Resolute Mining says it will pay Mali $160 million in tax dispute
The company’s shares in Sydney were suspended on Thursday, after tumbling 40% since news of the detention of CEO Terry Holohan.
The Company is pleased to provide an update on its recently acquired Buckreef Gold Mine Re-development Project in Tanzania’s Lake Victoria Greenstone Belt. The Buckreef Project is a 55/45 joint venture between Tanzanian Royalty Exploration and the State Mining Corporation of Tanzania (Stamico). This update is based on a comprehensive review conducted by the Company of previous work completed on the Buckreef Project prior to our acquisition.
The review process to date has expanded our knowledge and confidence in the continuity of the Buckreef and adjoining deposits. Since the Heads of Agreement for Buckreef was signed in December 2010, the Company’s technical staff have been evaluating the extensive database for the project with the intention of completing an exploration and development program for the Buckreef property.
This program is already at a significantly advanced stage and will be facilitated by the fact that approximately $35 million was invested in the Buckreef project prior to our acquisition. The technical staff members involved in this process were part of the geological team that advanced the Buckreef property on behalf of IAMGOLD.
A key element in this evaluation process has been the recalculation of resources for the Buckreef Project in the context of current gold prices. The economics of the project were considered to be very attractive at approximately $750 gold when control of Buckreef reverted to Stamico in 2008. Since that time the gold price has almost doubled and management believes this factor alone is certain to boost the economic viability of the various development models being considered for the Buckreef Project.
The Company is delighted to report that a substantial increase in resources has been established for the Buckreef Project by reducing the cutoff grade from 1 g/t to 0.5 g/t. In a news release dated December 21, 2010, the Company announced 43-101 compliant resources in the following resource categories: measured resources, 265,000 ounces; indicated resources, 440,000 ounces; inferred resources, 826,000 ounces. All these resources were calculated at a 1 g/t cutoff grade which is defined “as the level of mineral in an ore below which it is not economically feasible to mine it.”
By applying a 0.5 cutoff grade, the aggregate resource base for the Buckreef Project has grown by approximately 30%, with the breakdown of the resources calculated as follows: measured resources, 303,000 ounces; indicated resources, 730,000 ounces; inferred resources, 960,000 ounces. These resources occur within four principal zones on the project: Buckreef, Tembo, Bingwa and Buziba. This mineral resource estimate was prepared in accordance with National Instrument 43-101 standards of disclosure for mineral projects. See NI 43-101 Report filed on SEDAR on February 21, 2011 for more information.
According to James E. Sinclair, President and CEO, “As a starting point, these resources are exceptional by any standard. What is equally as important is that we have set the wheels in motion to expand and develop the resource base on the Buckreef Project in target rich areas that received only cursory exploration in the past. In fact, an aggressive exploration program will soon be inaugurated to realize and achieve this important objective.”
Sinclair points out that a number of huge gold deposits occur in relative close proximity to the Buckreef Project including the Geita and Bulyanhulu deposits which have contributed to Tanzania becoming the fourth largest gold producer on the African continent.
“We also have a well defined gravel resource on the Buckreef Project that could provide an early source of cash flow at a relatively minimal capital expenditure. This would allow us to accelerate and expand exploration and development on the property,” he said.
For further information, please contact Investor Relations at 1-800-811-3855
Visit our website: www.TanzanianRoyaltyExploration.com
Image by Tanzanian Royalty
