International Gold Mining Limited

International Gold Mining Limited

November 08, 2007 09:30 ET

International Gold Secures Major Position in Tanzania's Gold & Uranium Mining Sector

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 8, 2007) - International Gold Mining Limited (TSX VENTURE:IGL) (the "Company" "IGL") has entered into two Joint Venture agreements on six tenements in the East Africa Republic of Tanzania to explore for uranium and gold.

Three of these tenements are located within the large Bahi Swamp and Singida uranium provinces in Central Tanzania, adjacent to ASX listed Uranex NL's Bahi 'C1' prospect.

The other three tenements are located in Northern Tanzania, within the "Mara Greenstone Belt", a multi million ounce gold producing province on the eastern side of Lake Victoria near the Kenyan Border.

Exploration Potential - Central Tanzania Project

Bahi Swamp Tenements

The Bahi Swamp catchment area is a dry lake covering over 1,000 sq km, and incorporates an extensive closed drainage system that has developed over 27,000 sq km of weathered uranium rich "hot" Archaean granites.

Uranium accumulation within the Bahi catchment system has been recognised since the 1950's when uranium mineralisation was first intersected in a drill hole located near the centre of Bahi Swamp.

The recent positive exploration results announced by Uranex NL from the Bahi 'C1' prospect have reconfirmed the potential of the Bahi Swamp catchment area to host significant calcrete / playa, as well as roll front style uranium deposits.

At Bahi Swamp, the Company ("IGL") has joint ventured into two tenements consisting of one granted prospecting licence, and one application, totalling 1,821 square kilometres of ground.

These two tenements abut the western boundary of Uranex NL (UNX-ASX) project with assays from vertical channel samples reported to include 1.5m @ 2.4kg/t U3O8, 2.75m @ 1.33kg/t U3O8, and 2.0m @ 1.4kg/t U3O8.

These tenements have given the IGL a presence on the ground in a highly prospective area that has the potential to generate new economic uranium finds at a reasonable cost.

Singida Tenement

The Company has entered into a joint venture over a granted prospecting licence covering an area of 43 sq km. The area is considered prospective for gold, uranium, and diamonds.

The tenement lies on the south - eastern end of the Lake Victoria greenstone belt which hosts a number of multi million ounce gold deposits, including the 14 million ounce Geita Gold Mine, and the 12.5 million ounce Bulyanhulu Gold Mine.

Historical exploration in the area by the United Nations development program in 1982 identified three airborne radiometric uranium type anomalies associated with seasonal swamps, and underlying weathered "hot" Archaean granites, identifying the area as prospective for both calcrete / playa and roll front type uranium deposits. At the time the airborne radiometric anomalies were discovered, follow up drilling was proposed; however, this recommendation was never carried out.

Exploration Potential - Northern Tanzania Project

North Mara

The Company's tenements in Northern Tanzania are located within the Tarime district of the Musoma - Mara region in the north - western part of Tanzania, some 100 kilometres east of Lake Victoria, and 20 kilometres south of the Kenyan border.

These tenements lie within the "Mara Greenstone Belt" and along strike to the multi million ounce North Mara gold mines, operated by Barrick Gold.

Most of the gold occurrences in the area lie inside or within the vicinity of the greenstone belt. This association of gold mineralisation and greenstone rocks has been widely recognized by most recent and past students of the area.

Historically it is estimated that some 9 to 10 tonnes of gold has been produced in the area. Modern development and evaluation by other non-associated companies include:

1. North Mara Gold Mine (Barrick Gold Corp.) At the time of sale in 2003 (to Barrick Gold) some 4.7 million ounces (141 tonnes) of gold had been defined through exploration by Africa Mashariki Gold Mines. In 2005, Barrick Gold stated that it had defined an extra 1 million ounces in the area.

2. The Buhemba Gold Mine has a yearly production of over of 80,000 ounces of gold, and is currently owned and operated by Tanganyika.

The acquisition of these tenements gives IGL an on ground presence in this highly prospective greenstone belt which hosts the multi million ounces North Mara Gold Mine. The tenements acquired are located over prospective sequences within the 'Mara Greenstone Belt'.

Bahati Joint Venture terms - (three tenements in the Bahi Swamp and Singida areas and two tenements in the North Mara area).

Under the terms of the Bahati Joint Venture Agreement, IGL will pay the Bahati Investment and Mining General Co. Ltd. USD$35,000 and 500,000 fully paid shares in the Company, escrowed for 12 months to earn 51% interest in the tenements.

- On the second anniversary IGL shall pay the vendor a further USD$45,000 to earn an extra 24% to take the Company's interest to 75%.

- On the third anniversary, IGL shall pay the vendor USD$50,000 to earn an extra 15% to take its interest in the tenements to 90%.

- The Company can at its sole discretion pay the vendor, USD$500,000 at any time during the joint venture period to gain control of 100% of the tenements.

- The Company pays all exploration costs including rents and rates during the joint venture period.

The other tenements are located in Northern Tanzania within the "Mara Greenstone Belt", a multi million ounce gold producing province on the eastern side of Lake Victoria near the Kenyan Border.

Mase Tanzania Joint Venture (North Mara)

Under the terms of the Mase Joint Agreement, IGL shall pay Mase Exploration and Mining Company Limited, USD$10,000 to earn a 51% interest in the tenement.

- On the second anniversary, IGL shall pay the vendor USD$10,000 to earn an extra 24% to take its interest in the tenements to 75%.

- On the third anniversary year, the Company shall pay the vendor USD$10,000 to earn an extra 15% to take its interest in the tenements to 90%.

- The Company can at any time during the joint venture period, elect to pay the purchaser USD$70,000 to gain a 100% interest in the tenements.

- The Company pays all exploration costs including rents and rates during the joint venture period.

Qualified Person

These areas were visited and reviewed by Consulting Geologist Ian S Cooper, who has over twenty year's professional experience as a geologist in mineral exploration. He has worked on gold, base metal and diamond projects in Queensland, New South Wales, Victoria, Western Australia, Northern Territory and South Australia in addition to overseas experience in Sierra Leone, West Africa and the Philippines, Asia. Other overseas experience includes study visits to the USA, South Africa, New Zealand, Europe, the UK and Ireland. He graduated from the Royal School of Mines, London University, U.K. with B.Sc. (Hons) and A.R.S.M. (Associate Royal School of Mines) degrees from that institution. Previously he was the Senior Geologist for Sons of Gwalia NL in Eastern Australia and a geologist with the BP Minerals / Seltrust Mining Group. He is a corporate member of the Australasian Institute of Mining and Metallurgy a Professional Association as defined in National Instrument 143-101.

On behalf of the Board of Directors


Nick Revell, Director

To view the map accompanying this release please click on the following link:

The TSX Venture exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information