Company Quick10K Filing
Tanzanian Royalty Exploration
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 0 $0
20-F 2019-12-02 Annual: 2019-08-31
20-F 2018-11-30 Annual: 2018-08-31
20-F 2017-11-29 Annual: 2017-08-31
20-F 2016-11-28 Annual: 2016-08-31
20-F 2014-11-03 Annual: 2014-08-31
20-F 2013-11-15 Annual: 2013-08-31
20-F 2012-11-27 Annual: 2012-08-31
20-F 2011-12-12 Annual: 2011-08-31
20-F 2010-11-29 Annual: 2010-08-31
TRX 2019-08-31
Item 17 O Item 18 O
Part I
Item 1.Identity of Directors, Senior Management and Advisers
Item 2.Offer Statistics and Expected Timetable
Item 3.Key Information
Item 4.Information on The Company
Item 4A.Unresolved Staff Comments
Item 5.Operating and Financial Review and Prospects
Item 6.Directors, Senior Management and Employees
Item 7.Major Shareholders and Related Party Transactions
Item 8.Financial Statements
Item 9.The Offering and Listing
Item 10.Additional Information
Item 11.Quantitative and Qualitative Disclosures About Market Risk
Item 12.Description of Securities Other Than Equity Securities
Part II
Item 13.Defaults, Dividend Arrears and Delinquencies
Item 14.Material Modifications To The Rights of Security Holders and Use of Proceeds
Item 15.Controls and Procedures
Item 16 A.Audit Committee Financial Expert
Item 16 B.Code of Ethics
Item 16 C.Principal Accountant Fees and Services
Item 16 D.Exemptions From The Listing Standards for Audit Committees
Item 16 E.Purchases of Equity Securities By The Issuer and Affiliated Purchasers
Item 16 F.Change in Registrant's Certifying Accountant
Item 16 G.Corporate Governance
Item 16 H.Mine Safety Disclosure
Part III
Item 17.Financial Statements
Item 18.Financial Statements
Item 19.Exhibits
EX-4.42 ex4-42.htm
EX-4.43 ex4-43.htm
EX-4.44 ex4-44.htm
EX-4.45 ex4-45.htm
EX-4.46 ex4-46.htm
EX-4.47 ex4-47.htm
EX-4.48 ex4-48.htm
EX-4.49 ex4-49.htm
EX-4.50 ex4-50.htm
EX-4.51 ex4-51.htm
EX-4.52 ex4-52.htm
EX-4.53 ex4-53.htm
EX-4.54 ex4-54.htm
EX-4.55 ex4-55.htm
EX-4.56 ex4-56.htm
EX-4.57 ex4-57.htm
EX-4.58 ex4-58.htm
EX-4.59 ex4-59.htm
EX-4.60 ex4-60.htm
EX-4.61 ex4-61.htm
EX-4.62 ex4-62.htm
EX-4.63 ex4-63.htm
EX-4.64 ex4-64.htm
EX-8.1 exhibit81.htm
EX-12.1 exhibit121.htm
EX-12.2 exhibit122.htm
EX-13.1 exhibit131.htm
EX-15.1 ex15-1.htm
EX-15.2 ex15-2.htm
EX-15.3 exhibit153consentofdmcl.htm
EX-15.4 exhibit154.htm
EX-15.5 exhibit155consentofcrundwell.htm
EX-15.6 exhibit156consentofvirimai.htm

Tanzanian Royalty Exploration Earnings 2019-08-31

TRX 20F Annual Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
TGB
MPVD
WPM
AGI
WRN
SAND
PVG
NGD
PLM
TRX

20-F 1 form20-f.htm ANNUAL REPORT FOR FISCAL YEAR ENDED AUGUST 31, 2019

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

     

 

FORM 20-F

     

 

oREGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12 (g) OF THE SECURITIES EXCHANGE ACT OF 1934

 

xANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 

For the fiscal year ended August 31, 2019

 

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 

For the transition period from __________________ to ______________________

 

oSHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Date of event requiring this shell company report ______________________________

 

Commission File Number 001-32500

 

 

TANZANIAN GOLD CORPORATION

(Formerly known as TANZANIAN ROYALTY EXPLORATION COMPANY)

 

(Exact Name of Registrant as Specified in Its Charter)

  

ALBERTA, CANADA

 

(Jurisdiction of Incorporation or Organization)

 

Bay Adelaide Centre, East Tower

22 Adelaide Street West, Suite 3400

Toronto, Ontario

M5H 4E3

 

(Address of Principal Executive Offices)

 

James Sinclair

Executive Chairman

Tanzanian Gold Corporation

Bay Adelaide Centre, East Tower

22 Adelaide Street West, Suite 3400

Toronto, Ontario

M5H 4E3

Telephone: 1.844.364.1830

Fax: 860.799.0350

Email: j.sinclair@tangoldcorp.com

 

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

 

Securities registered or to be registered pursuant to Section 12(b) of the Act:

 

Common Shares, without Par Value   NYSE American
(Title of Class)   Name of Each Exchange on Which Registered

 

Securities registered or to be registered pursuant to Section 12(g) of the Act: NONE

 

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: NONE

 

 

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: 150,391,558 (as of August 31, 2019).

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

o Yes     x No

 

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    o Yes     x No

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

x Yes     o No

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 2.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

x Yes     o No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or emerging growth company. See definition of “accelerated filer” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o      Accelerated filer x      Non-accelerated filer o      Emerging Growth Company o

 

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP o

 

International Financial Reporting Standards as issued by the International Accounting Standards Board x

 

Other o

 

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the Company has elected to follow.

Item 17 o Item 18 o

 

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    o Yes     x No

 

 

TABLE OF CONTENTS

 

Cautionary Note to U.S. Investors Concerning Estimates of Mineral Resources 1
Currency 1
Foreign Private Issuer Filings 1
Glossary of Technical Terms 2
PART I  
Item 1.  Identity of Directors, Senior Management and Advisors 6
A.   Directors and Senior Management: 6
B.   Advisers 6
Item 2.   Offer Statistics and Expected Timetable 6
Item 3.   Key Information 6
A.   Selected Financial Data 6
B.   Capitalization and Indebtedness 7
C.   Reasons for the Offer and Use of Proceeds 7
D.   Risk Factors 7
Item 4.     Information on the Company 17
A.   History and Development of the Company 17
B.   Business Overview 17
Plan of Operations 18
Governmental Regulations 36
C.   Organizational Structure 37
D.   Property, Plant and Equipment 37
Buckreef Project 38
Kigosi Project 47
Lunguya Project Area 51
Itetemia Property 53
Luhala Property 57
Item 4A.    Unresolved Staff Comments 58
Item 5.   Operating and Financial Review and Prospects 59
A.  Operating Results 59
B.   Liquidity and Capital Resources 60
C.   Research and Development, Patents and License, etc. 66
D.   Trend Information 66
E.   Off Balance Sheet Arrangements 66
F.   Tabular Disclosure of Contractual Obligations 66
Item 6.    Directors, Senior Management and Employees 66
A.  Directors and Senior Management 66
B.   Executive Compensation 71
C.   Board Practices 76
D.   Employees 81
E.   Share Ownership 81
Item 7.    Major Shareholders and Related Party Transactions 82
A.  Major Shareholders 82
B.   Related Party Transactions 82
C.   Interests of Experts and Counsel 83
Item 8.    Financial Statements 83
A.  Consolidated Statements and Other Financial Information 83
B.   Significant Changes 84
Item 9.    The Offering and Listing 84
A.  Offering and Listing Details 84
B.   Plan of Distribution 84
C.   Markets 84
D.  Selling Shareholders 84
E.   Dilution 84
F.   Expenses of the Issue 84

i

 

Item 10.   Additional Information 84
A.   Share Capital 84
B.   Articles of Association and Bylaws 85
C.   Material Contracts 87
D.   Exchange Controls 89
E.   Taxation 90
F.   Dividends and Paying Agents 99
G.   Statement by Experts 99
H.   Documents on Display 99
I.   Subsidiary Information 99
Item 11.   Quantitative and Qualitative Disclosures About Market Risk 99
Item 12.   Description of Securities Other than Equity Securities 99
Part II  
Item 13.   Defaults, Dividend Arrears and Delinquencies 99
Item 14.   Material Modifications to the Rights of Security Holders and Use of Proceeds 100
Item 15.   Controls and Procedures 100
Item 16 A.   Audit Committee Financial Expert 101
Item 16 B.   Code of Ethics 101
Item 16 C.   Principal Accountant Fees and Services 101
Item 16 D.   Exemptions from the Listing Standards for Audit Committees 102
Item 16 E.    Purchases of Equity Securities by the Issuer and Affiliated Purchasers 102
Item 16 F.   Change in Registrant’s Certifying Accountant 102
Item 16 G.   Corporate Governance 102
Item 16 H.   Mine Safety Disclosure 102
Part III  
Item 17.   Financial Statements 102
Item 18.   Financial Statements 103
Item 19.   Exhibits 103

ii

 

Cautionary Note to U.S. Investors Concerning Estimates of Mineral Resources

 

As an Alberta corporation, Tanzanian Gold Corporation (the “Company”) is subject to certain rules and regulations issued by Canadian Securities Administrators. The Company files this Annual Report on Form 20-F as its Annual Information Form (“AIF”) with the British Columbia, Alberta and Ontario Securities Commissions via the System for Electronic Document Analysis and Retrieval (“SEDAR”). Under the filing requirements for an AIF, the Company is required to provide detailed information regarding its properties including mineralization, drilling, sampling and analysis, security of samples, and mineral resource and mineral reserve estimates, if any. Further, the Company may describe its properties utilizing terminology such as “Proven Mineral Reserve” or “Probable Mineral Reserve” or “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources” that are permitted by Canadian securities regulations.

 

U.S. investors are cautioned not to assume that any part of the mineral deposits, if any, in the “Proven Mineral Reserve” or “Probable Mineral Reserve” or “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources” categories will ever be converted into reserves. Further, these terms are not defined terms under SEC Industry Guide 7 and are not permitted to be used in reports and registration statements filed with the United States Securities and Exchange Commission (“SEC”). The definitions of proven and probable reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC Industry Guide 7, as interpreted by the staff of the SEC, mineralization may not be classified as a “reserve” for United States reporting purposes unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Among other things, all necessary permits would be required to be in hand or issuance imminent in order to classify mineralized material as reserves under the SEC guidelines. In addition, NI 43-101 permits disclosure of “contained ounces” of mineralization. In contrast, the SEC only permits issuers to report mineralization as in place tonnage and grade without reference to unit measures.

 

United States investors are cautioned not to assume that any part or all of the mineral deposits identified as an “indicated mineral resource,” “measured mineral resource” or “inferred mineral resource” will ever be converted to reserves as defined in SEC Industry Guide 7. Further, “inferred mineral resources” have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities legislation, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, or economic studies. U.S. investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.

 

For clarification, the Company has no properties that contain “Proven (Measured) Reserves” or “Probable (Indicated) Reserves” as defined by SEC securities regulations.

 

Currency

 

All references to dollar amounts are expressed in the currency of Canada, unless otherwise specifically stated.

 

Foreign Private Issuer Filings

 

As a foreign private issuer registered under section 12(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), the Company is subject to section 13 of the Exchange Act, and is required to file an Annual Report on Form 20-F and Reports of Foreign Private Issuer on Form 6-K with the SEC. However, the Company is exempt from the proxy rules under section 14 of the Exchange Act, and the short-swing profit and other rules regarding disclosures of directors, officers and principal stockholders under section 16 of the Exchange Act.

1

 

Glossary of Technical Terms

alteration Mineralogical change at low pressures due to invading fluids or the influence of chemical reactions in a rock mass resulting from the passage of hydrothermal fluids.
   
anomaly Any concentration of metal noticeably above or below the average background concentration.
   
assay An analysis to determine the presence, absence or quantity of one or more components.
   
Au The elemental symbol for gold.
   
background Traces of elements found in sediments, soils, and plant material that are unrelated to any mineralization and which come from the weathering of the natural constituents of the rocks.
   
Barrick Barrick Gold Corp.
   
CIL Carbon-in-leach
   
dyke A tabular body of igneous rock that has been injected while molten into a fissure.
   
fault A planar fracture or discontinuity in a volume of rock, across which there has been significant displacement.
   
feasibility study A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a pre-feasibility study.
   
fracture Any local separation or discontinuity plane in a geologic formation, such as a joint or a fault that are commonly caused by stress exceeding the rock strength.
   
grade The concentration of each ore metal in a rock sample, usually given as weight percent.  Where extremely low concentrations are involved, the concentration may be given in grams per tonne (g/t or gpt) or ounces per ton (oz/t).  The grade of an ore deposit is calculated, often using sophisticated statistical procedures, as an average of the grades of a very large number of samples collected from throughout the deposit.
   
hectare or ha An area totalling 10,000 square metres.
   
hydrothermal Hot fluids, usually mainly water, in the earth’s crust which may carry metals and other compounds in solution to the site of ore deposition or wall rock alteration.
   
IP Induced polarization survey, a form of geophysical survey used in the exploration for minerals.
   
intrusive A rock mass formed below earth’s surface from magma which has intruded into a pre-existing rock mass.
   
JORC The Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.
   
JV A joint venture, which is a term for a contractual relationship between parties, usually for a single purpose, which is not a partnership.
   
kilometres or km Metric measurement of distance equal to 1,000 metres (or 0.6214 miles).

2

 

mill A facility for processing ore to concentrate and recover valuable minerals.
   
mineral reserve That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination.
   
mineralization The hydrothermal deposition of economically important metals in the formation of ore bodies or “lodes”.
   
net smelter or NSR royalty Payment of a percentage of net mining profits based on returns from the smelter, after deducting applicable smeltering charges.
   
NI 43-101 National Instrument 43-101, “Standards of Disclosure for Mineral Projects”, as adopted by the Canadian Securities Administrators, as the same may be amended or replaced from time to time, and shall include any successor regulation or legislation.
   
NI 43-101 ITR Amended and Updated Buckreef Pre-Feasibility Independent Technical Report prepared by Virimai Projects (QP) with effective date of 28th June 2018 as filed on SEDAR.
   
ore A mineral or an aggregate of minerals from which a valuable constituent, especially a metal, can be profitably mined or extracted.
   
outcrop An exposure of rock at the earth’s surface.
   
porphyry A variety of igneous rock consisting of large-grained crystals, such as feldspar or quartz, dispersed in a fine-grained feldspathic matrix or groundmass.
   
Pre-feasibility study (preliminary feasibility study) A pre-feasibility study is a comprehensive study of a range of options for the technical and economic viability of a mineral project that has advanced to a stage where a preferred mining method, in the case of underground mining, or the pit configuration, in the case of an open pit, is established and an effective method of mineral processing is determined. It includes a financial analysis based on reasonable assumptions on the modifying factors and the evaluation of any other relevant factors which are sufficient for a qualified person, acting reasonably, to determine if all or part of the Mineral Resource may be converted to a Mineral Reserve at the time of reporting. A pre-feasibility study is at a lower confidence level than a feasibility study.
   
Pyrrhotite A bronze coloured mineral of metallic lustre that consists of ferrous sulphide and is attracted by a magnet.
   
pyrite Iron sulphide mineral.
   
Qualified Person An individual who is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these; has experience relevant to the subject matter of the mineral project and the technical report; and is a member or licensee in good standing of a professional association.
   
quartz Silica or SiO2, a common constituent of veins, especially those containing gold and silver mineralization.
   
RAB Rotary air blast drilling.
   
RC Reverse circulation drilling.
   
reef A geological discontinuity which served as a trap or conduit for hydrothermal mineralizing fluids to form an ore deposit.
   
silicification Replacement and or impregnation of the constituent of a rock by quartz rich hydrothermal fluids or (silica).

3

 

Sloane Sloane Developments Ltd., a corporation based in the United Kingdom.
   
Songshan Songshan Mining Company.
   
Stamico State Mining Corporation of Tanzania.
   
Tancan Tancan Mining Company Limited, a wholly-owned Tanzanian subsidiary of the Company.
   
Tanzam Tanzania American International Development Corporation 2000 Limited, a wholly-owned Tanzanian subsidiary of the Company.
   
ton Imperial measurement of weight equivalent to 2,000 pounds (sometimes called a “short ton”).
   
tonne Metric measurement of weight equivalent to 1,000 kilograms (or 2,204.6 pounds).
   
tuff A rock comprised of fine fragments and ash particles ejected from a volcanic vent.
   
veins Distinct sheetlike body of crystallized mineral constituents carried by hydrothermal aqueous solutions that are deposited through precipitation within the host country rock. These bodies are often the source of mineralisation either in or proximal to the veins.

 

Canadian Terminology

 

The following terms may be used in the Company’s technical reports to describe its mineral properties and have been used in this Annual Report (see “Cautionary Note to U.S. Investors Concerning Estimates of Measured and Indicated Mineral Resources”). These definitions have been published by the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) as the CIM Standards on Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM Council on May 10, 2014, and have been approved for use by Canadian reporting issuers by the Canadian Securities Administrators under NI 43-101, and as those definitions may be amended:

 

Mineral Resource

A concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

 

A Mineral Resource is an inventory of mineralization that under realistically assumed and justifiable technical and economic conditions might become economically extractable.

 

Inferred Mineral Resource

 

That part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

 

Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure.

4

 

Indicated Mineral Resource

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.

 

Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation.

 

An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.

 

Measured Mineral Resource

A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit.

 

Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation.

 

  A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
   
Mineral Reserve

A Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined.

 

Mineral resources are sub-divided in order of increasing confidence into Probable Mineral Reserves and Proven Mineral Reserves. A Probable Mineral Reserve has a lower level of confidence than a Proven Mineral Reserve. The term “mineral reserve” need not necessarily signify that extraction facilities are in place or operative or that all governmental approvals have been received. It does signify that there are reasonable expectations of such approvals.

 

Probable Mineral Reserve Is the economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study.  This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.
   
Proven Mineral Reserve

Is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

 

The term should be restricted to that part of the deposit where production planning is taking place and for which any variation in the estimate would not significantly affect potential economic viability.

5

 

PART I

 

Item 1.Identity of Directors, Senior Management and Advisers

 

A.       Directors and Senior Management:

 

Not applicable.

 

B.       Advisers

 

Not applicable.

 

Item 2.Offer Statistics and Expected Timetable

 

 

Not applicable.

 

Item 3.Key Information

 

A.       Selected Financial Data

 

The audited financial statements for the Company’s fiscal years ended August 31, 2019, 2018, 2017, 2016 and 2015 are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The following selected financial data is based on financial statements prepared in accordance with IFRS and is presented for the five most recent financial years. Unless stated otherwise, reference to dollar amounts in this Annual Report shall mean Canadian dollars.

 

For each of the years in the five year periods ended August 31, the information in the tables was extracted from the more detailed audited financial statements of the Company.

 

The selected financial data should be read in conjunction with Item 5, “Operating and Financial Review and Prospects” and in conjunction with the consolidated financial statements of the Company and the notes thereto contained elsewhere in this Annual Report.

 

The following is a summary of certain selected financial information for the Company’s five most recently completed fiscal years (in Canadian dollars, except number of shares):

 

   For the year ended August 31, 
    2019    2018    2017    2016    2015 
Operations:                         
                          
Revenues        -    -    -    - 
                          
Net loss  $(29,317,517)  $(6,897,397)  $(6,434,112)  $(12,781,902)  $(8,995,697)
                          
Basic and diluted loss per share   (0.22)   (0.06)   (0.05)   (0.12)   (0.09)

6

 

   2019   2018   2017   2016   2015 
Balance sheet:                         
                          
Working Capital (deficiency)   (9,095,970)   (12,010,685)   (6,552,376)   (11,836,214)   (4,684,253)
                          
Total Assets   38,118,925    53,235,140    51,353,088    49,885,545    53,108,859 
                          
Net Assets   19,663,791    34,326,005    36,254,043    35,156,483    46,072,190 
                          
Share Capital   142,251,909    127,003,132    125,174,377    122,380,723    120,532,634 
                          
Number of Shares   150,391,558    125,162,803    121,784,619    109,068,492    107,853,554 
                          
Deficit  $132,462,683   $103,263,959   $96,566,577   $90,600,819   $77,970,955 

 

B.       Capitalization and Indebtedness

 

Not applicable.

 

C.       Reasons for the Offer and Use of Proceeds

 

Not applicable.

 

D.       Risk Factors

 

An investment in the Company’s common shares involves a high degree of risk and should be considered speculative. You should carefully consider the following risks set out below and other information before investing in the Company’s common shares. If any event arising from these risks occurs, the Company’s business, prospects, financial condition, results of operations or cash flows could be adversely affected, the trading price of common shares could decline and all or part of any investment may be lost.

 

The operations of the Company are highly speculative due to the high-risk nature of its business, which include the acquisition, financing, exploration and, if warranted, development of mineral properties. The risks and uncertainties set out below are not the only ones facing the Company. Additional risks and uncertainties not currently known to the Company, or that the Company currently deems immaterial, may also impair the Company’s operations. If any of the risks actually occur, the Company’s business, financial condition and operating results could be adversely affected. As a result, the trading price of the Company’s common shares could decline and investors could lose part or all of their investment. The Company’s business is subject to significant risks and past performance is no guarantee of future performance.

 

Risks Relating to the Company

 

The Company has incurred net losses since its inception and expects losses to continue.

 

The Company has not been profitable since its inception. For the fiscal year ended August 31, 2019, the Company had a comprehensive loss of $29,317,517, and an accumulated deficit of $132,462,683. The Company has never generated revenues and does not expect to generate revenues until one of its properties are placed in production. There is a risk that none of the Company’s properties will be placed into production.

 

The Company needs additional capital.

 

As at August 31, 2019, the Company had cash of approximately $3,389,319 and working capital deficiency of approximately $9,095,970. The Company will continue to incur exploration and development costs to fund its plan of operations and will need to raise capital to build a mining plant at the Buckreef Project. Ultimately, the Company’s ability to continue its exploration activities depends in part on the Company’s ability to commence operations and generate revenues or to obtain financing through joint ventures, debt financing, equity financing, production sharing agreements or some combination of these or other means. Further the raising of additional capital by the Company may dilute existing

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shareholders. Traditionally, the Company has relied on issuing equity securities and debt securities that may be converted into equity securities to raise capital. No assurance can be given that the Company can continue to raise capital in this manner. Further, the issuance of equity securities or debt securities that may be convertible into equity securities will have a dilutive effect.

 

Substantial doubt about the Company’s ability to continue as a going concern.

 

Based on the Company’s current funding sources and taking into account the working capital position and capital requirements at August 31, 2019, these factors indicate the existence of a material uncertainty that raises substantial doubt about the Company’s ability to continue as a going concern and is dependent on the Company raising additional debt or equity financing. The Company must obtain additional funding in fiscal 2019 in order to continue development and construction of the Buckreef Project. Furthermore, the Company is currently negotiating project financing terms with a number of lending institutions, which the Company believes will result in the Company obtaining the project financing required to fund the construction of a mill at the Buckreef Project. However there is no assurance that such additional funding and/or project financing will be obtained or obtained on commercially favourable terms.

 

The Company has no cash flow from operations and has historically depended on the proceeds from equity financings for its operations.

 

The Company’s current operations do not generate any revenues or cash flow. Any work on the Company’s properties will require additional equity financing. If the Company seeks funding from existing or new joint venture partners, its project interests will be diluted. If the Company seeks additional equity financing, the issuance of additional shares will dilute the current interests of the Company’s current shareholders. The Company may not be able to obtain additional funding to allow the Company to fulfill its obligations on existing exploration properties. The Company’s failure to obtain such additional financing could result in delay or indefinite postponement of further exploration and development and the possible partial or total loss of the Company’s potential interest in certain properties or dilution of the Company’s interest in certain properties.

 

We are subject to litigation which could cause a dilutive effect to our shareholders and require us to incur legal expenses.

 

On January 19, 2018, Crede CG III, LTD (“Crede”) filed suit against the Company in the Supreme Court of the State of New York, County of New York, claiming, among other things, breach of contract for failure to allow Crede to exercise 1,300,000 Series A Warrants, as described in Note 5, to acquire 3,100,751 common shares.  The Series A Warrants were issued, along with Series B Warrants (the Series A Warrants and Series B Warrants, collectively “Warrants), in connection with a Securities Purchase Agreement entered into on September 1, 2016. In response to the complaint, our attorneys initiated correspondence with Crede’s attorneys regarding Crede’s January 19, 2018 complaint. On February 27, 2018, Crede dismissed its complaint against us without prejudice. On March 12, 2018, Crede filed suit against us in the Supreme Court of the State of New York, County of New York (Index No. 651156/2018) (“State Claim”), claiming breach of contract (including specific performance and injunctive relief); declaratory judgment that the Securities Purchase Agreement and Warrants are binding obligations; and, in the event injunctive and declaratory relief is not ordered, awarding compensatory and punitive damages, and attorney fees and costs for failure to allow Crede to exercise 500,000 Series B Warrants to acquire 1,332,222 common shares. On August 21, 2019, we filed a notice of appeal and seeking a stay of the summary judgement order in the State Claim pending appeal. On October 17, 2019, the court in the State Claim order the delivery of 1,332,222 shares of common stock with an officer designated by the court and that a bond of US$200,000 be posted. We do not believe that the New York Supreme Court of the State of New York in the State Claim had the authority to require to post a bond in the amount US$200,000. Accordingly, we have appealed the Supreme Court of the State of New York’s authority to require us to post a bond. In the event that we are required to post the US$200,000 and we are unable to do so, Crede will have right to sell the 1,332,222 common shares and to exercise its rights under the Securities Purchase Agreement notwithstanding our appeal. This potential right for Crede to sell its common shares and exercise its rights under the Securities Purchase Agreement could have detrimental affect on the price of our common shares. As discussed below, the Supreme Court of the State of New York’s decision does not affect our Federal Claim against Crede for market manipulation, among other claims, as discussed below.

 

On May 10, 2018, the Company filed a complaint in the United States District Court Southern District of New York against Crede and certain of its principals, and Wellington Shields & Co who acted as the broker in the sale of securities pursuant to the Securities Purchase Agreement alleging, among other things, violation of Section 10 and Rule 10b-5 promulgated thereunder of the Exchange Act, violation of Section 13(d) and Rule 13d-1 promulgated thereunder of the Exchange Act, and breach of contract (“Federal Claim”). On July 17, 2018, we filed a first amended complaint in the United States District Court Southern District of New York, seeking, in addition to the relief sought in the initial

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complaint, declaratory relief that Securities Purchase Agreement and related agreements, including the Warrants, are void based on a violation of Section 29(b) of the Exchange Act. On March 26, 2019, in response to a motion to dismiss by the defendants in the action in Federal Claim, the District Court dismissed certain of our claims against the defendants, but allowed our claims under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder of market manipulation against, and our claim of breach of the covenant of good faith and fair dealing by Crede to continue.

 

The Federal Claim is in its initial stage and discovery has been initiated. In the event that we are forced to allow Crede to exercise the Warrants pursuant to the Supreme Court of the State of New York’s order and/or are subject to damages, we may be required to issue additional common shares under the Securities Purchase Agreement. Under the terms of the Securities Purchase Agreement, the maximum number of common shares that may be issued in the transaction is limited to 21,704,630, of which 10,344,487 have been issued. Pursuant to the Securities Purchase Agreement, we have also agreed to register the common shares that may be issued to Crede pursuant to a registration rights agreement. The issuance of additional common shares will have a dilutive effect to our shareholders and the payment of damages and legal expenses may adversely affect our financial condition.

 

As of August 31, 2019, our internal control over financial reporting were ineffective, and if we continue to fail to improve such controls and procedures, investors could lose confidence in our financial and other reports, the price of our shares of common stock may decline, and we may be subject to increased risks and liabilities.

 

As a public company, we are subject to the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act of 2002. The Exchange Act requires, among other things, that we file annual reports with respect to our business and financial condition. Section 404 of the Sarbanes-Oxley Act requires, among other things, that we include a report of our management on our internal control over financial reporting. We are also required to include certifications of our management regarding the effectiveness of our disclosure controls and procedures. For the year ended August 31, 2019, our management has concluded that our disclosure controls and procedures and internal control over financial reporting were ineffective due to the following material weaknesses: (i) review and approval of certain supplier and vendor invoices and the related oversight and accuracy of recording the associated charges in the Company’s books; and (ii) lack of adequate oversight related to the development and performance of internal controls. . , We intend to implement changes and procedures to address these issues; any proposed changes to address the material weaknesses will take time to implement due to, among other things, a limited number of staff at the Company. If we cannot effectively and efficiently improve our controls and procedures, we could suffer material misstatements in our financial statements and other information we report and fail to meet our reporting obligations, which would likely cause investors to lose confidence in our reported financial and other information. This could lead to a decline in the trading price of our common shares.

 

The Company has issued a number of gold and cash loans which at the option of holder are convertible into common shares, may be repaid through the issuance of gold, are secured by the Company’s assets and may be subject to annual renewal.

 

To finance the Company’s operations and prior exploration, as of August 31, 2019, the Company has issued $6,927,371 loans in the aggregate. Of this amount, $4,998,127 was in the form of gold bullion loans. The principal and interest on the gold bullion loans may be, at the election of the holder, repaid in cash, gold bullion or convertible into common shares. In the event the gold loan holder elects repayment in gold bullion and the Company does not have the gold bullion, it may be required to purchase gold bullion on the open market in order to repay the loans. As a result, the Company may be at risk in the event the price of gold increases and the Company is required to purchase gold bullion to repay the loan. Further, the holders of the gold bullion loans may elect to convert the principal and interest of such loans into common shares at exercise prices ranging from US$0.26 and US$0.5320 per share, which has the effect of diluting the ownership of existing shareholders.

 

In addition, as of August 31, 2019, the Company has issued $1,929,244 in convertible loans. The principal and interest on the convertible loans may be, at the election of the holder, repaid in cash or convertible into our common shares at exercise prices ranging from US$0.26 to US$0.3446 per share. In the event that the holder of the convertible loans elects to convert the principal and interest of such loans into common shares, such conversion will have the effect of diluting the ownership of existing shareholders.

 

Further, the gold and cash loans are secured by certain assets of the Company, including its CIL plant, pad loadings, gold on pads, gold in form of dore, gold in plan process and gold at refinery. In the event of default, the Company may lose its rights to these assets which could adversely affect its operations.

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Finally, these loans are subject to annual renewal. Although many of these holders of loan have renewed the loans on an annual basis, no assurance can be given they will continue to annually renew the loans.

 

The Company’s exploration activities are highly speculative and involve substantial risks.

 

With the exception of one project, the Buckreef Project, all of the other Company’s properties are in the exploration stage and no proven mineral reserves have been established. The Company’s exploration work may not result in the discovery of mineable deposits of ore in a commercially economical manner. There may be limited availability of water, which is essential to milling operations, and interruptions may be caused by adverse weather conditions. The Company’s future operations, if any, are subject to a variety of existing laws and regulations relating to exploration and development, permitting procedures, safety precautions, property reclamation, employee health and safety, air quality standards, pollution and other environmental protection controls.

 

The Company has uninsurable risks.

 

The Company may be subject to unforeseen hazards such as unusual or unexpected formations and other conditions. The Company may become subject to liability for pollution, cave-ins or hazards against which it cannot insure or against which it may elect not to insure. The payment of such liabilities may have a material adverse effect on the Company’s financial position.

 

The Company depends on key management personnel.

 

The success of the operations and activities of the Company is dependent to a significant extent on the efforts and abilities of its management, including James E. Sinclair, Executive Chairman. Investors must be willing to rely to a significant extent on their discretion and judgment. The Company does not have an employment contract with the Executive Chairman. The Company does not maintain key-man life insurance on the Executive Chairman.

 

The Company may be characterized as a passive foreign investment company.

 

The Company may be characterized as a passive foreign investment company (“PFIC”). If the Company is determined to be a PFIC, its U.S. shareholders may suffer adverse tax consequences. Under the PFIC rules, for any taxable year that the Company’s passive income or its assets that produce passive income exceed specified levels, the Company will be characterized as a PFIC for U.S. federal income tax purposes. This characterization could result in adverse U.S. tax consequences for the Company’s U.S. shareholders, which may include having certain distributions on its common shares and gains realized on the sale of its common shares treated as ordinary income, rather than as capital gains income, and having potentially punitive interest charges apply to the proceeds of sales of the Company’s common shares and certain distributions.

 

Certain elections may be made to reduce or eliminate the adverse impact of the PFIC rules for holders of the Company’s common shares, but these elections may be detrimental to the shareholder under certain circumstances. The PFIC rules are extremely complex and U.S. investors are urged to consult independent tax advisers regarding the potential consequences to them of the Company’s classification as a PFIC. See “Certain United States Federal Income Tax Considerations.”

 

Foreign corrupt practices legislation.

 

The Company is subject to the Foreign Corrupt Practices Act (the “FCPA”), the Corruption of Foreign Public Officials Act (Canada) (“CFPOA”), and other laws that prohibit improper payments or offers of payments to foreign governments and their officials and political parties by persons and issuers as defined by the statutes, for the purpose of obtaining or retaining business. It is the Company’s policy to implement safeguards to discourage these practices by its employees; however, its existing safeguards and any future improvements may prove to be less than effective and the Company’s employees, consultants, sales agents or distributors may engage in conduct for which the Company might be held responsible. Any such violation could result in substantial fines, sanctions, civil and/or criminal penalties, curtailment of operations in certain jurisdictions, and might adversely affect our business, results of operations or financial condition. In addition, actual or alleged violations could damage our reputation and ability to do business. Furthermore, detecting, investigating, and resolving actual or alleged violations is expensive and could consume significant time and attention of our management.

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Security breaches and other disruptions could compromise the Company’s information and expose it to liability, which would cause its business and reputation to suffer.

 

In the ordinary course of the Company’s business, it collects and stores sensitive data, including intellectual property, its proprietary business information and that of its business partners, and personally identifiable information of its employees in its data centers and on its networks. The secure processing, maintenance and transmission of this information is critical to the Company’s operations and business strategy. Despite its security measures, the information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise the Company’s networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, potential liability under laws that protect the privacy of personal information, and potential regulatory penalties, disrupt the Company’s operations and damage its reputation, and cause a loss of confidence in the Company, which could adversely affect its business and competitive position.

 

Risks Relating to the Mining Industry

 

The Company cannot accurately predict whether commercial quantities of ores as estimated or projected in the pre-feasibility study will be established once commercial production commences.

 

Whether an ore body will be commercially viable depends on a number of factors beyond the control of the Company, including the particular attributes of the deposit such as size, grade and proximity to infrastructure, as well as mineral prices and government regulations, including regulations relating to permitting, prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection. The Company cannot accurately predict the exact effect of these factors, but the combination of these factors may result in a mineral deposit being unprofitable. The Company has no mineral producing properties at this time. Although the mineral resource estimates included herein have been prepared by the Company, or, in some instances have been prepared, reviewed or verified by independent mining experts, these amounts are estimates only and there is a risk that a particular level of recovery of gold or other minerals from mineral resource will not in fact be realized or that an identified mineralized deposit, if any, will never qualify as a commercially mineable or viable reserve.

 

The exploration for and development of mineral deposits involves significant risks.

 

Mineral resource exploration is a speculative business and involves a high degree of risk. The Company has completed several diamond and reverse circulation drilling programs on the Buckreef Project and independent qualified persons have reviewed the results of the drilling program in the context of analyzing the economic significance of the open-pittable mineral resources at the Buckreef Project using current gold prices. However, the exploration for and development of mineral deposits involves significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. Significant expenditures will be required to locate further and/or upgrade mineral resources from inferred category to measured and Indicated category, to revise and/or upgrade the recently established mineral reserves, to develop metallurgical processes, to purchase, construct and run a test 60tph pilot process plant and to finalize on a bankable feasibility study to construct mining and processing facilities at the Buckreef Project site.

 

The Company may not be able to establish the presence of minerals on a commercially viable basis.

 

The Company’s ability to generate revenues and profits, if any, is expected to occur through exploration and development of its existing properties as well as through acquisitions of interests in new properties. The Company will need to incur substantial expenditures in an attempt to establish the economic feasibility of mining operations by identifying mineral deposits and establishing ore reserves through drilling and other techniques, developing metallurgical processes to extract metals from ore, designing facilities and planning mining operations. The economic feasibility of a project depends on numerous factors beyond the Company’s control, including the cost of mining and production facilities required to extract the desired minerals, the total mineral deposits that can be mined using a given facility, the proximity of the mineral deposits to a user of the minerals, and the market price of the minerals at the time of sale. The Company’s existing or future exploration programs or acquisitions may not result in the identification of deposits that can be mined profitably.

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The Company depends on consultants and engineers for its exploration programs.

 

The Company has relied on and may continue to rely upon consultants for exploration development, construction and operating expertise. Substantial expenditures are required to construct mines, to establish ore reserves through drilling, to carry out environmental and social impact assessments, to develop metallurgical processes to extract the metal from the ore and, in the case of new properties, to develop the exploration infrastructure at any site chosen for exploration. The Company may not be able to discover minerals in sufficient quantities to justify commercial operation, and the Company may not be able to obtain funds required for exploration on a timely basis.

 

The Company may not have clear title to its properties.

 

Acquisition of title to mineral properties is a very detailed and time-consuming process, and the Company’s title to its properties may be affected by prior unregistered agreements or transfers, or undetected defects. Several of the Company’s prospecting licenses are currently subject to renewal by the Ministry of Energy and Minerals of Tanzania. There is a risk that the Company may not have clear title to all its mineral property interests, their licenses may not be renewed or they may be subject to challenge or impugned in the future. See “Mineral Properties”. In other instances, the Company might not have immediate access to some of its mineral properties due to the ever revolving statutory requirements and regulations as enacted by the Government of Tanzania and enforced by the various ministries.

 

During fiscal 2019, the Company received a notice of cancellation of mining license relating to the Kigosi mining license for failure to satisfy the issues raised in the default notice. The notice sent by the Ministry of Energy and Minerals of Tanzania did not follow due process under Tanzania law and the Company filed an appeal to this notification subsequent to fiscal year-end. Further, during fiscal 2019, the Company received a notice of rejection of the mining license application for Itetemia, for failure to have complied with certain regulations. The notice sent by the government did not follow due process under Tanzania law and the Company filed an appeal to this notification subsequent to year-end. The Company remains confident that they will be successful in the appeals. However, although the Company believes that it will be successful in appealing the notice of cancellation of the Kigosi mining license and appeal of notice of rejection of the mining license application for Itetemia, in the event the Company loses either appeal, the Company may lose its rights to either the Kigosi mining license or Itetemia mining license.

 

The Company’s properties have been and may continue to be subject to illegal mining.

 

During 2015, illegal miners, consisting primarily of artisanal miners, invaded and forced occupation at the Buckreef Project. As a result, these illegal miners disrupted the Company’s activities. As a result of these illegal miners’ activities, the Company provided a notice of force majeure under its agreement with Stamico and did not allow Tanzam, the Company’s joint venture operator, to continue mining activities at the Company’s property until this issue was resolved. Although the Company worked out an agreement with Deputy Minister of Energy and Minerals to provide an area for artisanal mining, no assurance can be given that no more illegal mining activities will occur at the Company’s properties or disrupt its operations. Recently, the Company has requested for and been provided with a police detail from the Ministry of Home Affairs, through the offices of the Inspector General of Police (Tanzania) permanently stationed and patrolling the Buckreef Project as further efforts by the Company to deter illegal Mining on the main project site.

 

During the fiscal year, there has been some attempted invasion in and around the Buckreef Project. The Company has requested and been granted the presence of Tanzanian police at the camp site and is negotiating a Memorandum of Understanding with the Tanzanian Inspector General Police, to have a permanent security detail from the police force.

 

Mining exploration, development and operating activities are inherently hazardous.

 

The Company has not paid all annual license fees on its properties and it may be subject to penalties.

 

In order to maintain the existing site of mining and exploration licenses, the Company is required to pay annual license fees. The Company has been making efforts to pay off certain of its outstanding annual license fees since October 2014 for all its active licenses. The Ministry of Mines has put into effect a requirement that even though a license is forfeited, the outstanding annual fees are still due and considered a liability. As at August 31, 2019, an accrual of $707,000 (August 31, 2018 - $260,000) has been recorded relating to unpaid license fees. For active licenses, these licenses remain in good standing until a letter of demand is received from Ministry of Mines requesting payment of any unpaid license fees plus 50% penalty, and the Company fails to respond within 30 days. The Company has not received a letter of demand from the Ministry of Mines on its active licenses. The current penalty estimate relating to unpaid license fees is

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approximately $219,000 (August 31, 2018 - $125,000). The Company has not recorded an accrual for all valid and active mining licenses but only from the forfeited licenses list as stated above.

 

The Company may be subject to additional payments to the Tanzanian government because it has not brought the Buckreef Project into production by a certain date.

 

The Company’s joint venture agreement with Stamico contains an obligation clause regarding the commissioning date for the plant. The clause becomes effective only in the event the property is not brought into production before a specified future date which was originally estimated to be in December 2015. Under the agreement, the Company is entitled to extend the date for one additional year: (i) for the extension year; on payment to Stamico of US$500,000; (ii) for the second extension year, on payment to Stamico of US$625,000; and (iii) for each subsequent extension year, on payment to Stamico of US$750,000.

 

The Company has received a request letter from Stamico regarding the status of the penalty payment and has responded that no penalty is due at this time. The Company has received a subsequent letter from Stamico regarding request for payment. It remains the Company’s position that no penalty is due at this time, but the Company and Stamico have been engaged in settlement discussions to resolve this issue, and a payment of $172,330 has been made in connection with the settlement discussions to be applied towards the amount owing with the remainder to be paid out of proceeds of production.

 

No assurance can be given that Stamico will not demand additional money from the Company because the Company has not brought the Buckreef Project into production by a certain date.

 

If the Company experiences mining accidents or other adverse conditions, the Company’s mining operations could be materially adversely affected.

 

The Company’s exploration activities may be interrupted by any or all of the following mining accidents such as cave-ins, rock falls, rock bursts, pit wall failures, fires or flooding. In addition, exploration activities may be reduced if unfavorable weather conditions, ground conditions or seismic activity are encountered, ore grades are lower than expected, the physical or metallurgical characteristics of the ore are less amenable than expected to mining or treatment, dilution increases or electrical power is interrupted. Occurrences of this nature and other accidents, adverse conditions or operational problems in future years may result in the Company’s failure to achieve current or future exploration and production estimates.

 

Development of the Company’s projects is based on estimates and the Company cannot guarantee that its projects, if any, will be placed into production.

 

Any potential production and revenues based on production from any of the Company’s properties are estimates only. Estimates are based on, among other things, mining experience, resource estimates, assumptions regarding ground conditions and physical characteristics of ores (such as hardness and presence or absence of certain metallurgical characteristics) and estimated rates and costs of mining and processing. The Company’s actual production from the Buckreef Project, if it ever achieves production, may be lower than its production estimates. Each of these factors also applies to future development properties not yet in production at the Company’s other projects. In the case of mines the Company may develop in the future, it does not have the benefit of actual experience in its estimates, and there is a greater likelihood that the actual results will vary from the estimates. In addition, development and expansion projects are subject to unexpected construction and start-up problems and delays.

 

The Company’s exploration activities are subject to various federal, state and local laws and regulations.

 

Laws and regulation govern the exploration, mining development, mine production, importing and exporting of minerals; taxes; labor standards; occupational health; waste disposal; protection of the environment; mine safety; toxic substances; and other matters. The Company requires licenses and permits to conduct exploration and mining operations. Amendments to current laws and regulations governing operations and activities of mining companies or more stringent implementation thereof could have a substantial adverse impact on the Company. Applicable laws and regulations will require the Company to make certain capital and operating expenditures to initiate new operations. Under certain circumstances, the Company may be required to close an operation once it is started until a particular problem is remedied or to undertake other remedial actions.

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The Buckreef Project is held through a special mining license expiring June 11, 2027 granted pursuant to the Mining Act, 2010 (Tanzania). The Company’s has other mineral interests in Tanzania that are held under prospecting licenses granted under that Act. There are initial application fees, registration fees, preparation fees and annual rental fees for prospecting licenses based on the total area of the license. Renewals of prospecting licenses can take many months and possibly even years to process by the regulatory authority in Tanzania and there is no guarantee that they will be granted. With each renewal at least 50% of the licensed area, if greater than 20 square kilometers, must be relinquished and if the Company wishes to keep the relinquished one-half portion, it must file a new application for the relinquished portion. There is no guarantee on the timing for processing the new application and whether it will be successful.

 

In addition, any new license (PL, ML & SML) applications and renewals are also now subject to the recently enacted of the Ministry of Mines Local Content Regulations GN 3 of 2018 that is enforced by the newly enacted and established 6-member Tanzanian Mining Commission that now oversees the Mining Commissioner and all license applications. The new regulations reflect a strong will to foster diversification and linkages to the local economy, create jobs through the use of Tanzanian expertise, goods and services, businesses and financing in the mining value chain. Not only does it force licensees and contractors to use indigenous Tanzanian companies for the procurement of goods and services, but also requires a physical presence in Tanzania.

 

Risks Relating to the Market

 

The Company’s competition is intense in all phases of the Company’s business.

 

The mining industry in which the Company is engaged is in general, highly competitive. Competitors include well-capitalized mining companies, independent mining companies and other companies having financial and other resources far greater than those of the Company. The Company competes with other mining companies in connection with the acquisition of gold and other precious metal properties. In general, properties with a higher grade of recoverable mineral and/or which are more readily mineable afford the owners a competitive advantage in that the cost of production of the final mineral product is lower. Thus, a degree of competition exists between those engaged in the mining industries to acquire the most valuable properties. As a result, the Company may eventually be unable to acquire attractive gold mining properties.

 

The Company is subject to the volatility of metal and mineral prices.

 

The economics of developing metal and mineral properties are affected by many factors beyond the Company’s control, including, without limitation, the cost of operations, variations in the grade ore or resource mined, and the price of such resources. The market prices of the metals for which the Company is exploring are highly speculative and volatile. Depending on the price of gold or other resources, the Company may determine that it is impractical to commence or continue commercial production. Gold prices fluctuate widely and are affected by numerous factors beyond the Company’s control, including central bank purchases and sales, producer hedging and de-hedging activities, expectations of inflation, the relative exchange rate of the U.S. dollar with other major currencies, interest rates, global and regional demand, political and economic conditions, production costs in major gold-producing regions, speculative positions taken by investors or traders in gold and changes in supply, including worldwide production levels. The price of gold and other metals and minerals may not remain stable, and such prices may not be at levels that will make it feasible to continue the Company’s exploration activities, or commence or continue commercial production. The aggregate effect of these factors is impossible to predict with accuracy.

 

The Company’s business activities are conducted in Tanzania.

 

The Company’s principal exploration and mine development properties are currently located in the United Republic of Tanzania, Africa, under which the Company has obtained a license to explore, develop and operate the properties. Although the Company believes that the Tanzania government is a stable, multi-party democracy, there is no guarantee that this will continue. Tanzania is surrounded by unstable countries enduring political and civil unrest, and in some cases, civil war. There is no guarantee that the surrounding unrest will not affect the Tanzanian government and people, and therefore, the Company’s mineral exploration activities. Any such effect is beyond the control of the Company and may materially adversely affect its business.

 

Further, the operator of the Buckreef Project is Tanzam, a joint venture that is 55% owned by one of the Company’s subsidiaries and 45% is owned by the Stamico, a governmental agency of the Tanzania. Therefore, the government of Tanzania will have a substantial input at the Company’s operations at the Buckreef Project.

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Additionally, the Company may be affected in varying degrees by political stability and government regulations relating to the mining industry and foreign investment in Tanzania. The government of Tanzania may institute regulatory policies that adversely affect the exploration and mine development (if any) of the Company’s properties. Any changes in regulations or shifts in political conditions in this country are beyond the control of the Company and may materially adversely affect its business. Investors should assess the political and regulatory risks related to the Company’s foreign country investments. The Company’s operations in Tanzania are also subject to various levels of economic, social and other risks and uncertainties that are different from those encountered in North America. The Company’s operations may be affected in varying degrees by government regulations with respect to restrictions on production, price controls, export controls, restrictions on foreign exchange and repatriation, income taxes, expropriation of property, environmental legislation and mine safety. Other risks and uncertainties include extreme fluctuations in currency exchange rates, high rates of inflation, labor unrest, risks of war or civil unrest, government and civil unrest, regional expropriation and nationalization, renegotiation or nullification of existing concessions, licenses, permits and contracts, illegal mining, corruption, hostage taking, civil war and changing political conditions and currency controls. Infectious diseases (including Ebola virus, malaria, HIV/AIDS and tuberculosis) are also major health care issues where the Company operates.

 

Mineral exploration in Tanzania is affected by local climatic and economic conditions.

 

The Company’s properties in Tanzania have year round access, although seasonal winter rains from December to March may result in flooding in low lying areas, which are dominated by mbuga, a black organic rich laustrine flood soil. Further, most lowland areas are under active cultivation for corn, rice, beans and mixed crops by subsistence farmers. As a result, the area has been deforested by local agricultural practices for many years. The seasonal rains and deforested areas can create a muddy bog in some areas, which can make access more difficult, and could impede or even prevent the transport of heavy equipment to the Company’s mineral properties at certain times of the year between December and March.

 

The Company’s operations are subject to issues relating to security and human rights.

 

Civil disturbances and criminal activities such as trespass, illegal mining, theft and vandalism may cause disruptions at the Company’s operations in Tanzania which may result in the suspension of operations. There is no guarantee that such incidents will not occur in the future. Such incidents may halt or delay exploration, increase operating costs, result in harm to employees or trespassers, decrease operational efficiency, increase community tensions or result in criminal and/or civil liability for the Company or its employees and/or financial damages or penalties. The manner in which the Company’s personnel respond to civil disturbances and criminal activities can give rise to additional risks where those responses are not conducted in a manner that is consistent with international standards relating to the use of force and respect for human rights. The failure to conduct security operations in accordance with these standards can result in harm to employees or community members, increase community tensions, reputational harm to the Company and its partners or result in criminal and/or civil liability for the Company or its employees and/or financial damages or penalties. It is not possible to determine with certainty the future costs that the Company may incur in dealing with the issues described above at its operations.

 

Risks relating to the Securities of the Company

 

As a foreign private issuer, the Company is subject to different U.S. securities laws and rules than a domestic U.S. issuer, which may limit the information publicly available to U.S. shareholders.

 

The Company is a foreign private issuer under applicable U.S. federal securities laws. As a result, the Company does not file the same reports that a U.S. domestic issuer would file with the SEC, although the Company is required to file with or furnish to the SEC the continuous disclosure documents that the Company is required to file in Canada under Canadian securities laws. In addition, the Company’s officers, directors, and principal shareholders are exempt from the reporting and “short swing” profit rules of Section 16 of the Exchange Act. Therefore, shareholders may not know on as timely a basis when the Company’s officers, directors and principal shareholders purchase or sell common shares, as the reporting dates under the corresponding Canadian insider reporting requirements are longer. In addition, as a foreign private issuer, the Company is exempt from the proxy rules under the Exchange Act.

15

 

The Company may lose its foreign private issuer status in the future, which could result in significant additional costs and expenses.

 

In order to maintain the Company’s current status as a foreign private issuer, a majority of its common shares must be either directly or indirectly owned by non-residents of the United States, unless the Company also satisfies one of the additional requirements necessary to preserve this status. The Company may in the future lose its foreign private issuer status if a majority of its common shares is held in the United States and it fails to meet the additional requirements necessary to avoid loss of foreign private issuer status. The regulatory and compliance costs under U.S. federal securities laws as a U.S. domestic issuer may be significantly more than the costs incurred as a Canadian foreign private issuer eligible to use the multijurisdictional disclosure system (“MJDS”). If the Company is not a foreign private issuer, it would not be eligible to use the MJDS or other foreign issuer forms and would be required to file periodic and current reports and registration statements on U.S. domestic issuer forms with the SEC, which are more detailed and extensive than the forms available to a foreign private issuer. In addition, the Company may lose the ability to rely upon certain exemptions from NYSE American corporate governance requirements that are available to foreign private issuers.

 

U.S. investors may not be able to obtain enforcement of civil liabilities against the Company.

 

The enforcement by investors of civil liabilities under the United States federal or state securities laws may be affected adversely by the fact that the Company is governed by the Business Corporations Act (Alberta), that the some of the Company’s officers and directors are residents of Canada or otherwise reside outside the United States, and that all, or a substantial portion of their assets and a substantial portion of the Company’s assets, are located outside the United States. It may not be possible for investors to effect service of process within the United States on certain of the Company’s directors and officers or enforce judgments obtained in the United States courts against the Company, certain of its directors and officers based upon the civil liability provisions of United States federal securities laws or the securities laws of any state of the United States.

 

Common share prices will likely be highly volatile, and your investment could decline in value or be lost entirely.

 

The market price of the common shares is likely to be highly volatile and may fluctuate significantly in response to various factors and events, many of which the Company cannot control. The stock market in general, and the market for mining company stocks in particular, has historically experienced significant price and volume fluctuations. Volatility in the market price for a particular issuer’s securities has often been unrelated or disproportionate to the operating performance of that issuer. Market and industry factors may depress the market price of the Company’s securities, regardless of operating performance. Volatility in the Company’s securities price also increases the risk of securities class action litigation.

 

The Company’s common shares must meet the requirements of the NYSE American.

 

The NYSE American rules provides that the NYSE American may, in its discretion, at any time, and without notice, suspend dealings in or remove any security from listing or unlisted trading privileges, if, among other things, where the financial condition and/or operating results of the issuer appear to be unsatisfactory or it appears that the extent of public distribution or the aggregate market value of the security has become so reduced as to make further dealings on the NYSE American inadvisable. Although the Company has received no indication or notification that its common shares may be delisted, in light of the current per common share price and the Company’s financial losses, there is no assurance that the Company’s common shares will continue to be listed on the NYSE American.

 

Offers or availability for sale of a substantial number of common shares may cause the price of the Company’s common shares to decline.

 

In the future, in connection with current and future financings, the Company could have sales of a significant number of its common shares in the public market which could harm the market price of its common shares and make it more difficult for the Company to raise funds through future offerings of common shares. The Company’s shareholders may sell substantial amounts of its common shares in the public market. The availability of these common shares for resale in the public market has the potential to cause the supply of its common shares to exceed investor demand, thereby decreasing the price of the common shares.

 

In addition, the fact that the Company’s shareholders can sell substantial amounts of its common shares in the public market, whether or not sales have occurred or are occurring, could make it more difficult for the Company to raise

16

 

additional financing through the sale of equity or equity-related securities in the future at a time and price that it deems reasonable or appropriate.

 

Item 4.Information on the Company

 

A.       History and Development of the Company

 

The Company was originally incorporated under the name “424547 Alberta Ltd.” in the Province of Alberta on July 5, 1990, under the Business Corporations Act (Alberta). The name was changed to “Tan Range Exploration Corporation” on August 13, 1991. The name of the Company was again changed to “Tanzanian Royalty Exploration Corporation” on February 28, 2006 and to Tanzanian Gold Corporation on April 17, 2019.

 

The Company is also registered in the Province of Ontario as an extra-provincial company under the Business Corporations Act (Ontario).

 

The principal executive office of the Company is located at Bay Adelaide Centre, East Tower, 22 Adelaide Street West, Suite 3400, Toronto, Ontario, M5H 4E3, and its telephone number is (844) 364-1830. Our internet address is www.tangoldcorp.com.

 

For the year ended August 31, 2019, the Company reported a net loss of $29,317,517. Included in the net loss is $22,229,752 of mineral properties and deferred exploration expenses that were written off primarily relating to the Kigosi, Itetemia and Luhala properties. In light of the Company’s strategic focus on the Buckreef Project, the Kigosi, Itetemia and Luhala properties were placed in a care and maintenance phase for potential development in the future. The Company incurred deferred exploration expenditures of $3,137,557 during the year ended August 31, 2019.

 

In connection with the Company’s disclosure of mineral resources/mineral reserves and the cut-off grade associated with each mineral resource/reserve, it has made certain assumptions for mineral pricing and cost associated with each cut-off grade to determine the reasonable prospects for economic extraction as discussed below.

 

During fiscal 2019, the Company focused on the Buckreef Project. In January 2019, Stamico and Coreworthy were selected to complete Phase One of the Company’s planned three-phase drill program and in February 2019, the Company announced new assay results from the first completed drill hole PBR010, which included two mineralized zones. In March 2019, further assay results were announced with significant intercepts reported from two additional drill-holes, PBR05 and PBR07, as well as assay results for six drill-holes, PBR06, PBR08, PBR024, PBR025; PBR028 and PBR029, drilled to target the strike and down-dip extension of gold mineralization associated with a hanging-wall zone, one of two major splays associated with the Buckreef main shear returned wide but low grade gold values. In early May 2019, the first set of assay results were announced from the deep level diamond core drilling program at the Buckreef Project. Significant intercepts were reported from Hole L13-3, the first diamond drill-hole below the pit bottom on the central section of the Buckreef main zone. Assay results from the ongoing RC in-fill drilling program within the open pit were received for five additional holes PBR018, PBR019, PBR020, PBR01 and PBR024 with significant intercepts on Hole PBR18, PBR19 and PBR20. In late May 2019, results from three holes were announced, which brought to an end Phase I of the in-pit drilling program. Significant intercepts were noted for Hole U22-1, Hole L19-1 and PBR011. In early June 2019, the results from the third hole, Hole L19-2, of the Phase II drilling program were announced, with notable intercepts. In early August 2019, the Company announced the start of a geophysical survey at the Buckreef Project to help complete the Company’s new resource-geology model, which geophysical survey was completed by mid-September.

 

B.       Business Overview

 

The Company is a mineral resource company with exploration stage properties, which engages in the acquisition of interests in and the exploration of natural resource properties in the future and the possible development of those properties where warranted. The Company commits its own resources to the initial evaluation of mineral properties and in select situations, if and when warranted, the Company enters into joint venture agreements with other corporations to further the exploration of such properties for the purpose of earning income from the sale of gold and other mined materials. At present, the Company’s natural resource activities do not generate any income.

 

The Company’s main area of interest has been in the exploration and development of gold properties, with a primary focus on exploring for and developing gold properties in Tanzania. Tanzania remains the focus of the Company’s exploration and development activities.

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In the Company’s view, its use of a joint venture in addition to its planned direct exploration and development offers investors leverage to precious and base metal prices with lower risk and shareholder dilution. Future production royalties from any producing properties discovered by joint venture partners would provide the Company with a direct interest in the mine’s cash flow, with exposure to any benefits from new discoveries and production growth, but without the capital obligations, and environmental and social liabilities, associated with direct ownership.

 

Plan of Operations

 

Exploration Activities

 

All of the properties in which the Company holds an interest are in the exploration and preliminary economic assessment stages of mining. Mineral exploration involves a high degree of risk and few properties, which are explored, are ultimately developed into producing mines. There is no assurance that the Company’s mineral exploration activities will result in any discoveries of commercial bodies of ore. The long-term profitability of the Company’s operations will be in part directly related to the cost and success of its exploration programs, which may be affected by a number of factors beyond the control of the Company.

 

By way of general description of the Company’s operating activities, the Company’s business operations involve using known or published geological and geophysical data to locate mineral resource properties meriting further exploration or development. Once identified, the Company must stake and apply for registration to title of the mineral properties, or negotiate the acquisition of such properties from any third party owners. Upon registration or acquisition of title, the Company then designs a program of preliminary exploration which can involve grid mapping, geophysical and magnetic surveying, geochemical surveying, geological mapping and sampling, grab sampling, assaying and other forms of prospecting as circumstances may require. Based on the preliminary results, mineral properties are ranked according to merit for further exploration work, which may involve further mapping, more detailed geophysical and geochemical surveying, and trenching to identify potential drill targets. If mineralization is indicated which merits further investigation, drill targets are selected and a preliminary RC drilling program commences for underground sampling and assaying. If the results are positive, then a diamond drilling program will commence mainly to check, verify and confirm the mineralization potential of the prospect.

 

Based on the drilling program results, the Company will develop models of the underlying geology and mineralized zones for more detailed testing. After further drilling, some mineralized zones will then be modeled using relevant geological software and ultimately be classified as inferred or indicated mineral resources. With sufficient infill drilling, these inferred or indicated mineral resources can be confirmed as a measured mineral resource, upon which a pre-feasibility study can be prepared by a qualified, independent mining engineer or geologist to determine whether mining activities are economic in the circumstances of the particular property. A pre-feasibility study must be completed under the requirements of NI 43-101 in Canada in order for mineral reserves to be designated and to confirm the appropriate mining and mineral processing method based on the geological and metallurgical studies of the ore. A final or bankable feasibility study must be completed for the designation of reserves under the SEC’s Industry Guide 7. If the bankable feasibility study is favorable, the Company can then use the feasibility study to seek out the necessary financing from a merchant banker or other financial institution for mine construction and development.

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The map below shows the regional location of the Company’s primary properties with historical and/or a current published mineral resource estimate in Tanzania.

 

(MAP)

 

The map below shows the location of mainstay prospects that make up the Company’s Buckreef Project with a published Mineral resource and Mineral reserve estimate in Geita District, Tanzania

 

(MAP)

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Highlights for the year ended August 31, 2019

 

Financial:

 

ØOn August 13, 2019, the Company closed a public offering of 4,000,000 common shares at US$0.75 raising US $3,000,000.

 

ØOn July 1, 2019, the Company closed a registered direct offering of 1,916,379 common shares at US$0.58 per share raising US $1,111,500.

 

ØOn May 3, 2019, the Company completed the sale of 2,316,084 common shares at US $0.66 per share raising US $1,530,700 in the aggregate in a registered direct offering.

 

ØOn April 18, 2019, the Company completed the sale of 606,165 common shares at US $0.58 per share raising US $350,000 in the aggregate with three investors in a registered direct offering.

 

ØOn March 4, 2019, the Company completed the sale of 625,557 common shares at a price of US $0.45 per common share, raising an aggregate of US $281,000 in a registered direct offering.

 

ØOn January 16, 2019, the Company completed the sale of 3,924,386 common shares at a price of US $0.23 per common share, raising an aggregate of $1,172,798 (US $885,734) in a registered direct offering. Share issue costs amounted to $103,591 for net proceeds of $1,069,207.

 

ØDuring the year ended August 31, 2019, the Company closed $287,800 (US $216,857) in gold loans.

 

Under the terms of the loan agreements, the bullion loans are for a period of one year, are subject to renewal, and carry an 8% interest rate payable quarterly. At the sole discretion of the lender, the bullion loans may be repaid in cash or common shares of the Company or gold in specified form at the option of the lender. If the bullion loans are paid back by bullion, the valuation date for such bullion will be the date of the loan agreements. The bullion loans may be converted into common shares of the Company at the sole discretion of the lenders at an exercise price of US$0.3357 per share. Interest is payable quarterly, either in cash or in shares at the option of the lender at a price of US$0.3357 per share. There is no prepayment penalty.

 

During the year ended August 31, 2019 the Company settled $130,670 (US$100,000) of principal amount of outstanding loans through the issuance of 402,077 common shares.

 

ØDuring the year ended August 31, 2019, the Company received loans in the amount of $1,596,401 (US$1,230,799) with a one year term with a right to extend by one additional year by mutual consent, carrying an 8% interest rate payable quarterly. The convertible loans may be repaid in cash or common shares of the Company at the option of the lender. The convertible loan may be converted into common shares of the Company at the sole discretion of the lender at exercise prices ranging from US$0.27 to US$0.34 per share. Interest is payable quarterly, either in cash or in shares at the option of the lender at prices ranging from US$0.27 to US$0.34 per share.

 

During the year ended August 31, 2019, the Company settled $2,614,343 (US$2,028,768) of principal amount of outstanding loans through the issuance of 7,387,818 common shares.

 

ØIn connection with the gold loans described in note 21 and the convertible loans, the Company paid a finder’s fee via the issuance of an aggregate of 686,446 common shares with a value of $581,181. The finder’s fee was allocated proportionally between the gold loans and convertible loans.

 

ØThe Company entered into extension agreements in regards to USD$1,530,000 in gold loans closed on June 22, 2015, extending the term by one year to June 22, 2018, but modifying no other terms of the 2015 loans.

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Buckreef Project: Mine Development and Operations

 

Please refer to “Exploration” below for details about exploration work carried out on the Buckreef Project during fiscal 2019. No mining or ore processing activities conducted at South Pit and Plant during the year under review. Cumulative Total Ore mined from the Buckreef South Pit (ROMPad + Pad#1-Pad#3+Crusher pad) as of August 31, 2019 remains at 119,725.59 tonnes averaging 1.86g/t Au with total contained metal ounces of 7,161.24.

 

The disposition of the Ore stockpiled as of August 31, 2019, remains as follows: ROMPAD: 72,315.66t @1.39g/t Au (3,237.96 Ozs); Pad#1: 20,931.75t @2.29g/t Au (1,541.77 Ozs); Pad#2: 12,943.78t @2.78g/t Au (1,155.55 Ozs); Pad#3: 9,237.90t @ 3.85g/t Au (1,143.49 Ozs) & Crusher Pad: 4,245t @ 3.86 g/t Au (526.62 Ozs).

 

The following is a summary of the work carried out on the Buckreef Project during fiscal 2019.

 

ØThe Buckreef Technical team with inputs from Virimai Projects (consultant QP) completed a 63-hole (LOM) deep drilling program totaling 39,305m (underground potential resource) and a 29-hole resource upgrade drilling program totaling 4,463m focusing on the main Buckreef Project.

 

Tenders inviting bids for the planned Phase 1 resource upgrade drilling program were floated in local newspapers as per new Mining regulations in December 2018.

 

Applications for new licenses covering same area for 6 Buckreef licenses (PL6431/10; PL6544/10; PL6545/10; PL6546/10; PL6547/10 & PL6548/10) were lodged on 12th November 2018 with the offices of the Mining Commission (Ministry of Mines Licensing now under the Commission).

 

The Application on the Buziba license (PL6545/10) was submitted for conversion to an ML based on the initial economic studies already completed on the license, including the 2012 Preliminary Economic Assessment (PEA) Report completed on the Buziba prospect by Venmyn resource consultants of South Africa.

 

The first renewal license application on PL9968-14 was successfully uploaded on the Ministry’s Online Portal to generate application fee invoice. The US$300 invoice was subsequently sent to the accounts department (Dar) for settlement.

 

The Company was served with a seven-day Ministerial eviction order to vacate the Kigosi project base camp while negotiations for renewed access. This was part of enforcing the law barring mining and exploration for gold and base metals in game reserve areas after the Minister of Natural Resources & Tourism visited the area on 26th July 2018.

 

The Company successfully relocated all pertinent equipment and drill-cores from the Kigosi camp to Buckreef mine site as part of compliance with the Ministerial order to vacate Luhwaika camp while access negotiations proceed.

 

Issuance of the Itetemia Mining License (Applic. #01722), applied for on 4th November 2015 is reportedly still under review. The Commission circulated the Local Content Regulation documentation and The Pledge that are both mandatory for submission as the last critical part of their review process. This was completed and submitted.

 

ØIn January 2019 it was announced that Stamico and Coreworthy had been selected to complete Phase One of the Company’s planned three-phase drill program. The three-phase drill program, planned and directed by Ulrich Rath, Chair of the Company’s Technical Committee, consists of:

 

Phase One to be approximately 4,500m of infill drilling designed to upgrade existing inferred ounces within the proposed open pit and to begin testing of the deep contact below the open pit.

 

Phase Two will continue to delineate and test the continuity and extent of the deep contact; and

 

Phase Three work will be based upon information received from Phases One and Two.

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ØIn February 2019 new assay results were announced from the infill RC drill program. Significant intercepts reported from the first completed drill-hole PBR010 include two mineralized zones as more particularly described under “Exploration” below.

 

ØIn March 2019 further assay results were announced from the infill RC drill program. Significant intercepts reported from two additional drill-holes targeting the Buckreef main zone are set out under “Exploration” below.

 

In addition, assay results for six drill-holes PBR06, PBR08, PBR024, PBR025; PBR028 and PBR029 drilled to target the strike and down-dip extension of gold mineralization associated with a hanging-wall zone, one of two major splays associated with the Buckreef main shear returned wide but low grade gold values with assay highlights as more particularly described under “Exploration” below.

 

ØIn early May 2019, the first set of assay results were announced from the deep level diamond core drilling program at the Buckreef Project. Significant intercepts reported from Hole L13-3, the first diamond drill-hole below the pit bottom on the central section of the Buckreef main zone are more particularly described under “Exploration” below.

 

Assay results from the ongoing RC in-fill drilling program within the open pit were received for five additional holes PBR018, PBR019, PBR020, PBR01 and PBR024 as more particularly described under “Exploration” below.

 

ØIn late May 2019, results from three holes were announced, which brought to an end Phase I of the in-pit drilling program, which are set forth under “Exploration” below.

 

ØIn early June 2019, the results from the third hole, Hole L19-2, of the Phase II drilling program were announced. The objective of Phase II is to identify gold mineralization in the range of 50 to 200m below the pit bottom of the open pit that is the basis of the NI 43-101 ITR. The two previous drill holes in Phase II are Holes 13-3 and U22-1. All three holes have encountered significant mineralized widths that include notable intersections of high grade.

 

ØIn early August 2019, the Company announced the start of a geophysical survey at the Buckreef Project to help complete the Company’s new resource-geology model, which geophysical survey was completed by mid-September 2019.

 

Exploration Geophysics Pty Ltd was on site and commenced down-the-hole wireline geophysical surveys of holes drilled earlier in the year. This was done by using a probe with IP and Electromagnetic sensors that feed a continuous stream of data on resistivity and chargeability of the host rocks to a truck on surface. This data will then be analyzed and will assist identification and/or correlation of different rock units and shear structures between the various drill-holes and thus also provide potential targets for follow up in-fill drilling.

 

Exploration

 

In January 2019 it was announced that Stamico and Coreworthy had been selected to complete Phase One of the Company’s planned three-phase drill program. The three-phase drill program, planned and directed by Ulrich Rath, Chair of the Company’s Technical Committee, consists of:

 

Phase One to be approximately 4,500m of infill drilling designed to upgrade existing inferred ounces within the proposed open pit and to begin testing of the deep contact below the open pit.

 

Phase Two will continue to delineate and test the continuity and extent of the deep contact; and

 

Phase Three work will be based upon information received from Phases One and Two.

 

This three-phased drilling program is designed to add significant overall value as well as to improve the already robust economics of the Buckreef Project.

 

The results will drive future development, potentially demonstrate value added improvements in project economics and gain critical insight into the potential underground resource which makes this program potentially extremely accretive in nature.

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The Company complied with the bidder pre-qualification process as required by the 2018 Tanzanian local content regulations, and tendered Requests for Proposal (RFP’s) to qualified drilling contractors. With this selection of the contractors by the Board of Directors, Parts B and C of the 2018 local content regulations were completed and submitted.

 

Additional information on the Buckreef Project can be found in the NI 43-101 ITR as filed on SEDAR.

 

In the NI 43-101 ITR, Virimai recommended an infill drilling program. This critical first phase itself has two purposes. Within the currently conceived open pit, this program will upgrade the mineable ounces, moving as much as possible of the current inferred resources to the measured and indicated categories and move some indicated resources to measured resources. Most importantly, high priority will be given to conduct drilling to confirm the previously known strong intersections and grades from deep holes and begin to test the deposit at depth and for potential as an underground mine.

 

In February 2019 new assay results were announced from the infill RC drill program. Significant intercepts reported from the first completed drill-hole PBR010 include two mineralized zones:

 

8m grading 2.32 g/t Au from 47m depth,
11m grading 3.06 g/t Au from 74m depth.

 

The upper mineralization zone comprises intensely altered basaltic schist with >20% vein quartz chips while the lower intercept also comprises altered basaltic schist but with <20% vein quartz chips. The target area is being in-filled to confirm mineralization extension at near surface depth (1st intercept) and also testing the depth continuation of the main mineralized zone within the defined main pit outline (2nd intercept).

 

In March 2019, further assay results were announced from the infill RC drill program. Significant intercepts reported from two additional drill-holes targeting the Buckreef main zone include highlights as follows:

 

Hole PBR05 intersected 28m of gold mineralization grading @ 4.23g/t gold from 48m to 76m including:
16m grading @ 6.72g/t gold from 60m to 76m including:
3m grading @ 25.17g/t gold from 69m to 72m

 

Hole PBR07 intersected 30m grading @1.27g/t gold from 142m to 172m including:
3m grading @ 2.32g/t gold from 151m to 154m; and
8m grading @ 1.84g/t gold from 155m to 163m

 

In addition, assay results for six drill-holes PBR06, PBR08, PBR024, PBR025; PBR028 and PBR029 drilled to target the strike and down-dip extension of gold mineralization associated with a hanging-wall zone, one of two major splays associated with the Buckreef main shear returned wide but low grade gold values with assay highlights including:

 

132m of gold mineralization in 33 narrow stringer zones; including;
Hole PBR08 intersected 2m grading @ 1.32g/t gold from 115m to 117m
Hole PBR06 intersected several narrow zones, including:
1m grading @ 1.07g/t gold from 59m to 60m
2m grading at 1.46g/t gold from 62m to 64m, and
1m grading @ 1.09g/t gold from 76m to 77m
All other zones intersected gold mineralization of less than 1.0g/t Au.

 

In early May 2019, the first set of assay results were announced from the deep level diamond core drilling program at the Buckreef Project. Significant intercepts reported from Hole L13-3, the first diamond drill-hole below the pit bottom on the central section of the Buckreef main zone include:

 

13.2m grading @ 4.57g/t Au from 360m including 2.5m grading @ 21.74g/t Au from 383m which included 1.0m grading @ 50.54g/t Au at 384m

 

8.0m grading @ 4.88g/t Au from 417m including 4.4m grading @ 8.8.29 g/t Au from 418m that include 1.2m grading @ 12.82 g/t Au from 421.9m

 

The drill-hole was drilled to a depth of 555 meters, one meter is equal to 3.2808 feet, for a total depth of 1,820 feet, all diamond core.

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Assay results from the ongoing RC in-fill drilling program within the open pit were received for five additional holes PBR018, PBR019, PBR020, PBR01 and PBR024. Significant intercepts include:

 

Hole PBR18: 8m grading @ 1.17 g/t Au from 61m; and 3m grading @1.08g/t from 115m including 2m grading @1.55g/t from 116m

 

Hole PBR19: 6m grading @ 1.41 g/t Au from 15m including 2m grading @ 2.49g/t from 16m

 

Hole PBR20: 3m grading @ 2.27 g/t Au from 55m; 3m grading @ 1.45g/t from 65m; and 1m grading @ 2.78g/t from 76m

 

In late May 2019, results from three holes were announced, which brought to an end Phase I of the in-pit drilling program.

 

Hole U22-1 was a diamond drill hole that went through the open pit and continued outside and below the current pit bottom. Both Hole L19-1 and PBR011 were RC holes that were in the open pit. Each of these three holes intersected significant intervals of continuous gold mineralization ranging from 89.6 m to two intersections of about 30m and to three intersections in the range of 17m - 21.0m. Also notable is the fact that many of these intersections were at an average gold grade that is significantly higher than the weighted gold grade of 1.5 g/t for the entire open pit.

 

Intersections from Hole U22-1 are shown from inside the open pit and from below the pit bottom, which is approximately 210m from surface. Several notable intersections; such as 9.4m @ 6.5 g/t Au and 5.0m @ 7.7 g/t Au were encountered approximately 120m below the pit bottom. Significant intersections were also found below the open pit bottom in Hole 13-3, the first hole of Phase II, as reported in the company’s press release of May 1, 2019. All remaining holes in Phase II will be testing for mineralization at various levels below the open pit bottom.

 

Significant intercepts from the last three holes of Phase I are:

 

Hole U22-1

 

Inside the Open Pit:

 

29.6m grading @ 2.8 g/t Au starting at 81.5m; including
3.7m grading @ 19.5 g/t Au from 84m, including
1.0m grading @ 47.7 g/t Au at 86m

 

Outside and Below Open Pit:

 

89.6m grading @ 1.5 g/t Au starting at 147m, including
9.4m grading @ 6.5 g/t Au from 261.8m, including
6.2m grading @ 8.5 g/t Au from 265m, including
2.0m grading 16.6 g/t Au starting at 267m

 

5.0m grading 7.7 g/t Au from 274m, including
3.1m grading @ 11.2 g/t Au at 274.9m

 

Hole L19-1

 

31.0m grading @ 1.3 g/t Au starting at140 m, including
7m grading @ 2.6 g/t Au starting at 140m, including
1.0m grading @ 6.7 g/t Au at 142m; and
7m grading @ 1.4 g/t Au starting at 151m; and
7m grading @ 1.8 g/t Au starting at 164 m

 

17m grading @ 1.5 g/t Au starting at 215m including
8.0m grading at 2.2 g/t Au starting at 221m

 

Hole PBR011

 

21.0m grading @ 2.8 g/t Au starting at 143m, including
2.0m grading at 12.1 g/t Au from 162m, including
1.0m grading @ 19 g/t Au at 163m

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In early June 2019, the results from the third hole, Hole L19-2, of the Phase II drilling program were announced. The objective of Phase II is to identify gold mineralization in the range of 50 to 200m below the pit bottom of the open pit that is the basis of the NI 43-101 ITR. The two previous drill holes in Phase II are Holes 13-3 and U22-1. All three holes have encountered significant mineralized widths that include notable intersections of high grade.

 

Notable intercepts in the third hole are:

 

Hole L19-2

 

63.0m grading @ 4.8 g/t Au from 357m to 420m; including
1.0m grading @ 7.4 g/t Au starting at 360m,
4.0m grading @ 5.9 g/t Au starting at 369m,
22.0m grading @ 9.3 g/t Au starting at 387m; including
6.0m grading @ 18.9 g/t Au that includes 2.0m grading @ 31.1 g/t Au

 

In early August 2019, the Company announced the start of a geophysical survey at the Buckreef Project to help complete the Company’s new resource-geology model, which geophysical survey was completed by mid-September 2019.

 

Exploration Geophysics Pty Ltd was on site and commenced down-the-hole wireline geophysical surveys of holes drilled earlier in the year. This was done by using a probe with IP and Electromagnetic sensors that feed a continuous stream of data on resistivity and chargeability of the host rocks to a truck on surface. This data will then be analyzed and will assist identification and/or correlation of different rock units and shear structures between the various drill-holes and thus also provide potential targets for follow up in-fill drilling.

 

The initial phase of the geophysical survey is based on 10 holes with a survey length of about 3,620m. The Company expects that additional holes will be surveyed in Phase Two. The actual number of surveyed holes will also depend on accessibility as some might have collapsed after the drill rods were pulled out.

 

The data from the geophysical survey will assist the Company in completing its resource-geology model. This model will be a state-of-the-art interpretation of the principal geological elements that carry gold mineralization and the key structures that are important in the distribution of gold along an estimated strike length of 1,200m of the Buckreef mineral occurrence. The model will extend from surface to depths that are in some locations several hundred meters below the pit bottom of the current open pit as reported in the NI 43-101 ITR.

 

The geological and structural information arising from the geophysical surveys will also be used to facilitate definition of hard wireframes that are necessary in order to do resource estimations. All resource estimations released by the Company on the Buckreef Project to date are based on a model verified by Virimai.

 

The model is divided into nine domains. The wireframes for these domains were designed to be mineralization envelopes largely unconstrained by geological or structural limitations. There are a total of 22 sub-domains in the model. In general, the gold assay data of the sub-domains are statistically distinct from the population of the main domains. The Company expects that the wireframes in the new geological-resource model will be closely linked to the geological information in the model.

 

At the time that the Company acquired the Buckreef Project (encompassing Buckreef, Tembo, Bingwa and Buziba prospects) it also acquired a significant database of assays and drill logs from such predecessor companies such as IAMGold and others. In total, this historical database came from over 8,700 exploration holes that amounted to 202,000m of RC drilling and 28,000m of diamond drilling. For the initial mineral resource definition, the RC and diamond core drill-hole database was interrogated and verified by by Virimai.

 

On the Buckreef Project itself, the Company has assembled a large database that contains gold assays as well as geological information from over 892 Holes (137,509.95m). In addition to gold assays, the database also has geological information such as rock types, alteration type, amount of sulphide and structural information such as the presence of shear zones. All this information is being used to put together the new resource-geology model. Drilling of Phase II diamond drill holes is continuing on the property.

25

 

The Company has revised its license portfolio by discarding certain licenses in line with the strategic decision to focus on the Buckreef Project as well as closely monitor and reduce its liabilities arising from statutory payments such as annual fees and JV option payments to underlying vendors.

 

In line with the new program to established prospecting licenses by registered local companies, the Company’s license holdings as of September 30, 2019 comprises a total of 28 active licenses and 104 forfeited licenses with underlying debt split by status as follows:

 

Active Licenses:

 

Category Project_ID # of PLs
  Buckreef 14
Retain Itetemia 3
  Kigosi 3
  Luhala 1
JV Lunguya 1
  Biharamulo 1
  Tulawaka 1
Discard Itetemia 1
  Kanegele 2
  Kigosi 1
    28

 

Forfeited Licenses (with outstanding debt):

 

Category Project_ID # of PLs
  Biharamulo 7
  Igunga 1
  Itetemia 6
  Kanegele 10
  Kibara 3
  Kigosi 26
  Luhala 3
  Lunguya 9
Forfeited Majimoto 1
  Manonga 10
  Mbogwe 1
  Mwadui 7
  Nyanzaga North 2
  Nzega 2
  Other 3
  Shinyanga 1
  Tulawaka 7
  Ushirombo 5
    104

 

In order to maintain the existing site of mining and exploration licenses, the Company is required to pay annual license fees. The Company has been making efforts to pay off certain of its outstanding annual license fees since October 2014 for all its active licenses. In addition, the Ministry of Mines has put into effect a requirement that even though a license is forfeited, the outstanding annual fees are still due for payment hence considered a liability now included in the Company’s financial statements.

26

 

As of September 30, 2019, and based on the continuing streamlining of the PL-holdings exercise, all outstanding, current and future financial liabilities and obligations arising from our total current land-holdings (including forfeited PLs all of which no longer appear on our portal) in unpaid rents including the penalties is approximately US$511,548 consisting as follows:

 

Forfeited Licenses Outstanding Annual Fees: US$353,010; and
Forfeited Penalty Fees: US$158,539.

 

Highlights on the landholdings include:

 

Annual fees for the Buckreef Special Mining License has been duly paid, is presently current and in full force and effect.

 

The Itetemia ML application was arbitrarily cancelled by the Mining Commission without any formal communications on the outcome of the Company’s original application submitted in November 2015. The Company has initiated a formal appeal to reverse that decision.

 

The Company also suspended its Kigosi project, a pre-production mining project whose development has been delayed due to recently enacted laws on mining in areas designated as game reserves. During the reporting period, the Mining Commission assumed 100% control of the Kigosi ML96/2013 while the protracted negotiations for access to the restricted Kigosi game reserve area are ongoing. Management has engaged the Mining Commission as well as the Minister of Mines to determine the event that have occurred. The Company has taken action to remedy the situation. The Company has paid all outstanding annual fees to the Ministry of Mines as a show of good faith while negotiations for access with the Ministry of Natural Resources and Tourism continue.

 

Due to some attempted invasion in and around the Buckreef Project, the Company has requested and been granted the presence of Tanzanian police at the camp site and is negotiating a Memorandum of Understanding with the Tanzanian Inspector General Police, to have a permanent security detail from the Police force as we go forward with the project development.

 

Brief description of the work done and license holdings grouped by project names is summarized in the section below.

 

Mine Development and Operations

 

The Buckreef Project is in the Geita District of the Geita Region south of Lake Victoria, some 110km southwest of the city of Mwanza. The project area can be accessed by ferry across Smiths Sound, via tarred national road and thereafter via unpaved but well-maintained gravel roads. The Buckreef Project comprises five prospects namely Buckreef, Bingwa, Tembo, Eastern Porphyry and Buziba. The Buckreef Project encompasses three ore zones namely Buckreef South, Buckreef Main and Buckreef North. The Buckreef Project is fully-licensed for mining and extraction of gold.

 

Mining Buckreef South Pilot Pit

 

The following cumulative work on mining and process plant operations was completed up to August 31, 2019:

 

No mining or ore processing activities conducted at the Buckreef Project during the reporting period.
Historical cumulative total ore mined from the Buckreef South pilot pit as of 31st November 2018 remains at 119,725.59t averaging 1.86g/t Au with total contained metal ounces of 7,161.24.
The disposition of the Ore stockpiled as of 31st November 2018, remains as follows: ROMPAD: 72,315.66t @1.39g/t Au (3,237.96 Ozs); Pad#1: 20,931.75t @2.29g/t Au (1,541.77 Ozs); Pad#2: 12,943.78t @2.78g/t Au (1,155.55 Ozs); Pad#3: 9,237.90t @ 3.85g/t Au (1,143.49 Ozs) & Crusher Pad: 4,245t @ 3.86 g/t Au (526.62 Ozs).

 

Resource Drilling on the Buckreef Main Pit Area

 

The following cumulative work on mining and process plant operations was completed up to August 31, 2019:

 

Continued Phase 2 resource upgrade Diamond Core (DD) drilling program.
Commenced Phase 2 RC pre-collaring for deeper DD resource upgrade drill-holes.

 

Reverse Circulation (RC) Drilling (Pre-collaring)

 

Phase 2 Reverse Circulation (RC) resource upgrade drilling comprising seven (7) RC drill-holes with a combined total metreage of 1,503m all drilled by Coreworthy mainly as RC pre-collaring was completed during the reporting period.

27

 

Diamond Core (DD) Drilling

 

An additional eight DD drill-holes with a combined total metreage of 2,716.12m (all done by Coreworthy) were completed during the reporting period.

 

Drilling Assay Results

 

During the reporting period, assays results included significant intercepts as follows:

 

L91_2 (BMDD217): 1m@1.16g/t Au from 255m; 66.7m@4.51g/t Au from 357.30m including 3m@4.85g/t Au from 358m; & 31m@7.10g/t Au from 385m including 7m@17.00g/t Au from 398m.

 

PBR09 (BMRCD293): 1.05m@1.41g/t Au from 264.95m; 5m@1.50g/t Au from 273m including 1m@4.05g/t (274m), & 9.10m@1.36g/t (285.90m) with 1.60m@2.45g/t.

 

PBR14 (BMRCD294): 1m@1.58g/t Au from 275m & 8m@0.29g/t Au from 290m;

 

L21_3 (BMRCD295): 65.21m@0.42g/t Au from 252.31m including 1.50m@1.18g/t (298.50m), 5m@1.05g/t (317m) & 1m@1.34g/t (342m); 65.45m@1.06g/t Au from 361.45m including 6.69m@3.41g/t (364m), 13.07m@1.88g/t (393m) with 3.56m@3.68g/t (402m); 1.20m@2.34g/t (428.50m) & 3m@1.07g/t (462m).

 

U22.5_1 (BMDD218): 8m@1.36g/t Au from 305m including 1m@5.41g/t (307m); 1m@1.05g/t Au (338m); 3m@1.37g/t Au from 364m including 1m@2.74g/t (364m).

 

L20.5_1 (BMRCD296): 34m@0.53g/t Au from 225m including 6m@0.75g/t Au from 227m; 4m@0.56g/t Au from 234m; 6m@1.16g/t Au from 258m, 11m@0.65g/t Au from 313m; & 68.50m@0.74g/t Au from 546m including 6m@0.65g/t Au from 550m; 6m@0.85g/t Au from 557m, 10m@2.59g/t Au from 564m and 1.5m@3.55g/t Au from 600.5m.

 

L21_3 (BMRCD295): 117.07m@0.75g/t Au from 295m including 7m@0.9g/t Au from 317m; 7.2m@3.2g/t Au from 384m including 5.1m@4.68g/t (384.7m), 13.07m@1.88g/t Au from 393m including 4m@1.37g/t (394m) & 6.56m@2.43g/t Au (399m); 3m@1.07g/t Au from 462m.

 

L21_4 (BMDD219): 4m@1.50g/t Au from 162m including 1m@2.55g/t from 164m; 78.27m@0.28g/t Au from 342m including 5m@1.0g/t Au from 417m; 15m@0.59g/t Au from 496m; 6m@0.49g/t (517m).

 

U22.5_1 (BMDD218): 4m@1.36g/t Au from 29m; 8m@1.36g/t Au from 305m including 1m@5.41g/t (307m) & 3m@1.37g/t Au from 364m.

 

L23_3(BMRCD297): 2m@0.46g/t Au from 443m; 0.5m@1.19g/t Au from 452m; 2m@0.65g/t Au from 480m; 1m@0.71g/t Au from 494; 2m@0.28g/t Au from 517m; 3m@0.63g/t Au from 522m; 4.5m@1.44g/t Au from 527m including 3m@1.96 from 532m; 5m@0.24g/t Au from 540m, 2m@1.05g/t Au from 558m; 2m@3.32g/t Au from 564m including 1m@4.15g/t Au from 564m; & 5m@1.22g/t Au from 576m including 1m@2.09g/t Au from 578m.

 

The bulk of the assay results show wide low-grade mineralization envelopes at depth related to specific geological units and structures. The wide ore zones occasionally contain pockets of high gold content whose control is possibly related to points of cross cutting structures and intensity of alteration plus presence of finely disseminated sulphides in the host units.

28

 

Mineral Resource and Mineral Reserve Estimates

 

The Buckreef Project mineral resources as at August 31, 2019 using a cut-off grade of 0.5g/t is as summarized in the table below:

 

Buckreef Project Mineral Resource Estimate as of August 31, 2019 (Source Virimai Projects, 2018)

 

(GRAPHIC)

 

The Buckreef Project pit-optimized mineral reserves as at August 31, 2019 using a cut-off grade of 0.3g/t is as summarized in the table below:

 

Buckreef Project Mineral Reserve Estimate as of August 31, 2019 (Source Virimai Projects, 2018)

 

(GRAPHIC)

 

Buziba Project

 

During the reporting period, no fieldwork was conducted in the project area.

 

The Buziba Project comprises a single prospecting license (PL6545/2010) located some 25km east of the Buckreef Project in the Geita district. The project area can be accessed from Buckreef via unpaved and poorly maintained gravel roads. The Project is a pre-development stage medium grade gold deposit and principal host lithologies include basalt, co-magmatic dolerite and a suite of intrusive quartz-albite felsic porphyries. Gold mineralization associated with shear-hosted vein quartz arrays in meta-basalts and as extensive stock works in the felsic porphyries. Geometry of the mineralization is highly irregular, forming a zone 200m thick and extending E-W for at least 2,500m.

 

Based on an NI 43-101 compliant Preliminary Economic Report published in 2012 and subsequently in 2014, the global gold resources (Measured, Indicated & Inferred) estimated over approximately 2.5km strike length and to a depth of 230 metres below surface amounts to 29Mt@1.04g/t containing 984,144ozs of gold.

29

 

License Holding and Status (Buckreef and Buziba)

 

At the end of Q4 2019, the Buckreef Project technically comprises one PL and one SML covering a surface area of 21.64km2. However, due to ongoing discussions for the continuance of the original JV land-holdings, the 12 other PLs whose 8-year tenure expired are still safeguarded on the Ministry of Minerals License Portal record and the license status and statutory liabilities for the Buckreef project is as shown in the table below:

 

Buckreef Project PL Portfolio Status – License Status and Liabilities as of August 31,, 2019

 

Project_ID Company_ID Vendor_ID PL_ID Application Date Granted Date Rent Paid To Expiry Date Area (km2) Status Application
Fee
Preparation
fee
Annual Rent
2019/20
Total Cost
Buckreef Buckreef Stamico PL6427/10 12-Mar-10 21-Jun-10 20-Jun-18 20-Jun-18 2.1 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6428/10 12-Mar-10 21-Jun-10 20-Jun-18 20-Jun-18 3.0 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6429/10 12-Mar-10 21-Jun-10 20-Jun-18 20-Jun-18 20.0 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6430/10 12-Mar-10 21-Jun-10 20-Jun-18 20-Jun-18 8.9 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6549/10 30-Mar-10 12-Jul-10 11-Jul-18 11-Jul-18 2.7 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6432/10 12-Mar-10 21-Jun-10 20-Jun-18 20-Jun-18 2.0 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6431/10 12-Mar-10 21-Jun-10 20-Jun-18 20-Jun-18 2.7 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6544/10 30-Mar-10 12-Jul-10 11-Jul-18 11-Jul-18 2.6 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6546/10 30-Mar-10 12-Jul-10 11-Jul-18 11-Jul-18 17.4 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6547/10 30-Mar-10 12-Jul-10 11-Jul-18 11-Jul-18 5.3 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6548/10 30-Mar-10 12-Jul-10 11-Jul-18 11-Jul-18 1.9 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL6545/10 30-Mar-10 12-Jul-10 11-Jul-18 11-Jul-18 5.3 8yr-tenure Expired       $0.00
Buckreef Buckreef Stamico PL9968/14 21-Oct-13 10-Jul-14 9-Jul-20 9-Jul-21 5.6 Active     $0.00 $0.00
Buckreef Buckreef Stamico SML04/92 12-Jun-00 12-Jun-00 11-Jun-20 11-Jun-27 16.0 Active     $0.00 $0.00
  Grand Total $0.00 $0.00 $0.00 $0.00

 

According to the updated Government Records the Buckreef-Buziba Project Annual Fees Liability as of 31st August is USD$0.00.
The Company, through its JV partner, Stamico, is still in the process of negotiating with the Mining Commission to issue new Licenses to preserve the PL holdings for the JV agreement.
The Company still has not received any information back from the Government on its request to review the proposed land compensation for villagers affected by the expanded Buckreef Special Mining Lease area.

 

Itetemia Property

 

During the reporting period, no fieldwork was conducted in the project area.

 

The Itetemia gold deposit includes the mineral resources of the Golden Horseshoe Reef (“GHR”), and is an advanced stage exploration project focusing on the development of the GHR. A total of 9,833m of diamond core drilling (51 holes) and 8,339m of RC drilling (138 holes) was completed on the project. Modeling and processing of assay results from both the core drilling and RC drilling so far completed over the GHR and surrounding areas culminated in the estimation of the following Mineral Resources by CSA Australia Pty (Ltd) (“CSA”). The gold resource numbers for the GHR are as at 30th May 2016 using a cut-off grade of 1.0g/t:

 

(GRAPHIC)

 

The process to convert the PL covering the Horseshoe Gold Prospect at Itetemia into a Mining License (ML) commenced on November 4, 2015. Despite numerous enquiries by the Company, no official feedback has been received from authorities in the Ministry of Mines or the Mining Commission on the status of this application during the reporting quarter. In the Company’s normal monthly review of the Government portal it became aware of changes made to the Itetemia Mining License Application. No official correspondence has been received, however it appears that our application has been denied and 5 PML’s reverted back into another name based on what we see from the portal. Management has engaged the Mining Commission as well as the Minister of Mines to determine the events , and the Company is taking action to remedy the situation. The Company also has the option of referring the situation should it not resolve in our favor to the Tanzanian anti-corruption bureau or possibly seeking legal remedy under the Tanzanian / Canadian economic treaty of 2013.

 

As of September 30, 2019, the retained portion of the Itetemia Property area now has 4 active PLs all covering a surface area of 13.37km2. However, as of May 2019, the area covered by the ML application has five (5) PMLs already granted over the ML application area and now the subject of a court case filed by the Company to redress the situation.

30

 

Itetemia Gold Project PL Portfolio Status – License Status and Liabilities as of August 31, 2019

 

Project_ID Company_ID Vendor_ID PL_ID Application Date Granted Date Rent Paid To Expiry Date Area (km2) Status Application
Fee
Preparation
fee
Annual Rent
2019/20
Total Cost
Itetemia Tanzam Stamico PL8638/2012 02-Nov-10 21-Dec-12 20-Dec-19 20-Dec-19 4.21 Active $300.00   $842.00 $1,142.00
Itetemia Tancan Stamico PL8661/2012 18-May-09 24-Dec-12 23-Dec-19 23-Dec-19 4.62 Active $300.00   $924.00 $1,224.00
Itetemia Tanzam Stamico PL8958/2013 14-Jun-10 08-Feb-13 7-Feb-20 07-Feb-20 2.27 Active $300.00   $0.00 $300.00
Itetemia Tanzam   PL9564/2014 29-Jun-09 27-Jan-14 26-Jan-18 26-Jan-18 1.47 Active       $0.00
  Grand Total $900.00 $0.00 $1,766.00 $2,666.00

 

All three of the critical PLs were successfully renewed.
Current liability (no penalties) on the Itetemia licenses totals US$2,666 mainly related to planned renewal applications and attendant annual fees for the renewal period as itemized in the table above.

 

Kigosi Project

 

During the reporting period, no fieldwork was conducted in the project area.

 

Kigosi Project area remains subject to a Game Reserve Declaration Order. Upon repeal or amendment of that order by the Tanzanian Government, the Kigosi Mining Company will be legally entitled to exercise its rights under the Mineral Rights and Mining License. A recent pronouncement by the Honorable President of Tanzania to local villagers in Ushirombo stated that his government had commenced procedures for de-gazetting part of the Kigosi-Moyowosi game reserve area to afford villagers extended land for agriculture and mining activities.

 

Mine development plans at Kigosi continue to be shelved since under the 2010 Mining Act, only exploration and mining of energy minerals, including uranium, gas and petroleum is permitted in any game reserve. Historical exploration on the project established a resource as shown in table below.

 

Kigosi Gold Project: Historical published Resource/Reserve results

 

(GRAPHIC)

 

The table below shows the status (as of August 31, 2019) of the Kigosi Project license portfolio (identified as critical to the project) has 4 active PLs all covering a surface area of 61.98km2 (excluding the Kigosi ML096/2013 that was put under Mining Commission protector ship while access negotiations are underway) The license status and statutory liabilities are as shown in the table below:

 

Kigosi Gold Project PL Portfolio Status – License Status and Liabilities as of August 31, 2019

 

Project_ID Company_ID Vendor_ID PL_ID Application Date Granted Date Rent Paid To Expiry Date Area (km2) Status Application
Fee
Preparation
fee
Annual Rent
2019/20
Total Cost
Kigosi Tanzam Abby Mining PL10170/2014 15-Oct-13 29-Aug-14 28-Aug-18 28-Aug-18 14.90 Pending Renewal $300.00   $5,587.50 $5,887.50
Kigosi Tanzam Abby Mining PL10171/2014 13-Dec-13 29-Aug-14 28-Aug-18 28-Aug-18 22.69 Pending Renewal $300.00   $8,508.75 $8,808.75
Kigosi Tanzam Abby Mining PL10184/2014 15-Oct-13 29-Aug-14 28-Aug-18 28-Aug-18 19.50 Pending Renewal $300.00   $7,312.50 $7,612.50
Kigosi Tanzam Bazos PL10187/2014 13-Apr-12 29-Aug-14 29-Aug-18 28-Aug-18 4.89 Active $300.00 $300.00 $489.00 $1,089.00
  Grand Total $1,200.00 $300.00 $21,897.75 $23,397.75

 

Applications for renewal of three of the critical licenses were successfully submitted.
Current liability (no penalties) on the active licenses totals US$23,398 mainly related to planned renewal applications and attendant annual fees for the renewal period as itemized in the table above.
There is an anticipated liability that will stem from some of the forfeited licenses whose outstanding annual fees at the time of forfeiture are being tabulated by the Ministry.

31

 

Luhala Project

 

During the reporting period, no fieldwork was conducted in the project area.

 

The Luhala Project is an advanced stage exploration project focusing on the development of the Luhala gold deposit which consists of five anomalous hilltops. The mineralization is stratabound shear-zone hosted gold mineralization (stratigraphic and structural control) within a distinct unit of felsic rocks with associated ferruginized mafic and felsic rocks.

 

Drilling at the Luhala Project has been concentrated on the Luhala Hills (Luhala Hill, Kisunge Hill, Shilalo Hill South and Shilalo Hill West). A total of 3,279m of diamond core drilling (26 holes) and 8,665m of RC drilling (144 holes) was completed on the project. Modeling and processing of assay results from both the core drilling and RC drilling conducted over the various deposits at Luhala, has to-date resulted in the estimation, by CSA, of the following Mineral Resources for Luhala as at 8th March 2011 using a cut-off grade of 1.0g/t:

 

Luhala Gold Project: Historical published exploration results

 

(GRAPHIC)

 

The process of selecting a consultant to carry out feasibility study at the Luhala gold project has been completed and once funds are available the contract to engage the consultant to carry out the study will be signed to initiate the FS study reporting.

 

At the end of this reporting period, critical Luhala project area had 1 PL covering a surface area of 3.45km2. The Luhala Project license status and statutory liabilities are as shown in the table below:

 

Luhala Gold Project PL Portfolio Status – License Status and Liability as of August 31, 2019

 

Project_ID Company_ID Vendor_ID PL_ID Application Date Granted Date Rent Paid To Expiry Date Area (km2) Status Application
Fee
Preparation
fee
Annual Rent
2019/20
Total Cost
Luhala Tancan   PL8937/2013 14-Jun-10 08-Feb-13 07-Feb-20 07-Feb-20 3.45 Active $300.00   $0.00 $300.00
  Grand Total $300.00 $0.00 $0.00 $300.00

 

The single PL has been renewed.
Current liability (no penalties) on the Active license totals US$300 mainly related to planned renewal applications and attendant annual fees for the renewal period as itemized in the table above.
There is an anticipated liability that will stem from some of the forfeited licenses whose outstanding annual fees at the time of forfeiture are being tabulated by the Ministry.

 

Exploration Projects Updates: Other PLs (JV/Discard)

 

Following the Company’s decision to include mine development to its strategy of focusing on the development of the Buckreef Project from its portfolio of properties and with the rising costs of maintaining prospecting and other licenses in Tanzania, management continues to streamline its license portfolio in Tanzania.

32

 

During the reporting period, the Company managed to pay off the bulk of the liabilities (as per the last government published debtors’ list of January 31, 2019) for Prospecting Licenses proposed for possible Joint Venture partnerships (blue text) and/or discard (purple text) and subsequently discarded the bulk of the licenses that were considered surplus (Discard category). The entire portfolio covers a combined area of 67.52km2.

 

Remaining Gold Project PL Portfolio Status – License Status and Liabilities as of August 31, 2019

 

Project_ID Company_ID Vendor_ID PL_ID Application Date Granted Date Rent Paid To Expiry Date Area (km2) Status Application
Fee
Preparation
fee
Annual Rent
2019/20
Total Cost
Lunguya Tanzam   PL10145/2014 30-Dec-12 29-Aug-14 28-Aug-15 28-Aug-18 8.53 Pending Renewal $300.00   $3,198.75 $3,498.75
Biharamulo Tanzam   PL8963/2013 24-Dec-09 08-Feb-13 7-Feb-17 07-Feb-17 22.15 Active-in default       $0.00
Kanegele Tanzam   PL10186/2014 30-Mar-12 29-Aug-14 28-Jan-18 28-Aug-18 2.32 Active       $0.00
Kanegele Tanzam   PL8664/2012 17-Sep-09 21-Dec-12 20-Dec-16 20-Dec-16 3.19 Active       $0.00
Kibara Tanzam   PL9231/2013 30-Oct-09 21-Jun-13 20-Jun-17 20-Jun-17 22.48 Active-in default       $0.00
Tulawaka Tanzam   PL10331/2014 06-Sep-10 20-Oct-14 19-0ct-18 19-Oct-18 8.85 Active - In Default       $0.00
  Grand Total $300.00 $0.00 $3,198.75 $3,498.75

 

All the PLs have outstanding annual fees and penalty fee payments were paid up during the reporting period.
Current liability (no penalties) on the active license totals US$3,499 mainly related to planned renewal applications and attendant annual fees for the renewal period as itemized in the table above.
There is an anticipated liability that will stem from some of the forfeited licenses whose outstanding annual fees at the time of forfeiture is being tabulated by the Ministry.

 

License Relinquishment

 

The practice within the Tanzanian Mining industry during the previous years was generally accepted that companies would half the size of their active license on 1st renewal period (at the end of the first 4 years of tenure) and 2nd renewal period (at the end of the following 3 years of tenure) periods where the company would retain half of the PL and relinquish the other half to the government but subsequently submit a new application covering the relinquished half to secure ground.

 

Following the gazetting of the new Mining Regulations (2017) and strict adherence to the statutory directives in the Mining Act of 2010, the relinquished half of the license area now reverts back to the government and has a 4-month grace period during which no applications are entertained by the Ministry of Mines. At the end of the 4-month period, other companies can apply for the leases and it is up to the government to award the licenses in order to maximize exploration activity by more juniors. The previous license holder is not automatically guaranteed to be awarded the relinquished license.

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The total number of licenses that expired and/or forfeited to the state during the reporting period amounted to 104 PLs and the liabilities by both project and company name are as summarized in the tables below.

 

Table 1: Tancan PLs that forfeited and outstanding Liabilities as of September 30, 2019

 

Licence           ANNUAL FEE 50% PENALTY FEE AMOUNT PAID OUTSTANDING
No. Project_ID Vendor_ID Licence Holder Minerals Status COMPONENT COMPONENT 30 AUG 2019 DEBT
PL9374/2013 Itetemia Stamico Tancan Mining Au Forfeited $227.00 $113.50 $340.50 $0.00
PL4821/2007 Itetemia   Tancan Mining Au Forfeited $1,848.00 $924.00 $0.00 $2,772.00
PL4862/2007 Manonga   Tancan Mining Au Forfeited $469.00 $234.50 $0.00 $703.50
PL6059/2009 Itetemia   Tancan Mining Au Forfeited $1,848.00 $924.00 $0.00 $2,772.00
PL7427/2011 Kibara   Tancan Mining Au Forfeited $3,108.00 $1,554.00 $0.00 $4,662.00
PL8660/2012 Biharamulo   Tancan Mining Au Forfeited $4,098.00 $2,049.00 $0.00 $6,147.00
PL9226/2013 Manonga   Tancan Mining Au Forfeited $8,643.00 $4,321.50 $0.00 $12,964.50
PL9232/2013 Mbogwe   Tancan Mining Au Forfeited $11,514.00 $5,757.00 $0.00 $17,271.00
PL8478/2012 Tulawaka   Tancan Mining Au Forfeited $1,296.00 $648.00 $0.00 $1,944.00
PL8458/2012 Manonga   Tancan Mining Au Forfeited $1,608.00 $804.00 $0.00 $2,412.00
PL9785/2014 Kigosi   Tancan Mining Au Forfeited $1,260.00 $630.00 $0.00 $1,890.00
PL8940/2013 Lunguya   Tancan Mining Au Forfeited $1,706.00 $853.00 $0.00 $2,559.00
PL9955/2014 Tulawaka   Tancan Mining Au Forfeited $1,809.00 $904.50 $0.00 $2,713.50
PL9956/2014 Kigosi   Tancan Mining Au Forfeited $5,118.00 $2,559.00 $0.00 $7,677.00
PL9565/2014 Kigosi   Tancan Mining Au Forfeited $4,280.00 $2,140.00 $0.00 $6,420.00
PL9777/2014 Biharamulo   Tancan Mining Au Forfeited $4,992.00 $2,496.00 $0.00 $7,488.00
PL8947/2013 Mwadui   Tancan Mining Au Forfeited $7,674.00 $3,837.00 $0.00 $11,511.00
PL10277/2014 Kigosi   Tancan Mining Au Forfeited $6,354.00 $3,177.00 $0.00 $9,531.00
PL9338/2013 Kigosi   Tancan Mining Au Forfeited $8,836.00 $4,418.00 $0.00 $13,254.00
PL10605/2015 Kigosi   Tancan Mining Au Forfeited $14,604.00 $7,302.00 $0.00 $21,906.00
PL8938/2013 Kigosi   Tancan Mining Au Forfeited $1,102.00 $551.00 $0.00 $1,653.00
PL9030/2013 Kigosi   Tancan Mining Au Forfeited $980.00 $490.00 $0.00 $1,470.00
PL9225/2013 Kigosi   Tancan Mining Au Forfeited $1,730.00 $865.00 $0.00 $2,595.00
PL6402/2010 Luhala   Tancan Mining Au Forfeited $1,534.50 $767.25 $0.00 $2,301.75
PL6759/2010 Luhala   Tancan Mining Au Forfeited $2,688.00 $1,344.00 $0.00 $4,032.00
PL8103/2012 Nyanzaga north   Tancan Mining Au Forfeited $2,730.00 $1,365.00 $0.00 $4,095.00
PL9373/2013 Kanegele   Tancan Mining Au Forfeited $566.00 $283.00 $0.00 $849.00
PL10140/2014 Kigosi   Tancan Mining Au Forfeited $747.00 $373.50 $0.00 $1,120.50
PL10141/2014 Kanegele   Tancan Mining Au Forfeited $2,850.00 $1,425.00 $0.00 $4,275.00
PL8961/2013 Itetemia   Tancan Mining Au Forfeited $852.00 $426.00 $0.00 $1,278.00
PL6564/2010 Kigosi   Tancan Mining Au Forfeited $3,069.00 $1,534.50 $0.00 $4,603.50
PL8667/2012 Kigosi   Tancan Mining Au Forfeited $870.00 $435.00 $0.00 $1,305.00
PL8921/2013 Kigosi   Tancan Mining Au Forfeited $590.00 $295.00 $0.00 $885.00
PL8922/2013 Kigosi   Tancan Mining Au Forfeited $7,120.00 $3,560.00 $0.00 $10,680.00
PL8925/2013 Kigosi   Tancan Mining Au Forfeited $4,330.00 $2,165.00 $0.00 $6,495.00
PL8666/2012 Kanegele   Tancan Mining Au Forfeited $260.00 $130.00 $0.00 $390.00
PL8475/2012 Manonga   Tancan Mining Au Forfeited $580.00 $290.00 $0.00 $870.00
PL8485/2012 Manonga   Tancan Mining Au Forfeited $4,092.00 $2,046.00 $0.00 $6,138.00
PL8957/2013 Manonga   Tancan Mining Au Forfeited $4,092.00 $2,046.00 $0.00 $6,138.00
PL8960/2013 Nyanzaga north   Tancan Mining Au Forfeited $2,697.00 $1,348.50 $0.00 $4,045.50
PL8924/2013 Shinyanga   Tancan Mining Au Forfeited $8,913.00 $4,456.50 $0.00 $13,369.50
PL8642/2012 Ushirombo   Tancan Mining Au Forfeited $711.00 $355.50 $0.00 $1,066.50
PL6925/2011 Ushirombo   Tancan Mining Au Forfeited $2,202.00 $1,101.00 $0.00 $3,303.00
PL8484/2012 Ushirombo   Tancan Mining Au Forfeited $2,228.00 $1,114.00 $0.00 $3,342.00
PL8639/2012 Ushirombo   Tancan Mining Au Forfeited $1,854.00 $927.00 $0.00 $2,781.00
PL7773/2012 Lunguya   Tancan Mining Au Forfeited $1,040.00 $520.00 $0.00 $1,560.00
PL8920/2013 Kibara   Tancan Mining Au Forfeited $5,016.00 $2,508.00 $0.00 $7,524.00
PL9201/2013 Kibara   Tancan Mining Au Forfeited $3,918.00 $1,959.00 $0.00 $5,877.00
  Sub Total $160,653.50 $80,326.75 $340.50 $240,639.75

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Table 2: Tanzam2000 PLs that forfeited and outstanding Liabilities as of September 30, 2019

 

Licence           ANNUAL FEE 50% PENALTY FEE AMOUNT PAID OUTSTANDING
No. Project_ID Vendor_ID Licence Holder Minerals Status COMPONENT COMPONENT 30 AUG 2019 DEBT
PL9465/2013 Kanegele   Tanzam2000 Au Forfeited $3,870.00 $1,935.00 $0.00 $5,805.00
PL9672/2014 Biharamulo   Tanzam2000 Au Forfeited $7,683.00 $3,841.50 $0.00 $11,524.50
PL8914/2014 Biharamulo   Tanzam2000 Au Forfeited $3,512.00 $1,756.00 $0.00 $5,268.00
PL9229/2013 Itetemia   Tanzam2000 Au Forfeited $5,054.00 $2,527.00 $0.00 $7,581.00
PL8676/2012 Kanegele   Tanzam2000 Au Forfeited $472.00 $236.00 $0.00 $708.00
PL9037/2013 Kanegele   Tanzam2000 Au Forfeited $1,046.00 $523.00 $0.00 $1,569.00
PL6455/2010 Kigosi   Tanzam2000 Au Forfeited $2,973.00 $1,486.50 $0.00 $4,459.50
PL8476/2012 Kigosi   Tanzam2000 Au Forfeited $1,728.00 $864.00 $0.00 $2,592.00
PL8477/2012 Kigosi   Tanzam2000 Au Forfeited $4,266.00 $2,133.00 $0.00 $6,399.00
PL8663/2012 Kigosi   Tanzam2000 Au Forfeited $2,942.00 $1,471.00 $0.00 $4,413.00
PL5289/2008 Lunguya   Tanzam2000 Au Forfeited $3,980.00 $1,990.00 $0.00 $5,970.00
PL9228/2013 Lunguya   Tanzam2000 Au Forfeited $1,776.00 $888.00 $0.00 $2,664.00
PL6273/2009 Nzega   Tanzam2000 Au Forfeited $2,176.00 $1,088.00 $0.00 $3,264.00
PL8479/2012 Tulawaka   Tanzam2000 Au Forfeited $1,222.00 $611.00 $0.00 $1,833.00
PL9227/2013 Ushirombo   Tanzam2000 Au Forfeited $5,481.00 $2,740.50 $0.00 $8,221.50
PL6941/2011 Lunguya   Tanzam2000 Au Forfeited $7,915.50 $3,957.75 $0.00 $11,873.25
PL9224/2013 Kanegele   Tanzam2000 Au Forfeited $3,232.00 $1,616.00 $0.00 $4,848.00
PL9361/2013 Kanegele   Tanzam2000 Au Forfeited $4,434.00 $2,217.00 $0.00 $6,651.00
PL4605/2007 Igunga   Tanzam2000 Au Forfeited $2,683.49 $1,341.74 $0.00 $4,025.23
PL4838/2007 Other   Tanzam2000 Au Forfeited $3,958.00 $1,979.00 $0.00 $5,937.00
PL4911/2008 Tulawaka   Tanzam2000 Au Forfeited $670.00 $335.00 $0.00 $1,005.00
PL4962/2008 Tulawaka   Tanzam2000 Au Forfeited $1,108.00 $554.00 $0.00 $1,662.00
PL5278/2009 Luhala   Tanzam2000 Au Forfeited $2,772.00 $1,386.00 $0.00 $4,158.00
PL6222/2009 Biharamulo   Tanzam2000 Au Forfeited $5,020.00 $2,510.00 $0.00 $7,530.00
PL6240/2009 Other   Tanzam2000 Au Forfeited $6,054.00 $3,027.00 $0.00 $9,081.00
PL6666/2010 Majimoto   Tanzam2000 Au Forfeited $1,516.80 $758.40 $0.00 $2,275.20
PL6694/2010 Manonga   Tanzam2000 Au Forfeited $9,706.00 $4,853.00 $0.00 $14,559.00
PL6842/2010 Mwadui   Tanzam2000 Au Forfeited $2,733.60 $1,366.80 $0.00 $4,100.40
PL9781/2014 Biharamulo   Tanzam2000 Au Forfeited $7,677.00 $3,838.50 $0.00 $11,515.50
PL8300/2012 Kigosi   Tanzam2000 Au Forfeited $1,002.00 $501.00 $0.00 $1,503.00
PL8171/2012 Kanegele   Tanzam2000 Au Forfeited $2,763.00 $1,381.50 $0.00 $4,144.50
PL9295/2013 Biharamulo   Tanzam2000 Au Forfeited $4,434.00 $2,217.00 $0.00 $6,651.00
PL8964/2013 Manonga   Tanzam2000 Au Forfeited $4,194.00 $2,097.00 $0.00 $6,291.00
PL9035/2013 Manonga   Tanzam2000 Au Forfeited $1,461.00 $730.50 $0.00 $2,191.50
PL8674/2012 Tulawaka   Tanzam2000 Au Forfeited $1,806.00 $903.00 $0.00 $2,709.00
PL8671/2012 Mwadui   Tanzam2000 Au Forfeited $564.00 $282.00 $0.00 $846.00
PL8673/2012 Mwadui   Tanzam2000 Au Forfeited $5,373.00 $2,686.50 $0.00 $8,059.50
PL6449/2010 Kigosi   Tanzam2000 Au Forfeited $1,491.00 $745.50 $0.00 $2,236.50
PL6756/2010 Kanegele   Tanzam2000 Au Forfeited $1,074.00 $537.00 $0.00 $1,611.00
PL7358/2011 Lunguya   Tanzam2000 Au Forfeited $853.00 $426.50 $0.00 $1,279.50
PL7548/2012 Kigosi   Tanzam2000 Au Forfeited $2,110.33 $1,055.17 $0.00 $3,165.50
PL8675/2012 Kigosi   Tanzam2000 Au Forfeited $4,140.00 $2,070.00 $0.00 $6,210.00
PL8962/2013 Kigosi   Tanzam2000 Au Forfeited $976.00 $488.00 $0.00 $1,464.00
PL6406/2010 Manonga   Tanzam2000 Au Forfeited $2,026.00 $1,013.00 $0.00 $3,039.00
PL6411/2010 Mwadui   Tanzam2000 Au Forfeited $4,991.00 $2,495.50 $0.00 $7,486.50
PL4074/2006 Other   Tanzam2000 Au Forfeited $511.80 $255.90 $0.00 $767.70
PL8853/2013 Tulawaka   Tanzam2000 Au Forfeited $3,616.00 $1,808.00 $0.00 $5,424.00
PL9039/2013 Lunguya   Tanzam2000 Au Forfeited $1,706.00 $853.00 $0.00 $2,559.00
PL9230/2013 Mwadui   Tanzam2000 Au Forfeited $6,744.00 $3,372.00 $0.00 $10,116.00
PL9294/2013 Mwadui   Tanzam2000 Au Forfeited $5,916.00 $2,958.00 $0.00 $8,874.00
PL8677/2012 Nzega   Tanzam2000 Au Forfeited $6,309.00 $3,154.50 $0.00