Magambazi Gold Mining Limited
Handeni Gold project is located in Magambazi
The property has an area of approximately 93 square kilometres, and consists of two exploration licenses, PL 4781/2007 and PL 10016/2014 (83.5 square kilometres). It includes two mining licenses, ML 480/2012 and ML 525/2014, which cover approximately 9.9 square kilometers over Magambazi Hill and the surrounding area.
Locals discovered gold in the Magambazi region in 2003, which led to a gold rush with extensive mining of sedimentary and hard rocks. Canaco acquired the Handeni estate in 2007 and began drilling at Magambazi in 2009. The first hole proved to be the exploration hole, returning 53 meters and at a gradient of 4.32 grams per ton of gold. Further drilling was carried out in 2010 over a large part of the approximately 960-meter strike length of Magambazi Hill. In 2010, exploration began for mineral resources in section lines that were 40 meters apart to determine the extent and quality of the observed gold mineralization. By April 2012, 471 diamond pits for a total of 121,846 m had been drilled in the Handeni property, of which 442 holes totaling 113,692 m were associated with resource identification on Magambazi Hill. Results from about 400 of these holes were used as the basis for the initial mineral resource estimation announced on May 15, 2012. The remaining holes were released on July 20, 2012, and are not expected to significantly affect the mineral resource estimation.
