Kibara Project

The Kibara Project covers an area of approximately 375 square kilometres in northern Tanzania within the Musoma-Mara Greenstone Belt. The project area lies some 145km southwest of the North Mara gold mine of Barrick Gold Corp. The known gold mineralization within the area of the Kibara Project is restricted to historic artisanal mining activity and to a gold + copper-bearing quartz vein exposed by trenching.

Musoma-Mara Greenstone Belt

Geology

The Musoma-Mara Greenstone Belt is the most northerly in Tanzania. A wide variety of rocks and structures occur in the Musoma-Mara greenstones. The oldest rocks, which host the gold deposits in the south (Musoma district), are the Nyanzian Super group, a sequence of basic and felsic flows and tuffs with one or two well-developed horizons of  Banded Iron Formation (BIF) containing minor pyrite. To the north, in the Mara district, these rocks are succeeded by gneisses and schists which are dubiously assigned to the Nyanzian in the Mara district, the Nyanzian greenstones are overlain by coarse clastic sedimentary rocks derived from them. Most of the gold deposits in the Mara-Musoma Belt consist of gold associated with pyrite and minor base metals in flat to steeply-dipping quartz veins, with carbonatized wall rocks, spatially related to regional faults. Banded iron-formation is locally associated with the gold bearing quartz veins. Bedrock gold was first discovered in the area in the early 1920′s.

Geophysical survey suggest that two parallel fault zones strike 060 degrees from Musoma to the Mara areas (Fig. 17). Many gold occurrences are closed related to these structures. Another set of faults striking 130 degrees is suggested by prominent linear features. The most prominent of these Suguti Shear Zone, is marked by a topographic depression and displaces the rock units on opposite sides, suggesting substantial movement. Other shears with the same strike direction include several in the Golden Glory area.

Mineralization

Most gold deposits in the Musoma-Mara greenstone belt show mineralization styles typical of Archaean greenstones. They are characterized by flat or steeply dipping quartz lodes carrying pyrite, gold with minor base-metal sulphides, carbonate alteration of wall rocks, and they are apparently related to region faulting. The association of some gold lodes with BIF units is also typical.

Fracturing has been the prime control at most of the gold deposits in the belt. The 060-degree and 130 degree faulting played an important role in controlling the distribution of gold deposits in both the Musoma and Mara areas. Compilation of geology and mineralized localities show these zones to be loci for most of the important mines. The intersection of the two major trends near Golden Glory contains the greatest concentration of gold prospects. An example of regional fracture control occurs near the former Nyasirori Mine where two bodies of magnetic BIF are separated by a probable 060 degree fault with a left-handed displacement of about 8km. The projection of this fault passes through the Buhemba open cut and coincides with the known shear containing gold mineralization at the Golden Glory and Mara mines in the Mara district nearly 60km to the northeast.

The close association of gold mineralization with these faults and their projections along a strike distance of nearly 100km suggests a genetic relationship, which was not recognized during the period of prospecting and mining activity prior to 1960. Possible exceptions to the regional fracture control are the Kiabakari Mine and some other minor prospects. At these places, gold mineralization occurs in beds of chert or siliceous iron formation without obvious regional control.

The principal mine in the Mara-Musoma Belt is the North Mara Mine which is unusual in having a granite host proximal to the greenstones. North Mara was put into production by Placer Dome with reserves of 4.2 million ounces of gold but is now owned and operated by Barrick Gold.

Exploration Results

Trenching on the Nyakona Hill prospect at Kibara has exposed a gossanous quartz vein with up to 40% malachite, a copper oxide.  Mineralization with gold values up to 14.80 g/t and copper up to 29.15 % constitute the principal target on the Kibara property for follow-up with RAB/RC drilling.

One of the prospecting licenses at Kibara returned grab samples from muck piles at an abandoned artisanal mining site ranging up to 18.75 g/t gold. Most of the gold deposits in the Mara-Musoma Belt consist of gold associated with pyrite and minor base metals in flat to steeply-dipping quartz veins. Banded iron-formation is locally associated with the gold bearing quartz veins. Gold in bedrock was first discovered in the region during the early 1920′s.

In February and March 2006 Tanzanian Royalty completed approximately 410m of trenching on the east side of Nyakona Hill, across the area where several grab samples returned copper values up to 13.0% Cu and gold up to 6.0 g/t. All 16 trenches were dug to bedrock and approximately two thirds of them intersected quartz veins and gossan.  A total of 52 samples were collected from 11 trenches and sent to Humac Laboratories in Mwanza for gold analysis.  Significant gold assay results included 20 samples with values ≥1.22 g/t gold, the highest being 14.80 g/t gold. Significant copper and silver values were also received, with 17 samples greater than 1% copper (with a high of 27.4% copper) and silver values ranging up to 87 g/t. The following table highlights some of the more significant results from the trenching program:

During a reconnaissance mapping program in November 2004, 17 grab samples were collected from artisanal muck piles and quartz veins. Five of the grab samples from the artisanal site returned gold values >1.0g/t with a maximum of 18.75 g/t gold reported.

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