African Barrick Gold raises resources estimates in Tanzania

LONDON (ShareCast) - FTSE 250 (FTSE: ^FTMC - news) gold miner African Barrick Gold (ABG) has hiked its previous resource estimate for the Tusker deposit at the Nyanzaga Project in Tanzania. The in-pit resource is now in excess of four million ounces (Moz) of gold (Au), consisting of 3.481Moz at a grade of 1.47g/t Au indicated and 0.598Moz at 2.05g/t Au inferred, a fourfold increase on the initial estimates of 0.313Moz indicated and 0.650Moz inferred. The firm said this increases its confidence that the project, which comprises the Tusker and Kilimani deposits, has the potential to be its next mine in Tanzania. "This confirmation of the potential scale of the Nyanzaga project represents an extremely important step in the development of ABG as one of the leading gold companies in Africa and underpins our confidence in the future growth potential of the company," said Chief Executive Officer Greg Hawkins. ABG acquired the Nyanzaga Project back in May 2010 and has undertaken an extensive step-out and infill drilling programme at both Tusker and Kilimani deposits. Some 91,537 metres have been drilled at the project since the purchase, representing an investment of $21.7m. Further exploration is expected in the current quarter to define the resources at depth at Tusker. "We already operate three of the continent's foremost gold mines and this is evidence of the potential for Nyanzaga to be a fourth," Hawkins (NasdaqGS: HWKN - news) said. ABG's shares rose 3.17% in the opening minutes on Friday, trading at 505p, up from 489.5p at yesterday's close. BC