Resolute, Samax find more gold in Tanzania

Samax Gold (SMX-T) and its Australian partner, Resolute Samantha, have discovered more gold beneath their proposed Golden Pride mine in the Lake Victoria Goldfields region of Tanzania.

Drilling beneath the lowermost level of the proposed pit has intersected a shoot of high-grade mineralization over a strike length of at least 200 metres (between 11,250 and 11,450 metres east). The shoot remains open at depth and to the east.

Highlights from the drilling include:

o 15 metres (from 168 to 183 metres) grading 6.92 grams gold per tonne in hole 261;

* 62 metres (from 123 to 185 metres) of 5.49 grams gold, including 14 metres (from 141 to 155 metres) of 15 grams gold, in hole 281; and

* 11 metres (from 133 to 144 metres) of 4.62 grams gold in hole 282.

Although this shoot, and others, plunge to the east at a shallow angle below the depth of the initial pit design, it is expected that these shoots will be incorporated into the final pit. Additional drilling is required to extend the shoots within the final pit and to depths more appropriate for underground mining.

The intersections are found to occur below the water table, an indication that high-grade mineralization might persist into the primary zone.

The partners report that a semi-autogenous-grinding mill has been ordered and that on-site earth removal will begin shortly.

The US$45-million mine is scheduled to be commissioned next September (T.N.M., July 21/97). It is expected to produce 170,000 oz. gold annually at an operating cost of US$235 per oz.

Resolute Samantha would be the operator.