Lake Victoria Mining Company

Uyowa Gold Project

1. Location and Access:

2. Physiography, Climate, Vegetation and Water

3. History of the property:

4. Regional geology

5. Exploration Strategy

Exploration work on the Uyowa Project commenced on PL3425/2007, Target 3,  in January 2011 and continued until the onset of the rainy season in early May:

Aeromagnetic data was acquired  from the geological Survey, Dodoma and re-processed and interpreted.

Remote sensing studies were undertaken using various Band ratios with Landsat Imagery and was used in conjuction with field mapping.

Ground magnetic surveys on 200 meter N-S traverse lines were undertaken across the eastern part of Target 3 in which a total of 35 traverses amounting to 265 line-kilometers were completed before exploration closed down for the rainy season.

Soil sampling on 400 meter x 50 meter centers was completed across the eastern part of Target 3 in which 1057 soil samples were collected and analysed for gold by SGS Laboratory, Mwanza. A number of anomalous soil sample values ranging from 30 ppb to 420 ppb gold, occurring close to the eastern boundary of the license, require follow-up field investigation.

Field work re-commenced in the last week of July with attention being focused on the northern PL5153/2008.

Landsat and ASTER image interpretation  using the various mineral index ratios had been previously completed across the PL. Both ENE and cross-cutting NW structures were noted cross-cutting a large circular feature around which the Igombe river flows northwards from the eastern side of the PL and around to the western side before draining off to the SW.

An option agreement was made on 4 of the 11 locally owned PMLs that cover the main area of artisanal mining.  At the same time there was a local gold rush into the area with the artisanal miners targeting the previously known workings.

Exploration by Ashanti in 2003 identified 4 narrow zones of gold mineralization having an east-west strike length of some 300 meters with grades up to 27.16 g/t gold over 4 meters across a zone of artisanal pits. Artisanal mining has currently exposed the mineralizing E-W structures across some 900 meters in strike length with pitting continuing across the lateritic soils further out along strike to the east.

Exploration was immediately focused on mapping in detail the zone of artisanal workings as well as evaluating the mineralization being exposed by the artisanal miners. A number of  shafts were selectively chosen on approximately 80 meters spaced centers along the trend in order to coincide with the planned N-S drilling grid. A total of 25 shafts and pits were channeled sampled across the working face at the base of the shafts having depths of between 5 to 22 meters.  Samples were collected across the narrow mineralised vein, which  ranged between 10 to 35 centimeters  wide as well as  hanging and footwall zones. A total of 47 samples were collected and submitted to SGS Laboratory for 50 gm Fire Assay. Results are summarized in Table 10.  Mapping indicated a narrow, high grade quartz-rich gold bearing zone containing dissiminated pyrite, striking ENE and dipping steeply to the north beneath a 10 meter thick sand and lateritic duricrust cover.

A Reverse Circulation drill program was planned and executed during September and October. A total of 2,470 meters of  drilling was  completed. Drilling was aimed at testing the strike extensions of the known mineralised gold mineralization.  Drill samples were collected across the gold bearing zones on 1 meter intervals with the results consequently representing a diluted grade to those higher grade assays that were over narrow widths within the artisanal shafts (Table 10).

Unlike the central and eastern part of the Prospect, which is represented by a single mineralised structure, the western part comprises of at least 4 mineralised veins that generally, not only have increased widths, but, from the results received to date, also reflect substantially higher gold grades, across a strike length of some 300 meters and to a vertical depth of 60 meters below surface (Table 11, Map 5).

Table 11:Summary of reverse circulation drill results

Map 5: Drilling grid showing increase number of gold bearing structures in the western part of the trend

A single drill hole, collared  400 meters to the east of the artisanal workings, targeted the interpolated position along strike of the mineralised shear zone.  A number of zones of pyrite mineralization and associated silicification with quartz veining and minor visible gold were noted down-hole indicating the persistence of the mineralised shear zone for at least some 1700 meters along strike.

Prior to commencing the reverse circulation drill program, both a ground magnetic survey and Schlumberger VES profiling was undertaken: The in-house ground magnetic survey was conducted along 200 meter spaced N-S traverses across the central part of  PL5153/2008, covering a total area of 75 square kilometers. The ground magnetic signature  reflects a large isoclinal E-W trending fold, whose northern limb is coincident with the trend of the known gold mineralization. A N-S graben structure on the western end of the trend coincides with the last of the artisanal workings. This area, unlike the artisanal site where laterite is often exposed on surface, is overlain  by sand cover for some 500 metres to the west before lateritic soils are again present suggesting possible continuation of the mineralised trend further westwards. 

Schlumberger VES orientation, N-S  profiles of 300 meters in length were undertaken across the zone of artisanal workings in order to test and define the mineralised zone before applying the method to trace the mineralisation along strike as well as testing a number of ground magnetic targets (Table 12).  A total of 12 N-S profiles, amounting to 3.60 line-kilometers, of the 24 planned planned profiles were completed before the end of the drilling program. Results of the  orientation survey across the artisanal mining site indicated that a number of profiles reflected coincident chargeability/resistivity anomalies over the known mineralization.

Table 12: Schlumberger Survey – Uyowa  PL5153/2008

A number of Schlumberger profiles were undertaken along the interpreted northern “limb” of the E-W trending antiform towards the apparent fold closure in the eastern side of the PL. Results revealed a number of coincident chargeability and resistivity anomalies across the “limb” of the fold. A single borehole was drilled, 3.36 kilometers east from the artisanal workings, to test the magnetic signature and IP Schlumberger anomalies along the fold arc.  The area is overlain by red lateritic soils. Drilling intersected a number of zones of increased magnetite alteration down-hole. No pyrite or silicification were noted and in effect the borehole failed to intersect any mineralisation.   A second borehole was drilled to test a similar ground magnetic signature that is present within the “inner” core of the fold zone 1.20 kilometers to the south of the artisanal workings and within the NW-SE structural corridor that defines the higher grade portion of the mineralised zone to the north. Although no assay results are currently available, the borehole did intersect an anomalous 4 meter zone of disseminated pyrite mineralization overlying a zone of magnetite-rich granitic gneiss.

Regional mapping of granitic gneiss outcrops to the south-east of the zone indicate the presence of sinsitral NW-SE faults zones. These faults may have a controlling influence where they cross the ENE-SWS gold bearing shear zone as  is seen by the improved gold grades and widths in the western part of the artisanal mining area (Map 5). Such features   are important structural controls for other gold deposits elsewhere in the Lake Victoria Gold Belt. 

Soil sampling  is currently in progress over a 200 meter x 50 meter N-S grid. A total of 1151 samples of 1 kilogram each have been collected to date. Based on the regolith mapping, 533 samples were selectively chosen across red-brown lateritic soils, prepared on site to 80 mesh and submitted, together with 5% Blanks (29 samples), to SGS Laboratory Mwanza for gold and arsenic determination by Aqua Regia in ppb and ppm levels respectively. The remaining samples were collected largely over sand cover and will be retained for possible later submission if warranted by further mapping.

Results indicate that 92% of all samples returned gold values below 10 ppb. No arsenic is present with all sample values being below detection limit (<20 ppm), refer Table 13.  All the anomalous gold values occur as single point values along the known E-W zone of gold mineralization. A single maximum value of > 200 ppb gold occurs some 450 meters south of the mineraliased trend.

Table 13: Summary of soil sample results collected over PL 5153/2008

Termitaria sampling has been focused in testing the underlying geochemistry of the various ground magnetic and structural targets. A total of 279 termite mounds of intermediate to cathedral in size have been sampled and approximately 1 kg of sample has been panned at site. Results are generally disappointing with only a few termites returning a single nugget of gold. A number of large termites exist on the artisanal workings and these also failed to  return any gold.  It is believed that the near surface water table level coupled with sand cover as well as the  laterite duricrust has restricted the use of termite mounds as a geochemical sampling method in this district.  

An in-house, gradient array IP survey is currently in progress across 200 meter spaced N-S traverses and will cover a total area of 40 square kilometers. Results, together with the ground magnetic survey, mapping and soil geochemistry, is expected to  refine and improve the structural interpretations and target definition across the project area.

Additional targets evolving from the IP interpretation will be further tested by Schlumberger VES profiles in order to prioritize targets for a later RAB program to be planned in 2012.

Prior to embarking on a RAB program, a short diamond drill program of 1000 metres is recommended to help define structural controls in the western part of the ENE trending mineralised shear zone with the aim of planning additional drilling to increase the resource potential of the prospect.

On going exploration on PL3425/2007 to the south is planned to include:

1. Ground checking of Landsat and ASTER imaging by following up on a number of iron alteration zones.
2. Field investigation and follow up sampling through termitaria/soil/pitting/trenching on any of the delineated soil anomalies as delineated from the earlier soil sampling program that was completed prior to the rainy season earlier in the year.
3. Selected Gradient IP surveys and Schlumberger VES profiling across delineated targets.

RAB/RC drilling over prioritized targets.