Resource World Magazine

MiNiNg Minerals boost Tanzanian economy by Ellsworth Dickson On a per capita income basis, the east African country of Tanzania remains one of the world's poorest economies; however, things are looking up. Economic growth has been healthy at 5% to 7% in recent years, driven by mining, construction, communications and the financial sector. Indeed, gold mining is playing an increasing role in generating much needed wealth with investment in that sector totaling over US $2 billion since 1998, according to the World Gold Council. This investment is paying off with gold mining expected to double Tanzania's annual foreign exchange earnings, expected to total US $1.4 billion by 2016, when gold production is forecast to peak. Gold production for 2012 is anticipated to reach 1.55 million ounces, making the country the fourth largest gold producer in Africa. Tanzania is viewed as mining friendly and the government encourages foreign investment. While the country is mostly based on agriculture, it is rich in natural resources. Besides gold, Tanzania also produces diamonds, coal, iron ore, uranium, nickel, cobalt, phosphate, soda ash, magnesite, tanzanite, chromium, tin, platinum, coltan, and niobium, to name a few. Following is a selection of companies active in Tanzania. African Barrick Gold plc [ABG-LSE], a 73.9%-owned subsidiary of Barrick Gold Corp. [ABX-TSX], is Tanzania's largest gold producer. Located in northwest Tanzania, the Bulyanhulu gold mine hosts narrow veins containing gold, silver and copper mineralization in sulphides. Bulyanhulu's life-of-mine is currently estimated to be more than 25 years, based on its proven and probable gold reserves of 10,632,000 oz. Gold production for 2011 was 262,034 oz, NOVEMBER 2012 up 1% from 2010. Copper production for 2011 was 7,675,000 lbs, up 4% from 2010. AngloGold Ashanti [AU-NYSE; ANGJSE; LSE, ASX] has 20 operations in 10 countries on four continents. In Tanzania the company has a 100% interest in the Geita open pit gold mine with underground potential. The mine produced 494,000 oz at a total cash cost of $536/oz in 2011, compared with 357,000 oz at a total cash cost of $777/oz in 2010. From the base year 2010, production and productivity have increased by more than 20%. The target is to maintain production at 500,000 oz/year. Brookemont Capital Inc. [BKT-TSXV] has been exploring the 63.4 km2 Handeni North gold prospect that borders the Canaco property in the Handeni area of Tanzania. Cadman Resources Inc. [CUZ-CNSX] has signed a letter of intent with Shenba Resources Holdings Limited to acquire 65% of the Mbozi copper project in Tanzania. Shenba is a Hong Kong-based mineral development company active in the Mbeya region of southwestern Tanzania. The Mbozi Project consists of two adjacent concessions totaling 232.86 km2. Cadman recently amended the Shenba LOI to include the Magulu copper project to the northeast, which is comprised of 56 primary mining licenses covering an area of 1,003.14 hectares. Assays at Magulu ranged up to 50% copper. Canaco Resources Inc. [CAN-TSXV] has received an Environmental Impact Assessment (EIA) certificate from the Tanzanian government for its 100 km2 Handeni property, including the Magambazi Project area in northeast Tanzania, 160 km northwest of Dar es Salaam. The receipt of the EIA is the result of a two-year process that included environmental studies, ministerial reviews and public hearings. Receipt of the EIA certificate is the first step in the mine permitting process and a prerequisite for a Tanzanian mining licence. Canaco has reported an initial mineral resource estimate of 15.2 million tonnes grading 1.48 grams gold/ tonne containing 721,300 oz in the indicated category, as well as 6.7 million tonnes grading 1.36 grams/tonne containing 292,400 oz in the inferred category. Handeni Gold Inc. [HNDI-OTCBB] has two projects in Tanzania: the Handeni gold project and the Mkuvia alluvial gold project. At the 800 km2 Handeni Project, the company's focus is on upgrading identified Diamond drilling at the Ngula 1 target, tembo gold project, tanzania. a total of 20 diamond and seven rC holes have been completed to date and returned excellent results. Follow-up drilling is underway. photo courtesy tembo gold Corp. www.resourceworld.com 45

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