Kilimanjaro Capital (OTC PINK:KIMJF), a “new breed” natural resource company based in Belize, is looking to acquire an interest in Tanzanian gold assets controlled by Sika Resources Inc., a Canadian company.
In a press release issued Friday morning, Kilimanjaro Capital announced an agreement in principle had been made with Sika Resources “to acquire an interest in world class gold assets in Tanzania.”
Tanzania is the third largest gold producer in Africa, is investor friendly, and politically stable, due to its progressive, western-oriented political system. Although Tanzania is already the third largest gold producing country in Africa, many regions are yet to be explored.
According to the press release, the Sika Resources properties that interest Kilimanjaro Capital lie within the Lake Victoria Goldfields, an area mined by a number of resources companies with an estimated 60 million ounces of gold in reserves.
The properties controlled by Sika Resources contain Archean greenstone rocks that have “numerous northeast-southwest and northwest-southeast trending fault/shear zones,” according to the resources page on Sika’s website. These fault zones are similar to other known gold deposits across the Lake Victoria region.
Within the Lake Victoria Goldfields district, there are a number of other gold-producing properties, controlled by such known gold producers as AngloGold Ashanti, Barrick Gold and Resolute Mining. Some of these are within 30 km of the Sika Resources properties.
As an example, the Kilimanjaro press release says AngloGold Ashanti operates the open pit Geita Gold Mine in Tanzania’s Mwanza Region. It has more than 19 million oz of gold reserves.
This mine only commenced production fourteen years ago, in 2000, as a joint venture between AngloGold and Ashanti, before the two companies merged in 2004. In 2012, Tanzania’s deputy minister to the vice president’s office singled out the Geita Gold Mine for its positive environmental efforts.
Also in the area is the underground Bulyanhulu Gold Mine, operated by African Barrick Gold, with around 15 million oz of reserves, according to the press release. There are other mines and mining companies in the area, each with their own estimates of resources.
More information about Sika Resources Inc’s. assets can be found on the company website.
Kilimanjaro Capital recently signed a letter of intent to Acquire Assets in Alberta Yielding Up To 160 boe/d and released Plans To Expand Operations in Keho, Southeastern Alberta.
In this video by Investortoday.ca, at the Chicago Resource Expo, Kim Harris, CEO of Sika Resources talks about company property in Tanzania.
