SHORTLISTED FOR GOLD PROJECT

RNS Number : 4678X

Obtala Resources Limited

07 December 2010

 



Obtala Resources Limited

 ("Obtala" or "the Company") (AIM:OBT)

OBTALA RESOURCES AMONG 3 COMPANIES SHORTLISTED FOR 1.45M OZ GOLD PROJECT, TANZANIA

Highlights

·      Shortlisted for negotiations for the Buckreef Gold Mine Re-Development Project

·      Defined resource of 1.45M oz gold (JORC compliant Measured and Indicated 709,000 oz and Inferred 740,000 oz)

·      Located within world renowned Lake Victoria Goldfields of Tanzania

·      Project at an advanced pre-feasibility stage

·      Creation of partnership with State Mining Corporation a subsidiary of the Tanzanian Government

The Board of Obtala Resources Limited, the resources investment, development and production company, today announces that today it has received notification from the State Mining Corporation ("STAMICO") in Tanzania that Obtala is one of the three companies shortlisted for negotiations for the Buckreef Gold Mine Re-Development Project, within the Lake Victoria Goldfields of northern Tanzania. Meetings are to be held in December with a decision to be announced shortly afterwards.

The Buckreef Gold Mine Re-Development Project is currently held 100% by STAMICO on behalf of the Government of United Republic of Tanzania and comprises one mining licence and 12 contiguous prospecting licences covering an area of approximately 95km². The licence areas of the Buckreef Mine, Rwamagaza and Buziba are all within the mining licence and are at an advanced exploration cum pre-feasibility stage with a defined resource of 1.45M oz of gold, as per data provided by STAMICO. 

The Buckreef Mine has had an extensive exploration history dating back to the 1960's when the UNDP started a drill programme. Underground mining took place from the late 1970's into the late 1980's and inn March 2010 the Government of Tanzania granted the licence to STAMICO.

Frank Scolaro, Chairman of Obtala, commented: "We are delighted and excited that STAMICO has shortlisted Obtala Resources for negotiations. If awarded this represents a significant opportunity for Obtala and its shareholders, and it will further allow us to develop a sound working relationship with STAMICO, and additionally to build on our relationship with the Government and the people of Tanzania who are of the utmost importance in our working strategy in-country.  We see this potential opportunity to increase employment to the advantage not only to our shareholders, but also to the people of Tanzania."

Contact:

Obtala Resources Limited
Simon Rollason - Managing Director Frank Scolaro - Chairman www.obtalaresources.com	[phone]
ZAI Corporate Finance Ltd
Ray Zimmerman/ Sarang Shah	[phone]
Threadneedle Communications
Laurence Read	[phone]

 

END

 

 

MSCUGGBCPUPUGMQ