Tanzanian Royalty Exploration Corporation has the drill spinning for phase one of a three-phase drilling program at the Buckreef Gold Project in Tanzania. The program is being carried out by contractors Core-worthy and STAMICO.
The three-phase program is expected to amount to about 30,000 metres and is being planned and directed by the chair of the company’s Technical Committee, Ulrich Rath.
Phase one will be about 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 second phase will continue to delineate and test the continuity and extent of the deep contact and phase three work will be based upon information received from the first two phases.
The program has been designed to add significant overall value, as well as to improve the already robust economics of the Buckreef project.
Buckreef is an advanced project with established gold reserves and valuation pursuant to the company’s Canadian NI 43-101 pre-feasibility study (PFS) completed by Virimai Technologies and dated June 26, 2018. In the NI 43-101 report, Virimai recommended an infill drilling program.
It is in the Lake Victoria Goldfields, Geita District, in North Central Tanzania.
Tanzanian Royalty’s executive chairman James Sinclair said: “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.”
This critical first phase 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.
Funding requirements for the drill program are budgeted per phase with the company raising capital for phases two and three. Use of funds will be strictly limited to authorized, approved and necessary expenses.
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.
Acting Company CEO Jeffrey Duval said: “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 mineable ounces.
“While that work will be extremely accretive to the Buckreef project, the company is especially interested to see the results from the deep contact.”