Tanzanian Royalty Exploration Corporation’s Board of Directors has announced the selection of Stamico, and Coreworthy to complete Phase One of Tanzanian Royalty’s planned Three-Phase Drill Program. Total meters to be drilled in all Phases are projected to amount to approximately 30,000. The Three-Phase Drill Program is being deliberated and directed by Ulrich Rath, Chair of our Technical Committee.
1) Phase One will be around 4,500 m of infill drilling designed to upgrade current inferred ounces within the planned open pit and to commence testing of the deep contact below the open pit. 2) Phase Two will continue to delineate and test the continuity and extent of the deep contact; and 3) Phase Three work will be based upon information gotten from Phases One and Two.
This Three-Phased drilling program has been designed to incorporate substantial overall value, as well as to enhance the already strong economics of the Buckreef Project.
We already know Buckreef is a great mine and it will be prosperous. The drilling of the deep contact will reveal if we have a world class mine along the lines of Bulyanhulu. We are excited.
James E. Sinclair, Executive Chairman, Tanzanian Royalty.
Funding necessities for the drill program are budgeted per Phase. The Company is raising capital for Phases Two and Three. Use of funds will be rigorously limited to authorized, approved, and essential expenses. The company does not require big financing. The results will stimulate future development, demonstrate value added improvements in project economics and gain crucial insight into the potential underground resource which makes this program very accretive in nature.
The Company has fulfilled the bidder pre-qualification process as required by the 2018 Tanzanian local content regulations, and has tendered Requests for Proposal (RFPs) to qualified drilling contractors. With this selection of the contractors by the Board of Directors, Parts B and C of the 2018 local content regulations can be finished and submitted. After approval by the Mining Commission, Phase One of the program can advance. Planned mobilization by both contractors to the site will be on or before January 25, 2019. The planned work is to take approximately 45 days to finish. Delays to the commencement of this timeline, if any, would be attributable to extra requirements by the Mining Commission.
Extra information on the Buckreef Project can be viewed in the June 26, 2018 report. Tanzanian Royalty Exploration (TRX), the Operator of Buckreef Gold Company (BGC), released a Canadian NI 43-101 Pre-Feasibility report by Virimai Projects (Virimai) on the Buckreef Project. This report is an autonomous mine design and costing Pre-Feasibility Study (PFS) of the Buckreef Gold Mine Project located in the Lake Victoria Goldfields, Geita District, in North Central Tanzania.
In the Canadian NI 43-101 report, Virimai suggested an infill drilling program. This crucial first Phase itself comprises of two purposes. Within the presently conceived open pit, this program will upgrade the mineable ounces, moving as much as possible of the present inferred resources to the measured and indicated categories and move some indicated resources to measured resources. Most significantly, high priority will be given to conduct drilling to confirm the formerly known strong intersections and grades from deep holes and start to test the deposit at depth and for potential as an underground mine.
These next few months will be an exciting time for the company. Our team has done an outstanding job planning this program. We are drilling into a known asset and are able to specifically target the holes on the infill drilling, allowing an easy upgrade of the mineable ounces. While that work will be extremely accretive to the Buckreef Project, the Company is especially interested to see the results from the deep contact. Mr. Sinclair was the founder of the Bulyanhulu mine. He has done this before. By all appearances, he is doing it again.
Jeffrey Duval, Acting CEO, Tanzanian Royalty.