Gem International Resources Inc.
TSX VENTURE : GI

August 31, 2011 08:00 ET

Gem International Options 100% of Gold Project in Mvomero & Kilindi Districts of Tanzania

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 31, 2011) - Gem International Resources Inc. (TSX VENTURE:GI) has entered into an option agreement with Mr. Anderson Fred Temu, Mr. Pascal D. Nestory and Mr. Benard Beatus (the "Optionor"), to acquire a 100-per-cent interest in the Mvomero Gold Project, located in the Mvomero and Kilindi districts of Tanzania. The project encompasses Prospecting Licenses PL7138/2011 and PL7147/2011, containing a total area of 234.75 square kilometers and is located 35 kilometers west-southwest of Canaco Resources Inc.'s Magambazi Hill Project.

The consideration for the acquisition is cash payments totaling CDN$750,000 and exploration expenditures totaling CDN$1,500,000. 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:

  1. CDN$250,000 within 5 business days of written approval from the TSX Venture Exchange;
  2. CDN$250,000 on or before 5 days after the first anniversary of Exchange Approval; and
  3. CDN$250,000 on or before 5 days after the second anniversary of Exchange Approval.

Work schedule:

  1. CDN$150,000 on or before the first anniversary of Exchange Approval;
  2. a further CDN$350,000 on or before the second anniversary of Exchange Approval; and
  3. a further CDN$1,000,000 on or before the third anniversary of Exchange Approval.

The Mvomero Gold Project is located within the Neoproterozoic domain of the Mozambique belt in Tanzania and 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. The PLs, borders Douglas Lake Mineral's (Douglas Lake's) Handeni Project to the east and TSX-V listed Kokanee Mineral's (Kokanee's) Handeni North 500 Project to the north.

Although the area is regarded as inferior to the Lake Victoria Goldfields (LVGF) (with regards to gold exploration potential), gold discoveries at Kilindi and Magambazi (Canaco) and Kwandege and Mjembe (Douglas Lake) is indicative of a new and emerging exploration environment capable of hosting primary gold mineralization associated with prominent shearing.

Regional magnetic interpretation has revealed extensive northwest-southeast (NW-SE) shear zones within the Mvomero Project area. The shear zones are associated with extensive surface gold anomalies and widespread small-scale mining activities. In addition both Canaco and Douglas Lake have intercepted significant gold mineralization from exploration drilling and surface geochemical sampling in areas associated with these NW-SE shear zones.

Further exploration is warranted due to the location of PL7138/2011 and PL7147/2011 and the similarity in geological setting to that of nearby Canaco's Magambazi Hill Project and Douglas Lake's Kwandege and Mjembe Projects,

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)