Drilling extends Tulawaka

Partners Pangea Goldfields (PGD-T) and Northern Mining Exploration (MDN-T) are sizing up what could become Tanzania’s newest gold deposit.

Recent drilling has extended the East zone to a depth of 160 metres below surface. The known strike length remains 1 km, though results are pending from several shallow stepout holes.

Gold values ranged from negligible to 121.61 grams per tonne, with assays for nearly half the holes reported being above 20 grams. Mineralized intersections varied between 1 and 17 metres. Highlights include:

– hole 361, collared on section 2+50E, which averaged 121.6 grams over 5 metres (from 114 to 119 metres);

– hole 363, collared 50 metres to the east, which averaged 83.5 grams over 4 metres (77-81 metres);

– hole 346, collared on section 0+25W, which intersected 9 metres (128-137 metres) of 12.6 grams in a 13-metre interval that averaged 9.4 grams; and

– hole 348, collared on section 1+25E, which intersected 12 metres (128-140 metres) of 44.58 grams.

The East zone consists of three plunging shoots. Mineralization is hosted by veins and quartz porphyries, and remains open at depth.

In the similar West zone, 4.5 km to the west, core hole 11 returned 4 metres of 6.17 grams in a 24-metre interval that averaged 1.52 grams. Results are pending from several reverse-circulation holes.

Pangea operates and holds a 70% interest in Tulawaka, leaving Northern Mining (formerly Exploration Minieres du Nord) with 30%. Drilling will resume in January as part of a feasibility study.

Meanwhile, Pangea has decided against a special warrants offering that would have seen it issue 2.8 million shares at $4.10 apiece. The company already has $6 million in its till and expects to raise another $4 million in a private placement with Barrick Gold (abx-t), its joint-venture partner at the Golden Ridge project, also in Tanzania.