East Africa Gold outlines gold resource at Buckreef

Drilling at the Buckreef property in Tanzania continues to return encouraging gold values for East Africa Gold (VSE). The program is testing the downdip and strike extent of shear-hosted gold mineralization.

President Duncan McIvor says drilling is identifying a “substantial,” potentially open-pit resource in the Main and nearby North zones.

Reverse-circulation drilling on the North zone is expanding the deposit to the north and confirming continuity of the system. Results include a 55-metre intersection grading 2 grams gold per tonne in hole 76; a 41-metre intersection grading 2.36 grams in hole 79 (bottoming in mineralization); and a 26-metre intersection grading 4.03 grams in hole 80.

In addition, a deep diamond drill hole returned 17.22 grams over 10.45 metres at a depth of 144 metres, providing a positive indication of the downdip continuity of the mineralized shear system.

Drilling on the 400-metre-long Gap zone, situated between the Main and South zones, encountered the shear system, but grades and widths were marginal. The Gap zone still remains untested at depth.

Current drilling is expected to culminate in a feasibility study by this fall. Meanwhile, the company will compile a new resource estimate.

A preliminary resource estimate last fall sized the deposit at 1.1 million tonnes grading 4 grams gold, to a depth of 50 metres.

Since then, East Africa has drilled 110 reverse-circulation holes and 25 diamond drill holes. McIvor says he expects the tonnage for the updated resource to remain about the same, though he does anticipate an increase in grade.

Preliminary metallurgical work returned recoveries of 93-95% using cyanidization. McIvor believes a 1-million-tonne deposit grading 4 grams would be sufficient to support an open-pit milling operation with a daily capacity of 750 tonnes.

The Buckreef project is part of a group of properties held in a joint venture between East Africa Mines and the Tanzanian government, which own 80% and 20%, respectively. East Africa Mines, in turn, is a joint venture between East Africa Gold and Kinross Gold (TSE), which own 51% and 49%, respectively.

To earn 51%, East Africa must spend US$4 million over three years. Once East Africa has earned its interest, Kinross is required to pay back half the property expenditures.

Recent results from the Main zone are as follows:

Hole Interval Width Gold

(m) (m) (g/tonne)

116 12-15 3 8.65

117 19-31 12 4.63

118 43-50 7 3.65

142 25-31 6 1.49

143 38-46 8 9.87

144 52-59 7 2.91

145 2-9 7 1.65

146 22-32 10 1.54

147 1-25 24 5.80

148 26-52 26 1.97

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