Gold
Miyabi Gold Project
On 14 May 2010, the Company announced that it had entered into a Letter of Intent with AIM-listed African Eagle Resources PLC (AIM:AFE)(African Eagle) to acquire up to 75% of African Eagle's interest in the Miyabi Gold Project in Tanzania, Africa.
The Miyabi Gold Project, located in the Lake Victoria Goldfields of northern Tanzania, has an Indicated and Inferred JORC-compliant resource of 12.2MT at 1.3g/t containing 520,000 oz using a 0.5g/t cut off. The resource decreases to 6.3MT at 1.82g/t containing 370,000 oz using a higher 1.0g/t. The resource is 71% Indicated and 29% Inferred.
The resource occurs in four main deposits over a distance of 3.5km in discrete lenses within Archean age greenstones. The delineated resource commences at surface and continues to depths of at least 100 metres. There is upside potential for discovering new extensions along strike and at depth to all of the four mineralised deposits as well as potential for developing other early stage prospects nearby.
Preliminary metallurgical tests have indicated that the gold is free-milling and has a median recovery of 95% using a range of oxide, transition and fresh material with nomical consumption of reagents. Some oxidised material is present that may be amenable to heap leaching.
MHM has engaged international mining consultant SRK Consulting (UK) to conduct a pre-feasibility study into the project.
For further information please refer to the Company announcement dated 14 May 2010.
Tasmanian Gold Targets
The Company is progressing a number of Tasmanian gold targets with significant potential, including;
Pelias Cove – contains observed outcropping copper mineralisation, significant quantities of coarse gold present in panned heavy concentrates. Fault breccia and silica flooding intersected in drilling are promising indications of a primary gold source.
North Butler Creek – extensive outcrop with disseminated pyrite and accompanied by significant alluvial gold. Carbonate-silica-pyrite-sericite pervasive within a volcanic-sedimentary sequence.
Hill 99 – outcropping massive iron sulphide. Sulphide gossan float with highly chloritised rocks and coincident copper and zinc soil anomaly over 400m strike length. The target contains an extensive alteration package of the type that hosts the Henty gold and Hellyer zinc mineralization.
In March 2010 the Company completed an airborne geophysical survey (VTEM) over prospective gold targets in Western Tasmania. Follow up of anomalies generated by this survey is planned for late 2010 when weather permits.
