VANCOUVER, Oct. 15, 2013 /CNW/ - Tanzania Minerals Corp. (the "Company"
or "TZM"), (TSXV: TZM) (FRANKFURT: TM0.F) is pleased to announce it has
entered into a Letter of Intent with MDN Inc. ("MDN")(TSX: MD) to
jointly explore and develop the Ikungu gold project (the "Property") in
Tanzania. TZM can acquire up to a 50% interest in MDN's interest in the
Property, which covers 17.9 km2 and lies 17 km southwest of Musoma and 135 km northeast of Mwanza,
Tanzania's second largest city.
The Project
The Ikungu Gold Project is situated in northern Tanzania approximately
860 km north-northwest of the economic capital, Dar es Salaam. The
structurally controlled gold mineralization is hosted within
metasedimentary rocks located at the contact between two distinct lava
sequences. This is similar to the style of mineralization noted at
African Barrick Gold's Bulyanhulu mine (10.56 Moz Au proven and
probable, 2012 data) in the Archean Sukumaland greenstone belt, Lake
Victoria Goldfields.
Kal Matharu, CEO of Tanzania Minerals Corp. said, "The Ikungu Project
has a large, near surface, developing mineralized zone with
consistently attractive gold grades. Both TZM's and MDN's technical
staff believe that with additional drilling, a resource estimate could
emerge in short order. Ikungu brings to TZM an advanced exploration
asset and we believe the project is a game changer for the company. We
are very pleased to have entered into this agreement with Marc Boisvert
and his technical team at MDN to aggressively move this exciting
project forward."
Fifty-three (53) holes drilled in earlier exploration programs on Ikungu
identified a mineralized zone that dips consistently 70-80°
south-southwest, extends more than two kilometres along strike and 300
metres vertically. Drilling has delineated four higher-grade gold zones
formed around the intersections in holes IKD-45 (8.6 g/t Au over 14.78
m) on Section 2230mE, IKD-48 (3.11 g/t Au over 9.50 m) on Section
2830mE, IKD-51 (3.39 g/t Au over 7.05 m) on Section 3190mE and IKD-36
(13.22 g/t Au over 4.62m) on Section 3610mE. Gold soil anomalies and
scout drilling indicate the gold-bearing structure extends over a
distance of 3800 m, and drilling demonstrates the mineralized zone
remains open at depth. Based on the current grades and width, TZM
believes that additional drilling combined with the existing drill
holes should result in a resource estimate being generated in 12 to 18
months.
Archean greenstone belts worldwide are known to host world-class
orogenic gold deposits with large metal endowments (> 5 Moz). Examples
include the Abitibi District of Canada (Hollinger-McIntyre, Kirkland
Lake, Sigma-Lamaque), the Ashanti belt of Ghana (Obuasi, Tarkwa,
Ahafo), and Yilgarn belt of Australia (Golden Mile, Kalgoorlie,
Norseman). World-class Archean gold deposits are also present in
Tanzania, e.g., Bulyanhulu (10.56 Moz Au) and Geita (8.78 Moz Au, both
proven and probable reserves), and the likelihood exists that similar
systems will be discovered in the future. There is no certainty that
further exploration will lead to discovery or development of such a
deposit on the Ikungu property.
Additional details on the Ikungu gold project are presented in a 2012
NI43-101 technical report at www.mdn-mines.com.
The Option
MDN will grant an option to TZM to acquire an undivided ownership
interest in the Property equal to 50% of the undivided interest held by
MDN (the "Option") by incurring up to an aggregate of $12,000,000 in
exploration work expenditures on or in respect of the Property, over
four years (the "Option Period") commencing on the date on which the
Definitive Agreement (as defined below) is entered into, as follows in
tranches:
(All figures in US Dollars)
-
A minimum amount of $3,000,000 during the first year to earn 12.5% (the
"First Tranche");
-
Provided that the First Tranche has been exercised, an additional amount
of $3,000,000 during the second year to earn an additional 12.5% (the
"Second Tranche");
-
Provided that the Second Tranche has been exercised, an additional
amount of $3,000,000 during the third year to earn an additional 12.5%
(the "Third Tranche"); and
-
Provided that the Third Tranche has been exercised, an additional amount
of $3,000,000 during the fourth year to earn an additional 12.5%.
A joint venture will be deemed to have been established once TZM has
acquired 50% of the interest held by MDN in the Property.
The Company and MDN shall have a due diligence period commencing upon
the execution of this Letter of Intent and expiring on November 30,
2013. Subject to the satisfactory conclusion of due diligence by the
Company and, the receipt of all necessary corporate and regulatory
approvals, a formal agreement (the "Definitive Agreement") shall be
prepared by MDN for review by TZM and shall contain the terms of the
Letter of Intent together with all such other terms and conditions
customary to mining transactions of this nature or otherwise necessary
or appropriate to implement the terms of the Letter of Intent and as
are acceptable to the parties. The Company and MDN shall use their best
efforts to complete and execute the Definitive Agreement on or before
November 30, 2013, unless otherwise mutually agreed upon.
Additional information on Tanzania Minerals Corp., including technical
reports and other public documents are available on SEDAR at www.sedar.com or on the Company's website at www.tanzaniaco.com.
Dr. Sandy M. Archibald, PGeo, EurGeol, Consultant Geologist, Aurum
Exploration Services, is the Qualified Person who supervised the
preparation of the technical data in this news release.
Tanzania Minerals Corp. is an emerging junior exploration company
trading on the TSX Venture Exchange. The company has an extensive
portfolio of projects in Tanzania.
On behalf of the Board of Directors of Tanzania Minerals Corp.
"Kal Matharu"
Kal Matharu, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements
concerning our plans, intentions and expectations, which are not
historical in nature are intended to be, and are hereby identified as,
"forward looking statements". Forward looking statements may be
identified by words including "anticipates", "believes", "intends",
"estimates", "expects" and similar expressions. The Company cautions
readers that forward looking statements, including without limitation
those relating to the Company's future operations and business
prospects are subject to certain risks and uncertainties that could
cause actual results to differ materially from those indicated in the
forward looking statements.
SOURCE Tanzania Minerals Corp
Image with caption: "Lake Victoria Goldfield (CNW Group/Tanzania Minerals Corp)". Image available at: http://photos.newswire.ca/images/download/20131015_C9699_PHOTO_EN_32006.jpg
