Apr 29 2019
Zanzibar Gold Inc announced that it has started acquiring the Mkuvia Gold Property in the Nachengwea area of southern Tanzania and the Fakawi Gold property in the Handeni area of North-central Tanzania.
Small scale local placer operators have been mining gold from the Mkuvia property since 2005. In 2009, a 43-101 Compliant Reserve report was calculated on the principal portion of the key gold producing area, that defined an inferred reserve 6 million grams of gold. An initial operation plan was prepared but never enacted, so most of the reserve is whole.
The possibility of a low-cost extraction of placer gold from part of an extensive gold bearing placer alluvium will be explored by Zanzibar. Placer deposits are striking because of their low costs and capability to supply high-grade gold (repeatedly in the 90%+ purity range) lowering additional processing costs. Obtaining a gold inventory will help the company in continuing with all its gold exploration and development projects.
The Fakawi Property is a progressive hard rock exploration project that has extensive high-grade gold veins with a number of multi-gram assay results over 1 meter of surface trenching, north of the 1 million ounce Magambezi Deposit. Follow up exploration has not been carried out on these veins.
Latest reporting from Streetwise Reports defined that the gold supply is “slowing down.” It further encapsulates that there “have been no major gold discoveries …[and] no technological breakthroughs…”. Consequently mines are displaying lower grades.
Coupled with the underlying worries about Brexit and the cautious comments on the USA’s economy, having an inventory of gold bullion can stabilize the Company’s prospects!
S.A. Farrage, President, Zanzibar Gold Inc.
This news release was reviewed by G. Macdonald, the QP for the company.
Source: Zanzibar Gold Inc