Lake Victoria Mining Company, Inc. (LVCA:OTCBB) is pleased to report positive assay results from the recent core drilling program at its 100% owned Kiabakari East project in northeastern Tanzania.
The project is about 4 kilometers southeast of the past producing Kiabakari Gold Mine. The four hole drill program, completed in June 2012, totaled 648.72 meters and was the first drilling by Lake Victoria at Kiabakari East. Final drill hole locations were determined by detailed geologic mapping, geophysical surveying and trench sampling.
The holes intersected wide zones of anomalous gold mineralization including 37.5 meters of 1.03 g/t gold, 43.35 meters of 0.58g/t gold, including higher grade intersections of 1.75 g/t gold over 6.13 meters and 2.05 g/t gold over 3.00 meters. Mineralized intercepts are summarized in the table below.
Drilling was focused at BIF Hill where previous trenching returned significant gold grades within Banded Iron Formation rocks (Refer Press Releases of 6th February and 23th April 2012). The drill holes were located on the south side of BIF hill and were spaced 40 meters apart on N-S drill fences. The holes, drilled due north at angles of -50 and -55 degrees below the horizontal, were designed to test the grade and to define the geometry of the gold mineralization.
Each borehole was drilled across an 80 meter wide BIF package of rocks consisting of cyclic siltstone and banded chert sequences until the footwall pebble conglomerate was reached on the northern side of the hill. The BIF unit dips steeply to the south, and although occasional intraformational sedimentary slump breccias are present, the unit is complexly folded, which tends to increase the grade of the gold mineralization. A north-northeast trending fault is present and appears to have displaced the eastern part of the mineralized zone some 40 meters to the north and to also have down dropped the BIF unit to the east.
Massive sulfides, consisting of pyrrhotite and magnetite -rich bands occur throughout the BIF unit. Crackle brecciation and fracturing is more common in the brittle chert beds which are often infilled with later pyrrhotite and/or pyrite mineralization. Gold is associated with the sulphide filled fractures as well as within zones of massive pyrite and, to a lesser extent, massive pyrrhotite mineralization.
From the limited drilling undertaken across 80 metres of east-west strike length, the gold mineralization, having been offset by the north-northeast fault, plunges steeply to the east. Anomalous gold values of greater than 250 ppb gold were encountered over substantial widths in each of the boreholes; higher grades were intersected in the deeper eastern most hole (KED004). It is important that, mineralization remains open down dip and along strike both to the west and down plunge to the east.
A second target within the Kiabakari East License is the Kyarano Prospect which is located 1.5 kilometers east of BIF Hill and has yet to be drill tested. Gold is associated with a north-northeast trending pyritic quartz felsite porphyry. This quartz porphyry has a known strike length of about 500 meters and is an active artisanal mine site. Shaft samples collected by Lake Victoria returned gold values up to 19.8g/t gold (Refer Press Release of 29th May 2012); future work will attempt to locate drill targets to further test this prospect.
Roger Newell, Lake Victoria's Chairman says, "With only four holes, we intersected a large gold zone and we are optimistic that further drilling will expand the current prospect. Our discovery of this homogenous gold bearing BIF is extremely significant and represents a positive development for the Company. Furthermore, the Kyarano prospect located to the east is still to be explored and together with BIF Hill will certainly add to the gold potential of this exciting discovery".
The Company is also pleased to report that it has made significant progress towards applying for a listing on the Toronto Venture Stock Exchange. However, in view of current difficult market conditions, the Board of Directors has elected to delay further listing related activities until market conditions show signs of improvement.
Analytical work is carried out at the independent SGS Laboratories in Mwanza, Tanzania. The drill core samples have been split to ½ core by diamond saw cutter and have been subjected to full sample preparation followed by a 50 gram fire assay with an AA finish. Blanks (5%), commercial standards (5%) and duplicates consisting of ¼ core (5%) have been used in each sample batch of 20 samples to monitor laboratory performance during the analysis. Samples submitted either represent 1 meter intervals or have been sampled according to lithology and/or structural zones that would include the presence of visible gold or gold bearing sulphides as logged in each of the boreholes.
The reader is cautioned that the potential quantity and grade of the regional exploration target is conceptual in nature; it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource and there is no guarantee that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. The Company's production objectives are intended to provide an indication of management's current expectations and are still conceptual in nature. It is uncertain that it will be established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.
Clive King, P.Geo, a Qualified Person as such term is defined in Canadian National Instrument 43-101, is responsible for monitoring the supervision and quality control of Lake Victoria's exploration program and has reviewed and verified the technical information contained in this news release. Clive King, registered as a Professional Geologist with the South African Council of Natural Scientific Professions (Pr.Sci.Nat Reg. No. 400065/09).
About the Company
Lake Victoria Mining Company, Inc. is working to create another gold mine in the world famous Lake Victoria Greenstone Belt, Tanzania, East Africa. Tanzania is Africa's third largest gold producer, behind South Africa and Ghana, but also has reserves of uranium, nickel and coal. Gold exports alone earned it $1.076 billion in 2009, up from $932.4 million the previous year. Lake Victoria holds nine prospective gold projects and five uranium projects within its Tanzania property portfolio. Additional information regarding the Company is available on the corporate website at: www.lakevictoriaminingcompany.com
This news release may contain forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and within the meaning of Canadian provincial securities laws applicable to the Company. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to obtaining financing to meet the Company's exploration programs and operating costs during its exploratory stage, the interpretation of exploration results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, or other unanticipated difficulties with or interruptions in production and operations, the potential for delays in exploration or development activities or the completion of feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including the inability to obtain mining permits and environmental regulatory restrictions and liability, the speculative nature of mineral exploration, dilution, competition, loss of key employees, and other risks and uncertainties, including those described under "Risk Factors" in the Company's Annual Report on Form 10-K filed on June 29, 2012, which is on file with the Securities and Exchange Commission, as well as the Company's periodic filings available at www.sec.gov and with Canadian Securities Administrators at www.sedar.com. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as is required under applicable securities laws.
Cautionary note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this press release, such as "mineralized zones" which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our annual report on Form 10-K. This press release contains information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.