Results from the Busolwa Gold

RNS Number : 3852B

Obtala Resources PLC

27 October 2009

 



27 October 2009

OBTALA RESOURCES PLC ("Obtala" or the "Company")

Results from the Busolwa Gold Project, Victoria Goldfields, Tanzania

Obtala Resources (AIM:OBT), which invests in and develops mineral assets in East Africa, is pleased to provide an exploration update from the newly acquired Busolwa gold project in Tanzania. 

Obtala recently signed an Acquisition and Option Agreement over the project (refer to the press release dated 15th October 2009 for further details). A site visit was made by Obtala representatives in late September 2009 with seven grab samples collected from the active mining area.

The results of these grab samples show the potential for gold mineralisation within the wall rocks (referred to as "waste" in the table below) which are left behind by the current artisanal miners who are focused on following the main quartz veins, which host visible gold mineralisation, within broader shear zones. The results are detailed below;

BUSOLWA ROCK SAMPLES		Silver	Gold
Sample Id	Description of rock sample	g/t	g/t
BSW13301	Waste rock material collected from the artisanal open cut. Schistose unit with talc, minor epidote and ferruginous quartz veinlets	4.9	30.90
BSW13302	Waste rock material from vertical shaft excavation. Hematite-rich schistose unit with fine grained silica rich bands	0.7	10.55
BSW13303	Waste wall-rock rock collected inside artisanal open cut, tuffaceous rock with talc and hematite-rich quartz veinlets	0.2	1.68
BSW13304	Banded Ironstone (BIF) float, with smoky quartz veinlets with vugs and veinlets with hematite fill	<0.2	0.06
BSW13305	Artisanal "run-of-mine "reef" sample collected from the 23m level (below ground level), dominated by smoky quartz and hematite with voids after sulphide	2.8	30.40
BSW13306	Banded Ironstone (BIF) float	<0.2	0.06
BSW13307	Artisanal run-of-mine "reef" sample collected from the 33m level (below ground level), dominated by smoky quartz, hematite and voids after sulphide	2	41.30

Grab samples cannot be considered as representative of the project area and are neither indicative of, nor used in a mineral resource estimation. 

Obtala is currently in the process of collating all available historical data for the project area into an electronic database and will begin geological re-interpretation and planning for additional field studies and drilling.

The Busolwa gold project covers 51.26 square kilometres, and includes a 6.90 square kilometre permitted mining licence, valid for 10 years. The project area is located approximately 40 km east of AngloGold's multi-million ounce Geita Gold Mine, and 25km north of the 14Moz Barrick owned Bulyanhulu Gold Mine. The 4.2Moz resource Tusker Gold Deposit currently being evaluated by Indago Resources, is situated 12km to the east of Busolwa.

All samples were submitted to ALS Chemex (ALS) laboratories in Mwanza, Tanzania. ALS has preparation facilities in Mwanza with the prepared samples being dispatched to their analytical facility in Johannesburg, South Africa for analysis. All samples were analyzed for gold using the Au-ICP21 method (fire assay with ICP-AES) and for silver using ICP-ME41 multi-element analysis. Samples returning gold values of greater than 10.0g/t were submitted for Au-GRA21 analysis (fire assay and gravimetric finish).

Frank Scolaro, Chairman of Obtala, commented that "These initial grab sample results are highly encouraging, suggesting there is strong potential for mineralisation within the wall rocks of the current mining area. Geological data from earlier explorers indicates strike lengths of at least 3km for the vein system on the project area, which Obtala will begin evaluating shortly." 

Contact:

Obtala Resources plc Simon Rollason - Managing Director Frank Scolaro - Executive Chairman	[phone] www.obtalaresources.co.uk
Conduit PR Charlie Geller	[phone]
Fox-Davies Capital Jason Bahnsen	[phone]
ZAI Corporate Finance Ltd Ray Zimmerman/Jonathan Evans	[phone]

 

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