5th Jun 2014 13:06
LONDON (Alliance News) - Stratex International PLC Thursday said the first hole that was drilled on the Buly Trend at the Tembo gold project in Tanzania intersecting a substantial shear zone but found only minor gold mineralisation.
The project is operated by Tembo Gold Corp. Stratex currently owns 12.89% of Tembo Gold and this could increase to as much as 22.84% on exercise of matching warrants.
Stratex said the first hole tested by Tembo on the Buly Trend, which is in the vicinity of previous artisanal workings, intersected a shear zone which gave the company confidence that the site includes an extension of the Reef 1 formation, part of African Barrick Gold PLC's 20 million ounces Bulyanhulu Gold Mine nearby.
The company said the Buly Trend is broadly defined by a number of magnetic lineaments similar to zones at Bulyanhulu, but the TDD0001 hole found little sulphide and only minor gold mineralisation during drilling.
However, Stratex said a geophysical survey completed over a wider area on the site has identified a significant anomaly on which Tembo has now started drilling an initial hole.
The company said the anomaly is located along the projected extension of the structure that hosts the Reef 1 orebody along strike from the Ngula 2 target, which is also associated with an active artisanal working.
The Ngula 2 target has consistently returned high grades from grab samples of the artisanal production up to 38.45 grams per tonne of gold, it said.
Stratex International shares were down 0.5% to 2.91 pence on Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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