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Kanagele Property

• The project area hosts a variety of rock types, which includes BIF, volcanoclastics, argillites and felsic volcanics that make up the upper Nyanzian package of rocks. Granite is estimated to comprise some 60-70% of the total project area.
• The dominant geological structures follow a NW, ENE and E-W trend. Most of these geophysically derived structures appear to cross at a central location, situated slightly to the west of the central part of one PL. Numerous gold occurrences within the region plot either on or proximal to these trends, of which the dominant NW trending structure appears to be the most important
• Limited geochemical data is available to date. A project-wide BLEG soil sampling program is currently in progress.

Regional Geology:

The Kanagele Project Area is located in the Ushirombo Greenstone Belt in the Sukumaland greenstone terrain of NW Tanzania. The Ushirombo belt forms the southern arm of the outer arc, its counterpart in the north being the Geita Greenstone Belt.

The dominant rock types in the belt are BIF, volcanoclastics, argillites and felsic volcanics that make up the upper Nyanzian package of rocks. Basalt is also present predominantly in the low-lying areas. Known gold workings in the immediate vicinity are Nyakafura (700 000 ounces) and some artisinal pits at the Kanagele Prospect. The Mwagi Magi license is located just to the NW of the project area, where narrow (sub-meter), high grade gold is believed to occur.

Principal Structures:

The dominant controlling structures on the known gold occurrences in the area are NW and in particular, where these intersect a secondary structure (N-S or E-W trending).

Geology of the Prospecting Areas:

One license comprises approximately 20% greenstone in the northwest corner, with the remainder being granite. No greenstone outcrops are observed, and the contact zone defined by Barth is buried beneath mbuga. However, geophysical interpretation has confirmed the existence of the contact zone, in roughly the same position predicted by Barth.

One license is a long linear east-west block with granite terrain to the south and BIF exposed immediately north of the boundary. The eastern portion of the license is thought to be underlain by greenstones, and may include BIF.

The license is located in a relatively flat lying area of the greenstone belt resulting in the virtual absence of outcrop. The granite/greenstone outcrop based on Barths' map is overlain by mbuga, but is thought to exist towards the southeastern corner of the license. This contact zone is not clearly defined on the aeromagnetics.

Apart from a small hill that consists predominantly of BIF and mafic volcanics on the eastern boundary, the licence is flat. Red lateritic greenstone soils predominate in the flat areas and a large NE trending mbuga plain is found in the NW corner of the licence.