 10 years.

Just last month, in Mark Bristow’s (President & CEO of Barrick Gold Corp.) message to shareholders in the Barrick Gold 2020 Annual Report, he stated “exploration at Bulyanhulu has produced exceptional results and it is becoming clear that this orebody is of world class proportions. The ramp-up of the underground mining and processing is on track to reach steady state annualized production in 2022. We now believe that once we have brought North Mara and Bulyanhulu into the lower half of the cost curve, we shall be able to deliver another Tier One complex into Barrick’s portfolio.” 2

The management of Vancouver BC-based Tembo Gold Corp. (TEM) (TSX-V.TEM, OTCQB: TBGPF, Forum) is excited by this – and for good reason, see Figures 1 & 2.


Figure 1 – Tembo Gold Project Location


Figure 2 – Tembo Gold Corp Project Area

Tembo holds 100% of 181km2 licence area adjacent to Barrick's 20Moz Bulyanhulu Mine, and is pursuing the discovery of one or more multi-million-ounce Au deposits


Tembo Gold Corp. (TSX-V.TEM, OTCQB: TBGPF, Forum)

Tembo Gold Corp. was formed in September of 2011, through corporate re-organization and management changes to the previous owner, Lakota Resources. Not wasting any time, Tembo began analyzing historical exploration data captured between 1997 and 2008, which indicated a number of potential gold mineralized zones, each possibly the ‘tip of the iceberg’.

A phased exploration program was then designed, with a focus on seven target areas, each defined on the historical exploration work and identified artisanal activity and prioritised on:

• soil/RAB sample programs (surface geochemistry),
• drill programs: RC and DD,
• artisanal gold workings from LIDAR data,
• revised interpretation of a 2003 geophysics study,
• field mapping.

Tembo also commissioned ‘reconnaissance geological mapping over the previously defined potential targets, to record details of artisanal mining activity and geological units seen to be favoured by the miners. Further ground geophysical surveys, geochemical sampling, a LIDAR survey, and reinterpretation of airborne geophysics were also carried out.

A comprehensive first phase drilling programme aimed to test the targets, to further develop target priorities, test the gold tenor beneath artisanal mining activity, and broaden the geological understanding of the gold mineralisation hosting geology within a limited area of the Tembo Project greenstone area. The programme, conducted in 2012 and in 2014 did not disappoint and extremely promising results were returned.

Figure 3: Significant Initial Drill Results

BH ID	Depth From m	Grade Au g/t	Length m
TDD0004	41.00	3.13	35.89
including		4.46	6.00
		9.38	6.30
TDD0005		8.50	5.14
including		58.49	0.68
TDD0054	116.95	8.17	11.05
TRC0013	19.00	17.23	4.00
and	104.00	13.00	1.00
TRC0423	36.00	10.17	6.00
TDD0041	299.00	22.81	15.00
including		34.58	9.70
TDD0071	85.25	9.64	3.95
including		24.72	1.45
TDD0074	370.46	6.55	7.46
TDD0107	43.88	16.58	3.55
and	65.90	27.88	3.00
TDD0111	53.35	35.14	2.45
including		167.00	0.50

State-Of-The-Art Machine Learning and AI Technology
Having spent more than US$25 million to date on exploration, mostly on drilling, Tembo is sitting on a treasure trove of data requiring re-interpretation. To analyze this large data set, Tembo recently entered a collaboration agreement with Goldspot Discoveries Corp, experts in cutting-edge exploration data analysis technology.

Goldspot has been applying Next-Generation Analytics and Decision Support using Machine Learning (ML) and its proprietary expertise to analyse and prioritise existing drill targets and identify and prioritise new exploration targets on the flagship Tembo Project.


Management

DAVID SCOTT - PRESIDENT, CEO AND DIRECTOR

• Former Technical Services Manager for Barrick Gold’s Bulyanhulu Mine, Tembo Project’s immediate neighbour and former Executive Director of Shanta Gold Limited
• Over 40 years of African exploration and mining experience with 22 years in Tanzania
• Extensive knowledge of Tanzanian geology including direct experience at Bulyanhulu
• Extensive exploration, mine feasibility study, mine development and operational management experience
• Holder of a BSc, Geology from the University of the Witwatersrand as well an M.Sc., and is a registered Professional Natural Scientist (Pr. Sci. Nat.) and Fellow of the Geological Society of South Africa.

SIMON BENSTEAD - CFO, VP BUSINESS DEVELOPMENT AND DIRECTOR

• 20 years senior management experience in capital markets, formerly with Merrill Lynch as Vice President Institutional Equity Trading, and BMO Capital Markets as Managing Director Institutional Trading focused on resources
• Significant and long-term supportive shareholder of Tembo; holds a BA in Commerce from The University of Western Ontario

MARC CERNOVITCH – DIRECTOR

• Studied Economics at McGill University. Marc has focused on corporate development, funding and building companies primarily in the resource and energy technology fields
• 14 years of experience providing capital markets advisory services to companies across both public & private sectors. Strong background in corporate governance and finance
• Served as a director and advisor to numerous small and mid-cap companies contemplating and/or executing financing and M&A transactions.

FRANK HOEGEL – DIRECTOR

• Currently serves as Chief Executive Officer of Peter Beck Performance Fonds GbR, and advisory board of Concept Capital Management, an Asset Management Company
• Master of Business Administration (FH) with a focus on Financial Management, Banking, and International Business & Management from the University of Nürtingen, Germany.

PAUL MAGEGE - COUNTRY MANAGER

• A founding shareholder with strong local community and government relationships and a skilled administrator.

View From the C-Suite

Simon Benstead is the CFO, Director & Vice President-Development at Tembo Gold Corp. When Stockhouse first introduced Tembo to our investor audience in October 2019, Mr. Benstead talked about the then newly re-emerging Tanzanian gold mining market, how gold is still the go-to asset class for savvy investors, how his company has positioned itself an exploration leader in Africa, and a variety of other informative mining topics.

Recently we reached out again to Simon to get his perspective and expertise on the Company’s cornerstone gold project and where he expects to see the project and the gold market heading into 2021.

SH: Simon, can you tell us about Tembo recently adding 70 square kilometres to Barrick’s adjoining Bulyanhulu project?

SB: We had the opportunity to expand our land tenure, which is a highly prospective greenstone belt extending immediately to the north from the Bulyanhulu Gold Mine. This transaction’s timing could not be more ideal, considering Barrick’s goal of combining their 20Moz Bulyanhulu and North Mara Gold Mines into Tier 1 status.

SH: How do you see the gold exploration sector evolving in this part of the world?

SB: In March, John Magufuli, President of the Republic of Tanzania died, resulting in Vice-President Samia Suluhu Hassan to become the country’s new leader. In stark contrast to her predecessor, she has signaled transformation - more specifically, setting a new tone towards improving Tanzania’s business environment, welcoming foreign investors, while urging shifts in tax policies, immigration, and business licensing to be more friendly and accommodative to attract foreign investment. Additionally, a new Foreign Affairs Minister (former Tanzanian Ambassador to the United States with vast diplomatic experience) was appointed with the goal of rekindling Tanzania’s international relations and reputation. I believe we will begin to see more investments into Tanzania. Hassan has instructed her officials to settle a tax dispute with Barrick and to cut red tape allowing the accelerated development of nickel, helium, and gold projects by foreign investors.

SH: What sets Tembo apart from other junior mining companies in this space and what makes your business model attractive to investors?

SB: Tembo has a tightly held capital structure, clean balance sheet and no debt. Management has extensive African, Tanzanian, and gold exploration and mining experience that is matched with extensive capital markets experience.

SH: And finally, Simon, you say in your corporate deck that Tembo is strongly undervalued to peers? What can you tell our investor audience regarding revenue traction the current valuation of your stock and why it’s a good value buy right now?

SB: Tembo is in a unique place currently. We have terabytes of exploration data from extensive exploration programs, currently being analysed and interpreted with GoldSpot Discoveries Corp., using data driven science, artificial intelligence, and machine learning to generate and prioritise targets. Our project is in proximity to a number of world class multi-million-ounce gold deposits and we have some exceptional preliminary drill results.


Financial Highlights

For shareholders and potential investors, it’s important to highlight that TEM:

• is presently debt-free
• boasts a tightly held capital structure
• offers a clean balance sheet with the interests of management aligned with shareholders
• has reset all mining licenses
• and added up to 50% land mass to its current holdings.

In Closing

Tembo has a carefully defined set of plans currently in motion:

Q4 2020 - Q1 2021

TARGET GENERATION AND PRIORITISATION Q4 2020 AND Q1 2021

• GoldSpot study, target generation and results evaluation
• Confirm and prioritise existing and new targets
• Drill programme design and budget estimation

Q1 - Q3 2021

FOLLOW-UP AND FIRST PASS DRILL PROGRAMMES

• Extend drilling along strike and downdip, follow-up exceptional intersections, e.g. TDD0041: 22.81g/t Au/15.00m/from 299.00m
• Commence drilling on new targets using RAB and progress the programmes through to RC and DD drilling as results warrant

Q1 - Q3 2021

ORE RESOURCE MODELING – Q4 2021

• Develop wireframe models and commence resource determination as drill results justify

Q4 2021 – Q1 2022

SCOPING STUDY AND PEA PROGRAM - Q4 2021 - Q1 2022

• Complete resource model
• Preliminary mine design
• Metallurgical characterization studies
• Process plant basic design
• Establish optimum production rate
• Estimate Capex & Opex costs
• Develop a PEA financial model
• Identify studies to complete a Pre-Feasibility Study

Tembo is a well-positioned junior mining company that savvy investors should be keeping a keen eye out for moving forward through 2021.


For more information, visit tembogold.com.

1 World Gold Council. (2020, June 30) Gold Mine Production.
https://www.gold.org/goldhub/data/historical-mine-production

2 Bristow, M. (2021, March 19). Mining for a New World - Barrick Annual Report 2020. Retrieved from https://s25.q4cdn.com/322814910/files/doc_financial/annual_reports/2020/Barrick-Annual-Report-2020.pdf