SIKA Resources Inc.

SIKA Resources Inc.

October 08, 2013 08:30 ET

SIKA Reports Presence of Gold and Base Metals on Iselenge Project, Tanzania

TORONTO, ONTARIO--(Marketwired - Oct. 8, 2013) - SIKA Resources Inc. ("SIKA" or the "Company") is pleased to report positive results from a reconnaissance MMI soil survey conducted during the month of June 2013 on the Iselenge property. The results indicate the presence of both gold and base metals in the Lake Victoria Goldfields, an area dominated by known gold deposits. Two prospective zones on the Iselenge property have been identified for follow up work.

The June 2013 work program also included initial prospecting on the Ntundu Project. As reported in the Company's news release dated April 8, 2013, work on Ntundu was focusing on a line of talus-sediment soil samples collected from the base of the uplifted Siga Hills outcrop area to test for gold in the talus. Samples were collected at 200 metre spacing and submitted to SGS Laboratories in Mwanza, Tanzania. They were assayed using both bottle roll and 50 gram fire assay procedures.

Click below to view the April 8, 2013 news release:

http://sikaresources.com/2013/04/08/sika-commmences-work-on-its-ntundu-gold-project-in-tanzania/

The Ntundu property, which is 42.6 square kilometres in size, is immediately adjacent to and on trend with the Jubilee Reef deposit, a past gold producer discovered in 1898, and Tanzania's first producing gold mine. Artisanal miners remain quite active in the area. Ntundu is located 40 kilometres south of African Barrick's >17 million ounce Bulyanhulu Gold Mine, and is 30 kilometres north of Barrick's >2.6 million ounce Buzwagi Gold Mine.

Geologically, the property is located in the Archean Siga - Mabale Hills granite greenstone belt, comprised of sheared isoclinaly folded and kaolinized felsic and mafic volcanic rocks, phyllites and Banded Iron Formation (BIF). Within the property, all these rock formations are exposed and partly covered by BIF debris. Laterite and residual soils cover the flat low lying areas.

Click below to view Ntundu sampling points along the bottom of the Siga Hills (target was talus):

http://sikaresources.com/wp-content/uploads/2013/10/Ntundu-Sample-Points.jpg

The Iselenge property, which is 12.3 square kilometres in size, is located along a northwest-southeast structural trend where the Geita, Bulyanhulu, Buzwagi and Golden Pride mines are found. It is hosted within sheared mafic volcanic rocks and phyllite. Banded Iron Formation is documented on the property, most of which is covered by laterite.

On the Iselenge property, an MMI (Mobile Metal Ions) soil survey was conducted in June 2013. The MMI Technology was used due to the absence of outcrop, which precluded the use of more traditional prospecting approaches. The purpose of the MMI survey was to assess the geological merits of the Iselenge property for gold and other elements in the Lake Victoria Goldfields, an area where many continue to assay for only gold, due to the area's history of significant gold deposits.

The sampling was undertaken in an area at or near the contact zone between granite to the west and greenstone to the east. Samples were collected at approximately 200 metre intervals along a northwest trending possible structural feature, and submitted to SGS Mwanza Tanzania for analyses by SGS Laboratories in Canada, using the MMI-M (Multiple Element) procedure.

Results

On Ntundu, the talus-sediment sampling was most likely alongside or parallel to the target structure, however the results showed insignificant gold values. The Ntundu results confirm the need to conduct a detailed geochemical soil sampling grid of 250m X 250m over the entire property so that the potential for gold and other metals can be assessed. Follow-up soil surveys will have a grid that is perpendicular to the NW regional structural fabric. We are assuming possible gold-bearing sulphide mineralization on Ntundu based on neighbouring gold deposit mineralogy.

The Iselenge MMI-M results are encouraging for both gold and base metals in association with pyritic mafic to ultramafic lithologies. A zone with an 800 metre strike length (IS01 to IS05) documents elevated responses for gold and silver as well as copper, lead, cobalt and zinc. A second zone (IS10) with anomalous responses for copper, cobalt and gold over an additional 800 metre strike length occurs to the south of IS01 to IS05. Follow up MMI surveys will include grid lines of 100m X 50m using initial sample points as reference points in the two zones identified.

Click below to view the planned follow-up MMI Grids on Iselenge:

http://sikaresources.com/wp-content/uploads/2013/10/Planned-Follow-Up-MMI-Grids-on-Iselenge.jpg

"The Iselenge project shows a lot of promise and we are looking forward to implementing a very strategic exploration program focusing on the two zones identified by the MMI results. We have work programs for Ntundu and Iselenge in place, and they are designed to be executed efficiently, to add value to the assets in a timely manner, subject to availability of financing. The potential for both gold and base metals mitigates risk for our shareholders and provides exciting opportunities for SIKA," said Kim Harris, President and Chief Executive Officer.

The MMI technical information in this news release has been reviewed by Mark Fedikow, B.Sc., M.Sc., Ph.D., P.Eng., P.Geo., CPG who is a Qualified Person within the meaning of National Instrument 43-101.

ABOUT SIKA RESOURCES

SIKA Resources Inc. is a Canadian gold explorer with four 100% owned properties in Tanzania's Lake Victoria Goldfields, a region with over 60 million ounces of gold in reserves, hosting several significant producing gold mines.

Tanzania is one of Africa's most stable countries, is well endowed with mineral resources, and features a progressive, western-oriented political system and investor-friendly business climate. It is Africa's third largest gold producer, with many prospective regions still underexplored.

SIKA's flagship property, Ntundu, is located in the foothills of the Siga Hills, contiguous to the historical past gold producer Jubilee Reef. African Barrick's 2.6+ million-ounce Buzwagi Mine is on trend, and just 25 kilometres north of SIKA properties that are hosted in similar geology.

All of SIKA's properties are hosted within Archean rocks of the Lake Victoria Goldfields area and are cut by lineaments and structures similar to, and in some cases on the same trend as, those which host some of Tanzania's largest gold deposits.

SIKA has a highly experienced team with extensive public company management experience and strong technical expertise in Tanzania and throughout Africa.

Click below to view the location of SIKA's properties in the Lake Victoria Goldfields:

http://sikaresources.com/wp-content/uploads/2013/10/SIKA-Regional-Geology-March-2013.jpg

Kim Harris, President and Chief Executive Officer

Certain statements contained in the following presentation constitute forward-looking statements, involving a number of known and unknown risks, uncertainties, and other factors, which may cause the actual results, performance, or achievements of the Company to be materially different from actual results and achievements expressed or implied in such statements. Readers are cautioned not to place undue reliance on these statements, while considering the risks inherent in the business of exploration.

Contact Information