Tanzania Minerals Corporation (TZM) Mrangi Project
5218 Acres - Phase 1 Report -- November 2010
WORK COMPLETED AT MRANGI
Gridding and Surveying
Geological Mapping
Soil Geochemistry
Geophysical Surveys
Trenching
FUTURE PLANS
RC & DC Drill Targets Being Identified
Drill Program Planning In Progress
DETAILED REPORT
INTRODUCTION
TZM is focused on the exploration, discovery and development of gold deposits in geologically prospective, but under-explored regions in Tanzania. The Mrangi Project is a 100% owned concession in the Musoma region in Tanzania, where NI 43-101 Mineral Resources defined mineralized structures and rocks containing gold. Exploration work continues to confirm and fully evaluate the potential of this concession.
TZM has been undertaking a detailed ground exploration sampling and trenching programs in conjunction with geophysical surveys. These exploration results confirm initial expectations of the potential of its Mrangi Project in northern Tanzanian. Mrangi is situated in the Musoma region withing the Lake Victoria Goldfield and encompasses an area of approximately 5218 acres.
WORK COMPLETED AT MRANGI
The major aims of exploration work to date were to understand and thus ensure future consistent and accurate descriptions of the major lithologies, alteration styles, stratigraphy and structural sequencing to underpin the structures and sulfides associated with the primary gold mineralization.
Work executed by TZM included:
- Opening of local exploration grids covering the northern part of Msanja Hill exploration block
- Soil sampling from exploration grid
- Geological mapping concurrent with rock chip sampling from rock exposures and trenches.
Gridding and Surveying
The Mrangi local grid was established from the western end of the ENE-WSW trending gold bearing Phoenix shear zone to as far as the western part of the license area. The grid north bearing is E-W. Whereas a 50*100-m grid pattern was adopted for the license area.
Geological Mapping
Regional mapping and bedrock sampling programs covering the Mrangi license area was undertaken at 1:10,000-scale, aimed at understanding the control of gold mineralization. Results were extrapolated and integrated with bedrock geology and structure interpreted from available regional airborne magnetic data in the areas.
Detailed mapping was undertaken at 1:2000 & 1:500-scale in the highly prospective Mrangi small-scale mines/pits and trenches.
Following the detail mapping exercise, the following salient features were recognized to underlie the Mrangi license area.
The mafic volcanic rocks are foliated with shear fabrics trending ENE to East and dipping steeply to the north. They are iron oxide stained at surface, and are sericitised. Sulphide mineralization includes both pyrite and arsenopyrite.
Rock chip samples from various outcrops and artisanal workings have shown that gold is hosted in quartz veins, as well as the sheared, carbonate altered basalt proximal to the contacts with the veins. This results in a ~1.5km long ENE_East trending anomalous corridor within the basalt unit. A total of 150 rock samples were collected and analyzed for gold.
Zones of alteration, structural deformation and mineralisation occur within the basalt above and below the east-west trending quartz veins.
Artisanal work is concentrated on quartz veins. Rock chip samples from quartz veins return results up to 12.6g/t. The veins carrying gold mineralisation tend to be milky or grey, irregularly fractured, sometimes haematitic, and mineralised with pyrite.
Rock chip samples from the hydrothermally brecciated rock outcrop return results up to 3.8g/t.
Soil Geochemistry
The systematically gridded soil geochemical sampling program covering the 4.8 sq. kms. out of 21.14 square kilometres was completed. Soil sampling was completed on 100 meter line spacing at 50 meter sample intervals. A total of 1,156 soil samples including reddish-brown clayey-sand and sandy-clayey from erosional surfaces constitute B-horizon samples which were taken from 0-40 centimeter deep pits or from anthills in the cultivated grass land of Mrangi.
An infill soil-sampling program was undertaken across previously outlined soil anomalies to ascertain validity of these anomalies and to adapt sampling specifications for the future program. A 2 kg. sample of soil was collected in a plastic bag off the sample pit dug by using picks and shovels. Later, 20 samples were packed in plastic poly-weave bags and submitted for preparation and analysis of gold and arsenic at the SGS Laboratory in Mwanza, Tanzania.
Soil geochemical sampling returns values of up to 400ppm Au defining a first order anomaly of 1.5km long and 0.5km wide package.
Presently outlined gold in soil anomalies include areas between line 553000E and 554500E, from 9791750N to 9792250N in northern Msanja Hills.
Trenching
The trenching program was implemented as a follow-up to reconnaissance soil and rock sampling. The focus of the trenching program at Mrangi was highly prospective, and targeted an area over 4,000 meters long by 800 meters wide. An ENE-WSW trending gold soil anomaly was identified by TZM's technical staff, following a detailed review of regional landsat, magnetic data, detailed geological mapping and sampling.
The trenching and rock sampling programs at Mrangi consisted of 8 trenches on 3 widely spaced targets covering a strike length of 1.5 kilometers and representing some 500 meters of trenching. Assay results for the trenching and rock sampling program revealed Mrangi to host mineralized lithostructures.
TZM intersected wide zones of gold mineralization at the extended Phoenix mine shear at the northern Msanja Hill slopes at the rock outcrop in the Mrangi license area. Trenching intersected several zones of disseminated, robust quartz veins, stringer and sulphides including higher grade intervals of up to 12g/t Au and up 3.8g/t Au from rock exposures.
Geophysical Surveys
TZM executed a ground magnetic survey over the northern Msanja Hills within Mrangi license. A 'Walking' geometric, G-856 magnetometer was deployed during the survey. Ground magnetic was run on lines 0555600E through to 0552500E at 100m line spacing from 9791000N to 9793000N. 32 survey lines each with 2 line km making a total of 64 line kilometers were surveyed covering 6232 square kilometers . A magnetic pattern of 25m was employed during the survey. A low magnetic valley running NW-SE is very prominent and extends far NW to Lake Victoria. A lineament is observed trending NE-SW starting at 552500E/9791250N and running northeast to 555600E, 9792400N. This is interpreted as a possible shear zone or fault. Another set of evident fault striking SE-NW is suggested by prominent crustal scale ground magnetic lineaments which exhibits visible unit displacement.
Discussions
The highly prospective gold mineralized system at Mrangi appears to be associated with either the presence of substantial quartz veins/quartz breccia development in greenstone and/or the proximity of shear zones associated with granite slivers in greenstones.

Greenstones account for most of the world's gold output and the mode of occurrence we are seeing in the Mrangi Area is certainly consistent with established gold producing regions in Tanzania which is very encouraging. More exploration work is planned to fully evaluate the Mrangi Project.
Future work
TZM is currently planning to implement a drilling program at Mrangi. Reverse circulation drilling (RC) and diamond drilling (DD) targets are being identified.
The primary objective of the Mrangi drilling program is to evaluate selected gold hosting rocks, structures/deposits for extensions of mineralization beyond the currently defined mineralization potential and to test prioritized targets for new mineralized zones.
If successful, a mineral resource estimate study will be considered after all assays are received and validated.
TZM is in the final planning stages for reverse circulation and diamond drilling contract agreements and has begun testing priority targets developed from the ongoing prospect scale and regional exploration programs.
