Kisumu
  21/11/07
 
CANADIAN COMPANY IN A DIAMOND EXPLORATION DEAL IN SHINYANGA WITH THE DAR GOVERNMENT

By Leo Odera Omolo

Reports from Dar Es Salaam says a Canadian mining giant has started exploration work for diamonds in the mineral-rich Shinyanga district in north western Tanzania.

The firm, Douglas Lake Minerals announced last week that its partner, Canaco Resources, has initiated phase one exploration of the Magembe Diamond Project in Shinyanga region.

‘’Canaco has started exploration to evaluate indicated diamond potential from both alluvial and Kimberlite sources,’’ said Harp Sangha the firm’s CEO.

The mineral titled the Magembe property is owned wholly by Douglas Lake, Canaco Resources Inc has the right to take up to a 75 per cent of Douglas Lake’s interest in the 46 per cent square kilometer Magembe Diamond property through payments of cash and shares and undertaking a commitment for exploration as defined in terms of an option agreement between the two companies signed in March this year.

‘’With all the local artisan mining activity, we believe there is considerable potential for commercially profitable diamond mine, said Mr. Sangha in a statement last week.

The exploration programme will follow up on the reconnaissance scale exploration completed earlier this year.

The initial works consisted of data compilation, remote sensing, geological mapping and prospecting environments favorable for hosting surficial and bedrocks diamond deposits.

The phase one exploration programme will evaluate the concentration of recoverable diamonds from alluvial material through systematic bulk sampling and processing.

According to the company, on the northern part of the property, regional geophysical data indicate the presence of four unexploded Kimberlite targets with magnetic expression similar to the Williamson Kimberlite.

The property in question is located next to De Beer’s Williamson Mine a D iamond, which is currently owned 75 per cent by De Beers and 25 per cent by Tanzanian government. It has produced over 20 million corals since 1940.

The Williamson pipe covers 360 acres, and at the time its discovery, was considered the largest economically exploitable pipe in the world. It is renowned for being the original source of pink diamonds and has produced notable stones, including a 54 coral flawless pink diamond and a 388 coral diamond found in 1996.

Douglas Lake Minerals focuses on exploring and developing gold, copper, nickel, uranium and diamond mining opportunities in Tanzania a country with vast amounts of underdeveloped mineral-rich natural resources.

It explores and develops a large portfolio of prospecting concessions through royalty-based joint venture partnership.

The man who is in-charge of the registrar and licensing section of minerals, Mr. Ally Samaje was recently quoted in the press as having confirmed that Douglas Lake Minerals holds two prospecting licenses for all minerals other gemstone or building materials.

It has for sometime been exploring for gold in Mvomero and Makuyu in Morosovo region.

Mr. Sangha said recently that the firm was pleased with the early exploration results at Morogoro.

Meanwhile the Shinyanga based Mwadui Williamson Diamonds Ltd (WDL) a joint venture company which is jointly owned by the De Beers Group and the Tanzanian government, has reportedly contributed USD 3 million to support education, health, water and infrastructure adjacent in Tanzania.

The company’s CEO Mr. Tony Devlin was quoted last week as having said that the company has provided more than USD 600,000 for education, development in the country mainly for the purchase of building materials, chairs, desks and computers for primary schools.

Mr. Devlin said the company has also donated more than USD 2.1 million for the provision of medicines, construction of public dispensaries and provision of free insecticide-treated mosquito nets.

The company runs the 56-bed Mwadu Hospital, which apart from serving mine residents and workers, also accept patients from communities neighbouring the Diamond mine fields and beyond.

The company also offers annual cash donations to the best students at the university of Dar Es Salaam and the best telecommunications-engineering student at the Dar Es Salaam Institute of Advanced Technology.

Company’s communication manager Mr. Nerys John said in the same context that WDL has contributed more than USD 17,000 to provide free water to villages around the company’s dam and during the country’s two-year drought, the firm pumped water to Shinyanga Municipality.

Mr. John said WDL also contributed more than USD 55,000 to the President’s Relief Fund.

Ends
leooderaomolo@yahoo.com