Tan Range farms out Tanzanian gold plays

Junior Tan Range Exploration (ASE) has optioned two of its Tanzanian gold concessions to Chadstone, a company working with Lion Mining Finance of London, England.

One of these, the 36-sq.-km Kabahelele property, is underlain by volcanoclastic greenschists and granite. Aeromagnetic surveys have suggested that the concession is on the western extension of the same structure that hosts the Buckreef gold mine.

Exploration to date has confirmed the presence of a major shear zone containing auriferous quartz reefs or veins. Surface sampling has yielded encouraging assay values of as high as 30 grams gold per tonne, and artisanal workings are present on the property.

The 169-sq.-km Mnekezi concession is also near the Buckreef mine and the Buzila prospect, which is a small, high-grade gold deposit where previous recoveries averaged 6 grams.

Under the option, Chadstone (or another public company) will spend US$250,000 to US$1.05 million on these properties. Tan Range could also receive 200,000 common shares of the publicly traded company.

If the option is exercised, Tan Range will retain a 10% carried interest until a feasibility study is completed, which converts into a 10% participating interest. Furthermore, if proven reserves at feasibility exceed 250,000 oz., Tan Range will receive one share per additional ounce, to a maximum of 1 million oz. Chadstone plans to carry out a $200,000 program of reverse-circulation drilling.