Tanzanian Gold Corporation is set to start processing its enormous gold reserves at Buckreef Mine; an exercise that will see Tanzania earn US $1.4bn from the proceeds. According to the firm’s Executive Chairman James Sinclair, Tanzania will receive 45% of the proceeds which translates to about US $1.4bn.
“Up to this point, African resources were plundered by other nations and only a fraction of the wealth was ever returned to the country. That will all change with the mining of Buckreef, and our partnership with the nation of Tanzania is not only historic but also groundbreaking for both the nations of Africa and the world’s mining industry,” he said.
The EC further added that the partnership is a game changer because it is changing the industry to benefit the host country. “This means there will be more money for education, hospitals and capital improvements. The projects will bring such a positive social impact to the nation,” he affirmed.
Buckreef Gold Mine Re-Development Project
The Buckreef Gold Mine Re-Development Project was acquired from the Tanzanian State Mining Company (Stamico) in December 2010. Under a Heads of Agreement concluded with the state-owned company, Tanzanian Royalty has the right to earn a 55% interest in Buckreef with Stamico holding the remainder.
The Buckreef Project is located in north-central Tanzania immediately to the south of Lake Victoria and 110km southwest of Mwanza. Access to the Buckreef project is by ferry across Smiths Sound and then via unpaved roads and an onsite airstrip. The project area comprises the dormant Buckreef Gold Mine and four prospects with known mineralization: Buckreef, Buziba, Tembo and Bingwa.
The Buckreef Gold Mine was an underground mine operated by the Tanzanian State during the late 1980s. Apart from the state, several previous owners of the project undertook numerous exploration programs including aeromagnetic, helicopter-borne IP, ground magnetic and soil geochemistry surveys, as well as extensive Reverse Circulation and diamond drilling programs. Iamgold Corporation is the former and most recent owner of the project.