Sutton spins drills at Bulyanhulu

Drilling has resumed at the Bulyanhulu gold deposit in Tanzania.

Sutton Resources (VSE) is attempting to expand the deposit, which was last estimated to contain 7.2 million tons grading 0.45 oz. gold per ton.

Most of the resource is hosted in Reef 1, a steeply dipping, sedimentary, exhalative zone, which was tested over a strike length of 4,500 ft. and to a depth of 2,300 ft. The structure averages 14.7 ft. in thickness and remains open on strike, as well as at depth.

Engineering studies, based on a 1,650-ton-per-day mine and mill, estimate yearly output at 200,000 oz. gold at a cash cost of US$125 per oz.

Underground development, to begin this year, will comprise 12,750 ft. of workings within Reef 1.

Sutton holds rights to the property (subject to certain minimum yearly expenditures), while the government of Tanzania holds a 3% production royalty and a 15% carried equity interest.