© MLI Ltd 2012

Kungutas Gold Project

The Kungutas gold project is located 671km west from Dar-es-Salaam and approximately 25 km North of of Chunya in the Lupa Goldfield of Western Tanzania. The Kungutas project was part of the now dissolved Gold Tree JV and comprises 2  Mining Licences.

 

Gold Tree has completed significant resource delineation and site infrastructure development and MLI are working with Gold Tree to refine the understanding of the resource and utilising their SSM operating experience to fast track gold production.

 

MLI believes the project area represents a significant opportunity for the development of low cost gold production from high grade,  near surface colluvial and alluvial resources. Kungutas itself has the potential based on current data for  a resource of 10-20,000oz contained within semi consolidated material to a depth of 2-8metres. Key attributes are shallow high grade ore, soft easy strip, moderate processing tonnage, simple metallurgy and good recovery.

 

Initial sample testing at Kungutas commenced at Kungutas stated in early September 2014 and a 1000t bulk sample is scheduled to commence in late Sept 2014.

MLI and Gold Tree in 2014 completed its initial near surface resource estimate for the Kungutas project.
 
The colluvial resource is based on a systematic 40mx40m pitting and panning programme and a 1000t mini bulk sampling test programme of the colluvial material is currently under way.
 
The resource has an average 0.8m thickness and extends down slope from outcropping loe horizons.
 
The resource remains open down slope but initial figures suggest some 10,000oz of free gold at a grade of 1.28g/t.
 
Evaluation of hard rock resources is ongoing.