Victoria Gold Project Acquisition
The Victoria Gold Project (VGP) comprises a, extensive holding of approximately 280km2 with identified areas of gold mineralisation and excellent exploration upside, strategically located near several established gold mines in the prolific Lake Victoria Gold Field of Tanzania. The total gold endowment (known resources and past production) of the gold field is estimated at more than 50 million ounces.
Note: Licence area is indicative and subject to change
The Project includes a number of license areas previously owned by international mining companies which are currently held in Tanzanian companies and entities controlled by Cienega S.A.R.L (“Cienega”).
The general acquisition terms of the Project from Cienega, as noted in a revised binding Terms Sheet announced on 31 January 2017 and replacing the terms previously agreed in the Heads of Agreements announced on 26 June 2016, are:
- A cash consideration of US$1.8 million with US$0.8 million payable upon execution of a formal Share Purchase Agreement (“SPA”) and US$1.0 million payable on completion of the transaction;
- Manas to assume immediate operational control of the VGP, and fund current exploration expenditures by way of a loan agreement with Cienega for up to US$0.5 million; and
- The issue of US$2.0 million of performance rights which will vest into fully paid ordinary shares in Manas at a deemed issue price of A$0.002 per share upon transfer of certain key licenses not wholly owned by Cienega.
In addition, Manas will acquire a number of physical assets, including a camp, vehicles and intellectual property.
Completion of the acquisition remains subject to due diligence by Manas, regulatory approvals, Tanzanian tax clearances and the transfer of key licenses.
The known gold deposits within the VGP are broadly similar to other Archaean greenstone-hosted gold deposits found throughout the world. Gold mineralisation is controlled by a combination of favourable host rocks such as BIF, quartz reefs and porphyries within suitable structural settings.
Nyakafuru Reefs, located in the north of the Project area, comprises a swarm of quartz reef deposits hosted within sheared greenstones near a granite contact. Eleven reef structures with a combined strike length of more than 11km have been delineated to date within an area of around 4km2. Previous detailed drilling was mostly confined to 2E, 2W and six reefs with a combined strike length of only 1km, for which resources were previously reported. These resource estimates are to undergo review for their more selective, higher grade open pit potential.
Of the relatively untested reefs, at least 20% were subjected to artisanal activity and are largely confined to areas of exposed greenstone. The remaining reefs (as interpreted from ground geophysics) are covered by mbuga (seasonal swamp) soils and have yet to be drill tested.
Gold mineralisation in the Kanegele area is associated with the regional-scale, NE-trending Kanegele Shear Zone which traverses the south of the VGP. Movement along this shear zone has formed a series of dilational jogs and flexures hosting quartz vein arrays and stockworks. The main gold deposits outlined to date include Voyager, Mentelle, Cullen, Leeuwin and Grange. Significant potential remains for strike and depth extensions to these shallow deposits.
There is substantial potential within the VGP for further gold discoveries away of the main Nyakafuru Reefs and Kanegele deposits, not only about areas of previous drill testing but also associated with the many untested anomalies and targets generated the extensive regional database which comprises:
- Detailed geophysical surveys including airborne magnetics, radiometrics and gravity, and ground IP and magnetics;
- Extensive geochemical surveys including soil and rock chip sampling;
- Geological mapping and interpretation; and
- Multiple campaigns of auger, rotary air blast (RAB), aircore (AC), reverse circulation (RC) and diamond drilling.
Priority drilling targets include
The Nyakasauma prospect, located 5km along strike of the Cullen-Leeuwin trend in the south of the VGP, covers an interpreted 120m wide shear corridor concealed under Mbuga soil flood plain. Several spectacular drill intercepts were previously reported in the western end of the prospect from limited wide-spaced RC drilling over +2 km strike length.
Golden Hoe, 3km north of Nyakasaluma, covers extensive shallow alluvial workings from a major artisanal gold rush in 2008. The primary source of the gold nuggets is currently unknown.
Significant gold mineralisation previously intersected in limited drilling at the Redgate prospect is related to a lightly explored northwest-trending structure in central portion of VGP.
Manas believes that the acquisition of the VGP has the potential to create significant shareholder value as a near-term development opportunity.
Upon completion of updated resources estimates, Manas intends completing a scoping study to reassess various development options, including the construction of a standalone processing facility for a smaller tonnage, higher grade mining operation.