When North Gold project seeking investors to develop in Zimbabwe

7/25/2019 When North Gold project seeking investors to develop in Zimbabwe

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Project Name : When North Gold Project, Zimbabwe

TECHNICAL REVIEW- INTERNAL

PROJECT NUMBER:Project Name: When North Gold Claims

Reviewed by: L. Mauled Date: 08/06/15

For Office Use

Important

Please tick what has been availed together with the other information that has been brought. CHECKED

1 Applicable prospecting / mining license; X

2 Locality/ Location data (including maps, co-odinates etc) X

3 Supporting geological, exploration or mining/production data X

4 Deal Terms X

5 Name and contact details of promoter X

**Request for missing required information.


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CATEGORY FACTOR COMMENTS

Location Country Zimbabwe, Africa

Investment

Sought/ CostUS$ 4 000 000 (Four million United States Dollar)

Location Province: Matebeleland North

Project is located in Motapa, Sijauke village which is 120km North west of Bulawayo.

Access is gained by taking Bulawayo Nkayi road(strip tarred road) which goes to Isabella mine .

About 10km from Nkayi turn off turn left at T- junction(Motapa turn off) to Sijauke village for 6km on gravel road.

Total Project Size: 40 Hectares

Number of gold claims: 4 Gold Claims.

Infrastructure

National road (strip tarred) Bulawayo Nkayi road passing via near the Joshua Nkomo airport

Gravel road from Motapa turn-off to Mine

Temporary zinc shelter

- Tenure Name of claim Type size Year registered

When North 2 Mining 10 hecteres 11 January 2011

When North 3 Mining 10 hectares 11 January 2011




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Ownership Precious Mining Syndicate


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Promoter Lovemore Mauled

Cell: + 27 71 980 1399

Email:[email protected]

Skype: lovemore.mauled

Geology Regional setting

& metallogenesis

When North gold claims are situated on the western margin of Bubi greenstone belt.A number of archaen greenstone belts

host the majority of gold deposits in Zimbabwe.

Mineralization is within a broad shear zone cutting through felsic schists close to contact between rocks of the
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Bulawayan and Shamvaian group.

Orebody widths range from 5 metres to 20 metres

Strike length is 75 to 500 metres


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Lithologies Andesites

Pillow basalts

Feisic Schists

Structure Economic gold mineralization is structurally controlled.

Regional rock stratigraphy and zone lie roughly parallel to a North East South East trend,undulating on

dip between 50 degrees and 70 degrees South East

Exploration History Extensive soil geochemistry, trenching, pitting and drilling activities were done by Anglo American Zimbabwe Ltd. The

data is proprietary

and is not available to the current holders of the claims at the moment.

The huge open cast Motapa mine, Isabella mine, McCays mines and Bubi mine have been mined by Anglo American .

Artisanal miners have been active in the area since the closing down of Motapa Mine.

Exploration activities near the When gold claims led to the discovery of Open pittable resources.

Other Historical

Records

Big mines around the area are:

Turk Mine,

Lonely,

Dawn,

Isabella Mine incorporating When ,McCays & Bubi mines. Anglo American has the historical production records. The

mines have excellent production records. Turk and Lonely mines are still operating but they are underground

operations.

Surface activities Sampling was done and the rock samples were taken to the following laboratories:-

Zimbabwe School of Mines (ZSM) and;

Duration gold mine laboratory

Drilling Extensive drilling was done by Anglo-America,who are the former owners of Isabella mine.

Records of the drilling are not available.

Mineralisati

on

Metal-

association and

style

Within shear zone there are a number of elongate pods of mineralization which occur as brecciated and Silicified stock-work

zones impregnated with pyrites and arsenopyrites.

Mineralogy Arsenopyrite

Pyrite


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Controls Economic gold mineralization is structurally controlled

Strike length Strike length ranges between 75 to 500 metres

Width and

orientation Width ranges from 5metres to 20 metres

Dip between 50 degrees to 70 degrees

Depth (open pit

potential)

Mineralization on oxidised material on top shows open cast can be done.

Resource Resource Size

and Grade

These need to determined through exploration activities such as trenching and drilling and laboratory analyses of samples

Methodology of

estimation

To be determined

Upside potential Potential to peg more gold claims around the property. This will increase the project size as well as life of mine.

Mining Study status None yet but the area presents open cast potential.

Mining method Open castable to about 60 metres

Life of mine plan To be determined.

Mining

infrastructure

None yet on the site. The project is early stage greenfield.

Historical mining Small scale gold mining has taken place in and around the claims.

Past Production No records are available at the moment.However, the mining that occurred in the surrounding areas by Anglo American Ltd

and other companies indicate that the area has potential for gold. This is also supported by the general location of the project

on the Bubi Greenstone Belt.

Reserve Needs to be determined once an interested investor/funder is found

Processing Study status &

test work

None yet

Processing

method

At the moment artisanal miners in the vicinity use custom milling at local stamp mill with a concerntrator


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Key risks Technical risks De risk the project by using a phased approach to any exploration program.

Litigation None known at the moment

Recommend

ation The project presents an excellent exploration and development opportunity.

It is located in a geologically good environment. Artisanal miners are found in the area and this is a good indication of

potential.

The area in which the project lies is a well known gold producing area in Zimbabwe. Successful open cast mining

operations

have been carried out by renowned companies such as Anglo American Zimbabwe (Pvt) Ltd.

Like any project, due diligence is required. A field visit is required.

Arrangements to purchase any available data relating to the When Gold claims (from Anglo American) must be made.

An preliminary budget is attached herewith.

Recommended exploration activities will include Geochemical and Geophysical methods.

Trenching, diamond drilling/or RC or Percussion drilling will need to be done so that a geological model of the

Project can be produced. This will aid the planning of any subsequent exploration programs or the development

of the project into a producing mine.

Data Source Source Project owners

Deal Terms The owners of the project are seeking for Joint Venturepartners in order to explore and develop the project into aproducing mine.

The project requires an investment in the region of R 3 707 815.00 (which can be rounded off to approximately US$4

million)


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Copy of Claims Licences/ Proof of Ownership


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Laboratory Analyses of Samples from When North Gold Claims


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AAS ANALYSIS RESULTS CERTIFICATE

Results of the analysis done using the AAS method are shown below. The results are shown in grams

per tonne.


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Nearby Mines


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Project BudgetExplorationEXPLORATION PLAN & RESOURCE EVALUATION

ACTIVITIES

Reconnaissance survey and Field mapping

Trenching Trenches will be dug at 100m intervals across strike, each trench 500m long and samples will be taken in each trench on bed rock

Diamond Drilling 16 holes will be drilled on the 4 claims, on a grid of 100m X 100m to investigate gold mineralization and behavior of mineralized sections

with depth, to get dip of ore body, depth and thickness of ore body. Diamond drill boreholes will be drilled to a depth of 60 metres @$150 per metre

Diamond drill cores will be logged and taken for analysis. The analysis envisaged will include Bottle roll and Fire assay.

Diamond Drilling is done to declare Resources and Reserves which assist in projecting the life span of the mine. Mining geological soft wares will be used for

ore Reserves calculations.

Compilation of a detailed Geological report with all maps, core log sheets, assay results and estimation of Life span of the mine.

Drawing up of operational plan and pit designs

Motapa (When North 2 -5 claims) EXPLORATION BUDGET

ITEM QUANTITY UNIT PRICE TOTAL (US $)

4 X 4 Bakkie(diesel) 2 $12 000 $24000

Reconnaissance Survey 1 $500 $500

Trench Samples Assaying 100 $18 $1800

Diamond DrillingBoreholes (60metres)

16 $9 000 $144 000

Core Samples Assaying 200 $18 $3 600

Stationery, internet,

phone1 $1000 $1000

Sample Bags, Twine String 1 $2000 $2000

Measuring Tape 4 $150 $600

Chisels & Hammers 4 $25 $100


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Picks 10 $15 $150

Shovels 10 $10 $100

Tents 5 $300 $1500

Diesel Fuel 10000 $1.50 $15 000

Food 12 $5000 $60000

TOTAL $254 350

NB: Costs to include

hiring of excavator

Labour

Project Manager@4800

per month12 4800 $57600

Geologist @ $4000 per

month12 4000 $48000

Geological Assistants

@$30/dayfor 26days2 assistants $1000 $24000

General labour @$250

per month10 general labour $250 $30000

Cook 1 300 $3600

Resource andMiningEngineering Consultants

$300 000

TOTAL $163200

LICENCES

Company Registration 1 $300 $300

Bank Account Opening 1 $500 $500

Zimbabwe Investment

Authority Licence1 $3 000 $3 000

Site of works plan 1 $500 $500


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Inspection Fees update 1 $400 $400

Legal fees 1 $1 000 $1 000

Environmental Impact

Assessment1 $5 000 $5 000

TOTAL $10 700

Totals For Exploration

Field Equipment 1 $242350 $254350

Labour 1 $163200 $163200

Licences 1 $10 700 $10700

Sub Total $428250

10% Contigency $42825

Grand Total $471075

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PROCESSING PLANT

ITEM QUANTITY UNIT PRICE TOTAL

5 Tonne/hour ball mill 2 $70 000 $140 000Concentrators 2 $3 500 $7 000

Crusher 1 $10 000 $10 000

Ore bin 1 $8 000 $8 000

Conveyors $12 000Scrapper Winch 1 $5 000 $5 000Slurry pumps 2 $500 $1 000

Thickener 1 $30 000 $30 000100 cubic metre Leach tanks 2 $7 000 $14 000

Carbon Tanks 4 $5 000 $20 000

Elution Plant 1 $35 000 $35 0000

Total $282 000


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VEHICLES

ITEM QUANTITY UNIT PRICE TOTALExcavator 1 $400 000 $400 000

10 tonne tipper trucks 4 $80 000 $320 000Front End Loader 1 $250 000 $250 000

Compressors+jackhammer+hose

4 $10 000 $40 000

7 tonne truck 1 $30 000 $30 0004X4 Bakkies 4 $25 000 $100 000

Minibus 1 $20 000 $20 000

TOTAL $1 160 000

LICENCES


Rural council fee 1 $1 500 $1 500Milling permit 1 $3 000 $3 000

Borehole licence 1 $400 $400

TOTAL $4 900

TOOLS


200 kVa Generator 1 $30 000 $30 000Wheel barrows 10 $120 $1 200

Tool boxes 2 $500 $1 000

Office furniture 1 $10 000 $10 000TOTAL $42 200

____________________________________________________________________________

INFRASTRUCTURE DEVELOPMENT


Ball mill installation 2 $5 000 $10 000


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Office block 1 $15 000 $15 000Staff quarters 4 $5 000 $20 000

Borehole +piping 1 $15 000 $15 000Workshop 1 $5 000 $5 000

Electricity 1 $20 000 $20 000Electrical tubing 1 $10 000 $10 000

Plumbing 1 $5 000 $5 000

Fencing + signs 1 $5 000 $5 000Water Reservoirs 2 $1 000 $2 000

Magazine 1 $10 000 $10 000Guest house/ management house 1 $10 000 $10 000

Fuel storage 1 $5 000 $5 000

TOTAL $132 000

MONTHLY CONSUMABLES


Diesel 20 000 $1.50 $30 000

Electricity $10 000Explosives 30 boxes $350 $10 500

Drill bits 40 $20 $800

Drill sticks 20 $40 $800Fertilizer 20x20kg $24 $480

Cyanide 50X50kg 200 $10 000

Carbon 20X25kg $125 $2 500Solution Tests+Test Tubes $1 000

Stationery $500Telephone +Internet $2 000

Rock Drill oils $500

Maintenance spare parts $2 000

Canteen supplies $500Labour (salaries) $46 600

PPE $100 $61 $6 100

TOTAL for 12 months $1491360


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Figure 1 below shows artisanal miners on a Shafton the Claims.Rock samples from this shaft were taken and analysed at the laboratory and the fire

assay results obtained are as shown below.

.

Analysis Element Sample Au (ppm) Detection Limit

Fire Assay Gold 2 Top Right Reef 16.1 0.01

Fire Assay Gold Shaft 1 Bottom 0.24 0.01

Fire Assay Gold Shaft 1 Top Left 0.34 0.01

Fire Assay Gold Shaft 2 Bottom and Top 13.64 0.01

Fire Assay Gold Vimila Shaft 11.62 0.01

Fire Assay Gold Vimila South 2 10.08 0.01

Fire Assay Sample Analytical Results By Duration Gold Laboratory.


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Figure 1.


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Figure 2. Geologist standing on artisanal minersshaft

Documents

When North Gold project seeking investors to develop in Zimbabwe