Tembo Gold Provides Update
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Tembo Gold Provides Update
TORONTO, ONTARIO -- January 29th,2018 -- Tembo Gold Corp. ("Tembo" or the "Company") (TSX
VENTURE:TEM) (FRANKFURT:T23) (OTCQX:TBGPF) - David Scott , President & CEO , provides this
update on the progress and developments of Tembo Gold Corp. and provides information on the
Company’s strategy for 2018 and going forward.
During 2014 Tembo completed a second phase of target drilling along three significant targets on the
Tembo Project. Unfortunately , market conditions and the loss of a significant and proposed long term
support investor, the New Africa Mining Fund, compelled management to place the C ompany into a
holding pattern to ensure that licence tenure was maintained and the Company’s operational base on the
Tembo Project and key personnel were retained and preserved for the future. In the near term the
Company will be seeking t o secure the funding required to sustain this, while actively pursuing a
significant further investment to bring one of the targets into production, thereby generating funds
internally and de-risking the project and ensuring that exploration continues.
Highlights
• Tembo has retained its licence holding in the Lake Victoria goldfield of Tanzania.
• The immediately adjoining mining property is host to Acacia’s 20M ounce Au Bulyanhulu Mine.
• Early phases of exploration drilling have returned promising results.
• The project has a large untested exploration potential.
• The Company has retained key personnel and is able to mobilize technical crews at short notice.
• It is believed that the drilling done to date is sufficient to delineate a resource that could sustain a
small-medium mine development and this modeling is to be done in the near future.
• Production generating free cash flow would de-risk the project and provide the necessary funds to
continue exploration.
Project Licence Tenure
The Tembo Project consists of 38 licences and pending licence applications held solely by wholly owned
subsidiaries (72%) or third parties with whom Tembo has agreements that ensure Tembo’s long- term
ownership at no cost, holding the balance. The area is 110km 2 and is located in the L ake Victoria
goldfield in northern Tanzania.
The Lake Victoria Goldfield
The Lake Victoria goldfield is an established gold mining region that in the past 25 years has witnessed
the discovery of more than 50 million ounces of gold, and the development of a number of world class
open pit and underground gold mining operations, notably Buzwagi Gold Mine, Bulyanhulu Gold Mine and
North Mara Gold Mine all of Acacia Mining (a Barrick Gold Corp owned London listed company), and
Geita Gold Mine (owned by AngloGold Ashanti Limited). The discoveries include multi -million ounce
deposits at Bulyanhulu and Geita, which highlight the potential and significant gold endowment of the
region. The discovery and exploitation of these deposits has led to significant improvement and
development of supporting infrastructure and secondary supplier and service industry companies,
enhancing the operational environment.
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The geology of the goldfield consists of a classical granite- greenstone suite, an Archean age succession
of volcanic and sedimentary rocks that have been intruded by a variety of Archean granitic plutons as well
as younger dolerite dykes and possible kimberlite intrusions. This well understood greenstone geology is
host to a significant proportion of the gold mines around the world, in Canada, Australia, West Africa,
South Africa and Zimbabwe, and South America.
Although the world mineral exploration investment environment has resulted in a slowdown of exploration
activity in the region, the goldfield is still considered underexplored and to have potential for future large
discoveries.
The Tembo Project Background
Importantly, approximately 60-70% of the Tembo Project licence area is underlain by similar gold- hosting
greenstone lithologies, metamorphosed volcanic rocks that have been subjected to geological processes
that have introduced gold into major structures evidenced by linear zones of alteration, veining and
mineralization.
The western boundary of the property is within 5.5km of the shaft head frame and within 3km of the
known western limit of the orebody at the neighboring Acacia owned Bulyanhulu Mine. The Bulyanhulu
Reef 1 and Reef 0 western extension mineralization, host to the bulk of the resources at the mine,
constitutes one of the largest and highest grade continuously mineralized (in excess of 5km) narrow
shear-hosted vein structures known, with mineralization extending to an open- ended depth of 2.3km, and
host to more than 15 million ounces of gold at an average in situ grade of about 20g/t. The greenstone
geology that is host to Bulyanhulu and the mineralization host structure, comprising a sub- vertical
northwest trending shear zone located largely on the contact between mafic and felsic metavolcanic units,
trends directly into the Tembo Project area. Within the Bulyanhulu mining licence a number of similar
northwest trending structures including Reef 0 and Reef 2 are also host to economic mineralization.
The geology of the Tembo project area is largely concealed by a thin transported cover between 4 and
10m thick. The known geology is interpreted from high resolution airb orne magnetics and subsequent
drilling, as well as residual material at surface mined by artisanal miners over the past 30 to 40 years.
Extensive artisanal mining (in excess of 13 linear kilometers of strike) along three major structural
directions, corres ponding with three magnetic linear trends (northwest, northeast and east -west) bear
witness to the presence of extensive mineralization within the property, and highlights the potential.
During 2011, all existing data, consisting of conventional soils, pi ts and cover bedrock interface RAB
geochemistry, limited earlier drilling, a detailed LIDAR survey to identify and locate artisanal workings, the
high resolution airborne magnetics, and regolith and geological mapping, was integrated and
interrogated. Seven geographical target areas were identified designated Ngula 1, Ngula 2, Buly Trend,
Iyenze, Nyakagwe East, Nyakagwe Village and Mgusu. Each of these targets contained significant
artisanal workings comprising extensive surface rubble excavations and verti cal shafts to bedrock, and
corresponding linear magnetic anomalies.
Target Generation and Prioritization
• Targets on the Tembo property have been generated by the integration of historical data
including soil geochemistry and airborne magnetics, and by the more recently conducted LIDAR
survey, which mapped out the extent of artisanal workings. This work focused on one area of the
licence, which is approximately 15km
2 in area or 20% of the greenstone geology within the
Tembo licences.
• This integration of data has shown that there is an almost 100% correspondence of artisanal
workings (linear trends of vertical shafts reaching to bedrock) and magnetic linear anomalies.
• Artisanal workings are initiated when gold- bearing quartz vein fragments are found on t he
surface, leading to extensive excavations and the removal of surface rubble found in the
transported cover. The quartz vein fragments are derived from, and an important indicator of,
mineralized shear structures.
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• Ultimately this surface mining locates an in situ mineralized structure, the source of the rubble,
and deeper bedrock mining follows through a series of short vertical shafts along the strike of the
structure.
• An important factor in the planning and targeting of future exploration is the consi deration that the
artisanal workings mined to date (~13km of strike within the area of focus) reflect only
approximately 10% of the linear magnetic anomalies present along the three prevailing trends,
northwest, northeast and east-west in that area.
• Significantly the drilling along the prioritized targets (workings plus magnetic lineaments) has only
tested (incompletely) 30-40% of these known areas of mining.
• The many magnetic lineaments, along which the near surface geology is concealed in 80- 90% of
the entire greenstone package area, have the potential to host gold mineralization.
• Clearly there remains extensive exploration to be conducted. The many magnetic lineaments
parallel to mineralization and the many potential intersection zones of different linear structures
require follow up and further exploration.
Based on the definition and prioritization of these targets, an initial drilling programme of approximately
90,000m was planned to test beneath the artisanal workings with diamond drill holes, and along potential
extensions and areas with potentially mineralized structures interpreted from airborne magnetics using
reverse circulation drilling.
During the Phase 1 drilling programme carried out during 2012 a total of 35,000m was drilled, 139 holes
totaling 20,000m of RC drilling and 57 holes totaling 15,000m of diamond drilling. Most of this was
targeted at the Ngula 1 and Nyakagwe East targets. A second phase of drilling was conducted during
2014 and comprised 27 diamond drill holes totaling 7,000m primarily targeting Nyakagwe East and
Nyakagwe Village. Limited drilling has been conducted along the remaining targets.
Drilling Results
The drilling at the Tembo Project has returned good results and all the targets that have had significant
drilling have returned gold intersections, some of which have been exceptional. Diamond drilling beneath
workings was initially targeted to intersect structures at 50m and 100m below surface on 100m spaced
section lines. Highlights of the targets and drilling, and the best results to date are:
Ngula 1:
• To date 35 DD holes totaling 9,107m and 41 RC drill holes totaling 7,623m have been completed
at Ngula 1.
• A 150-200m wide zone of meta- basalts hosting at least three east-west shear zones and multiple
sub-shears that host gold along a known strike of approximately 600m.
• Northwest and northeast trending cross -cutting sub -shears have been interpreted and the
intersection of these with the east -west structures may define higher -grade shoots, which is
supported by the changeable grades and widths encountered in the drill holes along strike and
down dip.
• Diamond drilling and RC drilling targeted beneath workings and along strike to the west.
• The structures remain open to the east and down dip.
• TDD0004: 3.13g/t Au over 25.89m from 41.00m including 9.38g/t Au over 6.30m;
• TDD0005: 8.50g/t Au over 5.14m from 152.85m including 58.49g/t Au over 0.68m;
• TDD0010: 3.72g/t Au over 2.50m from 189.00m including 6.44g/t Au over 1.20m;
• TDD0012: 8.6g/t Au over 0.98m from 171.92m;
• TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m;
• TDD0054: 8.17g/t Au over 11.05m from 116.95m including 9.78g/t Au over 8.02m, and 3.74g/t Au
over 2.04m from 132.00m including 7.00g/t Au over 1.00m;
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• TDD0059: 5.93g/t Au over 0.64m from 142.33m and 3.73g/t Au over 0.61m from 310.99m;
• TDD0106: 11.70g/t Au over 0.98m from 286.26m;
• TDD0110: 3.17g/t Au over 1.00m from 95.00m and 4.22g/t Au over 5.00m from 195.00m
including 6.58g/t Au over 3.00m;
• TDD00125: 19.03g/t Au over 0.94m from 35.16m including 26.40g/t Au over 0.66m, and 5.90g/t
Au over 1.14m from 208m;
• TDD0133: 4.81g/t Au over 0.62m from 176.38m;
• TDD0146: 10.70g/t Au over 1.00m from 308m;
• TRC0001: 38.20g/t Au over 1.00m from 85.00m;
• TRC0002: 4.50g/t Au over 1.00m from 8.00, and 3.77g/t Au over 1.00m from 54.00m;
• TRC0003: 3.76g/t Au over 2.00m from 21.00m: 28.57 g/t gold over 3.00m 54.00m: and 5.28 g/t
Au over 4.00m from 72.00m;
• TRC0006: 4.42g/t Au over 1.00m from 5.00m: and 3.16g/t Au over 3.00m from 206.00m;
• TRC0008: 5.18g/t Au over 1.00m from 9.00m, and 3.75g/t Au over 6.00m from 35m;
• TRC0013: 17.23g/t Au over 4.00m from 19.00m including 22.53g/t Au over 3.00m and 48.8g/t Au
over 1.00m, and 13.00g/t Au over 1.00m from 104.00m; and
• TRC0014: 19.80g/t Au over 1.00m from 114.00m: and 10.00g/t over 1.00m from 122.00m.
Nyakagwe East:
• Twenty-three diamond drill holes (6,924m) and 20 RC drill holes (2,238m) have been completed
to date.
• A potential mineraliz ed strike length of over 1,000m along at least one structure within a broad
325m wide zone that contains multiple structures.
• Limited historical diamond drilling had intersected mineralization.
• Diamond drilling targeted the area under the northern structur e of two extensively mined
northwest trending zones containing multiple structures and extended in depth to test for parallel
structures.
• Artisanal shafts have been excavated along approximately 750m of strike.
• RC drilling where no mining has been carried out showed that the structures continue to the
northwest where 300m of mineralization was intersected in the adjoining target area, Mgusu.
• DD001: 10.25g/t Au over 3.50m from 38.50m
• DD005: 9.73g/t Au over 3.40m from 81.94m
• RC056: 36.70g/t Au over 1.00m
• TDD019: 4.69g/t Au over 1.67m from 67.35m;
• TDD0056: 4.42g/t Au over 2.60m from 130.60 including 10.57g/t Au over 1.00m;
• TDD070A: 1.55g/t Au over 7.21m from 93.24m, including 3.15g/t Au over 0.94m and 3.19g/t Au
over 0.51m;
• TDD0072: 8.44g/t Au over 1.30m from 99.90m, including 25.00g/t Au over 0.42m;
• TDD0074: 6.55g/t Au over 7.46m from 370.46m;
• TDD104: 4.72g/t Au over 2.11m from 66.80m;
• TRC233: 5.66g/t Au over 1.00m from 84.00m; and
• TRC234: 5.46g/t Au over 2.00m from 109.0m.
Nyakagwe Village
• To date fifteen DD holes (2,916m) and 11 RC holes (1,315m) have been completed.
• Diamond drilling has intersected gold mineralization in the east -west structures along a 600m
strike.
• A previously unknown northeast trending mineralized zone associated with a 1.8km l ong
magnetic lineament associated with wider mineralization at this target where it intersects with the
east-west structures.
• TDD0071: 9.64g/t Au over 3.95 m from 85.25m, including 24.72g/t Au over 1.45m;
• TDD0101: 78.1g/t Au over 1.00m from 294m;
• TDD0102: 2.90g/t Au over 0.92m from 48.08m;
• TDD0103: 15.10g/t Au over 1.00m from 54.00m: and 1.87g/t Au over 1.00m from 71.00m;
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• TDD0107: 16.58g/t Au over 3.55m from 43.88m and 27.88 g/t Au over 3.00m from 65.90m;
• TDD0111: 35.14g/t Au over 2.45m including 167g/t Au over 0.50m from 53.35m;
• TDD0112: 3.35g/t over 5.98m from 64.12m: and 2.94g/t Au over 2.00m from 72.00m;
• TDD0115: 2.74g/t Au over 8.50m from 53.00m including 7.73g/t Au over 1.00m, 3.43g/t Au over
1.40m and 4.04g/t Au over 2.00m; and 2.04g/t Au o ver 9.00m from 69.00m including 2.89m over
4.80m;
• TDD0137: 2.63g/t Au over 1.50m from 38.00m;
• TRC0552: 8.42g/t Au over 3.00m from 86m;
• TRC0554: 2.53g/t Au over 1.00m from 47.00m; and
• TRC0562: 4.61g/t gold over 5.00m from 82m.
Other Targets
Very little drilling has been done along other targets and results returned to date include:
• Mgusu: TDD0140: 2.80g/t Au over 2.70m from 54.30m. TRC0158: 3.20g/t Au over 1.00m from
23.00m. TRC0423: 10.17g/t Au over 6.00m from 36.00m including 19.10g/t Au over 3.00m.
TRC0424: 3.46g/t Au over 1.00m from 71.00m. TRC0526: 2.88g/t Au over 2.00m from 31.00m.
TRC0527: 3.70g/t Au over 1.00m from 30.00m and 4.38g/t Au over 2.00m from 44.00m.
• Buly Trend, Ngula 2 and Iyenze have not returned significant results.
Resources
When the Tembo Project was revitalized in 2011, the goal set by the Company was to explore for a large
high quality deposit. There was no shortage of targets to choose from and the drilling strategy adopted
was to test them according to a priority establis hed through a collective review of data by a multi -
disciplinary team of geoscientists. There was no intention of modeling or declaring a resource until a
substantial one was possible. Unfortunately with the markets not favoring junior greenfields gold
explorers, achieving the valuations and raising the funding that would ensure the original drilling
programme could be completed and extended if necessary was difficult. This continues to be the case.
In light of this, Tembo will now contract a resource geologist to model the data along at least one of the
targets, Ngula 1, which we consider to have the highest probability to host a near surface mineable
resource. This resource, once defined, will be used as the basis for discussions to invest in production.
Tanzania, the Country
Recent changes in government and mining and investment legislation have created a perception of
uncertainty for investment and a perceived heightened political risk. Previous investment incentives have
been replaced with changes to operational circumstances, and tax and government equity participation in
operations that will affect the bottom line of existing and future operations. These are:
• The export of mineral concentrates containing gold has been banned, affecting existing and new
operations, and requiring that in future smelting and refining of minerals, including those to extract
and refine gold from concentrates must be carried out locally. It is understood that this does not
include the export of doré.
• The royalty rate for metallic minerals has been increased from 4% to 6% and a 1% clearing fee is
being imposed on all export product.
• Amendment to the VAT Act of 2015 means that no input tax credit can be claimed on exported
raw minerals, which are defined to include concentrate and doré.
• The government of Tanzania proposes through the new legislation to take a 16% free carried
non-dilutable interest in all mining operations that are the subject of mining licences and special
mining licences.
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• The provisions of Mine Devel opment Agreements on special mining licences has been removed,
implying that the benefits and incentives that previously could be negotiated no longer will apply.
Companies will simply be required to conduct business according to the laws of the country.
• In cases where the government grants tax incentives in favour of companies investing in mining,
it is intended that the government will through these incentives take up to a 50% stake in
companies receiving the benefit.
• Revenues from mineral sales made must be lodged in banks in Tanzania and may only be
repatriated in compliance with the Tanzanian legislation.
• Disputes arising from mineral extraction and related industry activities must be dealt with
according to Tanzanian law and only with Tanzanian arbi tration, international arbitration is no
longer allowed.
• All agreements under which mining projects are developed must be subjected to parliamentary
scrutiny and approval, where such agreements are required or considered by the investor.
• The government has a lien on all minerals and mineral concentrates before export. This is
currently the case until the obligations of royalty payments have been made.
• The provision that allowed the issue of a retention licence on expiry of the second renewal of
prospecting licences has been removed.
Although these changes will and do affect the bottom line of existing and future operations, they are not
considered extraordinarily onerous when compared with similar arrangements in many countries
worldwide and will be considered and incorporated into future feasibility study and operational
considerations.
Community Integration and Engagement
Tembo, within its limited means as a junior exploration company, endeavors to be a responsible member
of the communities within which it operates and seeks to establish strong, positive and mutually beneficial
relationships. In so doing, it aims to achieve its social license to operate. Through regular visits by our
country manager, our relationship with local communities has been maintained.
Personnel
• The Company has a skeleton care and maintenance and security crew based at the camp taking
care of the invaluable operations base, core storage facility and vehicles, ensuring a presence
and ensuring the properties from being taken over by artisanal operators;
• David Scott the CEO, assisted by the company country manager, Paul Magege, has ensured that
the licence portfolio has been maintained, company accounts and audits have been kept up to
date and audits completed, and that the field crew is carrying out the necessary functions
maintain the physical assets and to protect the licence area from artisanal invasions;
• The loss of the NAMF investment, the resignation of our CFO John Seaman and changes in the
Stratex Board resulted in forced changes to Tembo’s Board of Directors, currently consisting of
David Scott ( CEO), Marc Cernovitch (CFO and Corporate Development) and Frank Högel
(representing CCM, a strong supportive shareholder ). The Board is to be strengthened with
additional selected members with appropriate skills and experience w ho will assist in achieving
the strategy; and
• Tembo maintains a strong relationship with highl y professional exploration geologists and mining
professionals who have been involved in the past in the Tembo Project and has the capability of
mobilizing these personnel resources at short notice.
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Conclusions, Recommendations and the Future Strategy
The Tembo Project has delivered strong exploration drilling results. It is obviously a high quality
greenfields exploration project. The many high- grade, and in places wide intersections clearly
demonstrate the gold endowment of the area. The area of focus of the past drilling campaigns, as well as
the other greenstone host lithology areas to the north and south, all require further investigation and
exploration. This exploration is costly and time consuming, but the potential discovery size and quality is
self evident from the results returned to date and the quality of the deposit of the neighboring property.
Financing long and costly programmes at the stage that the Tembo Project is, is not sensible at present
market valuations. In order to de- risk and advance the project, the following strategy is proposed: 1.
Ensure the licence tenure is maintained and secured. 2. Ensure the operational base is available for
mobilization and that assets are protected. 3. Progress development of the project so that it bec omes
self-financing through the future exploration phase.
To discover and delineate a large deposit continues to be the Company’s goal. To achieve this and to
ensure that the licence tenure is secured, a strategy of small -medium production development is
proposed. As a first step towards achieving this end, the company will shortly undertake a resource
modeling exercise on the drilling done to date. Once this is completed and assuming there is a positive
outcome, this model will be used to develop the necessary further studies to justify a production decision.
In parallel with this Tembo is engaging with potential investors with an interest in small -medium scale, low
capital cost and low operating cost mine development. If production is successfully achieved it is planned
that excess free cash flow generated will be used to further the exploration.
The scientific and technical information contained in this news release has been reviewed and approved
by David Scott, Pr. Sci. Nat., a Qualified Person as defined by National Instrument 43-101.
About Tembo
Tembo Gold is a Canadian public company listed on the TSX Venture Exchange ("TSX -V") under the
symbol TEM. The Company currently has 100% interest in the Tembo Gold Project that is located
adjacent to African Barrick's 20Moz Bulyanhulu Mine in the prolific Lake Victoria Greenstone belt in
Tanzania. Our focus is the discovery and development of world- class gold projects in Africa. The
company has assembled a highly experienced team with a proven history of developing, financing, and
operating mining projects in Africa.
Forward-Looking Statements
Certain information set out in this news release constitutes forward- looking information. Forward looking
statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "w ill", "intend", "could", "might", "should", "believe" and similar
expressions. In particular, this news release contains forward- looking statements in respect of the use of
the net proceeds from the Private Placement, the completion and timing of additional closings of the Non-
Brokered Private Placement, the payment of certain finders' fees and the listing of the Common Shares
on the TSXV. Forward-looking statements are based upon the opinions and expectations of management
of the Company as at the effectiv e date of such statements and, in certain cases, information provided or
disseminated by third parties. Although the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, and that information obtained from
third party sources is reliable, they can give no assurance that those expectations will prove to have been
correct. With respect to forward- looking statements contained in this news release, the Company has
made assumptions regarding, a mong other things, the ability to develop the Company's properties, the
economic climate in the jurisdictions where the Company carries on operations and commodity prices.
Although the Company believes that the expectations reflected in the forward- looking statements
contained in this document, and the assumptions on which such forward- looking statements are made,
are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are
cautioned not to place undue reliance on f orward-looking statements included in this document, as there
can be no assurance that the plans, intentions or expectations upon which the forward- looking statements
are based will occur. By their nature, forward- looking statements involve numerous assumptions, known
and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts,
projections and other forward- looking statements will not occur, which may cause actual results in future
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periods to differ materially from any estimates or projections of future performance or results expressed or
implied by such forward-looking statements. These risks and uncertainties include, among other things, a
significant drop in the price of gold, political turmoil in Tanzania and ot her risk factors set forth in the
Company's continuous disclosure. Readers are cautioned that this list of risk factors should not be
construed as exhaustive. These statements are made as at the date hereof and unless otherwise
required by law, the Company does not intend, or assume any obligation, to update these forward- looking
statements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS
DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
CONTACT INFORMATION:
Tembo Gold Corp.
Marc Cernovitch David Scott
Director CEO and Director
1.416.619.9010 255.767.366.146
[email protected] [email protected]
www.tembogold.com