TORONTO, ON--(Marketwired - February 18, 2014) - Tembo Gold Corp. (TSX VENTURE: TEM) (FRANKFURT: T23) ("Tembo" or the "Company") is pleased to announce that it has issued 10,000,000 units (the "Units") of the Company to Concept Capital Management Limited ("CCM") at a price of C$0.10 per Unit for aggregate gross proceeds of C$1,000,000 pursuant to its previously announced private placement (the "Financing") in the news release dated January 2, 2014. The Company is also pleased to announce that two diamond drilling rigs have been mobilized onto the Tembo project and the 2014 in-fill and deep-drilling program has commenced. Following the successful completion of the recent ~$8MM financing and a technical review of the project exploration results to date, a drill program to further test previously drilled targets has been designed and initiated.
David Scott President & CEO stated, "We are very pleased to once again be drilling at Tembo. The confidence expressed by our new investors in the project and our team through the recent financing is extremely encouraging. The new technical members of the Board of Directors and our exploration team have reviewed the historical data, the status of the project and the 2012 drilling results, and a three-month detailed drilling program for this quarter has been agreed. Drilling priorities and targets will be reviewed and established on a quarterly basis."
In mid-January two of Tembo's new directors, Bob Foster of Stratex plc and Neil Gardyne of New Africa Mining Fund II, joined the Tembo geological team, including David Scott, on site to conduct a detailed review of all historical and recent data and geological information, examine the drill core of the 2012 drilling program, and consider the proposed drilling program. As a conclusion of this exercise an immediate work program for the first quarter of 2014 was agreed on and immediately initiated. Two diamond drill rigs have been deployed on the Tembo project where the Company plans to test several high priority targets. The drill program commenced at the Ngula 1 target to follow up on the last deep drill hole completed; TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m from 302.30m. The drill program includes drilling at the Ngula 1 target (complete), Nyakagwe East (currently underway) and Nyakagwe Village (planned).
NGULA 1
The current drill program commenced shortly before the December holiday shutdown. The first diamond drill rig was mobilized to Ngula 1 and the last drill hole drilled in the 2012 campaign (TDD0041) was deepened to complete the section through the target zone. Following the holiday break two diamond drill rigs were mobilized at two new Ngula 1 deep targets. These holes have been completed and the company is awaiting assay results. A review of the awaited data, along with drill results to date, will be used to evaluate and plan a follow-up drill program at Ngula 1.
The Ngula 1 target consists of a 150-200m wide package of massive and sheared mafic meta-volcanic rocks bounded to the north and south by thin meta-sedimentary units. Within the package there are a number of weak to strong sub-parallel, near vertical, east-west striking shear structures. These invariably host gold elevated gold values in association with quartz veining, alteration and sulfides, dominated by pyrrhotite with lesser pyrite and chalcopyrite. These east-west structures are highly variable in thickness. Northwest and northeast trending shear zones are interpreted from magnetic features and artisanal workings and the intersection of these with the east-west structures, may control the development of thicker and higher-grade zones of deformation, alteration and mineralization.
The wide spacing of the drilling at this stage precludes direct structural correlation between borehole sections but some continuity of the zones has been demonstrated up dip through boreholes to the surface artisanal workings. The best results of this earlier campaign at Ngula 1 include:
2012 Drill Results
- TDD0004: 3.13 g/t Au over 25.89m from 41.00m including 8.87 g/t Au over 3.89m;
- TDD0005: 8.50 g/t Au over 5.14m from 152.86m, including 93.3 g/t Au over 0.38m;
- TRC0013: 17.23g/t Au over 4.00m from 19.00m, including 48.8g/t Au over 1.00m, and 13.00g/t Au over 1.00m from 104m;
- TRC0014: 19.80g/t Au over 1.00m from 114.00m and 10.00g/t over 1.00m from 122.00m;
- TDD0054: 8.17g/t over 11.05m from 116.95m; and
- TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m.
NYAKAGWE EAST
Both drill rigs are currently drilling at Nyakagwe East and, to date, two of the eight planned holes have been completed. Two distinct parallel northwest trending zones of artisanal workings, separated by a dolerite dyke (some 6m thick) characterize the Nyakagwe East target. The strike length of each of the zones exceeds 500m. The mineralization is associated with shearing within mafic to intermediate meta-volcanic host rocks, strong quartz veining and semi-massive, stringers and disseminations of pyrite. Higher grades are distinctly correlated with quartz veining and abundant sulphide. The zones strike northwest and are interpreted to dip at 60° to the southwest.
Initial drilling of this target was conducted in 2008 and followed up in Tembo's 2012 program. The drilling demonstrated that mineralization continued to the northwest beyond the immediate workings and extended the potential strike to nearly 1 km along the northern structure, returning the following highlight results:
2012 Drill Results
- TDD0019: 4.69g/t Au over 1.67m from 67.35m;
- TDD0029: 61.80g/t Au over 0.68m from 277.24;
- TDD0030: 2.62g/t Au over 3.29m from 48.21m;
- TDD0104: 4.72g/t Au over 2.11m from 66.80m;
- TRC0233: 5.66g/t Au over 1.00m from 84.00m;
- TRC0234: 5.46g/t Au over 2.00m from 109.00m; and
- TRC0347: 6.48g/t Au over 2.00m from 8.00m.
Historical 2008 Diamond Drill Results
- DD001: 10.25 g/t Au over 3.50m from 38.50;
- DD004: 2.45g/t Au over 4.72m from 87.03m;
- DD005: 9.73g/t Au over 3.40m from 81.94m;
- DD008: 2.65g/t Au over 3.60m from 84.00m;
- DD009: 2.07g/t Au over 3.26m from 142.19m;
- DD011: 10.4g/t Au over 1.50m from 45.10m and 2.05 g/t Au over 2.50m from 57.95m; and
- RC056: 36.70g/t Au over 1.00m.
A total of approximately 12,000m (1,200m per month) of drilling are planned for the Tembo project in 2014. The main focus of the 2014 programme will be firmly placed on drilling. The ongoing drill programs will constantly be reviewed and revised in the light of the new data in order to establish priorities and optimize the targeting..
GEOPHYSICS
An IP geophysical survey will be conducted across the full 1.5km width of the northwest trending structural zone centered around the Buly trend. This trend is evident in the airborne magnetic interpretation as a series of sub-parallel northwest trending lineaments, the strongest of which is considered to be an extension of the adjoining Bulyanhulu Mine's Reef 1 structure, which hosts the large resource at the mine. Based on the results of this survey a drilling program will be designed to test any targets within this area that return a geophysical response that may suggest the presence of significant sulfides and/or quartz veining (both commonly associated with gold mineralization) along the northwest trends or other potential cross-cutting structures.
NOTES
Widths represent drill intersection widths not corrected for drill hole inclination and dip of the geological zone. True widths have not been determined. The drill hole inclination of 60deg and sub vertical dip of the structures suggests that the true width will be approximately 50 % of the intersected width.
PRIVATE PLACEMENT CLOSING
Each Unit consists of one common share of the Company and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable for one common share of the Company ("Common Share") until January 9, 2017 at an exercise price of C$0.12.
CCM is currently an insider of the Company and as a result the Financing is considered a "related party transaction" for the purposes of Multilateral Instrument 61-101 ("MI 61-101"). However, the Financing is not subject to the minority approval and valuation requirements under MI 61-101 as there is an applicable exemption from these requirements as neither the fair market value of the subject matter, nor the fair market value of the consideration, for the Financing, insofar as it involves the interested parties, exceeds 25% of Tembo's market capitalization.
CCM now collectively owns 22,500,000 Common Shares or approximately 16.6% of the outstanding Common Shares on a non-diluted basis. CCM also own 20,000,000 Warrants and if exercised an aggregate of 42,500,000 Common Shares or approximately 27.3% of the outstanding Common Shares on a partially-diluted basis.
The board of directors of the Company reviewed the Financing and considered it to be in the best interests of the Company. All the directors approved the transaction as the board considers the nominee appointed to the board by CCM to be an independent member of the board.
The securities issued are subject to a hold period expiring June 15, 2014 in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws and such further restrictions as may apply under foreign securities laws.
The net proceeds of the Offering will be used by the Company to fund ongoing exploration costs on its properties in Tanzania and for working capital purposes. The Offering remains subject to the final approval of the TSX Venture Exchange.
QA/QC
A stringent QA/QC practice is being applied to all sample batches. A Verified Reference Material standard is inserted every 20th sample, a known blank or blank standard every 20th sample and all samples with assays greater than 0.5 g/t Au are re-assayed. 1% of all samples are submitted to an alternative laboratory for check analysis. In addition the laboratory adheres to an internal QA/QC procedure including standard samples and repeats and blanks inserted independently.
The above information has been prepared under the supervision of David Scott, Pr. Sci. Nat., who is designated as a "Qualified Person" with the ability and authority to verify the authenticity and validity of the data.
On Behalf of the Board of Directors of Tembo,
David Scott, President & CEO
NEITHER THE 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 NEWS RELEASE
Cautionary Note Regarding Forward-Looking Statements
Certain information set out in this news release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. This news release contains forward-looking statements in respect of certain anticipated goals and expectations in connection with the Financing, including, without limitation, the use of the net proceeds from the Financing and the anticipated approval of the TSX Venture Exchange for the Financing. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. The forward-looking statements contained herein after provided for the purpose of providing readers with the Company's expectations and goals in connection with the Financing, and may not be suitable for other purposes. Readers are cautioned not to place undue reliance on forward-looking statements.