Zanzibar Gold eyes two assets for acquisition
Reports on the acquisition of Mkuvia gold property and Fakawi gold property by Zanzibar Gold Inc have been publicly aired.
The Mkuvia property located in the Nachengwea area of southern Tanzania has had small scale local placer operators mining gold from the property since 2005.
A preliminary operation plan was drawn up but never put in place therefore most of the reserve is still intact. Investigations are yet to be conducted on the potential for low-cost extraction of placer gold which form part of an extensive gold-bearing placer alluvium at Mkuvia.
On the other hand, the Fakawi property is an advanced hard rock exploration project that has widespread high grade gold veins with several multi gram assay results over 1 metre of surface trenching, north of the 1 million ounce Magambezi Deposit.
No follow up exploration has been conducted on these veins.
Meanwhile, public reports have outlined that the gold supply is “slowing down.” It further summarises that there “have been no major gold discoveries …and no technological break throughs…” as a result mines are showing lower grades.
“Coupled with the underlying worries about Brexit and the cautious comments on the USA’s economy, having an inventory of gold bullion can stabilize the Company’s prospects,” President, S.A. Farrage noted.
Acquiring a gold inventory will assist the Zanzibar Gold company in proceeding with all its gold exploration and development projects.