We would like to draw your attention to Tembo Gold (TEM.V), a new exploration company with an interesting project next to African Barrick’s (LON:ABG) Bulyanhulu mine in Tanzania.
Tembo should start trading on the Venture exchange next Monday. The IPO-price has been set at C$1.00, giving it a market cap of approximately $38M with over $13M in cash, of which $11M was raised in the going-public transaction at $1.00.
As Tembo has both the right people and a great project -on strike with African Barrick’s 20Moz Bulyanhulu mine- we are looking forward to their exploration activities this year. Tembo is planning a 90,000m drill campaign, of which we expect 50,000m to be completed this year. There is currently one rig on site, and two other drill rigs are expected to arrive soon.
The project
Tembo’s licenses stretch out over 125km², adjoining African Barrick’s Bulyanhulu licenses. There currently is significant artisanal activity on Tembo’s licenses, producing around 250oz/week. These artisanal miners can only go to a depth of 15 meters, but have identified several veins at no cost to Tembo. The project has only seen limited exploration with modern techniques, so the Tembo project could very well be Tanzania’s next multi-million ounce gold deposit.
The people
Tembo Gold will be headed by CEO David Scott who has over 13 years of experience in Tanzania and by chairman Dave Anthony, who is the former COO of African Barrick. It’s extremely rare for a junior explorer to attract people with such credentials, and they are definitely the right people to lead this company forward with their experience and expertise.
We will be visiting the project later this week, and will send out a site visit report afterwards.
