Gem International Options 100% of Gold Project in Mvomero & Kilindi Districts of Tanzania
August 31 2011 - 7:00AM
Marketwired
Gem International Resources Inc. (TSX VENTURE: GI) has entered into
an option agreement with Mr. Anderson Fred Temu, Mr. Pascal D.
Nestory and Mr. Benard Beatus (the "Optionor"), to acquire a
100-per-cent interest in the Mvomero Gold Project, located in the
Mvomero and Kilindi districts of Tanzania. The project encompasses
Prospecting Licenses PL7138/2011 and PL7147/2011, containing a
total area of 234.75 square kilometers and is located 35 kilometers
west-southwest of Canaco Resources Inc.'s Magambazi Hill Project.
The consideration for the acquisition is cash payments totaling
CDN$750,000 and exploration expenditures totaling CDN$1,500,000.
The Optionor retains a 2-per-cent Net Smelter Return Royalty of
which, 1-per-cent can be purchased for CDN$1,000,000.
Cash payment schedule:
i. CDN$250,000 within 5 business days of written approval from the TSX
Venture Exchange;
ii. CDN$250,000 on or before 5 days after the first anniversary of Exchange
Approval; and
iii.CDN$250,000 on or before 5 days after the second anniversary of Exchange
Approval.
Work schedule:
i. CDN$150,000 on or before the first anniversary of Exchange Approval;
ii. a further CDN$350,000 on or before the second anniversary of Exchange
Approval; and
iii.a further CDN$1,000,000 on or before the third anniversary of Exchange
Approval.
The Mvomero Gold Project is located within the Neoproterozoic
domain of the Mozambique belt in Tanzania and is characterized by
the occurrence of abundant high pressure - temperature (P-T)
granulite-facies rocks including granulite, mafic - to ultramafic
intrusions, granite gneisses and quartzites. The PLs, borders
Douglas Lake Mineral's (Douglas Lake's) Handeni Project to the east
and TSX-V listed Kokanee Mineral's (Kokanee's) Handeni North 500
Project to the north.
Although the area is regarded as inferior to the Lake Victoria
Goldfields (LVGF) (with regards to gold exploration potential),
gold discoveries at Kilindi and Magambazi (Canaco) and Kwandege and
Mjembe (Douglas Lake) is indicative of a new and emerging
exploration environment capable of hosting primary gold
mineralization associated with prominent shearing.
Regional magnetic interpretation has revealed extensive
northwest-southeast (NW-SE) shear zones within the Mvomero Project
area. The shear zones are associated with extensive surface gold
anomalies and widespread small-scale mining activities. In addition
both Canaco and Douglas Lake have intercepted significant gold
mineralization from exploration drilling and surface geochemical
sampling in areas associated with these NW-SE shear zones.
Further exploration is warranted due to the location of
PL7138/2011 and PL7147/2011 and the similarity in geological
setting to that of nearby Canaco's Magambazi Hill Project and
Douglas Lake's Kwandege and Mjembe Projects,
Nico Scholtz, Pri. Sci. Nat., a qualified person under National
Instrument 43-101, has approved the technical content of this news
release.
Gem International Resources Inc.
Simon Tam, Director
THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995: THIS NEWS RELEASE CONTAINS FORWARD LOOKING
STATEMENTS THAT ARE NOT HISTORICAL FACTS AND ARE SUBJECT TO RISKS
AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY FROM THOSE SET FORTH IN OR IMPLIED HEREIN.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Gem International Resources Inc. Simon Tam Director
(604) 871-9916 (604) 871-9926 (FAX)
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