Modern Mining November 2016

MINING News

Development starts at Magambazi

Magambazi in 2009. The first hole proved to be the discovery hole, returning 53 m grading 4,32 g/t gold. In December 2011 Canaco com- missioned an initial mineral resource estimate for the mineralised portion of the Magambazi area. The results of this work were announced on May 15, 2012, reporting an initial mineral resource of 15,2 Mt grading 1,48 g/t gold and containing 721 300 ounces in the indi- cated category, as well as 6,7 Mt grading 1,36 g/t gold and containing 292 400 ounces in the inferred category. 

East Africa Metals Inc, listed on the TSX-V, says its development partner, Tanzanian Goldfields Limited, has initiated development activity at the Magambazi project located in the Handeni region of Tanzania. According to Tanzanian Goldfields, the mobilisation of equipment required to initi- ate test mining and bulk sampling operations as an initial phase of the development plan is in progress. Gravity recovery equipment is currently on site with additional equipment being mobilised to site from Dar es Salaam. Agitated leach tanks and CIL recovery equip- ment are scheduled for construction and installation over the next several months. Additionally, Magambazi Camp upgrades have commenced, with the production site preparation now in place. Tanzanian Goldfields’ management has concluded discussions with community and government representatives for the hand­ over of the Magambazi site and dismantling of artisanal operations to clear the way for the current test mining and bulk sampling programme and future development of a commercial mining operation. Previously completed preliminary met- allurgical test work on the primary gold mineralisation at the Magambazi project has demonstrated significant (72,6 %) gold recoveries from gravity methods alone. The initial phase of test mining and bulk sampling has been planned to confirm these results in the field and allow a definitive approach for the initial ramp up of production to be developed. Tanzanian Goldfields has also announced the appointment of Gareth Taylor as its General Manager. He has extensive experi- ence in deep level, intermediate, shallow underground and opencast mining in a number of African countries including Mali, Namibia, South Africa and Tanzania. For 28 years he was employed by AngloGold Ashanti where he was head of mining and plan- ning for the company’s East and West Africa regions and also MD of the Geita gold mine in Tanzania. In 2006 Taylor joined Barrick Gold, where he was Executive General Manager for Barrick Gold Tanzania and Vice President for Barrick Gold Africa, responsible for all Barrick’s operational interests in Africa. In 2010 he joined Shanta Gold Limited and held posi- tions as COO and CEO whilst bringing the New Luika Gold Mine in the Lupa goldfield of

south-west Tanzania to production. The Magambazi project is located in the emerging Handeni gold district in eastern Tanzania, 180 km north-west of Dar es Salaam and 140 km south-west of the port city of Tanga. Gold was discovered by locals in the Magambazi area in 2003, spurring a gold rush with intense alluvial and hard rock mining. Canaco – the predecessor of East African Metals – acquired the Handeni property in 2007 and began drilling at

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November 2016  MODERN MINING  13