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Monday, 23rd March 2009 (890 views)

A non-binding letter of intent has been agreed between Lake Victoria Mining and Kilimanjaro Mining in a bid to establish a new gold property in Tanzania.

The two companies are seeking to create a high-grade underground gold mine in the Lake Victoria Greenstone Belt.

According to Dr Roger Newell, who is working on the project in Tanzania, early production could be started by the end of 2009 if the company is quick to set up the site.

"With the current price of gold and the favourable mining environment in Tanzania, we believe we can establish a low cost, high-grade producing gold mine in the near term," he stated.

However, discussions are continuing between Lake Victoria Mining and Kilimanjaro Mining over whether further drilling programmes should be completed first.

Dr Newell was hired by Lake Victoria Mining in February to help the firm establish a new gold mine in Geita, Tanzania.

A former vice-president of development for Capital Gold, he has previously identified a large gold deposit in Sonora, Mexico which went on to become Capital's El Chanate gold producing property.

 

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