The Jubilee Reef Project comprises a contiguous group of 8 prospecting licences (PLs) covering approximately 66km2 that is located approximately 850km northwest of Dar es Salaam (see Figures 1 and 2) within the Lake Victoria Goldfield of northern Tanzania. This Archaean greenstone-granite terrain hosts several multimillion ounce gold deposits including Acacia Mining's Bulyanhulu deposit and AngloGold Ashanti's Geita deposit.
Figure 1: Jubilee Reef Project - Location Map
Figure 2: Jubilee Reef Project - Lake Victoria Goldfield
The total Inferred Mineral Resource for Jubilee Reef encompasses two deposits, Simba and Panapendesa, and is summarised below:
Note: As of November 2015. Cut-off grade 0.7 g/t gold. Inconsistencies in totals are due to rounding
The independent Mineral Resource estimates for the Jubilee Reef Project were prepared by Optiro Pty Ltd and reported and classified in accordance with the guidelines of the 2012 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code; 2012). The Mineral Resources have been reported above a 0.7g/t gold cut-off grade to reflect current commodity prices and potential open pit mining and processing options. The Mineral Resources have not been constrained within an open pit.
Full details of the Resource estimate are provided in the ASX announcement titled "Liontown announces maiden 390,000oz Mineral resource for the Jubilee Reef Gold Project in Tanzania, East Africa" released on 30th November 2015 which is available on the Company website under the Investor Relations section.
The Jubilee Reef Project lies within a sequence of Archaean mafic volcanics, intermediate to felsic volcaniclastics, shales and banded iron formations (BIF) that form part of the Siga Hills Greenstone Belt within the Lake Victoria Goldfield. The Lake Victoria Goldfield hosts a number of world-class gold mining operations including the Bulyanhulu and Geita mines.
Figure 3: Jubilee Reef Project – Geology interpretation showing main gold prospects
The Simba deposit is located in the south-west corner of the Jubilee Reef Project (Figure 4) and is centred on the Masabi Syenite, an elliptical intrusion of syenite and diorite emplaced into the volcanic and volcaniclastic stratigraphy.
The intrusive complex comprises a series of felsic to intermediate intrusions forming a broadly east-west striking, rectangular body at least 1,600m long (east-west) by 700m wide. Gold mineralisation is hosted in massive but variably fractured and carbonate altered syenite, diorite, quartz diorite, and, along the southern contact, fine and coarse grained mafic volcanics and dolerites.
The mineralisation at the Simba deposit has been defined by 70 Reverse Circulation (RC) drill holes for a total of 8,735m, three diamond drill holes for a total of 982m and 26 rotary air blast (RAB) holes for a total of 758m.
Figure 4: 3D view of mineralised lodes at Simba – looking north-northeast
The Panapendesa deposit is located some 1.8 km to the north-east of the Simba deposit and lies within a sequence of BIF, shale, and volcaniclastic sediments. The mineralisation at Panapendesa has been defined by 14 RC drill holes for a total of 1,937m and 16 RAB drill holes for a total of 677m.
Figure 5: 3D view of mineralised lodes at Panapendesa – looking north
Drill targets defined close to Simba and Panapendesa include
Figure 6: Drill plan of Simba/Panapendesa area showing exploration targets
At the Temba Prospect, wide spaced trench sampling across a large complex soil anomaly has discovered a new zone of gold mineralisation at least 1.2km long. Highlights of trench sampling over these anomalies are indicated in Figure 7 below.
Figure 7: Tembo Prospect – Magnetic image showing gold-soil contours and channel/trench results
In 2011 Liontown entered into a Joint Venture agreement with Currie Rose Resources Inc.. By September 2012, Liontown had earned an initial 51% by completing 14,000m drilling and, following Currie Rose's decision not to contribute to further exploration expenditure, subsequently increased its equity to 66%.
In April 2013, Liontown agreed to acquire the remaining 44% equity in the Project by issuing 12 million shares to Currie Rose.
Currie Rose will be entitled to a 2% net smelter royalty on future gold production from the Jubilee Reef Project; however, Liontown will have the option to purchase the royalty in the event that a Preliminary Economic Assessment is completed for a resource in excess of 250,000oz of gold (or gold equivalent).