Corporate Overview Of Canaco Resources Commerce Essay

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Canaco Resources Inc. is a Vancouver-based mineral exploration company, engaged in the business of acquiring and exploring gold and diamond projects in Tanzania. The company's shares are listed on the TSX Venture Exchange as a Tier 2 mining issuer under the symbol "CAN", and on the Frankfurt Stock Exchange under the trading symbol "HJ6".

Current operations

Handeni project

CAN has a 100% ownership interest in the Handeni gold project, which consists of two contiguous claims covering an aggregate land package of about 200.8 sq. km.-the 4.5 sq. km Magambazi prospect, and the 196.3 sq. km. Kilindi prospect. The project is located in the emerging Handeni gold district in eastern Tanzania, where gold was discovered in 2003, spurring a gold rush and intense alluvial hard-rock mining. The district is home to several gold discoveries, highlighted by the Magambazi prospect, which presently hosts an active artisanal gold mining operation. The company's primary focus of the exploration activities at the Handeni project is the Magambazi, Magambazi Central, and Magambazi North prospects, which form about 1.4km long gold mineralization trend. Between mid-Sep-09 to early May-10, Canaco Resources drilled 45 diamond drill holes at the Handeni project to evaluate the extent of gold mineralization at the Magambazi, Magambazi Central, and Magambazi North targets, out of which 40 drill holes returned with encouraging results.

Proposed Harvest Mining acquisition provides gold-enriched polymetallic VMS potential

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During Jan-10, CAN entered into a letter of intent with Beijing Donia Resources Co. Ltd. (Beijing Donia) to acquire a 70% ownership interest in Harvest Mining PLC, an Ethiopia-based private exploration-stage company. This proposed strategic acquisition is expected to ensure exposure to world-class Cu-Au-Zn volcanogenic massive sulphide (VMS) potential with geographic as well as commodity diversifications (exposure to base metals). Harvest Mining's exploration assets mainly consists of six 100%-owned exploration concessions (such as the Nefasit, Hamlo, Terakimti, Adi Nebrid, Igub, and Medri Felasi) covering an aggregate land package of 605 sq. km., located in the Tigray region of northeast Ethiopia. These concessions are strategically located in the SW extension of the Neo-Proterozoic Asmara VMS style Cu-Zn-Au-Ag metallogenic belt, and offer potential for multiple unexplored gold-enriched polymetallic VMS targets. However, the proposed acquisition is subject to an ongoing legal and technical due diligence, which is expected to be completed by June 30, 2010. Upon closing of the transaction, CAN is required to pay a total purchase consideration of nearly C$6.0 MM-C$4.0 MM in cash, and issuance of nearly 3.5 MM common shares to Beijing Donia (the parent company of Harvest Mining) at a deemed price of C$0.57/sh.

Partnership with SinoTech (Hong Kong) Corporation Ltd.

In Jun-09, CAN embarked on a key strategic partnership with SinoTech (Hong Kong) Corporation Ltd., pursuant to which SinoTech acquired a significant equity stake in CAN (subscribed for 32 MM common shares and 16 MM warrants for an aggregate gross proceeds of C$1.6 MM). SinoTech is a subsidiary of SinoTex Mineral Exploration Co. Ltd., a major exploration and mine development company in China, with operations in mainland China and over ten (10+) countries worldwide. CAN's years of experience in Africa and extensive land package, along with SinoTech's vast global operations and resources will take the partnership forward to further explore and develop undiscovered deposits. Additionally, this strategic collaboration will also provide CAN the required financial strength for its current projects.

Transferred 50% stake in the Mexico-based El Oro property to Candente Gold Corp.

In Apr-09, CAN and Candente Resource Corp. together established a new company, Candente Gold Corp., to focus on exploration and development of precious metals in Latin America. Later, within a month, CAN and Candente Resource transferred their respective 50% interest in the Mexican El Oro Au-Ag property to Candente Gold. In exchange, CAN received 5 MM common shares of Candente Gold and a promissory note with a principal amount of C$1.3 MM, payable in cash at the company's option, or convertible into common shares of Candente Gold on or before April 30, 2011.

OPERATIONS and PROJECTS

Handeni Gold Project, eastern Tanzania

Handeni project-located within the highly prospective emerging Handeni gold district

CAN has a 100% ownership interest in the Handeni gold project, which consists of two contiguous claims covering an aggregate land package of about 200.8 sq. km.-the 4.5 sq. km Magambazi prospect, and the 196.3 sq. km. Kilindi prospect. The project is located in the prospective, and emerging Handeni gold district in eastern Tanzania, where gold was discovered in 2003, driving the gold rush and intense alluvial hard-rock mining. The district is home to several gold discoveries, highlighted by the Magambazi prospect, which presently hosts an active artisanal gold mining operation. The well-exposed Magambazi prospect hosts high gold-grade sulphide-bearing quartz veins enclosed in up to 40m thick alteration zones with lower-grade sulphide-associated gold-ore over an exposed strike of several hundred metres. As a result, the prospect offers high economic potential for discovery of world-class overprinted Archaean orogenic gold deposits in non-traditional Tanzanian exploration terranes.

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Picture XX: Handeni project - location map

Source: Canaco Resources Inc.,

Option agreement to acquire 100% ownership interest in the Magambazi prospect

Pursuant to an option agreement with the local miners and Magambazi Mines Co. Ltd. during Jul-07, CAN holds an option to acquire 100% ownership interest in the Magambazi mining licenses at a cash consideration of US$1.8 MM, any time prior to Jul-10, subject to a 2% net smelter return royalty payment. Under the terms of the option agreement, the company presently has the renewable right to explore at the Magambazi licenses, which consists of four principal mining licenses covering a total land package of 4.5 sq. km. In consideration, the company has so far paid a total of approximately US$0.26 MM toward exploration rights at the Magambazi licenses until Jul-10. Similarly, the company owns 100% interest in the 196.3 sq. km Kilindi prospect, which is subject to a prospecting license expiring Nov-10.

Magambazi prospect - the primary focus of exploration activities at the Handeni project

CAN's primary focus of exploration at the Handeni project is the Magambazi, Magambazi Central and Magambazi North prospects, which form about a 1.4km long gold mineralization trend, as defined by bedrock gold occurrences, artisanal mine workings, and soil geochemical anomalies. This 1.4km gold mineralization trend occurs in the southernmost part of an 11km gold anomalous zone (know as Handeni gold trend) contained within the Handeni gold project. This Handeni gold trend, as defined by gold anomalous soil samples and multiple artisinal alluvial & hard rock workings, includes from south to north-the Magambazi, Magambazi North, Semwaliko South, Semwaliko, and Majiri Bomba prospects. An aggressive diamond-drilling program, which commenced during mid Sep-09, is still underway with the objective to define the extent of mineralization at the Magambazi North to the north, south and down dip, and at the Magambazi down dip and along strike. The preliminary metallurgical test work is in the near-completion stage, the results of which will be announced in near future. Meanwhile, the company is gearing up to increase its diamond drill capacity with a second rig, and is also finalizing plans for RAB and RC drilling, as well as a detailed aeromagnetic survey across the Handeni project area.

Picture XX: Handeni gold trend - an 11km gold anomalous zone

Source: Canaco Resources Inc.,

Picture XX: Handeni project - Magambazi drill collar locations

Source: Canaco Resources Inc.,

Drill holes return encouraging results

From mid Sep-09 to early May-10, about 45 diamond drill holes were drilled at the Handeni project to evaluate the extent of gold mineralization at the Magambazi, Magambazi Central, and Magambazi North targets, out of which 40 drill holes returned with encouraging results. This indicates excellent potential for the discovery of high-grade gold mineralization at the Handeni project. Until early May-10, a total of 25 diamond drill holes (MGZD001-MGZD017, MGZD035-MGZD038, MGZD040-MGZD042, and MGZD044) were drilled at the Magambazi target, of which 21 drill holes returned with high-grade gold intercepts, and the mineralization system remains open down dip, down plunge, and along strike to the north. Totally, 16 diamond drill holes (MGZD018-MGZD020 and MGZ022-MGZ034) were drilled at the Magambazi North target, except MGZD030, all the intercepts returned with low-high grade gold mineralization. The mineralization system also indicates continuity over 160m of strike in a 40 degree east-dipping zone of near-surface gold mineralization. Similarly, the 3 diamond drill holes (MGZD021, MGZD043, and MGZ045) drilled at the Magambazi central target returned with low-high grade gold mineralization.

Table XX: Magambazi, Magambazi Central and Magambazi North prospects - DD hole results

Hole ID

From (m)

To (m)

Interval (m)

Au (g/t)

Azimuth

Dip

Magambazi prospect - DD hole results

MGZD001

148.0

207.0

59.0

4.28

60

-50

Including

154.0

166.0

12.0

4.18

Including

189.0

206.0

17.0

10.38

MGZD002

239.0

242.0

3.0

1.53

60

-75

255.0

272.6

17.6

0.93

MGZD003

218.2

219.2

1.0

4.80

60

-61

MGZD004

110.0

137.0

27.0

2.82

60

-50

Including

113.0

120.5

7.5

2.85

Including

127.0

137.0

10.0

5.15

MGZD005

128.0

169.0

41.0

3.32

60

-65

Including

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128.0

144.0

16.0

3.34

Including

161.0

169.0

8.0

9.95

MGZD006

200.7

202.0

1.3

3.02

60

-50

MGDZ007

156.6

196.2

39.6

3.56

60

-79

Including

156.6

170.1

13.5

4.01

Including

184.0

196.2

12.2

6.99

MGZD008

No significant results

60

-50

MGZD009

175.0

177.7

2.7

10.95

60

-73

MGZD010

No significant results

59

-50

MGZD011

139.0

181.1

42.1

2.42

60

-48

Including

139.0

146.0

7.0

1.37

Including

164.0

181.1

23.8

3.86

MGZD012

170.8

226.0

56.2

6.39

60

-59

170.8

189.0

18.2

7.98

196.0

226.0

30.0

7.02

MGZD013

No significant results

62

-65

MGZD014

41.0

46.0

5.0

1.53

57

-62

160.0

161.0

1.0

7.55

MGZD015

149.0

154.0

5.0

2.10

57

-73

And

200.0

210.0

10.0

2.76

MGZD016

135.0

140.0

5.0

5.20

57

-81

And

240.7

246.0

5.3

2.76

Including

240.7

244.2

3.5

8.30

MGZD017

94.0

99.0

5.0

3.06

57

-81

MGZD035

166.0

176.5

10.5

2.40

60

-56

Including

168.1

174.4

6.3

3.12

201.0

217.0

16.0

5.45

Including

206.7

216.1

9.4

8.59

MGZD036

202.0

207.4

5.4

5.10

60

-63

219.0

267.0

48.0

2.71

Including

224.0

231.0

7.0

6.21

And

240.4

254.0

13.6

4.54

MGZD037

No significant results

60

-72

MGZD038

219.7

235.0

15.3

1.87

60

-65

Including

219.7

226.4

6.7

2.64

And Including

229.9

232.0

2.1

4.07

MGZD040

102.0

136.6

34.6

1.36

60

-90

106.0

109.5

3.5

7.71

Including

103.0

115.0

12.0

2.83

And

211.0

214.8

3.8

35.52

MGZD041

228.4

233.7

5.3

1.74

68

-79

And

278.0

280.1

2.1

2.85

MGZD042

178.7

186.7

8.0

3.80

60

-58

And

198.0

205.7

7.7

5.42

And

226.0

242.4

16.4

2.03

Including

226.0

230.2

4.2

5.87

MGZD044

261.4

281.0

19.6

2.32

60

-68

Including

261.4

272.9

11.5

3.16

Magambazi Central prospect - DD hole results

MGZD021

158.0

166.1

8.1

0.53

73

-51

MGZD043

149.7

159.9

10.2

2.87

71

-75

And

224.0

227.8

3.8

3.36

And

247.0

268.2

21.2

4.80

Including

247.0

258.0

11.0

7.90

MGZD045

246.0

267.7

21.7

6.79

60

-82

Including

246.0

255.5

9.5

12.75

Magambazi North prospect - DD hole results

MGZD018

21.0

24.7

3.7

2.25

340

-50

MGZD019

70.0

88.0

18.0

3.30

237

-50

Including

70.0

78.0

8.0

5.68

100.0

103.0

3.0

3.04

MGZD020

63.0

63.7

0.7

4.00

0

-90

MGZD022

150.0

158.0

8.0

1.10

62

-65

MGZD023

22.0

27.4

5.4

1.44

237

-55

54.7

85.0

30.3

3.46

Including

70.0

76.3

6.3

5.57

MGZD024

64.4

72.4

8.0

3.25

237

-55

MGZD025

41.4

52.6

11.2

1.33

237

-55

75.0

87.0

12.0

2.65

MGZD026

87.7

95.7

8.0

1.73

237

-55

MGZD027

99.0

126.7

27.7

2.18

237

-55

MGZD028

180.0

191.0

11.0

2.03

245

-55

200.0

202.1

2.1

5.58

MGZD029

169.0

182.6

13.6

1.71

245

-55

Including

177.0

182.6

5.6

3.27

MGZD030

No significant results

240

-55

MGZD031

82.0

84.4

2.4

10.18

245

-55

MGZD032

73.0

83.1

10.1

1.23

245

-55

MGZD033

42.0

44.8

2.8

1.60

245

-55

MGZD034

43.0

58.4

15.4

1.85

245

-55

Source: Canaco Resources Inc.

Geology at the Handeni project

Handeni region - a highly prospective emerging gold district

The Handeni gold project is well placed within the highly prospective emerging Handeni gold district in eastern Tanzania, where gold was discovered in 2003, spurring a gold rush and intense alluvial hard-rock mining. The district is home to several gold discoveries, highlighted by the Magambazi prospect, which presently hosts an active artisanal gold mining operation. The recent gold discoveries in the Handeni region have occurred on a district scale, and have identified an extent of mineralization with a strike length of >100km. Gold mineralization occurs in high-grade metamorphosed mafic to felsic volcanic and sedimentary rocks of Archaean or Proterozoic Age, and mineralization is vein-related structurally-controlled mesothermal gold associated with sulphide including pyrrhotite and arsenopyrite. The dominant host rocks are garnet-silica altered amphibolite, with lesser gneiss, The recent academic studies published by the University of Western Australia suggest the Handeni region as prospective for traditional (but metamorphosed) Achaean orogenic gold deposits within the Sukumaland Corridor, the host to major deposits such as Bulyhulu, Golden Pride, and Geita in the Lake Victoria Goldfields. The gold mineralization system at the Handeni district offers excellent potential for the discovery of new gold deposits, as indicated by the intensity of local artisinal mining, tenor of gold assay results, size of anomalies in soil geochemical sampling, and the ore grades and width intercepts from channel rock chip samples taken from the artisanal mine exposures.

Gold mineralization at Magambazi prospect

The well-exposed Magambazi prospect hosts high gold-grade sulphide-bearing quartz veins enclosed in up to 40m thick alteration zones with lower-grade sulphide-associated gold-ore over an exposed strike of several hundred metres. The mineralization remains open at depth and along strike. As a result, the prospect offers high economic potential for discovery of world-class overprinted Archaean orogenic gold deposits in non-traditional Tanzanian exploration terranes. The sulphide mineralization at the prospect supports the establishment of a deposit model, which can be applied for exploration. The prospect also has the potential for extensions onto the Kilindi prospect. Local miners are currently exploiting the mineralization at the prospect within steeply dipping, north-north-westerly trending occurrences of sulphide and quartz veins over widths up to 10m, and strike length of 350m. Ore extraction is done by hand and with the help of explosives. The initial geological assessments at the prospect have identified 4 specific exploration targets, such as the Big Pit, Banded Amphibolite, Central Fault, and Biotite Gneiss targets.

Picture XX: Schematic map of Tanzania craton

Source: Canaco Resources Inc.,

Picture XX: Schematic geology of Magambazi district

Source: Canaco Resources Inc.,

Harvest Cu-Au-Zn Prospect, northeast Ethiopia

Entered into a LOI to acquire 70% ownership interest in Harvest Mining

During Jan-10, CAN entered into a letter of intent with Beijing Donia Resources Co. Ltd. (Beijing Donia) to acquire 70% ownership interest in Harvest Mining PLC, an Ethiopia-based private exploration-stage company. This proposed strategic acquisition is expected to ensure exposure to world-class Cu-Au-Zn volcanogenic massive sulphide (VMS) potential with geographic as well as commodity diversifications (exposure to base metals). Harvest Mining's exploration assets consists of six 100%-owned exploration concessions (such as the Nefasit, Hamlo, Terakimti, Adi Nebrid, Igub, and Medri Felasi) covering a total land package of 605 sq. km., located in the Tigray region of northeast Ethiopia. These concessions are strategically located in the SW extension of the Neo-Proterozoic Asmara VMS style Cu-Zn-Au-Ag metallogenic belt, and offers potential for multiple unexplored gold-enriched polymetallic VMS targets. However, the proposed acquisition is subject to an ongoing legal and technical due diligence, which is expected to be completed by June 30, 2010.

…purchase consideration of nearly C$6.0 MM payable on closing of the transaction

Upon closing of the transaction, CAN is required to pay a total purchase consideration of nearly C$6.0 MM-C$4.0 MM in cash, and issuance of nearly 3.5 MM common shares to Beijing Donia (the parent company of Harvest Mining) at a deemed price of C$0.57/sh. Since 2007, Harvest Mining has completed an extensive exploration program on these aforesaid concessions (including remote sensing, geological mapping, geochemical soil sampling, geophysical ground magnetic surveys, induced polarization surveys, and extensive trenching and drilling on select targets); and in the process has spent nearly US$4.4 MM in exploration activities. The company has also established an operating capability based in Shire, Ethiopia with a strong technical team and exploration equipments & infrastructure. Post acquisition, CAN is expected to spend at least C$2 MM in exploration costs on the Harvest project in the first year.

Located nearby Neo-Proterozoic Asmara VMS style Cu-Zn-Au-Ag metallogenic belt

Harvest Mining's exploration concessions are strategically located in the SW extension of the Neo-Proterozoic Asmara VMS style Cu-Zn-Au-Ag metallogenic belt, where several medium-size deposits have been discovered thus far in central Eritrea. Some of these important discoveries include the Bisha deposit (20.1 Mt grading 2.23 g/t Au, 43.70 g/t Ag, 1.94% Cu, and 3.49% Zn), the Debarwa deposit (8.1 Mt grading 1.91 g/t Au, 39.51 Ag, 1.78% Cu, and 2.46% Zn), and the Emba Derho deposit (38 Mt grading 0.18 g/t Au, 9.31 g/t Ag, and 1.08% Cu). The preliminary exploration assays suggest potential for the discovery of similar deposits at the Harvest Mining's concessions.

Picture XX: Harvest prospect - located in the SW extension of the Neo-Proterozoic Asmara VMS metallogenic belt

Source: Canaco Resources Inc. ,

Picture XX: Harvest project - regional geological map

Source: Canaco Resources Inc.,

share capitalization

As of April 28, 2010, CAN had approximately 133.6 MM common shares issued and outstanding. The company also had approximately 10.6 MM options outstanding at an average exercise price of C$0.33/sh, and approximately 12.9 MM warrants outstanding at an average exercise price of C$0.33/sh.

According to CAN's Feb-10 Investor Presentation, the management, consultants, and insiders as a group hold about 35-40% of the company's issued and outstanding common shares. According to Bloomberg, the major shareholders of the company are Mr. Shuixing Fu (27.2%), Pinetree Capital Ltd. (4.3%), CIBC Securities Inc. (1.8%), Mr. Brain Lock (1.0%), and Mr. Randy Smallwood (0.8%). Based on the closing price of C$0.63 as on May 13, 2010, the company had a market capitalization of about C$84.1 MM.

Table XX: Share capitalization

Total Shares

Strike Price

In-the-Money

Value of Options/Warrants

(MM)

(C$)

Shares (MM)

ITM (C$MM)

Common Shares Outstanding

133.6

-

-

-

Options Outstanding

10.6

C$0.10-C$0.67

7.4

1.3

Warrants Outstanding

12.9

C$0.07-C$0.45

12.9

4.2

Total Fully Diluted Shares

157.0

20.3

5.6

Source: Canaco Resources Inc.

Table XX: Share capitalization

Holder Name

Percentage Outstanding

Mr. Shuixing Fu

27.2%

Pinetree Capital Ltd.

4.3%

CIBC Securities Inc.

1.8%

Mr. Brain Lock

1.0%

Mr. Randy Smallwood

0.8%

Source: Bloomberg,

MANAGEMENT

CAN has a technically accomplished and highly-experienced management team headed by Mr. Andrew Lee Smith, who has >2 decades of experience in successful exploration, development, and operation of base and precious metal mining and gem projects. As CAN is built on the foundation of highly experienced management team, this, in our view, will take the company forward from the stage of exploration to successful discovery and resource development.

Mr. Andrew Lee Smith (President & CEO) is a professional geologist with >2 decades of rich experience in base and precious metal mining and gem projects. Mr. Smith worked with Aurizon Mines Ltd. over 1985-1998, and resigned in 1998 from the position of Vice-President of Exploration. He is also the co-founder, and retains the position of Chairman and Managing Director, of True North Gems, a publicly listed Canadian company, which is engaged in exploring and developing emerald and sapphire deposits in the Yukon.

Mr. Randy V. J. Smallwood (Independent Director) brings >20 years of exploration and mining experience to the CAN's board. Over 1986-1994, Mr. Smallwood worked with several companies such as Teck Cominco, Homestake, and Westmin Resources on North American mineral exploration and mine development projects. In 1994, he joined Wheaton River Minerals Ltd., and played an important role in transforming it into a successful junior gold mining company. Later joined as the Director of Corporate Development in Wheaton River corporate office in 2001, and was responsible for the technical aspects of all projects and corporate evaluations within the Wheaton River/ Goldcorp/ Silver Wheaton group of companies. He is currently the Executive Vice President, Corporate Development for Silver Wheaton Corp.

Mr. David Parsons (Independent Director & Chairman of the Audit Committee) joined CAN's board on Apr-05. He is a certified General Accountant with >2 decades of experience in the mining industry as Controller, CFO and Director in various mining companies. He also worked with Wheaton River Minerals Ltd. and was directly involved in the acquisitions by Wheaton and the merger with Goldcorp. Mr. Parsons is currently serving as the Director, Corporate Services and Financial Analysis for Goldcorp Inc.

Mr. Brian Lock (Director) has >30-years of experience in the operations, feasibility, design engineering, and construction of numerous base and precious metal mining projects around the world. He currently holds the position of Executive Vice President, Frontier Pacific Mining Corporation. He has also served as a Director of various Canadian public and private companies.

Dr. Jingbin Wang (Chairman and Director) is an expert in mineral exploration and mining with about 24-years of experience and recognized as a leader in the non-ferrous metals industry in China. He is currently the President of Sinotex Mineral Exploration Co., Ltd. For his great success in prospecting results and scientific research, he has been given a title National Youth Expert for Outstanding Contribution in China. In addition, he is also the Chief Scientist of National 973 Program. He also holds senior level positions in several Chinese companies.

Ms. Jacqueline Tucker (Chief Financial Officer) is a qualified Chartered Accountant with about 30-years of public practice experience as an auditor and advisor to public companies. She is also a member of the Alberta, Ontario and British Columbia Institute of Chartered Accountants. Ms. Tucker has served on numerous committees of her profession including the Audit Assurance Standards Board of Canada.

Mr. Chaoxian Zhou (Deputy General Manager, Officer) has about 10-years of experience in base and precious metal resource, oil and gas exploration in Zijin Mining, China National Offshore Oil Company and others. He joined Sinotex as a senior geologist in 2009.

Mr. Shuixing Fu (Senior Geologist, Director) has a sound experience of more than 20 years' in mineral exploration and mining operation along with scientific research. He is recognized as one of the well-known Geologist in non-ferrous metals industry in China for his achievements in prospecting prognosis, remote sensing geology and mathematical geology. He has won the first and second National Prize for Progress in Science and Technology four times. He currently holds the Vice General Manager position in SinoTech (Hong Kong) Corporation Limited and Sinotex Mineral Exploration Co., Ltd. Mr. Fu also serves as Deputy Director of China Nonferrous Metals Resource Geological Survey and Associate Dean of Beijing Institute of Geology for Mineral Resources.

Dr. David Groves (Director of Project Development -Tanzania) was a Professor of Economic Geology and Director of University Western Australia's Centre for Global Metallogeny. Dr. Groves' major expertise lies in economic geology, the formation of mineral deposits, particularly gold, and conceptual targeting of mineral deposits. Previously, he was the President of the Geological Society of Australia and the Society of Economic Geologists, and is currently President-Elect of SGA (European Society of Economic Geologists). He has received nine medals for his research, including the Silver Medal of the Society of Economic Geologists and the Geological Association of Canada Medal. Mr. Groves acted as a consultant and provided training courses to several exploration companies in Tanzania and also assisted the Geological Survey of Tanzania and Ministry of Energy and Minerals with their publication on resource opportunities in Tanzania.

Mr. Iain Groves (Senior Exploration Geologist) has 20-years of gold and base-metal exploration experience with numerous mining companies including WMC and Homestake. During his career, he explored for a variety of commodities and deposit styles, including Ni, Cu, PGEs, Au, Ag and diamonds in diverse terranes including the Yilgarn goldfields, Broken Hill, Ballarat, the Tanami, Tanzania and Mexico. Mr. Groves has previously been part of several successful exploration groups at Fortnum (Au) and Reliance (Zn).

Mr. Denis Dillip (Tanzania-Consulting Geologist) is a professional geologist with rich experience in gold exploration from the Archean Greesntone and Proterozoic belts of Tanzania. In 2001, he was engaged as mine geologist at Anglo Ashanti's Geita gold mine, the largest gold mine in east Africa. In 2004, Mr. Dillip served the Anglo gold ashanti exploration team as project geologist managing two projects, the Mkurumu and Njoge gold projects located in Proterozoic Pan African Mobile Belt of Tanzania.

Mr. David W. Moore (Advisory Board Chairman) is professional geologist who spent of most of his 30+ year career with Teck Cominco Ltd. (Cominco Ltd., Cominco Resources International, Cominco American Incorporated). He is currently the President and CEO of Serengeti Resources. Prior to this, he served as the General Manager for Teck Cominco. Mr. Moore also held a number of directorships over the past decade, including with Cominco Argentina Ltd., Cominco Brazil Ltd., Cominco Madencilik Sanayi A.S., Cominco Mexico S.A. de C.V. and Cominco Namibia Ltd.