Sidon International Resources Corporation

Sidon International Resources Corporation

March 31, 2010 03:01 ET

Sidon Options High Grade Gold Project in Tanzania

Sidon International Resources Corp. has entered into a letter of intent for the grant of an option to purchase an initial 80% interest in the Morogoro East Gold (MEG) Property with high grade gold prospects in the Morogoro Area of Tanzania. 

Company President Kamal Alawas states, "Rarely does a company of our small market capitalization be afforded an opportunity to be able to acquire a property of such potential in what can only be described as one of the world's last potential world-class undeveloped gold districts. In the 1990's Tanzania only had approximately 1 million ounces of known gold reserves, now it has over 50 million ounces of reserves, placing it in third place in the African gold producing countries behind only South Africa and Ghana. Considering it has at least 5 world class-gold deposits, Tanzania has yet to be subjected to serious and prolonged exploration by modern methods. Few junior resource companies have had the ability to become involved in this expanding gold district and management is excited about what the future development of this prospect will provide for the growth of Sidon. Seeing how the market embraced Canaco Resources Inc. after their recent discoveries in Tanzania, it is clear that there is growing market awareness for this emerging gold district in Africa. Couple this with the anticipated work program to start immediately, it is clear that Sidon is entering a significant period of corporate growth right now."

Sidon will be acquiring the option from Kokanee Placer Ltd. through its private Tanzanian subsidiary company for the aggregate amount of 7 million common shares, US$1.5 million cash and conducting US$1.5 million in exploration over a 2 year period. As well the Company, will undertake as part of its option to acquire its interest in the Property, to provide equipment to enable the Tanzanians to continue their small scale mining operations permitted under their Primary Mining Licenses (PML's). Sidon's onsite consultant will monitor this operation to establish a more scientific recovery report. Sidon will be able to acquire the remaining 20% by further payments of US$4,500,000 and 3,000,000 common shares (the "Final Payments") subject to a 3% NSR. The foregoing payments for the 20% interest may be made over a period of up to 3 years, where until the Final Payments have been completely paid, the Company will need to incur subsequent to the completion of the 80% interest, earn-in exploration or development expenditures of US$1,500,000 during the first year, US$1,500,000 during the second year and US$2,000,000 during the third year.

The initial property consists of several, PML's and one 60 km2 Prospecting License (PL) that covers the area of the PML's. The PML's are between 0.3 and 0.5 hectares in area. The PML properties have had local Tanzanians, digging by hand and chisel into the stratiform gold bearing horizon, for the last 8-10 years. Processing the rock material in small ball mill type crushers and then by gravity water sluice box and final hand panning methods to recover the gold. They have reported recovering from 40 to 60 grams of gold per 25 kilogram bag of recovered rock (Approximately 40 bags of recovered rock would equal a tonne). The company has no independent verification of this grade or recovery but AFGF President, Laurence Stephenson, a P.Eng. geologist was able to estimate the amount of material processed and the reported recovery over the years, that suggests that there is a high grade zone warranting further investigation. The local miners encounter water problems and because of the lack of equipment cannot continue their bulk sampling program.

In anticipation of completing the option, Sidon has engaged Dr. Mathew Ball to complete a 43-101 compliant report. Dr. Ball visited the property last month, to inspect the artesianal operations to review the geology and gather the information needed for his report.

Sidon as part of its option and supplying the equipment during the earning of that initial 80% interest will be entitled to 50% interest in any recovered gold net of expenses over the next 12 months.

If you would like to be added to Sidon's news distribution list, please send your email address to

William Timmins PGeo is the qualified person who reviewed this press release.

Sidon International Resources is a junior exploration company with interests in Saskatchewan Coal properties, gold silver claims in British Columbia, copper gold claims in Nevada, diamond properties in Northwest Territories, and significant potash and lithium acreage in Alberta.


Kamal Alawas

We seek safe harbor

Contact Information

  • Sidon International Resources Corp.
    Kamal Alawas
    (425) 493-4653
    (425) 258-3366 (FAX)