Mazizi Gold Mine Tanzania
MLI is has entered into a JV over the Mazizi Goldmine to expand existing hand based mining operations by working with the owner to install a number of low cost crusher/concentrator plants on site to significantly boost production and processing throughput.
The high grade nature of the Mazizi ore with grades in the range of 40-80g/t provides excellent economics based on a low Capex-low Opex-high return selective mining operation consistant with MLI's SSM business model.
Plant upgrade, site reconfiguration and the commencement of mining operations are scheduled to commence in late March.
The Mazizi gold mine JV represents the first of a series of JV projects that MLI is developing in the emerging Tanzanian gold mining districts.
MLI has recently completed its initial near surface resource estimate for the Mazizi project.
The colluvial resource is based on a systematic 20mx10m pitting and panning programme followed by 250kg mini bulk sampling of the colluvial material.
The resource has an average 0.8m thickness and extends down slope form the outcropping high grade Mazizi hard rock mineralisation. Nuggets collected during the processing phases have been omitted from grade calculations.
The resource remains open down slope but initial figures suggest some 2000oz of free gold at a grade of 1.36g/t.
The Mazizi lode horizon is some 450m long of which 250m lies withing the current PML The high grade lode with values of 5000, 6000, 9000 and 36,000g/t recorded from mini bulk sampling within 5 narrow lodes horizons is developed over an average width of 12m and dips at 60deg.
Systematic bulk sampling with processing of 250t and stockpiling of 4000t of mineralised material has indicated and average head grade of 3.02g/t for some 30,000 oz contained to a depth of 50m vertical.
Conversion of the PML to an ML is in progress and once all regulatory requirements are complete an adit to access the down dip extension of the mineralisation and a small open pit will be developed to commence recovery of the gold.
A 20tph dual hardrock and colluvial plant will be utilised on a dual shift basis permitting production of 40 oz a day at an estimated AISC cost of $350 per oz