Under an agreement with the Tanzanian government, Sutton Resources (VSE) has gained an 85% net interest in the Bulyanhulu gold deposit about 40 miles south of Lake Victoria.
Under the agreement, Sutton holds a 100% interest, with the government retaining a 15% carried equity interest. The property is also subject to a 3% net smelter royalty payable to the government.
Outokumpu and, more recently, Placer Dome have completed resource estimates on the Bulyanhulu. Outokumpu estimated the resource at 4.8 million tons grading 0.31 oz. gold and 0.35 oz. silver per ton while Placer’s estimate totaled 3.5 million tons grading 0.31 oz. gold and 0.24 oz. silver. Sutton President J.M. Kenyon described Bulyanhulu as a “typical Archean vein-type deposit.” He added that veins average about 14.5 ft. true width, dip at 75-80, are fairly straight and have a uniform grade. The deposit has been drill-tested over a strike length of 5,000 ft. and to a depth of about 1,000 ft. No drilling has been done below 1,100 ft. or within the 200 ft. of oxide material that overlies the deposit.
Kenyon sees good potential in expanding the deposit and in outlining a potentially open-pit, heap-leach deposit within the surface oxides. No oxide material is included in either of the resource estimates.
Kenyon expects to spend up to US$2.5 million at Bulyanhulu over the next year in an effort to expand the gold resource through deeper drilling below the known deposit. The company also plans to drill-test other known veins and further evaluate the property’s surface oxide potential.
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