Gem International Resources Inc.
TSX VENTURE : GI

August 11, 2011 17:07 ET

Gem International Options 100% of Gold Project in Kilindi District, Tanga Region in Tanzania

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 11, 2011) - Gem International Resources Inc. (TSX VENTURE:GI) has entered into an option agreement with Mr. Sylvester Byedile and Mr. Paul E. Millinga (the "Optionor"), to acquire a 100-per-cent interest in a gold property (The Negero Project), located within the Tanga Region of Tanzania. The Project comprises Prospecting License PL7119/2011, contains a total area of 30.69 square kilometers and is located 25 kilometers southwest of Canaco Resources Inc.'s Magambazi Hill Project.

The consideration for the acquisition is cash payments totaling CDN$475,000 and exploration expenditure totaling CDN$1,000,000. The Optionor retains a 2-per-cent Net Smelter Return Royalty of which, 1-per-cent can be purchased for CDN$ 1,000,000.

Cash payment schedule:

i) CDN$175,000 within 5 business days of written approval from the TSX Venture Exchange;
ii) CDN$150,000 on or before 5 days after the first anniversary of Exchange Approval; and
iii) CDN$150,000 on or before 5 days after the second anniversary of Exchange Approval.

Work schedule:

i) CDN$150,000 on or before the first anniversary of Exchange Approval;
ii) a further CDN$350,000 on or before the second anniversary of Exchange Approval; and
iii) a further CDN$500,000 on or before 5 the third anniversary of Exchange Approval.

The Negero Project is located within the Neoproterozoic domain of the Mozambique belt, a potentially overprinted Greenstone – hosted gold terrane in northeastern Tanzania. The Mozambique belt is characterized by the occurrence of abundant high pressure – temperature (P-T) granulite-facies rocks including granulite, mafic - to ultramafic intrusions, granite gneisses and quartzites.

Small scale gold mining within the Project area has exposed quartz vein development and prominent potassium feldspar alteration within wallrocks, which include amphibolite and saprolite. Airborne geophysical data over the area shows significant structural development on both a NE-SW and NW-SE trend, similar to that of the nearby Canaco Resources' Magambazi Hill Project. Grab sampling from metasedimentary outcrop, near the small scale mining area, returned assays values of up to 31.9 ppm gold (Au).

The location of the Negero Project within a potentially overprinted Greenstone Belt, the presence of crustal scale shearzones and nearby felsic intrusions provides significant potential for gold discoveries. In addition, the similarity in geological - and structural setting to that of nearby Canaco Resources' Magambazi Hill Project, provides additional potential for gold exploration on the Negero Project.

Nico Scholtz, Pri. Sci. Nat., a qualified person under National Instrument 43-101, has approved the technical content of this news release.

Gem International Resources Inc.

Simon Tam, Director

THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION. "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: THIS NEWS RELEASE CONTAINS FORWARD LOOKING STATEMENTS THAT ARE NOT HISTORICAL FACTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE SET FORTH IN OR IMPLIED HEREIN.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Gem International Resources Inc.
    Simon Tam
    Director
    (604) 871-9916
    (604) 871-9926 (FAX)