African Barrick ups resource estimate for next Tanzanian mine

African Barrick Gold (ABG) has revised upwards the resource estimate for its Nyanzaga project in Tanzania after working out how to treat the two mineralised zones of the project, Tusker and Kilimani, as a single pit resource.

Since announcing the updated mineral resource for the Nyanzaga project in January 2012, desk-top scoping work has focused on the modelling of the Kilimani near-surface resource, while field activities have focused on continuing geo-technical, hydrology and metallurgical drill programmes to allow the group to better constrain the open pit model. As a result of the addition of the Kilimani resource ABG has been able to re-model the open pit resource, which has resulted in a larger, single pit incorporating both the Tusker and Kilimani resource areas.

ABG, one of the five largest gold producers in Africa and Tanzania's largest gold producer, said the total indicated resource is now 3.75m ounces of gold (Au) at 1.42 grams Au per tonne (g/t) while the inferred resource is 0.85m ounces of the yellow stuff at 1.81 g/t Au. Overall, that's an increase of 0.5m ounces.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The inclusion of the near surface, oxide resource in the Kilimani zone and the further expansion of the overall in-pit resource should improve the overall project economics with additional production at the start of the mine life, ABG said.

ABG Chief Executive Officer Greg Hawkins added that the new development further increased the company's confidence in the potential for Nyanzaga to become its next mine in Tanzania.

ABG owns 100% of the prospecting licences encompassing the Nyanzaga resource area through wholly owned Tanzanian subsidiaries. The project is located within the Sengerema District, Mwanza region, some 35km north-east of the group's Bulyanhulu mine.

JH