VANCOUVER,
Oct. 15, 2013 /CNW/ - Tanzania
Minerals Corp. (the "Company" or "TZM"), (TSXV: TZM) (FRANKFURT:
TM0.F) is pleased to announce it has entered into a Letter of
Intent with MDN Inc. ("MDN")(TSX: MD) to jointly explore and
develop the Ikungu gold project (the "Property") in Tanzania. TZM can acquire up to a 50% interest
in MDN's interest in the Property, which covers 17.9 km2
and lies 17 km southwest of Musoma and 135 km northeast of Mwanza,
Tanzania's second largest
city.
The Project
The Ikungu Gold Project is situated in northern
Tanzania approximately 860 km
north-northwest of the economic capital, Dar es Salaam. The
structurally controlled gold mineralization is hosted within
metasedimentary rocks located at the contact between two distinct
lava sequences. This is similar to the style of
mineralization noted at African Barrick Gold's Bulyanhulu mine
(10.56 Moz Au proven and probable,
2012 data) in the Archean Sukumaland greenstone belt, Lake Victoria
Goldfields.
Kal Matharu, CEO
of Tanzania Minerals Corp. said, "The Ikungu Project has a large,
near surface, developing mineralized zone with consistently
attractive gold grades. Both TZM's and MDN's technical staff
believe that with additional drilling, a resource estimate could
emerge in short order. Ikungu brings to TZM an advanced exploration
asset and we believe the project is a game changer for the company.
We are very pleased to have entered into this agreement with
Marc Boisvert and his technical team
at MDN to aggressively move this exciting project forward."
Fifty-three (53) holes drilled in earlier
exploration programs on Ikungu identified a mineralized zone that
dips consistently 70-80° south-southwest, extends more than two
kilometres along strike and 300 metres vertically. Drilling has
delineated four higher-grade gold zones formed around the
intersections in holes IKD-45 (8.6 g/t Au over 14.78 m) on Section
2230mE, IKD-48 (3.11 g/t Au over 9.50 m) on Section 2830mE, IKD-51
(3.39 g/t Au over 7.05 m) on Section 3190mE and IKD-36 (13.22 g/t
Au over 4.62m) on Section 3610mE. Gold soil anomalies and scout
drilling indicate the gold-bearing structure extends over a
distance of 3800 m, and drilling demonstrates the mineralized zone
remains open at depth. Based on the current grades and width, TZM
believes that additional drilling combined with the existing drill
holes should result in a resource estimate being generated in 12 to
18 months.
Archean greenstone belts worldwide are known to
host world-class orogenic gold deposits with large metal endowments
(> 5 Moz). Examples include the Abitibi District of
Canada (Hollinger-McIntyre,
Kirkland Lake, Sigma-Lamaque), the
Ashanti belt of Ghana (Obuasi,
Tarkwa, Ahafo), and Yilgarn belt of Australia (Golden
Mile, Kalgoorlie, Norseman). World-class Archean gold
deposits are also present in Tanzania, e.g., Bulyanhulu (10.56 Moz Au) and Geita (8.78 Moz Au, both proven and probable reserves), and
the likelihood exists that similar systems will be discovered in
the future. There is no certainty that further exploration will
lead to discovery or development of such a deposit on the Ikungu
property.
Additional details on the Ikungu gold project
are presented in a 2012 NI43-101 technical report at
www.mdn-mines.com.
The Option
MDN will grant an option to TZM to acquire an
undivided ownership interest in the Property equal to 50% of the
undivided interest held by MDN (the "Option") by incurring up to an
aggregate of $12,000,000 in
exploration work expenditures on or in respect of the Property,
over four years (the "Option Period") commencing on the date on
which the Definitive Agreement (as defined below) is entered into,
as follows in tranches:
(All figures in US Dollars)
- A minimum amount of $3,000,000
during the first year to earn 12.5% (the "First Tranche");
- Provided that the First Tranche has been exercised, an
additional amount of $3,000,000
during the second year to earn an additional 12.5% (the "Second
Tranche");
- Provided that the Second Tranche has been exercised, an
additional amount of $3,000,000
during the third year to earn an additional 12.5% (the "Third
Tranche"); and
- Provided that the Third Tranche has been exercised, an
additional amount of $3,000,000
during the fourth year to earn an additional 12.5%.
A joint venture will be deemed to have been
established once TZM has acquired 50% of the interest held by MDN
in the Property.
The Company and MDN shall have a due diligence
period commencing upon the execution of this Letter of Intent and
expiring on November 30, 2013.
Subject to the satisfactory conclusion of due diligence by the
Company and, the receipt of all necessary corporate and regulatory
approvals, a formal agreement (the "Definitive Agreement") shall be
prepared by MDN for review by TZM and shall contain the terms of
the Letter of Intent together with all such other terms and
conditions customary to mining transactions of this nature or
otherwise necessary or appropriate to implement the terms of the
Letter of Intent and as are acceptable to the parties. The Company
and MDN shall use their best efforts to complete and execute the
Definitive Agreement on or before November
30, 2013, unless otherwise mutually agreed upon.
Additional information on Tanzania Minerals
Corp., including technical reports and other public documents are
available on SEDAR at www.sedar.com or on the Company's website at
www.tanzaniaco.com.
Dr. Sandy M.
Archibald, PGeo, EurGeol, Consultant Geologist, Aurum
Exploration Services, is the Qualified Person who supervised the
preparation of the technical data in this news release.
Tanzania Minerals Corp. is an emerging junior
exploration company trading on the TSX Venture Exchange. The
company has an extensive portfolio of projects in Tanzania.
On behalf of the Board of Directors of Tanzania Minerals
Corp.
"Kal Matharu"
Kal Matharu, President & CEO
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Statements included in this announcement,
including statements concerning our plans, intentions and
expectations, which are not historical in nature are intended to
be, and are hereby identified as, "forward looking statements".
Forward looking statements may be identified by words including
"anticipates", "believes", "intends", "estimates", "expects" and
similar expressions. The Company cautions readers that forward
looking statements, including without limitation those relating to
the Company's future operations and business prospects are subject
to certain risks and uncertainties that could cause actual results
to differ materially from those indicated in the forward looking
statements.
SOURCE Tanzania Minerals Corp
Image with caption: "Lake Victoria Goldfield (CNW Group/Tanzania
Minerals Corp)". Image available at:
http://photos.newswire.ca/images/download/20131015_C9699_PHOTO_EN_32006.jpg