PRECIOUS METALS — Partners hit wide intervals at Kanegele

Juniors Pangea Goldfields (PGD-T) and Explorations Minieres du Nord (MDN-M) are showing that there may yet be a few elephants left in Tanzania’s Lake Victoria Goldfields district.

The partners intersected 100 metres averaging 1.27 grams gold per tonne while testing Zone 4500 at their Kanegele gold property. The intersection included 18 metres grading 2.76 grams and ended in mineralization.

Hole 48 was one of seven to intersect the zone, out of 13 reverse-circulation (RC) holes. Six of those holes also ended in mineralization, with the following results:

• 99 metres (from 21 to 120 metres) averaging 0.67 gram gold in hole 50;
• 61 metres (34 to 95 metres) averaging 0.74 gram, including 10 metres (59 to 69 metres) grading 1.23 grams, in hole 49;
• 17 metres (9 to 26 metres) grading 1.18 grams in hole 45; and
• 15 metres (32 to 47 metres) grading 0.54 gram, as well as 13 metres (55 to 68 metres) grading 0.56 gram, in hole 44.

Mineralization has been traced by RC and rapid-air-blast (RAB) drilling over a strike length of 600 metres, across a width of 100 metres and down to an average depth of 80 metres. Three recent holes, collared on each of the two end-sections, failed to hit their mark. However, previous ones did.

Mineralization is oxidized and associated with prevalent carbonate alteration and shearing. It remains open along strike and at depth.

The Kanegele property covers 24 sq. km of the Kahama greenstone belt and is due south of Pangea’s half-owned Golden Ridge property. The remaining stake in that property is held by South African-based Randgold Resources, though that company may sell its stake to Barrick Gold (ABX-T) (T.N.M., April. 4/99).

As well as Zone 4500, Kanegele hosts Zones 3000N and 3000S, both of which were discovered last year during a reconnaissance RAB drill program that followed up surface exploration and geophysical results. All of these zones remain wide open.

Zone 3000N has so far returned the highest values in drilling, with up to 18.36 grams reported over 6 metres. It sits in a 4-to-7-metre-wide shear zone, has been traced for 400 metres along strike, and is hosted by crosscutting felsic volcanics and quartz porphyries.

Zone 3000S consists of several closely spaced lenses in a deformation corridor that crosscuts banded iron formation. Gold is disseminated throughout the 300 metres of known strike length, with individual lenses averaging between 0.5 and 4 grams gold but containing occasional high-grade pockets of up to 7.7 grams over 9 metres.

Drilling will renew following the completion of an ongoing program at the Tulawaka gold property, which is situated due west of Kanegele. Both properties are owned 70% by Pangea and 30% by Minieres, with the former acting as operator. (Minieres can increase its interest in the properties to 50%, subject to certain conditions.)