Lake Victoria Mining Company, Inc. develops eight gold projects in Tanzania.
Many were surprised at the recent closure of joint venture with Otterburn Ventures. Although the company was neither expecting nor desiring this outcome, it will realise cash payments of approximately $1,200,000 from the option payments and exploration commitments, which includes the complete payment for the 2nd phase of drilling at the Singida gold project. Pursuant to share purchase agreements dated July 22, 2011 the company has agreed to sell the 2,200,000 Otterburn shares to private purchasers, unrelated to the company, at a price of $0.10 per share, recognising a payment to the company of an additional $220,000 by September 2011. The company also retains one hundred percent (100 per cent) of its rights to all four of the gold exploration projects: Singida, Geita, Kalemela and North Mara, that made up the four option agreements with Otterburn Ventures.
Based upon recently reported drill results from the Singida gold project (see press release dated July 21, 2011 http://www.lakevictoriaminingcompany.com/news/july-20-2011/) the company believes that the nature and extent of the mineralisation revealed thus far may lend itself towards a small-scale commercial mining operation, joint venture or sale of the asset. In keeping with its focus of building shareholder value, the company intends to continue to advance the Singida gold project. An independent technical team is compiling and reviewing the results from both drill programs on this project and a preliminary economic assessment study is planned to determine the feasibility of a small-scale commercial gold mine at Singida.
Uyowa gold project proceeding to drill
Meanwhile, the end of the rainy season in northwestern Tanzania marks the recommencement of exploration at the company’s Uyowa gold project. In 2003, the Uyowa project was the site of encouraging exploration results by Ashanti Gold.
The company is focusing current Uyowa exploration in the northernmost area of PL5153/2008, which includes an active artisanal area of about 300 meters x 100 meters and its surrounding environs. Recently, option to purchase agreements were completed involving four Primary Mining Licenses (PMLs), located in the heart of the targeted exploration area, to allow the investigation of their potential. Regional exploration on the remainder of the prospecting license (PL) to trace the mineralised zone along strike will be conducted. During August we plan to complete:
Regional ground magnetic survey on 200m spaced N-S lines across a grid of 12x6km.
Gradient array induced polarisation (IP) survey on 400 meter spaced north-south lines across the optioned PMLs and extending out along strike across a grid of 10x4km.
Soil sampling on 200x50m grid spacing across a grid area of 2.25x10km.
Schlumberger profiles to obtain a more detailed picture of what's underneath in the broad anomalous areas outlined by the gradient array.
During mid-August through September a +1500 meter Reverse Circulation (RC) drill program is planned to test the down-dip continuity of thickness and grade as well as exploring the strike extensions of the four (4) main mineralised zones across the PMLs.
Musoma Bunda gold project progresses to increase the ore resource
At the Musoma Bunda project, Kinyambwiga prospecting license (PL4653/2007) exploration is to be focused on increasing the ore resource of the Kanunga 1 Prospect by investigating the IP anomalies along strike as revealed from the Schlumberger profiling as well as soil and Rotary Air Blast drilling (RAB) hole anomalies. Exploration during August will include:
Investigation of the two anomalous Rotary Air Blast (RAB) targets east of Kanunga 1. Pitting and trenching is currently in progress and will continue into August. Once the anomalies have been validated, a number of 50 meter long north-south trenches will be planned to establish the continuity of the mineralised lenses.
Pitting of the Schlumberger VES targets to the west of Kanunga 1 is also in progress. If the “mbuga” (black cotton soil cover) is too thick to pit (>3m), then investigation of these targets will be by an Auger Rig.
Based on the results of the pitting, trenching and auger drilling, a +2,500m Reverse Circulation (RC) drilling programme.
At Suguti (PL3966/2006) and Murangi (PL4511/2007) prospecting licenses, also part of the Musoma Bunda gold project, exploration during August will include:
Pitting, with follow-up trenching across the IP anomaly in the northeast part of the Suguti license.
Follow-up investigation of the isolated soil anomalies hosted by banded iron formation (BIF), south of the Suguti Fault on the southern side of the license, including pitting and trenching to define any geochemical anomalies.
Orientation sample pits across ground magnetic anomalies on the Murangi license.
Based on the results from the pitting and trenching, a targeted auger drilling/sampling will commence during September and October to clearly define the anomalous zones.
Company advancing progressively
President and CEO, Mr. David Kalenuik said, “We have eight gold projects in Tanzania. Although we have focused our primary attention on the Singida gold project over the past two years, all of our project areas are prospective for gold and we have been steadily advancing a number of these along behind the scenes.
"Based on the results to date, we have a decision to make with regard to Singida, should we pursue a pathway to mine the asset or simply attempt to joint venture or sell it. We are receiving independent technical advice in that regard. Meanwhile, we are poising ourselves for discovery at several of the company’s project areas that we have been advancing and we are very excited about the potential that each of them could result in over the next few months. I can say with confidence, that both the management and technical team of Lake Victoria are fully committed to discovering a major gold resource out of our portfolio.”