Sutton intersects high-grade gold at Bulyanhulu project

Extensive drilling on the Bulyanhulu gold project in Tanzania is encountering significant gold mineralization well below previous depths.

Sutton Resources (VSE), which acquired the project a year ago, is spending US$2.3 million to confirm existing data and expand the resource. The junior holds an 85% net interest in Bulyanhulu through its Tanzanian subsidiary, with the Tanzanian government retaining a 15% carried equity interest.

Previous operators Outokumpu and, more recently, Placer Dome drilled a total of 210 holes to a maximum depth of close to 1,000 ft. Outokumpu estimated a combined resource of 4.8 million tons averaging 0.31 oz. gold per ton for the Reef 1 and 2 vein systems, while Placer calculated 3.5 million tons grading 0.31 oz. for the Reef 1 system alone.

Two diamond drill rigs at Reef 1 are encountering high-grade gold mineralization at depth. Hole 159 intersected 34.3 ft. of 0.49 oz. gold per ton at a drilled depth of 1,943.1-1,977.3 ft., while 161 returned 24.4 ft. of 0.33 oz. from a depth of 1,507.4-1,531.9 ft.

Sutton President Michael Kenyon says that, based on the new drill data, there is a good chance that the resource of Reef 1 can be doubled, as the system remains open at depth and along the lateral extensions to the northwest and southeast.

Six quartz-sulphide reefs or veins are identified on the 55-sq.-km concession. Upcoming drilling will focus on expanding the Reef 2 system.

Kenyon believes the Reef 1 system, with an average thickness of 14.8 ft., is a stratabound sediment exhalative, packaged between two volcanic events. Mineralization consists of minor chalcopyrite and pyrite. The other reefs, or veins, host significantly more quartz and are probably directly related to tectonic events.

Reverse-circulation drilling will test the open-pit potential of an 80-metre-thick, oxidized surface zone. Using crude methods, artisanal miners have extracted upwards of 400,000 oz. over the past 20 years from the upper, oxidized portion.

In total, Sutton’s drill program will consist of 120,000 ft. Results from the Reef 1 system are as follows:

Hole Interval Width True Width Grade

(ft) (ft) (ft) (oz/t)

152 628.1-633.4 5.2 4.2 0.19

153 1,157.3-1,171.2 13.9 6.5 0.78

154 881.2-898.7 17.5 11.5 0.94

155 1,163.2-1,185.5 22.3 11.3 0.31

156 1,261.5-1,291.0 29.5 14.8 0.20

157 1,044.4-1,060.5 16.1 13.8 0.17

158 1,035.0-1,061.7 26.7 14.7 0.21

159 1,943.1-1,977.3 34.3 19.9 0.49

160 1,375.9-1,397.4 21.5 16.2 0.43

161 1,507.4-1,531.9 24.4 11.7 0.33

162 1,206.8-1,222.5 15.6 9.6 0.48

163 1,105.5-1,108.3 2.9 1.5 0.30

164 1,094.5-1,114.2 19.7 10.1 0.36

165 1,149.6-1,176.7 27.0 15.3 0.36

166 1,078.5-1,105.0 26.5 17.8 0.64

167 846.9-850.2 3.3 1.5 0.23

168 1,176.7-1,209.5 32.8 17.9 0.36

169 486.9-503.3 16.4 8.7 0.41

170 348.9-355.0 6.1 3.7 1.59

171 1,059.8-1,1105.7 45.9 30.7 0.15