Partners cut West zone gold (May 13, 2002)

Reverse circulation drilling by partners Barrick Gold (ABX-T) and Minires du Nord (MDN-T) has cut “significant gold mineralization” at the West zone on the Tulawaka project, 160 km southwest of the city of Mwanzain, Tanzania.

The two sank a total of 158 RC holes for a total of 5,400 metres. The holes targeted most of the West zone area over a 700 metre strike length and outlined a mineralized corridor measuring 400 metres in length, 50 metres in width, and averaging 20 metres in thickness.

Selected intersections include:

• Hole 779 – 8 metres grading 2.3 grams gold per tonne (uncut);
• Hole 780 – 6 metres running 9.7 grams gold;
• Hole 813 – 16 metres of 3.4 grams gold;
• Hole 815 – 10 metres of 30.5 grams gold;
• Hole 824 – 4 metres of 13.4 grams;
• Hole 831 – 9 metres running 11.3 grams and
• Hole 870 – 14 metres of 2.1 grams gold.

The zone comprises mostly weathered rock with quartz veining and is associated with a metamorphosed gabbroic rock extending for several hundred meters outside the drill grid area. It remains open to the west and at depth.

A follow-up RC drilling campaign will follow immediately. Drilling will also aim to test other targets on the property defined by recently completed detailed geophysical and geochemical surveying.

The West zone is about 3 km away from the East zone, which is currently the subject of a feasibility study. The partners expect to wrap up the study by mid-year. A production decision will follow.

Mineralization in the East zone is hosted by three gold-bearing quartz veins that combined have a strike length of about 1 km. At last report, East zone resources, which extend no deeper than 150 metres below surface, were pegged at 1.6 million tonnes grading 18.96 grams gold per tonne.

Barrick, the operator, holds a 70% interest in the property. Minires du Nord holds the remaining 30% stake.

The recent drilling is part a US$5.8-million, 20,000-metre drilling campaign planned for Tulawaka this year. MDN’s share of the program, US$1.7 million, will be covered by a US$4-million loan facility arranged late last year by RMB Resources, a South African-based financial institution. Barrick will cover the difference.