East Africa drilling in Tanzania

Partial assay results received from a shallow drill program on East Africa Gold’s (VSE) Nyakafuru property in Tanzania have confirmed the presence of significant gold mineralization.

The 63-hole, 906-metre program engaged pneumatic drills in an effort to evaluate untested areas of artisanal mining activity, as well as the northerly extension of a previously identified mineralized shear zone. This structure, which was drill-tested last September, yielded assays of up to 19.77 grams gold per tonne over 11 metres. In addition, the drilling returned ore-grade intercepts at 40-metre spacings over 160 metres of strike length on a target known as the Number 2 East Reef.

Results indicate that the shear extends another 80 metres to the north. The best results include 8.2 grams over 8 metres in hole NPAC 250, and 11.1 grams over 9 metres in NPAC 246.

Beginning in February, a 1,500-metre reverse-circulation program will further test the Number 2 Reef, at depth and along strike.

Elsewhere in Tanzania, a combination diamond/reverse-circulation program, totalling 8,200 metres, will be carried out on the Buckreef property. The results will be incorporated into a feasibility study, to be carried out in the third quarter. Buckreef hosts a potentially open-pit resource of 1.25 million tonnes grading 4 grams.

In other news, East Africa Gold (formerly Consolidated Kassan Resources) has bought a 2% equity interest in East Africa Mines (EAM), a private Tanzanian company, from Kinross Gold (TSE) for US$30,000. Kinross now owns a 49% interest in EAM, and East Africa Gold can earn the remaining 49% interest in EAM by October, 1997. The earn-in is subject to the expenditure of US$4 million on 11 properties in the Lake Victoria Goldfields region of Tanzania. (Both the Buckreef and the Nyakafuru properties are within this land package.) Kinross, management of Kinross and private investors have exercised 365,000 East Africa Gold warrants at 75 cents each, resulting in proceeds to the company of $273,750. This money will contribute to working capital and help fund exploration this year.

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