Stamico, Coreworthy picked to drill Geita Buckreef gold project

05Feb 2019
The Guardian Reporter
Dar es Salaam
The Guardian
Stamico, Coreworthy picked to drill Geita Buckreef gold project

STATE Mining Corporation (Stamico) and Coreworthy Drilling Tanzania Limited have been picked to complete phase one drilling at Buckreef gold mining project in Geita district.

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Tanzanian Royalty Exploration Corporation said in a recent report that its board of directors selected Stamico and Coreworthy to complete phase one of the planned three-phase drill program at the Buckreef mine.

 

Total meters to be drilled in all the three phases is expected to amount to approximately 30,000 with the entire drill program being planned and directed by Ulrich Rath, who is Chair of the Toronto Stock Exchange listed company’s technical committee.

 

“We already know Buckreef is a great mine and it will be prosperous. The drilling of the deep contact will reveal if we have a world class mine along the lines of Bulyanhulu. We are excited,” said James Sinclair, who is Executive Chairman of Tanzanian Royalty Exploration Corporation.

 

Phase one will involve approximately 4,500 metres of infill drilling designed to upgrade existing inferred ounces within the proposed open pit and to begin testing of the deep contact below the open pit, the report stated.

 

Phase two will continue to delineate and test the continuity and extent of the deep contact while phase three will be based upon information received from the first two phases.

 

The three phased drilling program has been designed to add significant overall value, as well as, to improve the already robust economics of the Buckreef project, the report noted.

 

It further noted that the company is currently raising capital for phases two and three while warning that use of funds will be strictly limited to authorized, approved and necessary expenses.

 

The company does not require large financing. The results will drive future development, demonstrate value added improvements in project economics and gain critical insight into the potential underground resource which makes this program extremely accretive in nature, the report added.

 

TRE said it has complied with the bidder pre-qualification process as required by the 2018 local content regulations, and has tendered requests for proposal, to qualified drilling contractors.

 

“With this selection of the contractors by the board of directors, parts B and C of the 2018 local content regulations can be completed and submitted. After approval by the Mining Commission, phase one of the program can proceed,” the report explained.

 

In the Canadian regulators report prepared by Virimai last year, it recommended an infill drilling program. This critical first phase itself has two purposes. Within the currently conceived open pit, this program will upgrade the mineable ounces, moving as much as possible of the current inferred resources to the measured and indicated categories and move some indicated resources to measured resources.

 

Most importantly, high priority will be given to conduct drilling to confirm the previously known strong intersections and grades from deep holes and begin to test the deposit at depth and for potential as an underground mine, the report pointed out.

 

“These next few months will be an exciting time for the company. Our team has done an outstanding job planning this program. We are drilling into a known asset and are able to specifically target the holes on the infill drilling allowing an easy upgrade of the minable ounces,” said the company’s acting CEO, Jeffrey Duval.

 

“While that work will be extremely accretive to the Buckreef project, the company is especially interested to see the results from the deep contact,” Duval added while praising Sinclair’s knowledge and experience in mining.

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