Production of gold at the Buckreef Gold Mine in Geita Region

Acting (STAMICO) Managing Director Engineer Edwin Ngonyani Left and Director Of Finance and Corporate Affairs Mr Peter Gembe.

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By STAFF REPORTER

PRODUCTION of gold at the Buckreef Gold Mine in Geita Region in which the State Mining Corporation (Stamico) has 45 per cent stake is expected to kick-start in November this year, it has been learned. Stamico signed an agreement for development of the project in the year 2011 with Tanzania American International Development Corporation Limited (TANZAM 2000), a subsidiary of Canada's Tanzania Royalty Exploration Corporation. Tanzam 2000 is the majority shareholder with 55 per cent stake.

The gold mine has 2.4 million ounces of the precious mineral and exploration is still ongoing as the project has 19 prospecting licences at the area, according to Stamico's Drilling Manager Alex Rutagwelela. "We have already conducted the environmental and social impact assessment (ESIA) and has been sent to the National Environment Management Council (NEMC) for approval," Mr Rutagwelela noted.

This was revealed during a news conference held in Dar es Salaam on Wednesday presided by the newly appointed Acting Managing Director of Stamico Eng. Edwin Ngonyani. During the occasion, Eng. Ngonyani revealed on the other hand that Stamico expects to make a net profit of 7bn/- during the next two and half years from Biharamulo Gold Mine, formerly known as Tulawaka, which it acquired from African Barrick Gold (ABG), last year.

The medium-scale mine under the new management is expected to start production by August, this year. It will be managed by StamiGold, a subsidiary of Stamico.

There are proved deposits of 100,000 ounces of gold at the mine but prospects are higher for more discoveries, according to the Acting Stamico boss. “We will continue drilling in the area and surrounding areas in a distance of about four kilometres. Hopes are high that there could be between 150,000 and 200,000 ounces of the precious mineral,” Eng. Ngonyani explained.