Tembo Gold (TEM.V) has released a letter from the president, summarizing all recent developments and updating the plans for 2013.
The company has drilled in excess of 35,000 meters so far, and is more confident than ever before about the potential of the Tembo Gold project as 53 of the 57 diamond drill holes have intersected gold mineralization. There are a lot of similarities between the drilling at Tembo and the early stage drilling at African Barrick’s (LON:ABG) Bulyanhulu mine. At Bulyanhulu, the grades encountered in the shallow holes were inconsistent, but the grade improved at depth. Tembo Gold thinks this might be the case for Tembo as well, as their system was developed under the same pressure and temperature conditions at Bulyanhulu. The company plans some deep holes in 2013 at Ngula 1 and Nyakagwe East to drill-test this assumption.
We encourage everyone to read the entire letter, as it’s an excellent sum-up of what Tembo has achieved so far.
Meanwhile, African Barrick Gold plunged 20% this morning on the news their parent company Barrick Gold (ABX, ABX.TO) has ended negotiations with China Gold about the sale of their 74% ownership in African Barrick. A lot of investors were speculating on a sale that could have put Tembo Gold into play as part of a possible regional consolidation. This however might open the way for African Barrick to acquire other companies as they have a net cash position of approximately $450M at this moment.
Disclosure: Tembo Gold Corp. is a sponsoring company. Please see our disclaimer for current positions.
