Tanzania Royalty Exploration Corporation
Busolwa – Buziba Joint Venture Proposal
To Raise Financing for Development / Construction
of Commercially Minable Gold Deposit
February 2014
Deal Highlights
• Tanzanian Royalty Exploration Corporation (TSX: TNX / NYSE MKT
LLC: TRX) and Allied Gold Corp. (“AGC”) of Dubai announced
signing of letter of intent to accelerate development of a
commercially producing mine on the area known as Buziba /
Busolwa in Tanzania.
• Through its Buckreef Gold Company Limited (BGCL) JV with
Stamico, the Company will hold 40% interest in New JV with AGC
holding remaining 60%.
• JV will Accelerate development and Financing of 2 Significant
Mineable Gold Deposits.
• TRX RELIEVED OF RAISING ADDITIONAL FINANCING
Project Highlights
•
The combined Buziba / Busolwa Project contains significant National Instrument
43-101 compliant gold resources now being compiled for inclusion in Pre
Feasibility study nearing completion.
•
Integrated project results in significant synergies for Low-cost early Production
maximizing shareholder value.
•
Increased gold resource potential from significantly expanded license area and
limited depth drilling to date.
•
Only minimal start up cash investment by TRX as Capital Funding to be arranged
by Allied.
•
Allows TRX to accelerate and focus resources on development of Buckreef Main
and other key Projects in the pipeline
•
Allied to seek funding in early 2014 to conclude Feasibility Study and all project
Financing.
• tal
Proposed Structure
Operations
Assets
• Signed Letter of Intent Allied, TRX and
Stamico
• JVC to be funded in proportion to
• Sign Definitive Contract
equity holdings with minimal initial
• Establish Joint Venture Company and
capital injection
issue shares
• Executive Management Team from
• BCG vends Buziba license into JVC
Allied responsible for Financing.
and Allied vends Busolwa licenses
into JVC
BGC
Buziba
License
Busolwa
Licenses
Joint Venture Company
Allied and BGCL
Allied to Arrange financing
4
Funding and Mine Development
Profile
Allied Gold Corp
•
Allied Gold Corp. is a gold exploration and development company focused on Sub-Saharan
Africa. The company is part of the Allied Resources Group, a natural resources group with
offices in Dubai and Sydney. Allied Gold Corp's business model involves building value by
identifying and acquiring gold resources, developing these into reserves and then
producing gold.
•
The Company's Head Office is in Dubai. African operations are run from an office in Dar es
Salaam in Tanzania.
•
Allied Gold Corp. invests in projects worldwide but its current focus is on Sub-Saharan
Africa and Tanzania.
•
The Company has been actively involved in Tanzania for years with established operating
facilities and Experienced staff.
•
Key relationships extend to Sovereign Wealth Funds and large financial institutions in the
Middle East, Europe and United States.
Management
Allied Management Team
Justin began his career in an advisory capacity with HSBC. His entire career has been focused on Africa, during which
time he has been engaged in both a principal and advisory capacity in the petroleum and mining sectors. Justin founded
Mr Justin Dibb
Dominion Petroleum Limited and in his capacity as Managing Director acquired seven assets for Dominion in
Tanzania, Uganda and the Democratic Republic of the Congo. Dominion was listed on the AIM market of the London
Stock Exchange in 2006 with a market capitalisation of US $240 million and raised US $140 million.
Phillip has over 15 years of capital markets experience in the natural resources sector, having raised and advised on over
$650m worth of equity, debt and convertible transactions. He has raised Capital for Adamus Resources, Sundance
Mr Phillip Shamieh
Resources and many other mining companies. Phillip has a transaction record with Sovereign Wealth Funds, Industrial
Conglomerates, and Pension and Endowment Funds. He holds a BA in Commerce from Sydney and a post-graduate
degree in Applied Finance and Investments from the Securities Institute of Australia
Andrew has thirty years of experience in the mining and petroleum exploration and development industries and has
Exploration
Dr Andrew Robinson
held key positions in Billiton, BP Minerals and BP Exploration where he worked on and ran exploration and development
projects including gold, base metals and uranium. He is a geologist of international repute with more than thirty
papers published in major scientific journals and three textbooks to his name and has been responsible for significant
advances in the fields of lead-zinc mineralisation and regional geology. In 2004, Andrew co-founded Dominion
Petroleum Limited with Justin Dibb, becoming Exploration & Production Director. He holds a BA in geology from Oxford
University and post-graduate degrees from Toronto and Reading Universities
Exploration
Greg Winch
Geologist with 22 years of experience, 17 in Africa. Senior geologist at Golden Pride Mine (Tanzania), exploration
manager and Director for Equinox (Zambia) and Centamin (Ethiopia)
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East Africa’s Large Gold Belt - Tanzania




1.5 Moz/year mined
Africa’s third largest gold
producer
Numerous major producing
mines
25-30 Moz of gold immediately
around BUSOLWA/BUSIBA within
the same Greenstone Belt




Nyanzaga 4 Moz
30km from the largest gold mine
in Africa (Geita)

Tanzania has many
significant undeveloped gold
properties with Resources
that could be brought to
production quickly
Many explorers underfunded
leading to deal flow
7
Tulawaka 3 Moz
Bulyanhulu
Buzwagi
Tulawaka
Buckreef


North Mara 4 Moz
Geita 25 Moz
Bulyanhulu 20 Moz
Golden Pride 2 Moz
BUSOLWA
Buzwagi 4 Moz
ADVANCED GOLD PROJECT - TANZANIA
Lake Victoria Goldfield, Tanzania
Scale (km)
0
100
Mineralization Continues at Depth
•
•
•
17 out of 1,134 holes drilled to
>150m (around 130m below
surface)
Deepest drill hole 200m
15 had significant intersections
below 120m
Drilling and Resource previously limited
to around 110m below surface
Open at depth
9
PROJECT GROWTH
Assets – Combined
Value Drivers
Geology
Licensing
Joint Venture Company 100%
Logistics
Airstrip, offices, 25 person camp established
Further infrastructure development supported by control of
surrounding licenses. total area 93km2
Space to mine: total license holding 98km2
Scale: one management team, one camp, one plant
Capacity to incorporate into Ausenco Pre-Feasibility Study
Due March 2014
Economics
Tenure Map
Ample Space for Mine
5 km
Significant Exploration Upside
Near Mine
10
Integrated development
maximises value
Busolwa / Buziba Cost Advantages
•
•
•
•
11
Mining
– Simple open pit
– Ore to surface – no pre-stripping
– Contract mining model
Logistics
– Limited resettlement
– Area not remote
– Support industries available locally
– Limited camp requirement – live in Geita
Overheads
– Dedicated Management focused on costs
Metallurgy
– Low reagent usage
– High recovery
– 50% of gold recoverable by gravity
– Second-hand plant available in Tanzania
COMMERCIAL PROJECT
2013 Busolwa Drilling
Significant depth potential with limited depth
drilling to date
Busolwa camp

Ex-IAM Gold camp







Secure – guards currently on site
Accommodation for around 25 people
Office space
Core store
Fuel store
Airstrip
3 hours’ drive from Mwanza; 45 minutes from Geita
Geology office
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Accommodation
Core store
Path to a Profitable Gold Mine
•
Phase 1 – Mine the existing resource and process by HeapLeach or Carbon-in-Pulp
–
–
–
–
–
Many of the world’s gold production processed by HeapLeaches
Simple technology, low-cost
Allows commercial processing of very low-grade ore
Definitive Feasibility Study, financing, construction 2014-2015
Gold production end-2015
Fresh core from 2013 drilling

Phase 2 – Project growth (Carbon-in-Leach)




Higher recovery, higher capex processing
Option to finance largely from cash flow
Design, cost and evaluate plant
Grow Resource
 Infill drilling
 Deeper drilling
 Satellite deposits
 Definitive Feasibility Study, financing, construction
 Reprocess leached heaps – no loss of recovery
2013 Metallurgical Drilling
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ADVANCED GOLD PROJECT - TANZANIA