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Lakota Resources Inc. is a TSX Venture Exchange listed company totally focused on gold exploration in Tanzania. The Company formed in 1937 as Athona Mines Limited. It consolidated in 1975 as New Athona Mines Limited. And the Company consolidated in 1995 as Lakota Resources Inc. The stock split in 2002 on 2 for 1 basis.
Since 1996 Lakota has been actively acquiring mineral properties of merit in the Lake Victoria greenstone belt, which hosted the discovery of over 46 million ounces of gold over the last ten years.
Currently the Company has over 40 mineral properties covering a total area of over 2,000 square kilometres. Many are adjacent to producing or developing mines such as Barrick's Bulyanhulu and Anglo-Ashanti's Geita deposits.
Since its first ventures in 1996 the Company has invested over one million dollars in Tanzania.
With its recently completed private placement financing of CDN$1.3 million the Company has the financial resources to take the Company to the next level which will entail detailed exploration to develop gold resources and reserves either in joint venture with major partners or on its own.
WHY IN TANZANIA
The country covers an area of over 945,000 sq.km with a population of about 31 million people. Capital is Dar es Salaam on the Indian Ocean with a population of roughly 3 million inhabitants. English is the principal language of commerce though the official language is Swahili.
The United Republic of Tanzania was established in 1964 and continues to be governed by an elected parliament modelled after the British system. The country is stable and while poor by western standards, shows signs of emerging as a growing economy led by the mining and petroleum sector which are supplementing the traditional agriculture based source of foreign exchange.
The mining industry has grown remarkably in the last 10 years since the government initiated a definitive Mining Act, which guarantees land tenure, reasonable taxation policies and a realistic royalty on production of 3%. This modern thinking approach to the mining industry has resulted in an influx of exploration and development Corporations to Tanzania and the results have been spectacular.
Lakota Resources Inc. has acquired its sizeable portfolio of gold properties in the Lake Victoria greenstone belt.
Tanzania has a buoyant and growing mining industry. Most major companies have established a presence in the country and infrastructure and services are improving. Lakota is well positioned to participate in this exciting economic reality.
PROPERTIES IN HAND
Lakota holds interests in a number of grassroots properties throughout the Lake Victoria Greenstone District. Some of these under explored properties are situated in proximity to known gold deposits. In total, Lakota holds an interest in over 3,200 sq.km of prospective gold property licenses in Tanzania.
(1) Bemuda, Tannor and Ikina Reef Properties
The properties encompass about 85 sq.km and are located adjacent to Barrick's Bulyanhulu deposit. Lakota Resources Inc. believes the properties contain the extensions of Barrick's Bulyanhulu Reef zones including the producing Reef 1 based on exploration results on Lakota and Barrick's properties.
The drilling on the Ikina Reef property intersected many auriferous zones including three metres grading 16.23 grams of gold per tonne, one metre grading 15.90 grams of gold per tonne and another metre grading 13.83 grams per tonne. The drilling was conducted prior to Barrick's extensive exploration and development of the adjacent Bulyanhulu mine.
The Company believes the strike projection of the Bulyanhulu gold bearing zone occurs to the north of the early drilling.
(2) Siaga Hill, Shirera/Wandu Properties
Lakota Resources Inc. has a number of grassroots properties in the Lake Victoria Greenstone District; some of which are under explored properties situated in proximity to known gold deposits.
The Lakota's Siaga Hill and Shirera/Wandu properties encompass 43 sq.km and are adjacent to the south and west of Barrick's Golden Ridge deposit that contains 1.6 million ounces of gold. Gold associated with banded iron formation is the primary target.
The claim group 24, a 24 sq.km property, is located 5 kilometres west of the West Kahama greenstone belt in the vicinity of the Nyakafuru gold deposit, which contains 730,000 ounces of gold.
(3) Canada Property
In Canada, Lakota controls 83% of the Viking Yellowknife Gold Prospect in the Northwest Territories. The gold mineralization found on the Viking property is confined to the same geological corridor that contains nearly all the commercially interesting gold deposits on the district.
Tanzanian Area Play
(1) Barrick's Bulyanhulu mine has a gold equivalent reserve of 10.0 million ounces contained in a resource of 14.6 million ounces of gold equivalent. Reef 1 is the location of the mine site that produces 400,000 ounces of gold equivalent per year.
Barrick has spent in excess of US$400 million in Tanzania based on the Bulyanhulu and Tulawaka projects alone. Barrick's exploration in 2001 cost about US$25 million.
(2) Ashanti Goldfields and Anglogold commissioned the Geita mine in June 2000. Since then, it has produced about 180,000 ounces of gold.
(3) Tan Range is active on its Itetemia property that adjoins the Lakota's Bemuda and Tannor properties and Barrick's Bulyanhulu property. Barrick agreed to provide funding to Tan Range totalling CDN$4 million.