Magnet Gold Mining and Exploration Project

Description

PROJECT OVERVIEW
 

Attractive targets were identified in the North-Western Zimbabwe (Mashonaland West), along the east bank of the Angwa River, known for its gold mining activity by locals since antiquity and by European settlers since the ***0s.

The Company holds *8 mining claims covering an area of approximately *2 square kilometers (‘the Project Area’) in a locality known as Two Tree Hill Estate.

Initial reconnaissance exercise carried out by the Company in ********2 (traversing, shallow excavations, sampling) simultaneously with purchase of new claims, resulted in confirmation of previously described and finding of multiple new occurrences of gold-bearing zones and veins within the Project Area. The quartz vein system and its related and surrounding halo has been mapped, surface sampled to bedrock and traced for a distance of eight kilometers within the Project Area.

The Magnet Gold Mine deposit was selected as a site for construction an exploration-oriented small-scale gravity processing facility (****0 tons/hour). A plant consisting of a RG**0 scrubber, ball mill, and latest Knelsonconcentrator was commissioned to experimental production in order to test various types of input gold-bearing material and respective modes of processing.

Due to relatively low gravity recovery percentage (*0%), the plant tailings have an average gold grade of 2 g/ton. Initial heap leach simulation testwork suggested that a secondary heap leaching process be added to the current recovery chain.

Further development shall comprise increase of the gold resource base, estimation of resource (JORC-complied), construction of a heap leach facility, and improve the recovery chain - to increase the mining and production rate.

 
LOCATION AND ACCESS

The Magnet Gold Mine deposit is located on the east bank of the Angwa River on Two Tree Hill Estate and about *0 km north of Chinhoyi town. They are accessed via the Harare-Chinhoyi-Karoi road, turning NE onto a dirt road (7km) at the **2 km peg sign-posted Two Tree Hill School

 
GEOLOGICAL SETTINGS

In a regional context, the Magnet Gold Mine deposit is situated in the Kanyaga Formation of the Precambrian Piriwiri group. The Piriwiri Group forms part of the Proterozoic Magondi Belt that lies on the northwestern margin of the Zimbabwe craton and stretches from the south to the north for about **0 km.

This formation is a thick sequence of regionally metamorphosed sedimentary rocks ranging from fine grained phyllite to medium-grained greywacke, with minor intercalations of grit, quartzite and mudstone. The original sedimentary rocks are regarded as degradation products of a volcanic greenstone terrain on the craton to the east. The regional cleavage strikes north-east and has a steep-to-vertical dip.

Gold mineralization is associated with auriferous quartz veins hosted by shears and fissures in the sedimentary rocks. The quartz veins are very erratic in their development and have an east-west strike discordant to NE- striking buck quartz veins.

The Proterozoic Magondi Belt stretches from the South to the North for about **0 km and is host to a number of gold and base metal mines.

Economic mineralization of mainly gold, copper and graphite is evidenced by numerous mines that occur sporadically though confined to the extensive sequence of graphitic or pyritic phyllites, metagreywackes, tuffs and conglomerates of the Piriwiri Group occurring mainly in a north-east trending belt about five kilometers wide.

 
EXPLORATION AND MINING

It was discovered that the Project Area exhibits economic potential for gold mining in ***0.

After initially purchasing the first *0 mining licences, the Company has further consolidated its footprint in the area and now holds *8 gold/base metal mining licences.

The Magnet Gold Mine deposit has become the largest gold mining licences owner in the region.

Assay results from exploration and exploration mining activities (trenching, grab samples, bulk sampling, etc) show values ranging between 0,**2 g/ton for rubble/alluvial material (first **2 meters of depth) and ***4 g/ton for reef/vein material (2 to *0 meters of depth).

 
RESOURCE ESTIMATION

In ***1, SRK has estimated that the project may host approximately **0,**0 oz of gold in the ground.

Assuming straight interpolation based on the number of currently available licences, the resource size of *8 licences can be calculated at 1.3 million oz in the ground (assuming same gold distribution per claim).

 
FUTURE DEVELOPMENTS

A drilling program designed to test targets along the repetitive sequence of hard rock quartz veins which run through the Project Area is needed to further increase the Project’s resource base.

A secondary heap/vat leaching recovery process is necessary to be added to the current mining process.

 
INVESTMENT PROPOSAL AND RATIONALE

A strategic financial and technical partner is looked for to take the Magnet Gold Mining and Exploration project to the next phase.

The possible valuations may attract ****0 USD/oz, valuing the project at ****0 million USD.

The Magnet Gold Mine deposit is available for **0% purchase for the consideration of USD5\'**0\'**0 (negotiable). Alternatively different avenues for cooperation can be discussed.

For further references please contact Caversham Management Services:
Phone: **7 *2 **9 ***7; **7 *2 **1 ***4
Fax: **7 *6 **6 ***6
E-mail: *@********************