**REPORT on the MINERAL EXPLORATION PROPERTIES						of AFRICAN MINERAL FIELDS INC.						in the REPUBLIC OF UGANDA, EAST AFRICA******

Mwanza, Tanzania				May 15, 2007.                                                                                                         Martin J. Taylor P. Geo.

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**TABLE of CONTENTS**

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|              |                                                                                 | **Page** |
|--------------|---------------------------------------------------------------------------------|----------|
| **1.0**      | **SUMMARY**                                                                     | **1**    |
|    |                                                                                 |          |
| **2.0**      | **INTRODUCTION and TERMS OF REFERENCE**                                         | **4**    |
|    |                                                                                 |          |
| **3.0**      | **PROPERTY DESCRIPTION and LOCATION**                                           | **5**    |
| 3.1          | Republic of Uganda                                                              | 5        |
| 3.2          | Description of Ugandan Properties                                               | 8        |
|    |                                                                                 |          |
| **4.0**      | **ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,****INFRASTRUCTURE and PHYSIOGRAPHY** | **13**   |
| 4.1          | Introduction                                                                    | 13       |
| 4.2          | Lugazi                                                                          | 14       |
| 4.3          | Mubende                                                                         | 14       |
| 4.4          | Mitoma                                                                          | 15       |
| 4.5          | Mwerusandu                                                                      | 15       |
|    |                                                                                 |          |
| **5.0**      | **HISTORY**                                                                     | **16**   |
|    |                                                                                 |          |
| **6.0**      | **GEOLOGICAL SETTING**                                                          | **17**   |
| 6.1          | Introduction to the Geology of Uganda                                           | 17       |
|              | 6.1.1    Archaean                                                | 17       |
|              | 6.1.2    Proterozoic                                             | 19       |
|              | 6.1.3    Palaeozoic-Mesozoic                                     | 21       |
|              | 6.1.4    Cenozoic-Recent                                         | 21       |
| 6.2          | Geology of the Lugazi Property                                                  | 24       |
| 6.3          | Geology of the Mubende Property                                                 | 24       |
| 6.4          | Geology of the Mitoma Property                                                  | 26       |
| 6.5          | Geology of the Mwerusandu Property                                              | 26       |
|    |                                                                                 |          |
| **7.0**      | **DEPOSIT TYPES**                                                               | **33**   |
| 7.1          | Introduction – Intrusion-related Gold/Thermal-Aureole Gold Deposits        | 33       |
|              | 7.1.1    Fort Knox Mine                                          | 36       |
|              | 7.1.2    Twangiza Deposit                                        | 38       |
| 7.2          | Implications for Exploration                                                    | 40       |
|    |                                                                                 |          |
| **8.0**      | **MINERALIZATION**                                                              | **41**   |
| 8.1          | Lugazi Property                                                                 | 41       |
| 8.2          | Mubende Property                                                                | 41       |
| 8.3          | Mitoma Property                                                                 | 41       |
| 8.4          | Mwerusandu Property                                                             | 42       |
|    |                                                                                 |          |
| **9.0**      | **EXPLORATION**                                                                 | **43**   |
| 9.1          | Lugazi Property                                                                 | 43       |
| 9.2          | Mubende Property                                                                | 54       |
| 9.3          | Mitoma Property                                                                 | 57       |
| 9.4          | Mwerusandu Property                                                             | 69       |

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| **10.0**     | **SAMPLING METHOD and APPROACH**              | **80** |
|--------------|-----------------------------------------------|--------|
| 10.1         | Sampling Method                               | 80     |
| 10.2         | Database                                      | 82     |
|    |                                               |        |
| **11.0**     | **SAMPLE PREPARATION, ANALYSES and SECURITY** | **83** |
|    |                                               |        |
| **12.0**     | **DATA VERIFICATION**                         | **84** |
|    |                                               |        |
| **13.0**     | **INTERPRETATION and CONCLUSIONS**            | **90** |
|    |                                               |        |
| **14.0**     | **RECOMMENDATIONS**                           | **91** |
|    |                                               |        |
| **15.0**     | **REFERENCES**                                | **93** |
|    |                                               |        |
| **16.0**     | **CERTIFICATE**                               | **95** |
|    |                                               |        |
| **APPENDICES**                                                                                         |
|--------------------------------------------------------------------------------------------------------|
|                                                                                              |  |  |
| **Appendix I      Letter from the Department of Geological Survey and Mines** | **96** |
|                                                                                              |  |  |
|                                                                                              |  |  |
| **Figures**                                                                                            |
|                                                                                              |  | Page |
| Figure 3.1                                                                                             | Map of Uganda with Administrative Districts | 6 |
| Figure 6.1                                                                                             | General Geology of Uganda and AMF Properties | 18 |
| Figure 6.2                                                                                             | Geology of the Lugazi Area | 23 |
| Figure 6.3                                                                                             | Geology of the Mubende Project | 25 |
| Figure 6.4                                                                                             | Mitoma Project Remote Sensing Compilation | 27 |
| Figure 6.5                                                                                             | Geology of the Mitoma Project | 28 |
| Figure 6.6                                                                                             | Mwerusandu Project Remote Sensing Compilation | 30 |
| Figure 6.7                                                                                             | Kiana-Nyamulindira Geology | 31 |
| Figure 6.8                                                                                             | Mwerusandu Geology | 32 |
| Figure 7.1                                                                                             | Generalized Model for IRG Deposits | 33 |
| Figure 7.2                                                                                             | Geology of the Timbarra Deposit | 35 |
| Figure 7.3                                                                                             | Oxidation State of IRG Deposits | 36 |
| Figure 7.4                                                                                             | Tintina Belt showing IRG Deposits | 37 |
| Figure 7.5                                                                                             | Geology of the Twangiza Area, DRC | 39 |
| Figure 9.1                                                                                             | Lugazi GGM Ni/Co anomalies and First Pass TL soils | 44 |
| Figure 9.2                                                                                             | Lugazi Stream Sediment Sampling | 46 |
| Figure 9.3                                                                                             | Lugazi First Pass and Infill Soils | 48 |
| Figure 9.4                                                                                             | Lugazi Pit Locations | 49 |
| Figure 9.5                                                                                             | Lugazi all TL soils | 50 |
| Figure 9.6                                                                                             | Lugazi TL soils on Geology | 51 |
| Figure 9.7                                                                                             | Lugazi Magnetic Horizontal Gradient | 52 |
| Figure 9.8                                                                                             | Mubende Stream Sediment Sampling | 55 |
| Figure 9.9                                                                                             | Mubende Auger and Pit Orientation Study | 56 |
| Figure 9.10                                                                                            | Kahungye-Rutaka-Rugoma Au Anomalies | 58 |
| Figure 9.11                                                                                            | Kahungye-Rutaka-Rugoma As Anomalies | 59 |
| Figure 9.12                                                                                            | Rutaka Soil Anomalies | 61 |
| Figure 9.13                                                                                            | Rutaka Pit Sampling | 62 |

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| Figure 9.14  | Rugoma TL Soil Anomalies                              | 63   |
|--------------|-------------------------------------------------------|------|
| Figure 9.15  | Rugoma Auger Section                                  | 65   |
| Figure 9.16  | Kabira Stream Sediments                               | 67   |
| Figure 9.17  | Kabira TL Soil Line 1 Profiles                        | 68   |
| Figure 9.18  | Nyamulindira Au soils on As                           | 71   |
| Figure 9.19  | Nyamulindira Au soils                                 | 72   |
| Figure 9.20  | Nyamulindira Geology and Crosta analysis              | 74   |
| Figure 9.21  | Nyamulindira First Pass Soil Lines on Geology         | 75   |
| Figure 9.22  | Nyamulindira TL Soil Lines                            | 76   |
| Figure 9.23  | Nyamulindira Profiles Trenches T1 and T2              | 77   |
| Figure 9.24  | Nyamulindira Profile Trench T3                        | 78   |
| Figure 9.25  | Mwerusandu TL Soil Sn Anomalies                       | 79   |
| Figure 12.1  | Comparison of Mitoma TL gold repeats                  | 84   |
| Figure 12.2  | Comparison of Original and Repeat TL Sampling, Mitoma | 85   |
| Figure 12.3  | Rugoma TL vs. Fire Assay analyses                     | 86   |
| Figure 12.4  | Kahungye Confirmation Sampling of TL gold anomaly     | 87   |
|    |                                                       |      |
| **Tables**   |
|    |                                                       | Page |
| Table 1.1    | Overall 2007 Exploration Budget                       | 3    |
| Table 3.1    | Exploration Licences (ELs) Granted                    | 9    |
| Table 3.2    | Coordinates of Lugazi Property Exploration Licences   | 10   |
| Table 3.3    | Coordinates of Mubende Property Exploration Licences  | 10   |
| Table 3.4    | Coordinates of Mitoma Property Exploration Licences   | 11   |
| Table 3.5    | Coordinates of Mwerusandu Exploration Licences        | 12   |
| Table 7.1    | Selected Characteristics of IRG Deposits              | 34   |
| Table 7.2    | Twangiza Project Resources                            | 40   |
| Table 9.1    | Analytical Statistics for First Pass TL Soils Lugazi  | 45   |
| Table 9.2    | Analytical Statistics for Step-out TL Soils Lugazi    | 47   |
| Table 9.3    | Analytical Statistics for Infill TL Soils Lugazi      | 47   |
| Table 9.4    | Coordinates of Pits at Lugazi                         | 53   |
| Table 9.5    | Analytical Statistics Mitoma Property TL Soils        | 69   |
| Table 12.1   | HMC Repeat Assays                                     | 88   |
| Table 14.1   | 2007 Phase I Exploration Budget                       | 92   |
| Table 14.2   | 2007 Phase II Exploration Budget                      | 92   |
| Table 14.3   | 2007 Complete Exploration Budget                      | 92   |

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Table 1.1  Overall 2007 Exploration Budgets for the Uganda Projects of AMF.

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| **Project**    | **Stream									Seds.** | **Soils**    | **Geophys.** | **Geology									/LandSat** | **RC									Drilling** | **Reports** | **Licence** | **Fixed									Costs** | **Total**      |
|----------------|--------------------------|--------------|--------------|------------------------------|-------------------------|-------------|-------------|-------------------------|----------------|
| **Lugazi**     | 0                        | 100,000      | 95,000       | 1,000                        | 290,000                 | 5,000       | 12,000      | 30,000                  | **$533,000**   |
| **Mubende**    | 19,000                   | 95,000       | 0            | 6,000                        | 0                       | 5,000       | 4,000       | 30,000                  | **$159,000**   |
| **Mitoma**     | 5,000                    | 85,000       | 0            | 6,000                        | 290,000                 | 5,000       | 4,000       | 30,000                  | **$425,000**   |
| **Mwerusandu** | 12,000                   | 65,000       | 0            | 14,000                       | 380,000                 | 5,000       | 2,000       | 30,000                  | **$508,000**   |
| **Totals**     | **$36,000**              | **$345,000** | **$95,000**  | **$27,000**                  | **$960,000**            | **$20,000** | **$22,000** | **$120,000**            | **$1,625,000** |

In the author’s opinion, the character of the properties in AMF’s portfolio is of sufficient merit to justify the nature and scale of the programs outlined above.  The budgets developed by AMF for these programs are considered appropriate by the author.

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4

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5

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				Figure 3.1.  Map of Uganda with Administrative Districts

6

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    - Prospecting Licence.   A general licence enabling the holder to prospect for suitable mineral exploration areas anywhere in the country, except in areas of existing mineral licences, National Parks or Game Reserves.  A company may only prospect if it employs at least one individual with such a licence who must also act as an agent for the company.     **Exploration Licence**.  Issued to a Ugandan citizen or company registered in Uganda, who must hold a valid Prospecting Licence, with any individual or company allowed to hold one exploration licence if suitable financial resources can be demonstrated.  ELs cover rectangular areas not exceeding 500 sq. km, and are exclusive for the stated minerals within the area granted.  The licence gives the holder right of access and the right to camp within the licence.  They cannot overlap an existing retention licence or			
7

mining lease. They are issued for up to three years and renewable for two periods of two years each, with a 50% reduction in area with each renewal.  The application process is thorough and must include a detailed program with proposed employment of Ugandans and potential environmental impacts.  Application fees are 650,000 U/= (approx. US$342 as of March 2007), with annual rental 10,000 U/= per sq. km.  On expiry a company should apply for a retention licence or mining lease.
- Retention Licence .  This applies to an area covered by an exploration licence on which the holder has made a discovery, but cannot immediately develop it.     **Mining Lease**.  These are issued where mining is justified, through a full feasibility study with environmental impact assessment submitted to the government.  There is no maximum or minimum size, though the licence must be rectangular.  The licence gives the right to mine or sell stated minerals within the area granted, and the right to establish a camp, plant and dumps within the licence. The lease has an initial term of up to 21 years, renewable for no more than 15 years.   Preparation fees for the lease are 2,000,000 U/=, and the annual rent is 10,000 U/= per hectare.  Precious and base metals mined are subject to a 3% royalty on the gross value as determined on the prevailing market price of the London Metals Market or similar.  The State does not participate directly in exploration or mining operations.Location Licence
.  This is intended for small-scale mining where expenditure to achieve production will not exceed 10,000,000 Uganda shillings.			
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**3.2       Description of Ugandan Properties**The Lugazi, Mubende, Mitoma and Mwerusandu Properties comprising approximately 1,996.33 km2 are located in southern and southwestern Uganda in East Africa. The Mitoma and Mwerusandu properties, originally belonging to East African Mineral Resources of Douglas, Isle of Man (“EAMR”) are being explored under an agreement between EAMR and AMF.  The agreement signed on May 8, 2006, by AMF and EAMR grants AMF the option to acquire a 100% interest in the Mitoma and Mwerusandu properties.				Under the terms of the agreement AMF would acquire a 100% interest in the Mitoma property by making cash payments of US$235,000 in the first year and contributing a total of US$2,000,000 towards exploration on the property over a period of 3 years. An allotment of 500,000 common shares of AMF was also granted. Should AMF exercise their option, EAMR would be entitled to a gold production royalty based on a sliding scale from 0.5% (gold price below $250/oz) to 2.1% (gold price above $1,200/oz).  AMF would also acquire a 100% interest in the Mwerusandu property by making cash payments of US$45,000 and contributing a total of US$2,000,000 towards exploration on the property over a period of 3 years. An allotment of 500,000 common shares of AMF was also granted. Should AMF exercise their option, EAMR would be entitled to a gold production royalty based on a sliding scale from 0.5% (gold price below $250/oz) to 2.1% (gold price above $1,200/oz).				The Lugazi and Mubende properties, originally belonging to Flemish Investments Limited of Douglas, Isle of Man (“FIL”) were initially explored under an agreement between FIL and AMF.  The agreement, signed on September 1, 2006, by AMF and FIL grants AMF the option to acquire a 100% interest in the Mubende and Lugazi properties which has now been completed.

8

			Under the terms of the agreement AMF acquired a 100% interest in the Mubende property for a total consideration for $37,500; by making cash payments of US$25,000 and making an allotment of 250,000 common shares at $0.05 per share.  AMF acquired a 100% interest in the Lugazi property for an identical total consideration of $37,500. Additional common shares of AMF, up to a maximum of 300,000, would be issued to FIL based on proving up measured and indicated gold resources.  There are no other known royalties or environmental liabilities on any of the Ugandan properties in which AMF holds an interest as of the date of this report.			All of the four properties are covered by valid Exploration Licences, fourteen in total.  Digital scans of all 13 licence documents issued by the Geological Survey and Mines Department were examined by the author and appear to be in order.  The 14th, for Lugazi West, was pending at the time of the author’s visit to Uganda but has since been granted.  Although the author is familiar with both the procedure of acquiring Exploration Licences in Uganda and the nature of the relevant documents pertaining to them, as a Professional Geoscientist he is not qualified to give a formal legal opinion on the validity of the licence or agreement documents and takes no responsibility for any errors or omissions within said documents that might affect AMF’s title or interest in the properties.  A letter has been received from the Department of Geological Survey and Mines, Uganda, certifying that the 14 relevant ELs in the name of Flemish Investments Limited are in good standing through submission of required reports and payment of mineral rentals.  This letter is included in Appendix I.

Table 3.1          Exploration Licences (ELs) Granted

**EL**

**Concession**

**Old EPL**

**Project**

**Approx.**

**Admin.**

**GSMD**

**Area**

**Date**

**Expiry**

**No.**

**Name**

**Number**

**Name**

**Location**

**District**

**District**

**Km2**

**granted**

**Date**

**EL 0004**

**Nchwero**

n/a

Mitoma

Bushenyi

Bushenyi

Mbarara

**10.70**

18/03/2005

**17/03/2008**

**EL 0005**

**Kabira**

n/a

Mitoma

Bushenyi

Bushenyi

Mbarara

**80.00**

23/03/2005

**22/03/2008**

**EL 0018**

**Nyamulindira**

n/a

Mwerusandu

Rubaare

Ntungamo

Mbarara

**20.00**

23/03/2005

**22/03/2008**

**EL 0019**

**Mwerusandu N**

n/a

Mwerusandu

Rubaare

Ntungamo

Mbarara

**19.00**

23/03/2005

**22/03/2008**

**EL 0020**

**Lugazi**

n/a

Lugazi

Jinja

Mukono

Entebbe

**261.00**

22/04/2005

**21/04/2008**

**EL 0022**

**Mwerusandu W**

n/a

Mwerusandu

Rubaare

Ntungamo

Mbarara

**18.70**

22/04/2005

**21/04/2008**

**EL 0023**

**Kahungye**

EPL 4682

Mitoma

Bushenyi

Bushenyi

Mbarara

**19.20**

22/04/2005

**21/04/2008**

**EL 0024**

**Rutaka**

EPL 4681

Mitoma

Bushenyi

Bushenyi

Mbarara

**15.00**

22/04/2005

**21/04/2008**

**EL 0025**

**Rugoma**

EPL 4683

Mitoma

Bushenyi

Bushenyi

Mbarara

**16.00**

22/04/2005

**21/04/2008**

**EL 0116**

**Kiana Mine**

n/a

Rubaare

Ntungamo

Ntungamo

Mbarara

**147.63**

10/08/2006

**09/08/2009**

**EL 0117**

**Kabira East**

n/a

Mitoma

Kitaka

Bushenyi

Mbarara

**138.10**

10/08/2006

**09/08/2009**

**EL 0122**

**Singo North**

n/a

Mubende

Mubende

Mubende/Kiboga

Entebbe

**500.00**

10/08/2006

**09/08/2009**

**EL 0123**

**Singo South**

n/a

Mubende

Mityana

Mubende

Entebbe

**280.00**

10/08/2006

**09/08/2009**

**EL 0167**

**Lugazi West**

n/a

Lugazi

Mukono

Mukono

Entebbe

**471.00**

10/03/2007

**09/03/2010**

 

  

  

  

  

  

**Total**

**1,996.33**

  

  

3.2.1        Lugazi Property					The Lugazi Property is located some 50 km east of the capital Kampala in the Mukono district of southern Uganda, and is approximately centred at Latitude 0° 18’N and Longitude 32° 52’E.  The property consists of two Exploration Licences, EL 0020 and EL 0167, covering an area of approximately 732 km2.  The outline of the property is shown in Figure 6.1 and the geographic coordinate are listed in Table 3.2.

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Table 3.2  Location of Lugazi Property Exploration Licences

Licence

Area

Licence

Topo

Corner

UTM E

UTM N

Latitude

Longitude

No.

km2

Name

Sheet

Beacon

Arc 1960

Arc 1960

  

  

EL 0020

261.00

Lugazi

71/2

LB

0479600

0018400

00° 10 ́ 00 ̋N

32° 49 ́ 00 ̋E

 

 

 

71/4

CB1

0479600

0029500

00° 16 ́ 00 ̋N

32° 49 ́ 00 ̋E

 

 

 

 

CB2

0500000

0044200

00° 24 ́ 00 ̋N

33° 00 ́ 00E

 

 

 

 

CB3

0500000

0029450

00° 16 ́ 00 ̋N

33° 00 ́ 00 ̋E

EL 0167

471.00

Lugazi West

71/1-4

LB

0479600

0021000

00° 11 ́ 25 ̋N

32° 49 ́ 00 ̋E

 

 

 

72/1

CB1

0472230

0021000

00° 11 ́ 25 ̋N

32° 45 ́ 00 ̋E

 

 

 

72/3

CB2

0472230

0044200

00° 24 ́ 00 ̋N

32° 45 ́ 00 ̋E

 

 

 

 

CB3

0500000

0044200

00° 24 ́ 00 ̋N

33° 00 ́ 00 ̋E

 

 

 

 

CB4

0479600

0029500

00° 16 ́ 00 ̋N

32° 49 ́ 00 ̋E

EL 0020, Lugazi, was granted on April 22, 2005, to Flemish Investments Limited.  The licence covers an area of 261 km2 within Mukono Administrative District and contains the original geochemical anomalies that were the target for the Lugazi property.  EL 0167, Lugazi West, was granted on March 10, 2007, to cover the western extension of the favourable geology in EL 0020.  The licence covers an area of 471 km2 within Mukono Administrative District.					3.2.2    Mubende Property					The Mubende Property is located some 100 km west-northwest of the capital Kampala in the Mubende and Kiboga administrative districts of south-central Uganda. The property is approximately centred at Latitude 0° 34’N and Longitude 31° 46’E, and consists of two contiguous exploration licences, EL 0122 and EL 0123, covering approximately 780 km2.

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Table 3.3  Location of Mubende Property Exploration Licences

Licence

Area

Licence

Topo

Corner

UTM E

UTM N

Latitude

Longitude

No.

km2

Name

Sheet

Beacon

Arc 1960

Arc 1960

  

  

EL 0122

500.00

Singo North

59/3

LB

0375000

0064000

00° 34 ́ 45 ̋N

31° 52 ́ 35 ̋E

 

 

 

59/4

CB1

0383200

0064000

00° 34 ́ 45 ̋N

31° 57 ́ 00 ̋E

 

 

 

 

CB2

0383200

0080000

00° 43 ́ 25 ̋N

31° 57 ́ 00 ̋E

 

 

 

 

CB3

0365000

0080000

00° 43 ́ 25 ̋N

31° 47 ́ 15 ̋E

 

 

 

 

CB4

0370000

0075750

00° 41 ́ 05 ̋N

31° 49 ́ 55 ̋E

 

 

 

 

CB5

0362000

0068000

00° 36 ́ 55 ̋N

31° 45 ́ 35 ̋E

 

 

 

 

CB6

0353000

0068000

00° 36 ́ 55 ̋N

31° 40 ́ 45 ̋E

 

 

 

 

CB7

0353000

0055275

00° 30 ́ 00 ̋N

31° 40 ́ 45 ̋E

 

 

 

 

CB8

0375000

0055275

00° 30 ́ 00 ̋N

31° 52 ́ 35 ̋E

EL 0123

280.00

Singo South

69/1

LB

0367000

0055275

00° 30 ́ 00 ̋N

31° 48 ́ 15 ̋E

 

 

 

69/2

CB1

0344000

0055275

00° 30 ́ 00 ̋N

31° 35 ́ 55 ̋E

 

 

 

 

CB2

0344000

0042000

00° 22 ́ 50 ̋N

31° 35 ́ 55 ̋E

 

 

 

 

CB3

0367000

0042000

00° 22 ́ 50 ̋N

31° 48 ́ 15 ̋E

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3.2.3    Mitoma Property					The Mitoma Property is located some 320 km southwest of the capital Kampala in the Bushenyi district of south-western Uganda. The property is approximately centred at Latitude 0° 35’S and Longitude 30° 05’E.  The property consists of six Exploration Licences covering an area of 279 km2.  The configuration of the property is shown in Figure 6.1 and the geographic coordinates are listed in Table 3.4. 

Table 3.4  Location of Mitoma Property Exploration Licences

Licence

Area

Licence

Topo

Corner

UTM E

UTM N

Latitude

Longitude

No.

km2

Name

Sheet

Beacon

Arc 1960

Arc 1960

  

  

EL 0004

10.70

Nchwero

93/2

LB

0169700

9940350

00° 32 ́ 20 ̋S

30° 02 ́ 00 ̋E

 

 

 

 

CB1

0166600

9943300

00° 30 ́ 45 ̋S

30° 00 ́ 20 ̋E

 

 

 

 

CB2

0168000

9945000

00° 29 ́ 50 ̋S

30° 01 ́ 05 ̋E

 

 

 

 

CB3

0172050

9942550

00° 31 ́ 10 ̋S

30° 03 ́ 15 ̋E

EL 0005

80.00

Kabira

93/2

LB

0170800

9928000

00° 39 ́ 00 ̋S

30° 02 ́ 30 ̋E

 

 

 

 

CB1

0180800

9928000

00° 39 ́ 00 ̋S

30° 08 ́ 00 ̋E

 

 

 

 

CB2

0180800

9920000

00° 43 ́ 20 ̋S

30° 08 ́ 00 ̋E

 

 

 

 

CB3

0170800

9920000

00° 43 ́ 20 ̋S

30° 02 ́ 30 ̋E

EL 0023

19.20

Kahungye

93/2

LB

0172050

9942550

00° 31 ́ 10 ̋S

30° 03 ́ 15 ̋E

 

 

 

 

CB1

0176550

9940900

00° 32 ́ 00 ̋S

30° 05 ́ 40 ̋E

 

 

 

 

CB2

0173200

9936950

00° 34 ́ 10 ̋S

30° 03 ́ 50 ̋E

 

 

 

 

CB3

0169700

9940350

00° 32 ́ 20 ̋S

30° 02 ́ 00 ̋E

EL 0024

15.00

Rutaka

93/2

LB

0172050

9933700

00° 35 ́ 55 ̋S

30° 03 ́ 15 ̋E

 

 

 

 

CB1

0174450

9934450

00° 35 ́ 30 ̋S

30° 04 ́ 30 ̋E

 

 

 

 

CB2

0176550

9929000

00° 38 ́ 30 ̋S

30° 05 ́ 40 ̋E

 

 

 

 

CB3

0174150

9928000

00° 39 ́ 00 ̋S

30° 04 ́ 20 ̋E

EL 0025

16.00

Rugoma

93/2

LB

0176550

9940900

00° 32 ́ 00 ̋S

30° 05 ́ 40 ̋E

 

 

 

 

CB1

0176200

9934750

00° 35 ́ 20 ̋S

30° 05 ́ 30 ̋E

 

 

 

 

CB2

0178500

9936350

00° 34 ́ 30 ̋S

30° 06 ́ 40 ̋E

 

 

 

 

CB3

0173200

9936950

00° 34 ́ 10 ̋S

30° 03 ́ 50 ̋E

EL 0117

138.10

Kabira East

85/1

LB

0180800

9928000

00° 39 ́ 00 ̋S

30° 08 ́ 00 ̋E

 

 

 

 

CB1

0193900

9928000

00° 39 ́ 00 ̋S

30° 15 ́ 00 ̋E

 

 

 

 

CB2

0193900

9917000

00° 45 ́ 00 ̋S

30° 15 ́ 00 ̋E

 

 

 

 

CB3

0180800

9917000

00° 45 ́ 00 ̋S

30° 08 ́ 00 ̋E

3.2.4    Mwerusandu Property					The Mwerusandu Property is located some 380 km southwest of the capital Kampala in the Ntungamo district of south-western Uganda. The property is approximately centred at Latitude 1° 00’S and Longitude 30° 10’E.  The property consists of four Exploration Licences covering an area of 205.33 km2.  The configuration of the property is shown in Figure 6.1 and the geographic coordinates are listed in Table 3.5. 

11

Table 3.5  Location of Mwerusandu Property Exploration Licences

Licence

Area

Licence

Topo

Corner

UTM E

UTM N

Latitude

Longitude

No.

km2

Name

Sheet

Beacon

Arc 1960

Arc 1960

  

  

EL 0018

20.00

Nyamulindira

85/3

LB

0183000

9885000

00° 08 ́ 10 ̋S

30° 09 ́ 10 ̋E

 

 

 

94/1

CB1

0183000

9889350

00° 05 ́ 45 ̋S

30° 09 ́ 10 ̋E

 

 

 

 

CB2

0187000

9889350

00° 05 ́ 45 ̋S

30° 11 ́ 20 ̋E

 

 

 

 

CB3

0187000

9885000

00° 08 ́ 10 ̋S

30° 11 ́ 20 ̋E

EL 0019

19.00

Mwerusandu N

85/4

LB

0207000

9894500

00° 58 ́ 50 ̋S

30° 22 ́ 00 ̋E

 

 

 

 

CB1

0207000

9896000

00° 56 ́ 25 ̋S

30° 22 ́ 00 ̋E

 

 

 

 

CB2

0211000

9896000

00° 56 ́ 25 ̋S

30° 24 ́ 10 ̋E

 

 

 

 

CB3

0211000

9891000

00° 59 ́ 05 ̋S

30° 24 ́ 10 ̋E

 

 

 

 

CB4

0209500

9891000

00° 59 ́ 05 ̋S

30° 23 ́ 25 ̋E

 

 

 

 

CB5

0209500

9891200

00° 59 ́ 00 ̋S

30° 23 ́ 25 ̋E

 

 

 

 

CB6

0207500

9891200

00° 59 ́ 00 ̋S

30° 22 ́ 20 ̋E

 

 

 

 

CB7

0207500

9891500

00° 58 ́ 50 ̋S

30° 22 ́ 20 ̋E

EL 0022

18.70

Mwerusandu W

85/4

LB

0204000

9891500

00° 58 ́ 50 ̋S

30° 20 ́ 25 ̋E

 

 

 

94/2

CB1

0207500

9891500

00° 58 ́ 50 ̋S

30° 22 ́ 20 ̋E

 

 

 

 

CB2

0207500

9889700

00° 59 ́ 50 ̋S

30° 22 ́ 20 ̋E

 

 

 

 

CB3

0209000

9889700

00° 59 ́ 50 ̋S

30° 23 ́ 10 ̋E

 

 

 

 

CB4

0209000

9888000

01° 00 ́ 45 ̋S

30° 23 ́ 10 ̋E

 

 

 

 

CB5

0202000

9888000

01° 00 ́ 45 ̋S

30° 19 ́ 20 ̋E

 

 

 

 

CB6

0202000

9890000

00° 59 ́ 40 ̋S

30° 19 ́ 20 ̋E

 

 

 

 

CB7

0204000

9890000

00° 59 ́ 40 ̋S

30° 20 ́ 25 ̋E

EL 0116

147.63

Kiana Mine

94/1

LB

0187000

9885000

01° 02 ́ 20 ̋S

30° 11 ́ 15 ̋E

 

 

 

 

CB1

0187000

9875000

01° 07 ́ 45 ̋S

30° 11 ́ 15 ̋E

 

 

 

 

CB2

0175500

9875000

01° 07 ́ 45 ̋S

30° 05 ́ 05 ̋E

 

 

 

 

CB3

0175500

9889350

01° 00 ́ 00 ̋S

30° 05 ́ 05 ̋E

 

 

 

 

CB4

0183000

9889350

01° 00 ́ 00 ̋S

30° 09 ́ 05 ̋E

 

 

 

 

CB5

0183000

9885000

01° 02 ́ 20 ̋S

30° 09 ́ 05 ̋E

12

**4.0       ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY****4.1       Introduction**Uganda is a land-locked country bounded on the north by Sudan, on the east by Kenya, on the south by Tanzania and Rwanda, and on the west by The Democratic Republic of Congo, all of whom are its major trading partners. 			Uganda consists of a central plateau from 900-1,500 metres above sea level (averaging about 1,200 m), sloping gently to the north with a central downwarp occupied by Lake Kyoga.  Mountain ranges occur along the western and eastern sides of the country.  The western arm of the Great Rift Valley runs down the west side of the plateau and contains Lakes Albert and Edward.  The Lake Victoria basin lies in the southeast of the country.  Much of the plateau, other than the drier north, has fertile soils and is covered by a mix of farmlands, woodlands and forest.			Much of Uganda has a mean high temperature of 25-30°C and a mean low of about 15°C.  Temperatures tend to be higher in the Lake Victoria basin and in the Nile lowlands and drier areas in the north.  The highland areas in the southwest, along the Kenyan border and the Ruwenzori Mountains, tend to have a milder climate.  Annual precipitation ranges from less than 500 mm in the northeast to 700 – 1500 mm over much of the central plateau and exceeding 2,000 mm in parts of the Lake Victoria basin and the western mountains.  In the south there are two distinct rainy seasons with peaks in April and November while in the north there is a more continuous rainy season from April to November.  Various microclimates occur around the major lakes and especially at elevations above 2,500 m.  Precipitation on the upper Ruwenzori Mountains falls as snow as well as rain and the higher peaks have permanent snow-caps.			Landlocked Uganda depends for much of its foreign trade on the road and rail links through Kenya.  Railway branches west from Kampala to Kasese and northwest from Tororo on the Kenyan border to Pakwach north of Lake Albert are both in a state of disrepair.  A ferry for rail freight cars operates a link across Lake Victoria between the Uganda rail system at Port Bell (Kampala) and the city of Mwanza in Tanzania.  Uganda has an extensive network of over 30,000 km of maintained classified roads, about 2,600 km or 8% of which are paved.  The road system is generally in good condition and provides good access across the country and to all of the AMF exploration properties.  The principal paved roads fan out across the country from Kampala, except to the northeast.  The road to the southwest is an essential link for supplying fuel, food and general freight to Rwanda, Burundi and the eastern DRC.			Uganda’s principal airport is at Entebbe on Lake Victoria, 40 km from Kampala.  International airlines connect to Europe and Dubai as well as East African destinations.  Domestic charter flights connect over 10 local airports.			Domestic and international telephone and facsimile services are provided, but the service is limited to major towns and cities and, even there, can be unreliable. As elsewhere in Africa the system has been bypassed by the tremendous growth of mobile telephone service.  Three private companies provide extensive cellular service throughout the country, especially in the main population centres and along the main roads.  Internet facilities are available in most towns through one of the eight internet providers.  The postal system works quite well in Uganda, and several companies offer international courier services.

13

			Electricity is largely generated by the hydroelectric dam on the River Nile at Owen Falls near Jinja.  Installed capacity is about 300 MW with an additional 80 MW planned at the Kiira plant.  Other major generating stations are planned for new dams at Karuma and Bujagali, but the environmental impact of the latter in particular has been controversial and has delayed the project.  Only 3-5% of Ugandans have regular access to electricity, with many towns, especially in the north, having no supply.  The Owen Falls dam relies on the water level of Lake Victoria and, in 2005-2006 the lake reached critically low levels.  Lower rainfall in the Lake Victoria basin for several years was part of the problem, exacerbated by too much water being drawn through the Owen Falls dam in attempts to generate enough power.  Strong rains in 2006-2007 have considerably alleviated the problem of the lake level, but Uganda still struggles to generate enough electricity.			Specific to the mineral exploration industry, there is currently no drilling contractor based in Uganda though GeoServe is currently setting up in Uganda to provide an RC drill for AMF.  The logistics of acquiring drill equipment from southern Africa or overseas via Kenya would not be a major problem, and several drilling contractors maintain bases in Mwanza, Tanzania to service the many drill rigs operating in that country.  Similarly there are three assay laboratories located in Mwanza to service the mining and exploration industries in Tanzania.  One of them, SGS African Assay Laboratories Limited, has proposed setting up a sample preparation facility in Entebbe in 2007.  Geochemical, drill-core/chip and rock samples would be prepared there and small pulps shipped by air to their Mwanza laboratory for analysis.**4.2       Lugazi Property**The Lugazi property is about 50 km east of the capital, Kampala.  The regional administrative centre of Mukono on the Kampala-Jinja highway is located to the northwest of the property and would be the main base for supporting exploration activities.  Good all-weather laterite roads connect Mukono and the town of Lugazi with the property itself, and other dirt roads and tracks provide access throughout the two licences.			Topographically, the property comprises rolling hills, with drainage varying from well incised streams to wider reed-filled flood plains and swamps.  The valleys are thickly vegetated giving way to matoke groves, coffee plantations and commercial-scale sugar cane fields. The ridges consist of open grasslands, eucalyptus tree plantations and abundant small cultivated fields, including banana, matoke, coffee and beans amongst other crops.**4.3       Mubende Property**The Mubende property is located about 100 km west-northwest of Kampala.  The Singo North and Singo South exploration licences are located to the north of the Kampala – Fort Portal tarmac road, just north of Lake Wamala.  The main access into the licences is through the village of Myanzi, 15 km west of Mityana town, travelling northwest for 14 km on laterite roads to the small town of Kassanda. Relatively good local roads from Kassanda provide access across the property.  The topography at Mubende is low lying hills with wide open expanses of reed beds and swampy drainage.

14

****

**4.4       Mitoma Property**Access to the Mitoma project area from Kampala is via a good network of tarmac roads through Masaka and Mbarara to Bushenyi and Ishaka. From Ishaka, there is good access along well maintained laterite roads to project sites and within the various exploration licences. The towns of Bushenyi and Ishaka act as service centres for exploration and have a good mobile communication network and improving provisions for internet connections.			Topographically, the Mitoma property comprises rolling hills, with drainage varying from well incised streams to wider reed-filled or well-cultivated flood plains.  Much of the property is open grasslands, eucalyptus tree plantations and abundant cultivated fields, including banana, matoke, coffee and beans amongst other crops. Local remnants of the original forest still exist.  Streams and rivers in the hillier areas are deeply incised but recent cultivation along deforested slopes has resulted in the silting of many stream beds.  In places, cobble layers define the old stream bed and are generally covered by 2m and more of sediments. Artisanal gold panners dig down to the cobble layer to pan gold.**4.5       Mwerusandu Property**The Mwerusandu property is located south of Mitoma.  Access to the project area from Kampala is via a good network of sealed roads through Masaka, Mbarara and Ntungamo to Kabale.  Good laterite and minor roads and tracks provide access from the highway into and around the Mwerusandu licences.   The regional administrative centres of Ntungamo (the district within which Mwerusandu lies) and Kabale, to the south, act as service centres for Mwerusandu.			At Mwerusandu, the topography is mostly grassy rolling hills, with short drainages which flow northwest towards the Rubare marsh. Small farms growing beans, maize and cassava are scattered across the slopes.

15

**5.0       HISTORY**The Lugazi property is located close to Lake Victoria and is underlain by Early Proterozoic sedimentary and volcanic rocks. The property has seen virtually no previous exploration by individuals or mining companies and there are limited indications of prior artisanal operations. 			The German Geological Mission carried out regional sampling in the area between 1970 and 1973 and located anomalous Ni, Co and Cu values in streams draining ultramafic intrusions. Reconnaissance stream sediment sampling by Flemish Investments Limited over the last two years confirmed these elevated base metal values and identified anomalous Au zones, leading to the ongoing exploration programs on the property.			The Mubende property is located about 100 km west-northwest of Kampala in south central Uganda and is underlain by Early Proterozoic sedimentary rocks and large granite batholiths. On the periphery to the licences and especially to the west is evidence of past gold and tungsten artisanal operations.			The Mitoma property is located south of and adjacent to the Mashonga and Buhweju artisanal goldfields, which reportedly have produced 200,000 ounces of gold in the last 70 years, and is underlain by similar metasedimentary rocks. There is evidence and reports of past artisanal alluvial gold workings within the area of the property.			The Mwerusandu property is located south of Mitoma. The property is underlain by similar Proterozoic metasedimentary rocks. Within the property are past evidence and reports of artisanal alluvial gold workings, and of artisanal-scale tin mining from the 1920s.  The Mwerusandu tin mine, the largest in East Africa, is located immediately south and west of two of the Mwerusandu licences.  The mine was operated from 1920-1968.

16

****

**6.0       GEOLOGICAL SETTING****6.1       Introduction to the Geology of Uganda**The Archaean Ugandan Craton is part of the African Plate, a large area of continental crust consisting of the accretion of small cratons (e.g. Uganda, Tanzania) welded together by Proterozoic mobile belts.  Much of northern and central Uganda is underlain by Archaean basement gneisses.  The southwest part of the country, including the exploration licences of AMF, is largely underlain by Proterozoic sediments, minor volcanics and intrusive granites.  Major rift faulting commenced in the Tertiary and continued to the present.  Tertiary volcanism of mafic to intermediate composition and minor carbonatites also occurred.  This includes the formation of large shield volcanoes, the most prominent in Uganda being Mt. Elgon on the Kenyan border.  Great thicknesses of Tertiary to Recent sediments fill the fault valleys, especially along the Western, or Albertine, Rift in western Uganda.  The following descriptions are largely adapted from Thomas Schlüter’s 1997 text “Geology of East Africa”.			Precambrian rocks underlie two-thirds of Uganda. Archaean rocks are exposed in the south-east where they are part of the extensive granite-greenstone terrane of the Tanzanian Craton. Three major Proterozoic belts underlie central and west Uganda: the Paleoproterozoic Buganda-Toro metasediments, the Mesoproterozoic Karagwe-Ankolean (Kibaran) Belt in the southwest of the country and Neoproterozoic Pan-African rocks. The Neoproterozoic includes the Bunyoro Series with tillites and argillites, and the undeformed shallow water sediments of the Bukoban Supergroup. Tertiary to Recent sediments have filled parts of the down-faulted Western Rift. Tertiary carbonatites and Cenozoic volcanics are related to rift activities and occur along the eastern and western borders of the country.
6.1.1    Archaean					The oldest rocks of the craton are highly metamorphosed and migmatized sediments and minor igneous rocks originally given the name of “Basement Complex”.  Some 60% of the rocks outcropping in Uganda are of this group, especially across the northern half of the country and as inliers within the Proterozoic rocks to the south.  Schlüter (1997) prefers the term “Gneissic-Granulitic Complex” for this area of continental crust that probably evolved before 3.4 Ga.  A regional tectono-metamorphic event took place around 2.9 Ga (Watian Event in northern Uganda) that generated granulites and migmatites.  The early Aruan tectono-thermal event in northwest Uganda introduced migmatites around 2.7 Ga, coincident with the collision of an oceanic plate with the continental crust.  Shearing and post-tectonic magmatism occurred around 2.6-2.55 Ga.					The rocks are mostly of amphibolite or granulite facies, the latter being older formations that resisted the deformations in the younger rocks.  While retrogressive metamorphism is common, no evidence of progressive metamorphism from amphibolite to granulite facies has been found.  The granulites are mostly felsic to intermediate with lesser mafic to ultramafic compositions, and include charnockites and enderbites.  Many of the granulites in northern Uganda are probably of plutonic origin while those in West Nile are of sedimentary origin.  Synorogenic felsic gneisses and granites are widespread throughout the Complex, the latter usually having a distinct foliation parallel to the trend of the surrounding rocks. 

****

17

				Figure 6.1 General Geology of Uganda with AMF Properties

18

The Archaean Nyanzian System rocks that form the extensive greenstone belts around the south and east of Lake Victoria in Tanzania are almost absent from Uganda.  These old volcanic rocks and associated sediments occur in the extreme southeast corner of Uganda.  Similarly the conglomerates, arkoses and quartzites of the Kavirondian System that unconformably overlie the Nyanzian are only found in southeast Uganda.					6.1.2    Proterozoic					The Palaeoproterozoic Buganda-Toro System covers much of southern Uganda and is also known as the Ruwenzori Fold Belt (“RFB”) from the common structural event.  The RFB extends for about 1,000 km west from Jinja into the Democratic Republic of Congo (“DRC”) and is prominently exposed in parts of the Ruwenzori Mountains on the western boundary of Uganda.  It is bounded by the Gneissic-Granulite Complex to the north and is unconformably overlain in southwest Uganda by the Mesoproterozoic Karagwe-Ankolean System.  The Buganda-Toro System as a whole is essentially a broad complex syncline with a gently plunging WSW axis.  Dating suggests the Buganda Group was formed between 2,536±24 to 1,850±40 Ma (Cahel et al, 1984), with the Toro Supergroup within the same time range.					The name Buganda Group is given to a series of low-grade shales, argillites, phyllites, mica-schists and quartzites in Central Uganda.  The basal series comprises quartzitic horizons separated by pelitic rocks, overlain by slates, phyllites and shales, in turn succeeded by mafic volcanics and amphibolites.  A lack of marker horizons and unclear base and top make estimates of overall thickness rather speculative, though the group may be 1,000 m near Jinja in the east and up to 7,000 m in central Uganda.  The rocks have a general east-west strike, though more SW-NE in southern Uganda.					The term “Toro” was first used in 1933 to describe quartzites in western Uganda.  The Toro Supergroup rocks were originally thought to be separate from the Buganda Group due to the higher grade of metamorphism, more migmatization and generally more complex structure, but are now considered to be stratigraphically and lithologically equivalent and the term ‘Buganda-Toro System’ is preferred for the rocks in western and central Uganda.  The Toro Supergroup is characterised by tight folding with steep axial planes, with a greater degree of overturning in the Ruwenzori Mountains.  At least two phases and directions of folding are evident throughout the Toro Supergroup.					The Mesoproterozoic Karagwe-Ankolean System forms part of the Kibaran Belt which extends from Uganda to Zambia, west of Lake Victoria, including the northwestern edge of Tanzania.  The Kibaran Belt is one of the major geological features of central and eastern Africa, with a general NNE alignment.  Three divisions of 2,000-6,000 m thickness are accepted for the Kibaran, of generally pelitic rocks with intercalated quartzites that have been metamorphosed to phyllites, mica- and sericite schists, quartzites, gneisses and migmatites.  Much of the succession has been intruded by granites.  The northern boundary in Uganda of the Karagwe-Ankolean System with the Buganda-Toro System and the Gneissic-Granulite Complex is poorly defined.  The argillaceous rocks of the Karagwe-Ankolean in Uganda show a progressive increase in metamorphism up the succession, enhanced by their proximity to granites emplaced in anticlinal cores.

19

Granites, dated from 1,370-980 Ma (Pohl 1994), are common in the Kibaran Belt.  Many of these in southwestern Uganda are called ‘arena granites’, due to the erosion of the central granite dome within a circular ridge of country rock.  At least four types of granites (G1 to G4) are known within the Kibaran Belt (Cahen et al, 1984).  G1 and G2 are approximately synorogenic, while G3 and G4 are post-orogenic.  G1 granites are porphyric gneissic adamellites intruded into the lower Karagwe-Ankolean between about 1,350-1,300 Ma (Pohl 1994).  G2 are adamellite gneisses.  The post-orogenic G3 intrusives are alkaline biotite-granites while the G4, or ‘tin’ granites (976±13 Ma), are leucocratic, sub-alkaline and strongly peraluminous equigranular aplitic or pegmatitic rocks, often cataclastic and locally sheared, and cross-cutting.  The roof zones of the G4 granites are often invaded by pegmatites and quartz veins that host Sn, W and Nb/Ta mineralization.					In Uganda the Karagwe-Ankolean is characterised by two major fold trends.  The predominant Kibaran trend swings to NW, with generally open fold that becomes tighter between adjacent arena granites.  A NE cross-folding trend causes doming.  Much of the Karagwe-Ankolean is affected by low-grade regional metamorphism, with the grade generally increasing towards the base of the system.  Contact metamorphic minerals are rare, even next to the granites. 					The early Kibaran basin development consists of clastic marine sediments with strong lateral and vertical facies changes, from starved basins to turbiditic environments to siliciclastic flats and deltaic zones.  A volcanic island chain developed south of Uganda, of largely mafic to intermediate composition.  With continuing sedimentation the early granites were intruded.  The main compressional deformation of the Kibaran Belt occurred around 1,200 Ma with further intrusion of granites in anticlinal axes.  Rifting occurred at about 1,140 Ma with intrusion of G3 granites.  A late-tectonic phase, or Lomamian Orogeny (Cahen et al, 1984) occurred at about 976 ±10 Ma, within the Pan-African events.  					The Neoproterozoic Bukoban System, composed of sediments from conglomerates to sandstones, shales and minor basalts, largely occurs in western Tanzania.  The only rocks of unquestionable Bukoban age in Uganda are in the extreme southwest on Lake Victoria, but several outliers of possible Bukoban occur in central Uganda.  These outliers of the Singo, Mityana and Bunyoro Series are of flat-lying essentially unmetamorphosed sediments that are similar to the known Bukoban and younger than the neighbouring granites.					The Neoproterozoic of the Mozambique Belt, the longest zone of crustal mobility in Africa, is restricted to northeastern Uganda.  The Karasuk Group, an assemblage of gneisses, amphibolites, marbles, quartzites and ultramafic rocks occupies a strip of about 200 km by 40 km along the Uganda/Kenya border in the Karamoja area.  In addition, the Aswa Shear Belt within the Gneissic-Granulite Complex may be a major intra-continental transform fault associated with the Pan-African event.  This belt runs southeast from Nimule on the Sudan border through Mt. Elgon, a length of about 600 km by 8-9 km wide.

20

6.1.3    Palaeozoic-Mesozoic					The Karoo Supergroup is represented in Uganda by three small exposures west of the Western Rift, and at Bugirir, Entebbe and Dagusi in the southeast.  It is consists of a variety of continental sediments, deltaic wedges interfingering with lacustrine deposits and fluvial and aeolian beds.  The Karoo in Uganda appears to be in faulted contact with the Precambrian basement, and was preserved in grabens as tectonic traps.  Continental glaciation culminating around the end of the Carboniferous has been recorded from much of Gondwanaland.  Some of the rocks recovered from boreholes at Entebbe may have been deposited in a post-glacial environment.					6.1.4    Cenozoic-Recent					The East African Rift System (“EARS”) runs from the Afar triangle of Ethiopia to the Zambezi River in Mozambique, part of the Afro-Arabian Rift that extends north into Turkey.  The eastern branch of the EARS is also known as the Gregory Rift and runs to the east of Lake Victoria.  The Western or Albertine Rift runs from the north of Uganda along the western borders of Uganda, Rwanda, Burundi and Tanzania and is a graben bounded by fault zones around 40-50 km apart.  The Western Rift reaches its highest altitude in the middle near Lake Kivu (which has an elevation of 1,460 m asl) and drops away to the north (Lake Albert is at 617 m asl) and to the south (Lake Tanganyika is at 774 m asl).  The southern basin of Lake Tanganyika is about 1,500 m deep putting the base of the rift over 700 m below sea level at this point.  Lakes Edward and Albert drain north to the river Nile, while Lakes Kivu and Tanganyika eventually drain westwards to the river Congo.					Steep fault scarps rise from the graben floor; Mt. Margherita in the Ruwenzori Mountains at 5,110 m rises more than 4,000 m from the Semliki Plains.  Most of the faults defining the rifts are steep normal or dip-slip faults, frequently offset in en-echelon arrangement.  Usually the grabens are asymmetric, with a single large fault on one side and sets of smaller step faults or a monoclonal flexure on the other side.  Grid faulting with an average spacing of 1.5 km is common along the graben floor.					The direction and position of the EARS is related to ancient lineaments, and the two arms of the Rift appear to wrap around the Tanzania Craton and overlie the younger mobile belts, presumably following ancient lines of weakness.  In Uganda the northern end of the Western Rift is deflected eastwards around the West Nile Craton, and Lake Albert lies parallel to the grain of the basement complex.  The Precambrian Ruwenzori block, a horst some 120 km long by 50 km wide, lies to the south between Lakes Albert and Edward and is about 3 km above the Tertiary African Plateau.  It is a structural node at the intersection of the E-W Buganda-Toro System with the Western Rift.  The Rift has been deflected westwards around this node as the faulting failed to cut the Buganda-Toro units.					The tectonic history of the Western Rift is less well-known than that of the Gregory Rift, in part due to the lesser amount of volcanics which provide critical dating information.  Prior to the development of the Rift, western Uganda lay at about 500 m asl.  A shallow downwarp in the middle Miocene (15-16 Ma) formed a basin that filled with the Kasogi Formation sediments (Pickford et al, 1993).  The oldest 

21

volcanics are lavas from the Vicuna Field in the extreme southwest of the country, at about 12.6 Ma.  Pickford et al (1993) suggest lacustrine conditions began about 10-11 Ma with the formation of Lake Obweruka, about 550 km long, as the rate of downthrow exceeded that of sedimentation.  Ultimately over 4 km of sediments built up in the Albert Basin.  In the Late Pliocene-Pleistocene uplift of the Ruwenzori Massif caused the compartmentalisation of the Albertine depression, breaking up Lake Obweruka into smaller lakes around 2.6 Ma ago.  Pickford et al (1993) also suggest there was a third stage of rift development around 12-14 Ka BP that led to the present drainage patterns.  The Beni Gap through which Lake Albert drained to the Congo Basin was raised by 300 m, causing the Lake to flow out to the north into the Nile.  Back tilting of the Rift walls raised the Ruwenzori Massif by about 1,000 m, reversing rivers and leading to the formation of Lake Victoria.					Tertiary volcanics cover about 5% of Uganda.  No areas in Uganda are currently active, though the Virunga Field just across the border in the DRC has several active centres.  In eastern Uganda, close to the Kenyan border, six main volcanoes occur with Mt. Elgon the highest at 4,321 m asl.  Most are nephelinites, phonolites and trachytes, with minor carbonatites.  Ages range from 32±1.3 Ma for the oldest carbonatites to 12.5±0.3 Ma for the nephelinites and alkaline olivine basalts at Moroto.  The volcanoes in western Uganda largely occur in four distinct fields; Fort Portal, Ndale, Katwe-Kitorongo and Bunyaruguru, and Bufumbira which is the Uganda section of the Virunga Field.  Fort Portal is largely lapilli tuffs with minor carbonatites; Ndale, just north of Lake George, appears to be largely ashes and tuffs of pulverized basement; Katwe-Kitorongo and Bunyaruguru lie on either side of the Kazinga Channel that joins Lake George to Lake Edward and are ultra-potassic with 3-7% K2O; and Bufumbira is an extinct section of the active Virunga Field with the cones largely composed of angular and vesicular lava lapilli and bombs, unlike the other fields of western Uganda in having few ejected lava blocks or basement xenoliths, and extensive lava flows.  The rocks at Bufumbira include trachytes, leucitites, basanites and phonolites, though no true basalts.  Ages of the western Uganda volcanics are generally Late Pleistocene to Holocene, including less than 10 Ka BP for Katwe and 4-6 Ka BP at Fort Portal. 					Much of the Archaean craton and surrounding rocks was subject to extensive lateritic weathering in the Tertiary.  The resulting ferricretes and saprolites, and their subsequent weathering products, are an important focus of mineral exploration efforts in Uganda given the general paucity of outcrop.

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				Figure 6.2  Geology of the Lugazi Area (*after B.D. Milne*)

****

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**6.2       Geology of the Lugazi Property**The oldest lithological units underlying the****Lugazi area are the northeast striking, steeply dipping Archaean gneisses of the Basement Complex. These rocks occur in the western part of EL 0167 and the southern third of EL 0020.  Overlying the Basement gneisses are the east-northeast striking and south dipping Paleoproterozoic rocks of the Buganda-Toro System.			The greenschist-amphibolite grade Buganda-Toro System comprises shales, phyllites, schists, amphibolites and muscovite-biotite gneisses. A band of quartzites outcrops in central Lugazi and has been mapped by the Ugandan Government to extend across the property. Minor mafic intrusive rocks occur, more prevalent in the northern part of the Buganda-Toro belt.**6.3       Geology of the Mubende Property**The geology of the Mubende area is dominated by the Singo Batholith, a generally massive, coarse-grained porphyritic biotite-granite.  The oldest lithological units underlying the Mubende area are the east-west striking, steeply dipping biotite-muscovite to cordierite-muscovite-sillimanite gneisses of the Archaean Basement Complex, which occur to the south and north of the property.  The Singo Granite has been intruded into a broad band of Paleoproterozoic metasediments of the Buganda-Toro System that overlie the Basement gneisses. Other, minor, intrusives include: sericitized granites, purple to yellow and fine to coarse-grained; and quartz-damourite rocks, essentially structureless, composed of quartz, yellow-green to purple damourite and books of muscovite			The Buganda-Toro rocks include basal conglomerates grading into sandstones, cordierite-muscovite-biotite schists with intercalated amphibolites, plus sandstones and shales, that have undergone greenschist to amphibolite facies metamorphism.  They are overlain in turn by silicified shales, conglomerates and sandstones of the Singo Series, possibly of Karagwe-Ankolean age.  Overlying the Singo Series in a few isolated occurrences are conglomerates and sandstones of the Mityana Series that may be part of the Neoproterozoic Bukoban System.			The majority of the property consists of the arcuate southern lobe of the Singo granite batholith and its contacts with the Buganda-Toro System cordierite-muscovite-biotite schists and the silicified rock of the Singo Series (Karagwe-Ankolean?). This silicification, with its associated brecciation and hornfels, could possibly represent the contact zone between the underlying granites and their metasediment hosts.

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****Figure 6.3.  Geology of the Mubende Project (*after J.G.P. Dixon*)

****

****

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**6.4       Geology of the Mitoma Property**The Mitoma properties are all located within the Mesoproterozoic Karagwe-Ankolean system, which forms part of the extensive Kibaran Fold Belt extending from Uganda to Zambia.  This belt extends in a northerly to north-easterly direction in the Kagera Region of Tanzania, and swings towards the north-west through the south-western part of Uganda.			The Karagwe-Ankolean in SW Uganda has been subdivided into three informal divisions, the Lower, Middle and Upper Divisions. The Lower Division comprises largely muscovite schists and phyllites with intercalated thin beds of quartzites and occasional calc-silicate beds representing metamorphosed arenaceous limestones. Northwards the Lower Division shows an increasing thickness (to 1000m) of basal conglomerates and quartzites. Palaeocurrent data indicate derivation from the north. The Middle Division consists predominantly of quartzites with occasional beds of iron formation (itabarite). The Upper Division comprises predominantly meta-pelites with intercalated beds of quartzite and lenses of conglomerate.			The Karagwe-Ankolean system has been extensively folded into tight synclines and anticlines, with upright axial planes and, in the Mitoma area, appears as arcuate keels of metasediments that have been intruded by synorogenic porphyritic gneissic adamellites to post-orogenic biotite-bearing alkaline granites and leucocratic, sub-alkaline, per-aluminous granites (“tin granites”).  The latter include the Kyengenyi, Ntungamo and Rukungiri Granitoids.			Historical economic Sn, W, Be, Nb/Ta deposits occur throughout the area and are hosted within the meta-sediments on the periphery of the granites.  The presence of abundant quartz veining, several gold occurrences and the Sn-W-Be-Ta mineralization in this environment support the typical hydrothermal and epithermal activity of the Intrusive-Related Gold model****driving the exploration.**6.5       Geology of the Mwerusandu Property**The Mwerusandu properties are also located within the Mesoproterozoic Karagwe-Ankolean System and its associated granite intrusions, with similar metasediment lithologies to the Mitoma area.  In the Mwerusandu area the Karagwe-Ankolean appears as arcuate keels of metasediments between largely post-orogenic biotite-bearing alkaline granites and leucocratic, sub-alkaline, per-aluminous granites (“tin granites”).  These post-orogenic K-A granites are related to four types of mineralization:  pegmatites with Sn+Nb/Ta; quartz veins with Sn+W (plus Bi, Au, U); talc deposits from hydrothermal alteration of dolomites and/or magmatic rocks; and auriferous silicification zones, breccias and quartz veins with native gold, pyrite and arsenopyrite.  The zone of tin mineralization may be several km wide around a given granite, extending into the metasomatic aureole in the sediments. Cassiterite occurs with mica stringers and agglomerations in the veins and especially in the selvages.  Granite-metasediment and schist-quartzite contacts near the granite control the migration of Sn-bearing fluids, as at Nyamulindira.  Auriferous quartz veins and breccias with secondary iron hydroxides in the superficial alteration zone and primary pyrite and arsenopyrite at depth can be the source of alluvial gold.

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				Figure 6.4 Mitoma Project Remote Sensing Compilation (*after B.D. Milne*)

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			Figure 6.5  Geology of the Mitoma Project(*after B.D. Milne*)

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			The detailed mapping in the Nyamulindira area by AMF included some sedimentological work, but the main mineralized quartzite bed, with a maximum thickness of 10 m, shows grading and cross-lamination.  It also shows an intraclast quartzite breccia and appears to fine upwards. At Mukonoka, about 1,500 m west of Nyamulindira, the K-A rocks are dominated by muscovite schists with thin (5 m) quartzite lenses and a 5 m thick banded iron-formation. At Ruyonza, 3,000 m northwest of Nyamulindira, the K-A again comprises muscovite schists with impersistent beds of quartzite. Muscovite-schist is also the dominant lithology at Kaina, though with a thicker (> 20 m) and laterally more persistent quartzite.  The K-A sediments are interpreted as distal submarine plain muds with occasional influxes of turbidite sands (quartzites), which are usually laterally persistent. 			Structural mapping by AMF at Nyamulindira, Mukonoka, Ruyonza and Kiana indicate a fairly complex deformational history in the area, strongly influenced by the location and shape of the granitoids.			Minor third-order folds in the K-A at all four localities show a reasonably consistent axial plane strike of 040°-070°. Three fracture sets at Nyamulindira include a dextral subvertical set striking 270°, a second sinistral subvertical set striking 320° that can show quartz veins up to 10 cm thick, and a third contractional subhorizontal set indicative of north-over-south thrusting. The third set cuts and is later than the first two.   The structural evolution of the Nyamulindira area was interpreted to comprise at least four events:			
****
- ENE-WSW compression producing first, second and third-order folds. This is consistent with other areas in the K-A of Uganda. Tight folding on the first and second order folds would produce E-W extension and boudinage of the thinner, quartzite beds in the ductile schists, producing N-S striking “rods” of quartzite.				 E-W compression associated with intrusion of the granites producing the conjugate sinistral and dextral fractures and quartz veins. The gold and arsenopyrite mineralization was probably introduced at this stage as much of the alteration at Nyamulindira is found in the conjugate fractures.				N-S extension and boudinage of the quartzite “rods” at Nyamulindira and Mukonoka.  Late E-W pegmatite dykes may have been intruded at this stage.   				
- N-S compression producing the contractional, subhorizontal north-over-south thrusts at Nyamulindira, possibly causing a juxtaposition of scorodite-poor quartzite over scorodite-rich quartzite in the southern part of the Nyamulindira outcrop.			                     
29
    
				Figure 6.6  Mwerusandu Remote Sensing Compilation (*after B.D. Milne*)

****

****

****
    
30
    
31
    
32
                                                      
33
            
				Figure 6.8 Mwerusandu Geology (*after B.D. Milne*)
    
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  **7.0       DEPOSIT TYPES**The deposit models focussing much of the gold exploration in Uganda by AMF are those now described as intrusion-related gold (IRG).  Thermal Aureole Gold (TAG) deposits are localized in the roof zones and tops of felsic plutons and are temporally related to the emplacement and cooling of such plutons and, as such, are included as a type of IRG deposits.  Much of the following description has been derived from Thompson et al, 1999.**7.1       Intrusion-related Gold Deposits**Work in the past decade has identified a class of gold deposits associated with felsic intrusions, consolidating various types of intrusion-related mineralization under the term intrusion-related gold (IRG).   The styles range from proximal (skarns, greisens, sheeted veins, disseminated gold) to more distal vein systems and breccias that may have a less-clearly established relationship with granites.  IRG model development has largely been based on North American deposits such as Fort Knox in Alaska, but well-studied examples in Australia include the Kidston breccia pipe and the Timbarra granite carapace.  Other major IRG deposits include: Telfer (Australia), Pogo (Alaska), Mokrsko (Czech Rep), Salave (Spain), Vasilkovskoe (Kazakhstan) and Kori Kollo (Bolivia).  
				Figure 7.1  Generalized model for IRG deposits.
  
****

****

****

****
  
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**Table 7.1.** Selected characteristics of intrusion-related gold deposits

**Characteristics of IRG systems**

**Exploration indicators in covered areas**

Porphyry Cu-Au generally absent

  

Continental sedimentary assemblage, esp. carbonaceous or carbonate-bearing

Reduced to strongly reduced aeromagnetic signature

Metaluminous, calc-alkaline, granodiorite to granite.

Aeromagnetic/ gravity granite signatures

Craton margins, major regional structures,							continental collision zones.

Aeromagnetic signature, LandSat/lineament patterns

High crustal levels at time of mineralisation

Dyke swarms, texturally variable granites, porphyries.

Fractionated granite compositions, with evidence for volatiles (e.g. miaroles, pegmatite, pebble dykes)

Zoned aeromagnetic signatures; F in groundwater; F, U, Th geochemical anomalies; Radiometric outcrop signatures elevated in K, Th and U.

Weakly oxidised to weakly reduced oxidation states

Aeromagnetic and gravity signatures for granites.							Weakly oxidised granites readily apparent when intrusive into sedimentary sequences.

**Bi, Mo, W, Sn**, U, Sb, Te, Au, Ag metallogeny

Mineral occurrence data—Bi, Mo in particular

Proximal – sheet veins, greisens, stockworks, breccias pipes, wall-rock W, Sn, Mo disseminations.

  

Distal (1-3 km) – skarns, veins, replacements

  

Low sulphide Au association  (<3% py, apy, po); high Au:Bi correlation.

  

K-feldspar, albite, pervasive sericite/muscovite alt.

  

May have lateral mineral zonation: W +/– Mo; Sn;							Bi, Au > Au; As, Sb > Zn, Pb, Ag

Mineral occurrence data

May have vertical mineral zonation; Bi increases, As, Sb decrease with depth

  
  
The deposits occur within magmatic provinces best known for tungsten and/or tin mineralization.  They contain a metal suite that includes some combination of bismuth, tungsten, arsenic, tin, molybdenum, tellurium and antimony, in contrast with the widespread gold-rich porphyry copper and related deposits. The gold deposits associated with tungsten and/or tin provinces are located in cratonic margins, in a landward or back-arc position relative to continental margin arcs (where recognized), or within continental collisional settings. They are genetically related to intermediate-oxidation felsic domes. K-feldspar, albite and/or sericitic alteration assemblages, commonly including carbonate, accompany the gold mineralization. In sheeted vein deposits, alteration is normally more narrowly restricted. 				Sulphide contents are generally <3%, mainly pyrite with minor arsenopyrite. Bismuth minerals may be closely associated with gold, and bismuth-gold and tellurium-gold correlations exist. Base metals generally are present in minor amounts (e.g. <100 ppm Cu). A magmatic-hydrothermal origin (Thompson et al 1999) is suggested by the distinct spatial association with felsic intrusions and the consistent metal signature. Variations in the style of mineralization style between deposits are largely a function of the depth of formation and location relative to the intrusive centre. Mineralized plutons typically have physical features and geochemical evidence of high volatile contents, fluid exsolution, rapid fractionation, zonation, porphyritic textures, presence of aplite and pegmatite dykes, quartz and tourmaline veins, greisen alteration and miarolitic cavities, preferably in the apex of the pluton.
  
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				Figure 7.2  Geology of the Timbarra Deposit
    
37
  			Preferred host strata include reducing basinal miogeoclinal sedimentary or metasedimentary rocks.  Thermal gradients surrounding cooling plutons are steep and result in concentric metal zoning for several kilometres from pluton margins, or just beyond the thermal aureole. Proximal gold mineralization may be associated with Bi, Te, and W; aureole-hosted mineralization will have an As or Sb tenor; and distal mineralization may be related to Ag-Pb-Zn.  Gold grades vary widely, with bulk-mineable volumes in the 0.8-1.5 g/t Au range (e.g. Fort Knox).  The gold deposits are essentially coeval with their associated pluton.			Blevin (2004) and Thompson et al (1999), among others, have documented the relationship between the metals in granite-related mineralization systems and the degree of fractionation and the oxidation state of the intrusives.  There remains some controversy concerning the relative oxidation state of the intrusives.  Early IRG models (e.g. Thompson et al, 1999) emphasised the mildly to moderately reduced nature of the granites based on aeromagnetic signatures, whole rock Fe2O3/FeO ratios, magnetic susceptibility measurements, and the lack of modal primary magnetite.  This contrasts with reported data for Australian IRGs, which are commonly weakly to moderately oxidized.    
**Figure 7.3.** (a) Relationship between the oxidation state (calculated using total rock Fe2O3/FeO ratio) and the degree of evolution (calculated using total rock Rb/Sr ratio) of granites, and related metallogenic associations, as documented by Blevin et al (1996) and Blevin (2004). (b) Oxidation-evolution plot contoured using available geochemical data for north Queensland granites. The bulk of the geochemical data falls within the dark grey contour (pink line), strongly overlapping with the suggested field (Blevin 2004) for IRG.

7.1.1    Fort Knox Deposit					Several of the IRG gold deposits contain resources/reserves >100 tonnes (3 million oz.) Au. The prime example, perhaps, is the Fort Knox deposit (>7 million oz. Au) in the Fairbanks district of Alaska. The deposit is one of many mineralized Late Cretaceous stocks and plutons in the Tintina Belt, divided into the Tombstone plutonic suite of central Yukon and the Fairbanks intrusions of central Alaska by the dextral strike-slip Tintina fault.  The intrusions are subalkaline, metaluminous, and
  
38
    
				Figure 7.4. The Tintina Belt showing IRG deposits and occurrences.
  
range from granodiorite to granite in composition. Magnetite is absent from the Fairbanks intrusions and rare in the Yukon examples.  Minor ilmenite is common throughout, together suggesting that the intrusions are moderately reduced.					The Tintina belt intrusions were emplaced over a short time span at ~90 Ma, into Proterozoic and Palaeozoic miogeoclinal to basinal sedimentary sequences. The intrusive belt occurs on the cratonic margin of the Cretaceous orogen.  The most distinctive style of IRG gold mineralization typified by Fort Knox, is a sheeted array of parallel, low-sulphide, single-stage quartz veins found over 10s to 100s of metres and preferentially located in the pluton’s cupola. These veins are quite unlike the multidirectional interconnected stockworks of porphyry systems or the tensional veins typical of orogenic deposits.					The Fort Knox gold deposit is hosted by a west-northwest-trending late-Cretaceous granitic complex that intruded the Fairbanks Schist. The surface exposure of the intrusive body is approximately 1,100 m east-west by 600 m north-south. The pluton is offset by two regional northeast structures, the Monte-Cristo Fault and Melba Fault, which display left-lateral strike slip movement. The Fort Knox pluton is composed of: light grey, fine-grained granodiorite; medium-grained biotite-granite; and coarse-grained biotite-granite porphyry. The textural and chemical variations within the pluton, together with sharp to gradational intrusive contacts, suggest the Fort Knox pluton is a multi-phase intrusive. This is further supported by the local occurrences of orthoclase megacrysts, resorbed quartz phenocrysts, and quartz glomero-phenocrysts. Crenulated quartz layers (brain rock) and dendritic growths of quartz and potassium feldspar present in the Fort Knox pluton contacts help to evaluate intrusive paragenesis (Bakke, 1995).
            
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Many narrow green dykes with the same chemical composition as the granodiorite cut the granite, as do quartz-eye rhyolite porphyry dykes. The rhyolite porphyries often contain gold-bearing quartz veins, but also locally appear to cut the gold mineralization and may represent the parental magma.				Gold occurs in and along the margins of pegmatite veins, quartz stockwork veins and veinlets, quartz-veined shear zones, and fractures within the granite. The stockwork veins strike predominantly east and dip randomly, and decrease with depth. Shear zones generally strike northwest and dip moderately to the southwest. Gold mineralization in the quartz-filled shears is distributed relatively evenly, and individual gold grains are generally less than 100 microns in size. The sheeted quartz veins are 2-15 cm thick, typically 10-50 cm apart and reflect district-wide structural controls. The veins have <0.5% sulphides, mainly pyrite, pyrrhotite, arsenopyrite, bismuthinite, and molybdenite, with narrow K-feldspar-albite-muscovite alteration envelopes. The quartz veins contain up to 2,000 ppm Bi, 600 ppm W and 20 ppm Te.  Gold values show a strong correlation with bismuth and tellurium, but not with tungsten, molybdenum, arsenic or antimony. 				The Fort Knox intrusive rocks are transacted by clay-sericite, quartz-sericite and quartz-kspar-biotite alteration and local chlorite-epidote-calcite (propylitic) veins. These argillic, phyllic, and potassic alterations are locally intense along intersecting structural zones, which often form the loci for concentrations of gold deposition.				Fort Knox is a deposit initially of approximately 158 million tonnes with an average grade of 0.83 g/t Au.  In 1998 the deposit was acquired by Kinross Gold Corp., and it has been mined as a conventional open pit year round, 7 days a week.  The deposit has mined slightly more than 150.2 million tonnes of ore containing 4.23 million ounces of gold (423,000 ounces annually) on a continuous basis since 1996.   In 2006 Kinross mined 14,514,000 tonnes, with 13,462,000 tonnes of ore at an average grade of 0.83 g/t Au  processed in their carbon-in-pulp mill.  85.7% of the gold was recovered, for 333,383 oz. Au produced.  At the end of 2006 proven + probable reserves totalled 159,673,000 tonnes at an average grade of 0.53 g/t Au, or 2,705,000 oz.  In addition, measured and indicated resources totalled 71,284,000 tonnes at an average grade of 0.69 g/t Au, or 1,573,000 oz.				7.1.2    Twangiza Deposit, Democratic Republic of Congo				The Twangiza Project of Banro Corp. is located in the eastern DRC within the same belt of Mesoproterozoic rocks (Karagwe-Ankolean in Uganda) that host the gold and tin-tungsten mineralization of southwestern Uganda.  The Twangiza area is underlain by low grade metasediments that have been folded into a series of broad anticlines and synclines. The gold deposit is hosted within mudstones, siltstones and greywackes that have been intruded by mafic and feldspar porphyry sills along the crest of a major anticlinal structure. Gold mineralization is of hydrothermal origin and is associated with sulphides which occur in quartz-carbonate veins, and disseminations throughout the host rocks. The current mineral resource estimates, using a 1 g/t Au cutoff, are listed below.
    
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				Figure 7.5 Geology of the Twangiza Area DRC
    
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Table 7.2  Twangiza Project Resources

Measured

Indicated

Inferred

Tonnes

Au g/t

Oz Gold

Tonnes

Au g/t

Oz Gold

Tonnes

Au g/t

Oz gold

9,926,000

2.99

955,000

29,303,000

2.18

2,053,000

43,104,000

1.90

2,633,000
  
The metasediments and the feldspar-porphyry sills have been folded into a tight upright fold. The intrusives appear to have undergone brittle deformation prior to the mineralizing event, most likely when the sediments were folded. The upright tightly-folded anticlines have been affected by a cross-folding resulting in a dome and basin fold pattern, with the Twangiza deposit believed to represent a domal feature.					The mineralization controls appear to be: lithological, with the more brittle reactive porphyries hosting most of the mineralization; folding, in that the intrusives are folded so were emplaced prior to that event; and shearing along the metasediment/intrusive contacts providing a favourable fluid path. The albite-dolomite altered phase of the feldspar porphyry gives the sills a more brittle character. Alteration and auriferous hydrothermal fluids are directed by east-west faults, and bedding planes. As a result, auriferous zones occur as crescent-shaped sheets or lenses of mineralization located preferentially in the upper side of the sills, prominently at the anticlines, which are in turn crosscut by mineralized veins or veinlets.
  
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**7.2       Implications for Exploration**Gold deposits such as Fort Knox suggest exploration should include areas of metasedimentary belts (such as the Buganda-Toro and Karagwe-Ankolean of Uganda) that host lower-oxidation state felsic intrusives.  These plutons generally have a lower magnetic response than the country rocks. Magmatic provinces with known tungsten and/or tin mineralization are particularly prospective as the presence of these lithophile metals shows the magmatic and post-magmatic processes conducive to metal concentration were active at the present erosion level.  Any artisanal alluvial or bedrock gold workings clearly enhance the prospectivity of an area within a tin-tungsten province.				Four of the largest known IRG deposits (Fort Knox, Mokrsko, Vasilkovskoe, Kori Kollo) are sheeted vein systems within or immediately adjacent to the pluton.  Kidston is associated with a proximal breccia system.  However, major gold mineralization may occur in greisens, skarns, wallrock disseminations or replacements and more distal veins, so initial exploration should focus on the area within several kilometres of the pluton as well as the pluton itself.				Geochemical sampling has been shown to be one of the most effective methods of detecting IRG-type gold mineralization, with the specific methodology dependent on the local topography and the nature of the regolith.  Conventional soil sampling was effective at Fort Knox, while the deep soil profiles or colluvial cover in southwestern Uganda suggest the use of stream sediments, where available, and partial-leach soil sampling.
  
42
  **8.0       MINERALIZATION****8.1       Lugazi Property**The style of gold mineralization at the Lugazi area is associated with a belt of sedimentary rocks comprising the Paleoproterozoic Buganda-Toro system, and surrounding granite gneisses. A thermal aureole granite (TAG) model is being used in an attempt to understand the mineralization where an Intrusion Related Gold system is expected along with skarn and pegmatite host rocks.**8.2       Mubende Property**Investigation of the limited tonnage Nabisoga and Kyasampawo Au workings suggest that they could not be responsible for the large and widespread Au alluvials that occur throughout the valleys of the nearby Kamalenge area to the west of the Mubende property. In 1971, the sericitized granites and the quartz-damourite alteration were re-interpreted by the German Geological Mission as linear greisens with a pervasive purple alteration.  The development of the Fort Knox – Timbarra greisen model suggested the Mubende and Singo granites as a possible source for the alluvial Au.			The style of gold mineralization at the Mubende area is now interpreted by AMF as being associated with the roof zones of large batholiths such as the Singo Granite. Greisen alteration has been identified by reconnaissance exploration and an Intrusion Related Gold system is being modeled, with gold mineralization in disseminated and quartz stockwork styles in the upper roof zones of granites, or in large scale fault zones along the flanks of the intrusions. Tungsten and gold occurrences have been identified on the Singo granites and in surrounding meta-sediments.**8.3       Mitoma Property**The Mitoma area is characterized by the presence of historically economic tin, tungsten, beryllium and niobium-tantalum deposits hosted within the Mesoproterozoic metasediments located on the periphery of Proterozoic circular porphyritic granite intrusives.   A thermal aureole granite (TAG) model is being used by AMF as a guide to the mineralization where an Intrusion Related Gold system is expected along with skarn and pegmatite host rocks.  Disseminated sulphides have been observed in some quartzite and schistose lithologies on the property, supported by the numerous gold, tin, tantalum workings with alluvial gold panning has taken place on the licence in the past.			The Mitoma projects bear many similarities to the Banro Corp. Twangiza deposit in the eastern DRC. The Twangiza auriferous sulphides (pyrite, arsenopyrite) are hosted in similar Karagwe-Ankolean mudstones and greywackes, along the hinge zone of an anticline with associated mafic and feldspar-porphyry intrusions. The sulphides occur both in quartz-carbonate veins and as disseminations through the metasediments and intrusives. The current mineral resource estimates for the Twangiza project (Banro, 2007) show a measured and indicated resource of 3.01 M oz gold and an inferred resource of 2.63 M oz. gold.  
43
  **8.4       Mwerusandu Property**The style of gold mineralization at the Mwerusandu area is associated with sedimentary rocks located in antiforms within the Karagwe-Ankolean system and in conjugate fracture sets in quartzites close to the contact with large granite batholiths termed arena granites. Disseminated sulphides have been observed in some quartzite and schistose lithologies on the property, supported by the numerous past gold, tin, tantalum and tungsten alluvial workings within the property. A light green, arsenic rich alteration phase identified as scorodite is also associated with gold mineralization at the Nyamulindira licence. A thermal aureole granite (TAG) model is being used in an attempt to understand the mineralization where an Intrusion Related Gold system is expected along with skarn and pegmatite host rocks.  
44
  **9.0       EXPLORATION****9.1       Lugazi Property**Exploration work at Lugazi, following up on the nickel-cobalt-copper anomalies detected in the 1970s by the German Geological Mission sediment sampling, has comprised stream sediment (drainage) sampling, including both heavy mineral concentrates (HMC) and BLEG, soil geochemistry, pitting, TM Landsat-Crosta alteration image interpretation and a fixed-wing airborne magnetics and radiometrics survey.			A regional soil geochemistry survey, comprising 859 samples, discovered a new zone of anomalous gold-in-soil which extends over a length of some 3 km and appears to be open-ended to the west. A similar strength anomaly on a single line was also located to the south-east of the main anomaly, which could be the same zone of gold mineralization offset by faulting.			Infill soil sampling consisting of 727 samples on 15 lines has since been completed to further define the gold anomaly.  In addition, pits have been excavated to test the weathered profile for primary zones of mineralisation.
9.1.1    Stream Sediment Sampling					In May 2005 an initial orientation and reconnaissance survey investigated the stream drainages across the area of the GGM Ni-Co-Cu anomalies.  Seventeen sites were investigated, with SO4 and pH measurements taken.  Only eight of the sites provided suitable sediment for sampling, with both HMC and BLEG samples collected.  The results from these samples confirmed the presence of a nickel-cobalt anomaly and elevated gold values.					9.1.2    Soil Sampling					A program of soil geochemistry commenced in September 2005, to define the extent of the GGM Ni-Co stream sediment anomaly and investigate the elevated gold values in the HMC sampling.  The initial sampling detected a significant gold anomaly that became the focus of exploration on the property, through step-out sampling in August 2006 and infill sampling in December 2006.					The Lugazi area is characterized by deep weathering, thick clay loam soils, and the lack of lateritic soils where gold may be concentrated by capillary and/or electrochemical processes. These deep soils and general lack of outcrops or surface mineralization prompted FIL to look at alternative methods to conventional “B” horizon soil sampling or augering/drilling to the base of the regolith.  The “Terra Leach” method of partial extraction was selected due to the thick soil cover.					Several companies have developed proprietary methods of partial digest to detect buried or concealed deposits in areas of extensive sand cover or deep weathering.  These include Terra Leach (TL), Mobile Metal Ion (MMI) and Select Enzyme Leach (SEL).   The methods are similar in that they utilize **only**weakly or loosely bonded

****

****
        
45
                       
46
                                                      
47
  
ions attached to soil particles, ions that have migrated into the weathering zone and tend to concentrate directly above the source mineralization. As the methods use vertically migrating loosely bonded or adsorbed gold ions rather than colloidal or absorbed gold which disperses laterally in the soil horizon, they tend to produce more discrete, higher contrast soil anomalies from which drill targets can be rapidly identified.  Genalysis’ TL method was selected for soil sampling at Lugazi, in part because of the relatively rapid 2-3 week turn-around and the low detection limits (Au = 0.05 ppb) through the use of low-cost ICP-MS analysis of the leachants.  All soil samples were analyzed at Genalysis Laboratory Services - Perth, Australia, using TL extraction and ICP analysis.  The initial samples were analysed for Au, As, Co, Cu, Ni, Pb, Pd and Pt.  A slightly different leach was used in the step-out and infill sampling, to allow analysis for Au, As, Bi, Co, Cu, Ni, Pb, Pd, Pt, Sb and Zn.  There are no standards that could be inserted in the sample stream and, as there is no sample preparation, the use of blanks is inappropriate.  Quality control is achieved by submitting regular repeat samples.					The initial soil geochemistry consisted of 468 samples collected on two lines.  Samples were collected at 25 m intervals with only the 50 m interval samples submitted for analysis.  After receiving the results of these, the 25 m interval samples were submitted from the anomalous zones.  Table 9.1 shows the basic statistics of the 334 samples analyzed.  These results were followed up in August 2006 with 1048 samples collected on four lines, also at 25 m intervals.  A total of 525 samples at 50 m intervals were submitted for analysis, the results of which are shown in Table 9.2.  This sampling outlined a zone of anomalous gold-in-soil over a strike length of some 3 km, open to the west, with a width of 300-700 m, striking NE or sub-parallel to the regional stratigraphy.  A similar strength anomaly on a single line was also located to the south-east of the main anomaly, which could be the same zone of gold mineralization offset by faulting.					Detailed infill sampling was carried out in December 2006, with 727 samples collected at 25 m intervals on 15 lines.  All samples were submitted for analysis using the Terra Leach TL1 method, designed for Au+pathfinders and Ni-Co-Cu-Pt mineralization.

Table 9.1  Analytical Statistics for initial Terra Leach soil samples, September 2005
  
  

**Au ppb**

**As ppb**

**Co ppb**

**Cu ppm**

**Ni ppm**

**Pb ppm**

**Pt ppb**

**Mean**

1.37

243.40

897.09

14.66

5.33

0.71

0.32

**St. Dev**

1.59

139.71

747.20

6.3

4.47

0.89

0.41

**M+1**

2.96

383.11

1644.29

20.96

9.80

1.60

0.73

**M+2**

4.55

522.83

2391.50

27.26

14.27

2.49

1.15

**M+3**

6.15

662.54

3138.70

33.56

18.74

3.37

1.56

**Max**

22.71

788

8522

36.94

29.92

7.15

3.2

**Hicut**

10

None

4000

None

none

5

None

**>M+3**

10

1

6

4

11

8

8

**>M+2**

13

5

19

14

17

21

11

**N**

334

100

334

334

334

334

187
    
48
  
				Figure 9.2 Lugazi Stream Sediment Sampling (*after B.D. Milne*)
  
49
    
Table 9.2  Analytical Statistics for step-out TL soil samples, August 2006

  

Au ppb

As ppb

Bi ppb

Co ppb

Cu ppm

Ni ppm

Pb ppm

Sb ppb

Zn ppb

Mean

1.35

232.69

5.83

777.64

14.21

3.67

0.44

5.52

4365.21

St. Dev

1.68

114.95

6.63

602.23

4.88

2.13

0.59

3.40

1973.61

M+1

3.03

347.64

12.46

1379.87

19.09

5.80

1.03

8.92

6338.81

M+2

4.70

462.59

19.10

1982.09

23.97

7.93

1.62

12.32

8312.42

M+3

6.38

577.53

25.73

2584.32

28.86

10.06

2.21

15.73

10286.03

Max

35.6

796

49.4

3948

32.05

15.89

4.06

25.5

100297

Hicut

15

none

none

none

none

none

none

none

12500

>M+3

10

11

15

13

5

8

17

8

9

>M+2

17

25

25

29

13

19

42

25

22

N

525

525

525

525

525

525

525

525

525
			Table 9.3  Analytical Statistics for infill Terra Leach soil samples, December 2006
  

Au ppb

As ppb

Bi ppb

Co ppb

Cu ppm

Ni ppm

Pb ppm

Sb ppb

Zn ppb

Mean

2.52

213.07

8.45

884.98

14.43

3.37

0.47

5.82

4191.38

St. Dev

2.66

101.63

9.42

597.34

4.60

1.36

0.67

3.39

1664.87

M+1

5.19

314.70

17.87

1482.32

19.03

4.73

1.13

9.20

5856.25

M+2

7.85

416.34

27.29

2079.66

23.63

6.09

1.80

12.59

7521.13

M+3

10.51

517.97

36.72

2677.00

28.24

7.45

2.46

15.98

9186.00

Max

17.61

840

873.6

6575

32.81

14.05

13.56

168.3

34300

Hicut

none

700

80

4100

none

none

5

30

12500

>M+3

24

14

27

16

2

10

17

16

9

>M+2

42

36

44

34

22

28

37

34

23

N

727

727

727

727

727

727

727

727

727
  
9.1.3    Pitting					In early 2007 AMF sunk six pits on the gold-in-soil anomalies at Lugazi.  Each pit was dug through the regolith profile on a 1 m x 1 m section to weathered bedrock or to a safe working depth of about 4 m.  If the pit needed deepening, the top two metres was widened to 3 m x 3 m to reduce side-wall loading before the pit was deepened to a maximum of 6 m from surface.  The regolith profile was mapped in detail and channel samples 50 cm in length were taken down a wall of each pit.  Particular care was taken in mapping the weathered bedrock to check for the presence of graphitic lithologies, which had been noted in surface prospecting, and for evidence of oxidized sulphide minerals.  Pit #6 was visited during the author’s trip to the field, and was in the process of being widened at the top to allow deepening.  Assay results from the Pit #6 channel samples were pending at the time of the visit.
    
50
    
				Figure 9.3  Lugazi First Pass and Infill TL Soils
  
51
    
				Figure 9.4 Lugazi Pit Locations with soil lines
              
52
                                                          
53
            
				Figure 9.5  Lugazi All TL Soils
    
54
    
				Figure 9.6  Lugazi TL Soils on Geology
  
55
    
				Figure 9.7 Lugazi Magnetic Horizontal Gradient
        
56
            
Table 9.4  Location of pits at Lugazi

Pit Number

UTM E

UTM N

Soil Line

1

480940

0027735

  

2

481950

0028310

  

3

482370

0028500

1

4

482375

0028560

1

5

483530

0029090

4

6

483440

0029155

4
  
9.1.4    Geophysics and Satellite Image Interpretation					GeX (Antoine, 2007) was commissioned by FIL to undertake an interpretation of LandSat TM and regional geophysical data over Lugazi EL 0020.  The EL covers part of a 10-14 km wide, ENE-striking belt of metasediments and metavolcanics.  The aim of Antoine’s study was to use Landsat TM images and airborne geophysical data to help improve the understanding of the study area geology and the gold geochemical anomalies within the EL. The database consisted of pre-processed LandSat TM2000 images, regional airborne magnetic and gamma-ray spectrometer data and gravity data. The following comments are derived from Antoine’s report.					The gravity data is sparsely sampled and Antoine interpreted the linear NW-SE anomaly shown on Government maps as merely a contouring artefact.  The isolated single-point anomalies may be related to the amphibolites present in the property, but there is no support for the gravity anomalies in the existing magnetic data. The LandSat data was of limited use due to heavy vegetation cover.  Similarly, as the airborne geophysical data was designed for regional use, it is of limited value for the detail exploration of the EL.					Both magnetic and radiometric data are derived from the national regional grid and are consequently of poor spatial resolution. The radiometric data, using ternary renditions of the radio elements K, U and Th, broadly echo the principal lithologies. The principal addition to the pre-existing mapped geology, from the radiometric data, is the introduction of a sliver of granite within the greenstones in the east of the EL, subparallel to the trend of the belt.					The magnetic data derived from the national grid over the Lugazi EL shows lithological trends fitting the mapped geology (figure 9.7). Two E-W discontinuities are mapped. The 290° trend in satellite imagery connecting the Au anomalies is unsupported in this low resolution magnetic dataset.					There are no apparent anomalies within the EL in either the magnetic or radiometric data examined by Antoine, nor was any anomalous relationship determined between the geochemical anomalies and the geophysical and LandSat data. The gold anomalies follow and are nearly coincident with a magnetic horizon for a small segment of strike in the west. A dislocation from the apparent trend of the geochemical gold highs occurs on the easternmost traverse. However, no concurring displacement of the magnetic marker horizon is observed, suggesting the geochemical anomaly is not stratabound but possibly structural.  Antoine, in his 2007 internal report for FIL, 
    
57
    
recommended a high spatial-resolution airborne magnetic and gamma-ray spectrometer survey over the property as the available data was insufficiently detailed.					As part of a country-wide program of airborne geophysics funded by the World Bank and the African Development Fund, a high-resolution airborne magnetic and radiometric survey was being flown by Fugro in March 2007 over and to the northeast of the Lugazi property.  The survey was flown at 200 m line separation on azimuth 055° and 60 m terrain clearance.  At AMF’s request the survey was extended to cover all of Lugazi (EL 0020) and the southeastern part of Lugazi West (EL 0167), with the extension flown at azimuth 145° to provide coverage normal to the regional strike.  The survey was completed by the end of the author’s visit to Uganda and the final results are pending.   Once the final results are available from the AMF Fugro survey they will be integrated with the existing regional aeromagnetic and radiometric data, LandSat and shuttle DTM by Graham Elliott, an Australian geophysicist with extensive experience in East Africa.  The airborne survey extension specific to AMF does not include EM, so a program of ground EM surveying will be carried out in April-May 2007 to cover the areas of known and potential graphitic horizons.
  
**9.2       Mubende Property**The hard rock gold workings at Kyasampawo are too small to be responsible for the widespread Au alluvials that occur throughout the valleys of the Kamalenge area. As a result of AMF’s interpretation of the Mubende and Singo granites as possible sources of the gold, following the Fort Knox-Timbarra greisen model, initial exploration comprised LandSat TM/Crosta alteration image interpretation and reconnaissance stream sediment sampling across the prospective area.				In 2005 a total of 26 drainage sites were sampled within the granites and from the greisen zones.  Sampling conditions in the drainages were far from ideal in spite of the rolling hills and high rainfall.  In most cases no active primary drainage channel or alluvial sediment could be found, as the valleys have been covered with transported soil and have been either extensively tilled for farming or are choked with a mat of tussock grass or 2.5 m high elephant grass.  2 kg BLEG samples were collected from all 26 sites, and pH plus SO4 readings were taken.  Seven of the sites provided sufficient suitable sediment for a heavy-metal concentrate sample (HMC) to be taken.  Despite the adverse stream conditions, the BLEG and HMC sampling produced anomalous Au values together with elevated Cu and As, as could be expected with IRG-type greisen mineralization. The SO4 and pH values were anomalous over the granites, suggesting the presence of sulphides in the granites or the greisens.				AMF has proposed a drainage orientation study at Mubende to determine the most effective method for a full stream sediment sampling program over the property.  This would include multiple auger holes across each drainage to the basal gravel layer, which would be sampled for BLEG analysis.  Based on the sediment profile, one or more pits would be dug to the base of the alluvium.  The pits would be mapped and each lithological layer channel sampled.  Each sample would be divided for HMC and BLEG samples, and a remnant panned for a “colour count” of gold particles. 
  
58
      
59
  			Figure 9.9  Mubende Auger and Pit Orientation Study.
****
    
60
  			Subject to the results of the orientation study, the entire 780 km2 property would be evaluated by up to 250 stream sediment samples and 75 pits, designed to access the mature alluvial sediment below the recent transported cover.  In addition, Block 2 of the proposed airborne geophysical survey funded by the World Bank and the African Development Fund would cover the Mubende property.  This comprises a detailed magnetic and radiometric survey at 200 m line spacing and 60 m terrain clearance.******9.3       Mitoma Property**Exploration activities at the Mitoma projects have comprised stream sediment (drainage) sampling including heavy mineral concentrates (HMC) and BLEG; soil and rock geochemistry, pitting, detailed mapping and preliminary ground magnetics.  Outcrops are scarce over the property, requiring the use of exploration methods that can “see” through deep soil profiles.			To date 2,546 soil samples have been collected over different areas of the property in 7 phases.  The samples were analyzed with the Terra Leach partial digest method and have delineated gold-in-soil anomalies at the Kahungye (EL 0023), Rugoma (EL 0025) and Rutaka (EL 0024) exploration licences.  Exploration is at an earlier stage at Kabira (EL 0005) and Kabira East (EL 0117), but areas of potential interest have been delineated from the 157 drainage samples, with some samples close to an area of historical alluvial/artisanal gold workings.			Exploration on the Kahungye, Rugoma and Rutaka licences was initially done in 2004 under the previous tenements (EPLs 4682, 4683 and 4681) which covered the same areas.  These prospecting licences were converted to Exploration Licences in March 2005 under the terms of the 2003 Mining Act.
9.3.1    Soil Sampling					The Rutaka licence was selected as the location for orientation soil sampling.  In April 2004 a total of 39 TL samples were collected from a single northeast-trending line.  This line was positioned to extend from the western to the eastern granite across the intervening metasediments, and passing over a known gold occurrence shown on the 1:100,000 Bushenyi geological sheet.  The orientation results showed a distinct 200m-wide anomaly, the low level gold values correlating well with W, Sn, Sb and Be.					Routine soil sampling commenced in July 2004, with east-west lines traversed under GPS control across all three licences. A total of 590 soil samples were collected along 13 lines (37.8 line km) and submitted for TL1 analysis, Au, W, Sb, Sn and Be by ICP/MS through Genalysis, Perth. This phase of sampling essentially covered all three licences at line separation of 500-1,000 m, with samples taken at 50-100 m intervals.					Based on the results from these 13 lines, a program of infill soil sampling was carried out in September-October 2004.  A total of 924 samples were collected from 40.3 km of east-west lines, mostly at 250 m separation. These soil samples were analyzed by TL1 digestion and ICP/MS finish for Au, As, Sn, Be, Bi, Sb, W and Mo.

****

****

****
  
61
    
				Figure 9.10  Kahungye-Rutaka-Rugoma Au anomalies (*after B.D. Milne*)
    
62
    
				Figure 9.11 Kahungye-Rutaka-Rugoma As Anomalies (*after B.D. Milne*)
    
63
  
The results from the 1,553 orientation, step-out and infill TL soil samples indicated the presence of several large, *insitu,*gold-in-soil anomalies on the three target licences at Mitoma. These gold anomalies show some of the typical correlation with pathfinder elements (As, Sb, W, Sn, Bi) for IRG deposits in tin-tungsten provinces.  The correlation coefficients for Au vs. As (r=0.467) and Au vs. Sb (r=0.425) are moderate, while those for W, Sn and Bi are weaker. Subsequent infill sampling in February 2005 and throughout 2006 resulted in a further 993 samples being taken.  These refined the gold-in-soil anomalies.					The Kahungye licence produced 2 main gold anomalies, each with a strike length of about 1,750m and a width of 150-250 m.  A third, open-ended, 750 m x 250 m gold / arsenic anomaly occurs in the north of the licence.  Detailed mapping of the anomalies showed they were associated with Fe-rich biotite-chlorite schists adjacent to linear sulphidic graphitic quartzites. Several fold axes were observed and faulting is assumed by AMF in the area.  Fine gold flakes were seen in panning of sediment from streams draining the anomalies.					The Kahungye gold anomalies are sub-parallel and are offset from a large As anomaly. The contoured Au and As values, together with the geological mapping, suggest that several faults occur at Kahungye resulting in discontinuous shape of the soil anomalies.  The schist associated with the anomalies is rarely exposed but was inferred from the typical deep red clay soils and occasional float disturbed by agricultural activities.  The major As anomaly west of Kahungye village appears to be more directly associated with a northwest-striking graphitic and sulphidic quartzite. A float grab sample of the unit returned 1.54 g/t Au. Field observations by AMF suggest that the graphite is hydrothermal, a hypothesis supported by replacement textures, brecciation and the presence of arsenopyrite.					The Rugoma EL also contains 2 robust gold anomalies, each with a strike length of 1600m x 100m to 250m in width, coalescing in the north to one broad anomaly (450m wide). The discrete gold zones are associated with a large contiguous As anomaly (2500m x 1000m). In addition an open-ended Au and As anomaly, 200m wide, occurs south of and possibly representing a faulted limb of the two larger anomalies.  Similarly to Kahungye, the anomalies are associated with biotite-chlorite schists adjacent to linear sulphidic graphitic quartzites.					The Rutaka EL contains several moderate gold anomalies about 800 m long and 50-400 m wide.  There is a similar arsenic association to Kahungye and Rugoma, but the arsenic zone is offset at Rutaka. The anomalies are either associated with the metasediments, possibly muscovite-sericite schists, or with the adjacent porphyritic granites and showed visible gold in panning of streams draining the anomalies.					A verification program carried out in October-November 2004 consisted of resampling 73 sites within the main soil anomalies, with both TL and soil BLEG samples taken at each site.  Twenty pits were also dug on the anomalies, and were sampled to a depth of 2.0 m to address concerns of possible transport of the near-surface sampled medium. 
  
64
    
				Figure 9.12 Rutaka Soil Anomalies (*After B.D. Milne*)
    
65
        
66
    
				Figure 9.14 Rugoma TL Soil Anomalies (*after B.D. Milne*)
    
67
  
The TL re-sampling, BLEG sampling and pitting confirmed the original TL soil anomalies and their depth extent.  The gold correlation coefficient of the two TL data sets is r = 0.874****(n= 57), very good considering the time lapse between sampling/resampling, possible different locations and laboratory variation.  The anomalies on all three licences were clearly repeatable in both position and magnitude.					The test pits dug in October 2004 confirmed the considerable depth of the soil profile, with the base of the B horizon encountered at 1.09 m to > 2.00 m.  The general lack of stone lines, iron rich layers or any other indicators of physical or chemical transport, suggest that this clay loam soil is a residual profile.					Subsequently on the Rugoma licence (EL 0025) the gold anomaly on line 9938700 was checked with a line of seven pits dug to depths of approximately 6 m (Figure 9.15).  The pits on this line showed an unusually deep soil profile, with an auger extension of pit 2 still in B horizon soils at 14.82 m below surface.  All of these pits were logged and channel-sampled on one wall.  The TL soil at the surface location of pit 4N had returned a strongly anomalous value of 5.3 ppb Au.  In pit 4N the base of the B horizon soils was at 4.0 m with two separate layers of weathered slaty quartzite intercalated with micaceous schist below that depth to the bottom of the pit at 6.40 m.  From 6.0-6.4 m the west wall of the pit assayed 0.04 ppm Au and the east wall 0.07 ppm Au (fire assay, SGS Mwanza).  However, panning of a 20 kg bulk sample of micaceous schist with fine quartz stringers from the same depth interval revealed 6 grains of coarse visible gold up to 1 mm across.  This is directly beneath the TL soil anomaly.  Maximum values from the channel sampling between 1.17-4.00 m in B horizon soils were 0.02 ppm Au and 115 ppm As, with similar values in the weathered bedrock from 4.00-6.00 m.					9.3.2    Stream Sediment Sampling					Discussions with local villagers as to the gold potential of the Kahungye area resulted in several locations of alluvial gold being pointed out to AMF.  During the soil confirmation program in 2004 these locales were investigated for gold in the sediment loads.  Little success was achieved from panning of the active sediments of streams draining from the Kahungye anomalies. However, the villagers subsequently pointed out that the alluvial gold they found was located in a gravel horizon at ~1.5 m depth, below the active layer.  Three test pits were dug to depths of 1.5-2.5 m in the stream beds, passing through 1.0-1.5 m of dark organic clays before reaching a ~50 cm thick river gravel. The gravel consists of 50% angular un-mineralized quartz vein cobbles and pebbles, supported in a clean quartz sand matrix. In all cases, panning of the fine fractions of the sand yielded very fine gold particles.  The lack of mineralization in the quartz cobbles and coarser sand fractions suggest the gold may be derived from a proximal, easily-weathered lithology, with an association other than quartz-veining.
  
68
    
				Figure 9.15 Rugoma Auger Section (*after B.D. Milne*)
    
69
  
In September 2005 a total of 35 stream sites were sampled in and around the Kabira licence (EL 0005).  Both HMC and BLEG samples were taken at each site, together with SO4 and pH measurements.  Six of the HMC samples and three of the BLEG samples returned anomalous gold values. 					In May 2006 the Kabira area was covered with detailed stream sediment sampling as follow-up to the 2004 reconnaissance sediment anomalies.  The sampling included all of the Kabira (EL 0005) and Kabira East (EL 0117) licences as well as the southern part of Rutaka (EL 0024).  A total of 157 HMC samples were taken in two phases of follow-up.  Five HMC samples from the Kabira licence (EL 0005) returned strongly anomalous gold values, with coincident pathfinder anomalies in Bi, Mo and Sn.  The BLEG samples from these sites were also anomalous in gold.  An additional 7 BLEG samples were anomalous for gold at Kabira and 2 at Kabira East (EL 0117), though the HMC samples from the same sites had low gold values only.					9.3.3    Rock Sampling					Rock chip and float sampling was carried out during traverses of the original three Mitoma licences in 2004. Attention was paid to lithologies which exhibited hydrothermal or epithermal features such as the introduction of sulphides, brecciation, shearing etc. Outcrops in the Mitoma area are limited, essentially restricted to the linear quartzite ridges with very little of the schist or argillite lithologies being exposed.  Gold analysis was carried out by SGS African Assay Laboratories in Mwanza, Tanzania, by fire assay with AA finish.  Arsenic was analyzed by AA.  One of the 6 samples submitted, from a sheared quartzite with limonite after sulphides, returned 0.21 g/t Au.					9.3.4    Magnetometer Surveying					An orientation ground magnetometer survey was carried out over selected lines in late October 2004. A single line was run at 5 m station intervals on each of the three initial licences, selected to cover from the western to eastern granites to confirm the position of the granite-metasediment contacts.  The lines also traversed the gold-in-soil anomalies in an attempt to identify possible hidden features associated with them.  The geophysical team and equipment was hired from the Ugandan Department of Geological Survey and Mines, who supplied two hand-held Scintrex ENVIMaG magnetometers.  The magnetometer survey didn’t detect any features that had not been shown by the geochemistry, nor did it provide significant new information on the lithology contacts.  As a result, no further ground magnetic surveys were run.					9.3.5    Electromagnetic Surveying					As the Kahungye gold-in-soil anomalies appear to be intimately associated with chlorite-biotite schists that may contain disseminated sulphides, and graphitic, sulphidic quartzite, it was considered prudent to test the EM responses.  There was also the possibility that the electromagnetic method would assist in mapping the buried contacts of the quartzite and schist.  The Ugandan Department of Water Resources Management supplied a qualified technician, geophysicist and an EM-34 unit.
        
70
            
				Figure 9.16  Kabira Stream Sediments
  
71
   			Figure 9.17  Kabira Line 1 TL Soil Profiles          
72
            
Two orientation lines were run over the Kahungye gold anomaly, using both horizontal and vertical loop configurations and a loop length of 10m.  Neither configuration located any signature over the graphitic quartzites or the gold anomaly, and a similar lack of response was achieved when different loop lengths of 5-40 m were tested directly over the outcropping quartzite. 
  
****

Table 9.5  Analytical statistics Mitoma Property TL soils

****

**Mitoma TL soils**

**Au ppb**

**As   ppb**

**Ag ppb**

**Be ppb**

**Bi   ppb**

**Sb ppb**

**Sn ppb**

**W  ppb**

**Mo ppb**

**Zn   ppb**

**Cu ppm**

**Mean**

1.59

557.84

17.09

51.44

87.33

7.98

147.90

99.58

348.81

2755.91

8.78

**stdev**

1.68

478.53

6.23

30.71

106.79

5.36

97.67

95.68

168.37

1077.05

3.54

**m+1**

3.26

1036.36

23.32

82.15

194.12

13.34

245.57

195.26

517.18

3832.97

12.31

**m+2**

4.94

1514.89

29.56

112.86

300.91

18.70

343.24

290.94

685.55

4910.02

15.85

**m+3**

6.61

1993.41

35.79

143.58

407.70

24.06

440.91

386.62

853.91

5987.07

19.39

**max**

24.93

9776

57.2

298

4143.2

79.4

913

1801.7

1484

24964

24.33

**hicut**

15

5000

none

none

1000

50

700

900

1200

6000

none

**>m+3**

42

49

12

35

50

39

33

56

22

5

6

**>m+2**

98

93

32

79

89

102

113

106

62

8

17

**n**

2521

2497

1013

2530

2497

2536

2536

2536

1753

160

400

****

****

**9.4       Mwerusandu Property**Exploration activity at the Mwerusandu property has included: stream sediment sampling for both HMC and BLEG; TL soil and rock geochemistry; trenching and pitting; TM LandSat-Crosta alteration image interpretation; and detailed geological mapping of certain prospects.				At the Nyamulindira licence, rock grab sampling in 2005 identified gold values of 4 to 6 g/t gold in sericite schists near to a granite contact. Follow-up trenching intersected 20.4 g/t Au over 3.5 m in a quartz vein/ horizon. A 1 km long TL gold/arsenic-in-soil anomaly was outlined near the metasediment/granite contact, and remains open to the south.

9.4.1    Mwerusandu					In October 2005 a total of 31 stream sediment sites were sampled across the Mwerusandu licences.  Sulphate (SO4) and water pH measurements were taken at all of the sites, as well as collecting HMC and BLEG samples.  None of the HMC samples returned anomalous gold values, though one BLEG sample had a weakly anomalous gold value coincident with a strong Sn/W HMC anomaly.  A further 5 sites had strong Sn anomalies.  Subsequent follow-up included sampling 29 sites on the Kiana Mine licence (EL 0116) and 12 on Mwerusandu West (EL 0022), none of which had anomalous gold values.					In November 2006 a TL soil sampling program was carried out on the Mwerusandu West and Mwerusandu North (EL 0019) licences.  On the former, 138 samples were taken and sent for TL1 MS analysis together with 6 duplicates.  On the latter, 46 samples plus 2 duplicates were taken.  Multiple anomalous As values were detected, but no anomalous Au.  Several anomalous Sn zones were identified in areas of no known tin mining.

****
  
73
  
9.4.2    Nyamulindira					Rock grab sampling in 2005 on the Nyamulindira licence (EL 0018), adjacent to the northeast corner of the Kiana Mine licence, detected gold values of 4 to 6 g/t Au in sericite schist near to the contact with an arena granite.					Two trenches were dug in September 2005 to further expose a coarse grey quartz vein with visible gold and scorodite, sandwiched between sericite schist and sandstone units in close proximity to the contact with a granite intrusive to the east.  (Scorodite is a secondary mineral typically resulting from the alteration of arsenopyrite).  Each trench was approximately 40 m in length, dug east-west and was continuously channel-sampled.  41 samples were taken from trench 1 and 44 from trench 2.  In trench 1 a section including the coarse scorodite-bearing quartzite and the lithologies on either side, returned assays averaging 20.4 g/t Au over 3.5 m together with very high arsenic values.  Trench 2, 35 m to the north, did not expose the coarse quartzite and returned only background gold values.  Two further, short, trenches were dug in April 2006.  Trench 3, approximately 5 m north of trench 1, exposed a small patch of scorodite-bearing coarse quartz on an otherwise apparently barren 1 m thick quartz vein between schist and quartzites.  In this instance the exposed quartz vein may be a large proximal boulder rather than bedrock.  A 30 cm chip-channel sample across the scorodite-bearing quartz returned 1.76 g/t Au and 27.9% As.  The main quartz vein returned 0.31 g/t Au and 1.4% As over 1 m.  Trench 4 was excavated 25 m south of trench 1 and exposed a massive quartz vein between sericite schist and quartzite.  Gold values were essentially below the detection limit of 0.01 g/t Au. 					Stream sediment sampling in the area in October 2005 resulted in the collection of 21 BLEG samples.  Two of the samples had elevated gold values, one with a coincident elevated copper value (1.3 ppb Au and 42 ppb Cu).  Also in October 2005 the first phase of TL soil sampling was carried out, with three lines consisting of 66 samples.  The lines were approximately east-west, one over trench 1 and the others 200 m north and 800 m south.  Line 1 returned strongly anomalous gold and arsenic values adjacent to trench 1, within a broad arsenic anomaly.  Line 2, to the north, had elevated arsenic values along the entire line, but no anomalous gold.  Line 3, to the south, had a strongly anomalous gold value in the strike-equivalent position of trench 1, within a broad zone of elevated arsenic values.  This would suggest that the scorodite mineralization noted in trench 1 is symptomatic of widespread arsenopyrite within the metasediments at Nyamulindira, and that the gold may be restricted to a lensy coarse quartz vein or veins within the stratigraphic package. 					Six lines of infill sampling at 25 m intervals (except for the ends of the lines at 50 m) were carried out in April 2006 with a total of 152 samples collected, together with 7 duplicates.  In addition, the gold anomaly on Line 3 was resampled at 12.5 m intervals, confirming the original anomaly. 
  
74
    
				Figure 9.18 Nyamulindira Au soils on As (*after B.D. Milne*)
    
75
    
				Figure 9.19  Nyamulindira Au Soils (*after B.D. Milne*)
  
76
    
On Line 4, 200 m south of the anomaly on Line 3, three consecutive anomalous gold values were detected over a length of 50 m.  There were no anomalous arsenic values but the central gold anomaly coincided with strongly anomalous Bi+Sn+W values.  This anomaly is on strike from Line 3.  On Lines 5, 6 and 7, between Line 3 and Line 1 to the north,  there were no anomalous gold values but a broad zone of elevated arsenic values was detected over the metasediments.  On Line 8, 120 m south of Line 1 and trench 1, two consecutive anomalous gold values coincide with anomalous As+Bi+Sn+W+Zn, within a broad zone of elevated arsenic values.  The gold anomaly is on strike with the mineralization exposed in trench 1.  Line 9 was located 80 m north of trench 1 and showed no anomalous gold values, but did have the typical broad elevated arsenic zone within the metasediments.  					The TL soil sampling has outlined a zone of broad low-level arsenic mineralization within metasediments adjacent to a granite intrusive, with two centres of anomalous gold separated by about 1 km.  The southern anomaly remains open to the south, with over 10 km of the contact zone yet to be tested.					In December 2006 the geology of the Nyamulindira licence (EL 0018) was mapped in detail.  During the period December 2006 – February 2007 a total of 46 stream sediment samples were collected from the Kiana Mine (EL 0116) and adjacent Nyamulindira (EL 0018) licences.  Results for this sampling were not available at the time of the author’s visit.
    
77
    
******Figure 9.20  Nyamulindira Geology and Crosta analysis (*after B.D. Milne*)**

****
  
****
  
78
      
79
  
****Figure 9.22  Nyamulindira TL soil lines (*after B.D. Milne*)

****

****

****
    
80
    
81
    
				Figure 9.23  Nyamulindira profiles

****

****

****

****

****

****

****
  
****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****

****
        
82
              
83
    
84
      
****Figure 9.25 Mwerusandu TL Soil Sn anomalies (*after B.D. Milne*)********

****
    
85
  **10.0      SAMPLING METHOD AND APPROACH**The Lugazi area is characterized by deep weathering, thick clay loam soils, and Mubende, Mitoma and Mwerusandu areas by similar soils as well as alluvium and colluvially transported sediments.  There is a general lack of lateritic soils where gold may be concentrated by capillary and/or electrochemical processes. These deep soils and general lack of outcrops or surface mineralization prompted FIL/AMF to look at alternative methods to conventional “B” horizon soil sampling or augering/drilling to the base of the regolith.  The “Terra Leach” method of partial extraction was selected due to the thick soil cover.  The TL samples were analyzed at Genalysis Laboratory Services in Perth, Australia.			Certain confirmation soil samples were taken for BLEG analysis.  The same analytical method was used as an integral part of stream sediment sampling campaigns, where heavy-metal concentrates (HMC) were also taken.  These samples were analyzed at SGS African Assay Laboratories in Mwanza, Tanzania.  Rock samples, whether from grabs, pits or trenches, were also shipped to SGS Mwanza for analysis.			All sample sites were located and controlled by hand-held GPS units (Garmin Etrex) using the ARC 1960 datum and UTM coordinates.**10.1      Sampling Methods**
10.1.1  Terra Leach Soil Sampling					The sampling method for TL soil samples is quick and simple, and no preparation is required prior to shipping the samples for analysis.  The sample site was initially cleared of any debris and major organic material.  A plastic or other non-metallic implement was used to collect about 150 g of “A” horizon soil from a depth of 5-10 cm, as this is the depth at which dispersed ions are inferred to significantly accumulate.  A nominal minus 1 mm (-20 mesh) particle size is preferred, and use of a simple plastic sieve at site will remove any coarse particles.  It is important that the sampler does not wear any metal around the hands, such as jewellery or a watch.  The sample was placed in a standard 3” x 5” kraft paper packet, which was sealed at site.  Press-seal plastic bags can be used, but any damp samples should be air-dried before sealing the plastic bag.					The sample number was written on the kraft packet and the number, UTM coordinates and elevation from the GPS, plus slope, ground conditions, soil type and colour were recorded. Samples were packed into metal trunks for transport from the field to Entebbe.  At the field office in Entebbe the samples were checked before the trunk was locked and shipped by courier to Genalysis in Perth, Australia.					Flooding or major rainstorms can remove weakly bound metals in soils. Bacterial reduction in flooded soils can change the oxidation state of iron and manganese oxide/hydroxide species resulting in dissolution and loss of these species together with their surface adsorbed metal ions.  TL soil sampling should therefore not take place less than 3-4 weeks after major rain, though light showers or heavy dew which do not soak the sampling horizons do not appear to compromise responses.  All TL samples taken by or for AMF at Lugazi, Mubende, Mitoma and Mwerusandu followed this protocol.
  
86
  
10.1.2  Bulk Leach Extractable Gold (BLEG)					The BLEG method of analysis was used by AMF for two types of samples: check sampling of TL soil anomalies and routine stream sediment samples.  BLEG was chosen for the soil checks as the entire 500 g sample of -300 μm fraction is analyzed in this method versus the 30 g sub-sample of -180 μm (-80 mesh) fraction used for fire assay.  Similarly for stream sediments the larger BLEG sample, including coarser fractions, allows for a more repeatable and representative result than fire assay.					The BLEG soil sample material was extracted from small pits dug to the B1 horizon.  Approximately 3-5 kg of the appropriate material was removed, typically at about 50 cm depth, and gently dried in an iron pan over a charcoal fire.  When dry and cooled, the soil was sieved and the -300 μm fraction collected.  500g of this fraction were placed in a kraft paper packet, which was sealed at site.  As for the TL samples the packet was numbered and the UTM coordinates and elevation from the GPS, slope, ground conditions, soil type and colour were recorded.  The samples were shipped to Entebbe, where they were checked before being shipped to SGS Mwanza for 24-hour bottle roll digest and analysis.					At stream sample sites there was often insufficient active sandy sediment at surface or in positions (e.g. behind boulders) that could trap heavy particles.  When necessary pits were dug through up to 1.5 m of dark organic-rich clays transported into and often covering the stream channel.  The surface or buried sand/gravel layer was sampled and wet-sieved to provide 5-7 kg of -2 mm material for the BLEG sample. This was riffled to about 2.5 kg and placed in a plastic bag.  For HMC samples, approximately 30 kg was gathered from traps and panned on site to provide 150 g (wet).  Both samples were air-dried then placed in numbered kraft paper packets and shipped to SGS Mwanza. 					10.1.3  Pit, Trench and Rock Samples					At selected sites grab samples were taken of lithologies exposed in outcrop and, in the case of Mitoma, from float.  Available outcrops of interest were sampled, with particular attention paid to lithologies which exhibited hydrothermal or epithermal features such as the introduction of sulphides, brecciation, shearing etc.  Hand-sized samples were collected and shipped to SGS Mwanza for analysis.					Two trenches were dug by hand on the Nyamulindira showing at Mwerusandu in September 2005, and two more short trenches were dug in April 2006.  Continuous chip-channel samples were taken along the bottom of each trench.  Samples of 1-2 kg were shipped to SGS Mwanza for analysis.					Exploration pits were dug in October 2004 over selected gold areas at Mitoma to test the depth extent of the TL gold-in-soil anomalies. The pits were dug to approximately 2 m depths, to pass through the B horizon soils.  The soil characteristics in the pit profile were logged and a continuous channel was sampled on one wall of the pit.  Samples were taken according to the different soil horizons, to a maximum 50 cm 
  
87
  
length.  Approximately 2-3 kg of material was collected for each sample, bagged and dispatched to SGS Mwanza for Au by fire assay and As by AA analysis.					In early 2007 similar pitting was done at Lugazi, though these 6 pits were dug through the entire regolith profile on the gold-in-soil anomalies.  Each pit was dug through the regolith profile on a 1 m x 1 m section to weathered bedrock or to a safe working depth of about 4 m.  If the pit needed deepening, the top two metres was widened to 3 m x 3 m to reduce side-wall loading before the pit was deepened to a maximum of 6 m from surface.  The regolith profile was mapped in detail and channel samples 50 cm in length were taken down a wall of each pit.  Samples of 2-3 kg were bagged and shipped to SGS Mwanza for analysis.

**10.2      Database**At all four properties the sample locations were controlled by hand-held GPS units (Garmin Etrex).  Location data was recorded in UTM coordinates using the ARC 1960 datum.  This data was later transferred by hand from the GPS unit to a notebook and then entered into a simple spreadsheet.  All field descriptions of soil, sediment or rock characteristics, SO4 and pH data from streams was recorded at site in the field notebooks and later transferred to the spreadsheets.				Columns were included for sample numbers, UTM coordinates, elevation, project, EL, date of sampling, original and any repeat analyses, and the laboratory assay certificate.  AMF used Interdex software to determine anomalous thresholds.  The Excel spreadsheets were used to plot the results, including overlays on regional geology or topography.
  
88
  **11.0      SAMPLE PREPARATION, ANALYSES and SECURITY**All Terra Leach (TL) soil samples were sealed in their bags at the field site, and no further sample preparation was carried out by FIL or AMF.  Samples were packed into metal trunks at the field site for transport to Entebbe under the direct supervision of FIL/AMF staff.  At the field office in Entebbe the samples were checked before the trunk was locked and shipped by courier to Genalysis Laboratory Services in Perth, Australia.  Once the samples had cleared Customs and Quarantine procedures in Australia they were checked again by Genalysis before the samples were partially digested with the proprietary leachant selected for the group of elements requested by AMF.  After digestion the leachant solution was analyzed by ICP.  Results were reported to AMF by email.			Soil BLEG samples were extracted from small pits dug to the B1 horizon.  Approximately 3-5 kg of soil was gently dried in the field and 500 g of the -300 μm fraction was placed in a kraft paper packet and sealed at site. No further sample preparation was carried out by FIL or AMF.  The samples were shipped to Entebbe under the direct supervision of FIL/AMF staff, where they were checked before being shipped to SGS Mwanza for 24-hour bottle roll digest in a weak acidic cyanide solution.  After allowing the sediment to settle, an aliquot of the pregnant solution is removed, the gold is extracted with DIBK, and the gold content of the solution determined by atomic absorption. The As content was determined directly from the solution by AAS.			At stream sediment sample sites about 5-7 kg of the appropriate -2 mm material was collected.  This was air-dried then riffled to give about 2.5 kg, which was placed in a numbered plastic bag for the BLEG sample.  Approximately 30 kg of sediment was collected from traps and panned to about 150 g (wet) for HMC samples.  This was air-dried then placed in a numbered kraft paper packet and sealed at site.  No further sample preparation was carried out by FIL or AMF.  The samples were shipped to Entebbe under the direct supervision of FIL/AMF staff, where they were checked before being shipped for analysis.  The BLEG samples were analyzed at SGS Mwanza by 24-hour bottle roll digest in an acidic cyanide solution and analysis of the leachant by atomic absorption.  The HMC samples were shipped to SGS-Lakefield in Johannesburg for gold analysis by fire assay and base metals + pathfinders by ICP/MS.			All rock grab samples were collected in plastic bags and shipped from the field to SGS Mwanza for analysis.  Trench samples were taken as continuous chip-channels from the bottom of the trench with samples of 1-2 kg were shipped to SGS Mwanza for analysis.  Pit channel samples of 2-3 kg were also sent to SGS Mwanza.  In all cases the samples were placed in plastic bags in the field, labelled and sealed by FIL/AMF staff.  No further sample preparation was carried out by FIL or AMF.  The samples were shipped to Entebbe under the direct supervision of FIL/AMF staff, where they were checked before being shipped to SGS Mwanza for analysis for gold by fire assay and for any other elements by atomic absorption.  Prior to preparation and analysis, SGS would check the samples in the shipment against the shipping form from AMF, as well as confirming that all samples were in good condition.  Standard procedure would be to notify the client of any bags that were damaged on receipt, and to remove those from the sample stream to avoid any potential cross-contamination.			
****
  
89
  **12.0      DATA VERIFICATION**The Terra Leach (TL) system of soil sampling and analysis does not lend itself to a conventional quality control program of duplicates, blanks and standards.  As there is no preparation of the sample prior to digest, the requirement of inserting blanks to check on cleaning of preparation equipment is obviated.  There are currently, as far as the author is aware, no commercially prepared and certified standards that could be inserted with TL samples (Genalysis does insert its own standards with each analysis batch at the laboratory).  Accordingly the quality control program for TL sampling consists of: firstly taking due care that the samples are collected correctly and consistently, and that the sampler wears no jewellery or other metallic objects; secondly by taking field duplicate samples; and, thirdly, by repeat sampling over anomalies, though it must be borne in mind that different climatic conditions between the two surveys could significantly affect results.			In addition, AMF carried out other repeat sampling programs to confirm the validity of gold or other TL soil anomalies.  These included fire assay analysis of conventional soil samples and of vertical channel samples from pits dug through the soil profile across the TL soil anomalies			In the laboratory, Genalysis carries out its own internal checks with each batch analyzed.  In a typical batch of 63 samples Genalysis checked 3 samples (4.8%), and inserted 3 standards (4.8%) and two blanks (3.2%).			Calculation of the correlation coefficients of the laboratory repeat samples show an excellent correlation between the first and second TL assays of the same sample. The repeat analyses of 53 samples (3.41%) from a total population of 1,553 samples from Lugazi produced a correlation coefficient **r = 0.9779.**
****

				Figure 12.1  Comparison of TL gold repeats, Mitoma (*after B.D. Milne)*
  
90
  			Three anomalous areas were selected by AMF from the same Mitoma data set in October 2004.  Each area was resampled using the logged GPS coordinates. The correlation coefficient of the two data sets is **r = 0.874**(n= 57), very good considering the time lapse between sampling, possible different locations and laboratory variation. The comparisons shown below in Figure 12.2 illustrate that the anomalies are highly repeatable in both position and magnitude.  
				Figure 12.2 Comparisons of Original and Repeat TL sampling, Mitoma (*after B.D. Milne)*
          
91
                                                          
92
            
				Figure 12.3  Rugoma Soils TL vs. Fire Assay
        
93
                                                                
94
            
UTM E

TL Au						2005

TL Au						2004

TL As						2005

TL As						2004

0170500

2.45

   

469

   

0170550

1.73

   

629

   

0170600

2.54

2.71

609

763

0170650

3.26

3.21

822

949

0170700

4.27

12.34

789

1493

0170750

3.7

5.05

804

754

0170800

5.07

5.23

573

1038

0170850

4.91

4.84

515

764

0170900

3.72

3.66

387

597

0170950

2.26

2.56

636

847

0171000

1.98

2.79

920

1117

0171050

2.73

2.84

806

1068

0171100

2.36

2.73

739

1083

0171150

2.24

2.67

989

1214
  
				Figure 12.4 Kahungye Confirmation Sampling of TL Au anomaly (*After B.D. Milne*)
        
95
           		Individual batches of channel and rock samples were small, and no external standards, blanks or duplicates were submitted.  The effect of a single quality control sample in the batch would not be significant.  Internal standards and blanks were added to each batch of samples received by SGS in Mwanza.  Internal check analyses were run by SGS on approximately 8% of the samples in each batch, returning Au values within an acceptable range.    		A check assay program was run on 27 of the 157 HMC samples from the Kabira area of the Mitoma Project.  The original samples were analyzed by fire assay at SGS Mwanza and the remaining pulps were shipped to SGS Lakefield, South Africa, for re-analysis.  Due to the small size of the original samples, 8 had too little material for the repeat assay.  Of those that were re-assayed, the repeat values were essentially close to the original assays.  With the small sample size and the nature of the HMC sediments, there is always the possibility that the samples were insufficiently homogeneous.  The results are shown below in Table 12.1.    		Table 12.1 HMC Repeat Assays		 
  

 

 

 

Original Assays

Repeat assays

  

   

  

  

 

 

 

Various Cert #'s

SGS Lakefield : LA017999

  

  

 

 

 

 

**Au**

**Au R**

**Au**

*Au*

*Au R1*

*Au R2*

*Au R3*

Sample

Project

Job

Date

**FAA**

**FAA**

**Converted**

*FAA535*

*FAA535*

*FAA535*

*FAA535*

number

 

Number

reported

**ppm**

** ppm**

**Ppm**

*5ppb*

*5ppb*

*5ppb*

*5ppb*

KB 060/a

  

LA 011998

2005-10-11

<0.02

-

I.S

*I.S.*

* *

* *

* *

KB 061/a

 

LA 011998

2005-10-11

<0.02

-

0.010

*10*

* *

* *

* *

KB 071/a

 

LA 011998

2005-10-11

<0.02

-

<0.005

*<5*

* *

* *

* *

KB 072/a

 

LA 011998

2005-10-11

**0.17**

-

I.S

*I.S.*

* *

* *

* *

KB 073/a

 

LA 011998

2005-10-11

<0.02

-

<0.005

*<5*

*<5*

* *

* *

KB 074/a

 

LA 011998

2005-10-11

<0.02

-

0.006

*6*

* *

* *

* *

KB 075/a

 

LA 011998

2005-10-11

<0.02

-

<0.005

*<5*

* *

* *

* *

KB 0112/a

 

LA 014282

22/10/2005

<0.02

--

<0.005

*<5*

* *

* *

* *

KB 0146/a

 

LA 014282

22/10/2005

**0.12**

--

**0.146**

***146***

* *

* *

* *

KB 0171/a

 

LA 014282

16/10/2005

0.03

--

I.S

*I.S.*

* *

* *

* *

KB 0173/a

 

LA 014282

16/10/2005

0.02

--

<0.005

*<5*

* *

* *

* *

KB 0174/a

 

LA 014282

16/10/2005

<0.02

--

<0.005

*<5*

* *

* *

* *

KB 0175/a

 

LA 014282

16/10/2005

**0.43**

--

I.S

*I.S.*

* *

* *

* *

KB 0200/a

 

LA 014282

16/10/2005

<0.02

--

0.029

*29*

* *

* *

* *

KB 0201/a

 

LA 014282

16/10/2005

<0.02

--

<0.005

*<5*

* *

* *

* *

KBR 001

Kabira

LA 012000

2005-10-11

**0.38**

--

I.S

*I.S.*

* *

* *

* *

KBR 012

Kabira

LA 012000

2005-10-11

<0.02

--

<0.005

*<5*

*<5*

* *

* *

KBR 013

Kabira

LA 012000

2005-10-11

**1.53**

--

I.S

*I.S.*

* *

* *

* *

KBR 021

Kabira

LA 012000

2005-10-11

<0.02

--

0.015

*15*

* *

* *

* *

KBR 022

Kabira

LA 012000

2005-10-11

**1.90**

--

I.S

*I.S.*

* *

* *

* *

KBR 030

Kabira

LA 012000

2005-10-11

**9.59**

**0.77**

**5.880**

*5880*

*3680*

* *

* *

KBR 031

Kabira

LA 012000

2005-10-11

<0.02

--

<0.005

*<5*

* *

* *

* *

KBR 032

Kabira

LA 012000

2005-10-11

<0.02

--

<0.005

*<5*

* *

* *

* *

KBR 033

Kabira

LA 012000

2005-10-11

<0.02

--

I.S

*I.S.*

* *

* *

* *

KBR 034

Kabira

LA 012000

2005-10-11

**13.70**

**20.70**

**15.500**

*15500*

*14200*

*7240*

*20600*

KBR 035

Kabira

LA 012000

2005-10-11

**20.10**

**1.66**

**1.660**

*I.S.*

*1660*

* *

* *
          
96
           		In the author’s opinion the methodology and control of the TL soils, stream sediments and pitting/trenching sampling programs were in accordance with international mining industry standards and were adequate to provide an initial assessment of the potential for economic gold mineralization.  With the introduction of RC drilling to follow up the targets generated, a conventional quality control system of duplicate sampling and the insertion of blanks and standards should be implemented.  The two laboratories involved in analyzing the samples, Genalysis Laboratory Services in Perth, Australia, and SGS African Assay Laboratories in Mwanza, Tanzania, are both well-established and ISO-certified facilities with a considerable history of serving the needs of the mineral exploration community.  No independent check analyses were done by the author as this is neither appropriate nor necessary for soil and stream sediment geochemical programs such as those carried out by AMF on the Lugazi, Mubende, Mitoma and Mwerusandu Properties.                                               
97
            13.0      INTERPRETATION AND CONCLUSIONS The Lugazi, Mubende, Mitoma and Mwerusandu properties in southern and southwestern Uganda are all located in highly prospective geology for economic gold mineralization.  All have a granite/metasediment association typical of IRG deposits.  Mubende has a greisen association, making it a potential target for Timbarra-style mineralization, while Mitoma and Mwerusandu have a distinct Sn-W association that may be more typical of Fort Knox style.    		The Mitoma project bears similarities to Banro Corp’s Twangiza in the eastern DRC. The Twangiza auriferous sulphides are hosted in similar metasediments along the hinge of an anticline, with associated mafic and porphyritic intrusions and regional Sn-W granites.  Twangiza’s measured + indicated resources (Banro, 2007) are 39.2 Mt at 2.39 g/t Au.    		In the author’s opinion the methodology of the TL soils, stream sediments and pit/trench sampling programs were in accordance with international industry standards and were adequate to provide an initial assessment of the potential for economic gold mineralization.  The approach of identifying target areas with potential to host IRG deposits, confirming the geology on the ground followed by regional stream sediment sampling to identify areas of higher gold potential was appropriate.  Follow-up of these targets with TL soil surveys has proven effective in outlining areas of significant gold anomalies that warrant drill-testing.     		At Lugazi initial stream sediment sampling confirmed the Ni/Co anomalies detected by the German Geological Mission in 1972, and detected several gold anomalies.  TL soil sampling over these anomalies has outlined a gold-in-soil anomaly approximately 3,000 m along strike by 300-700 m wide.  This anomaly is open to the west.  Pits dug to bedrock have confirmed the presence of sheared and graphitic schists.    		Mubende is at an earlier stage of exploration, but reconnaissance mapping has identified a greisen zone in the granites of the Singo Batholith and initial stream sediment sampling has detected Au and Sn/W anomalies.  The known auriferous quartz vein in metasediments at Kyashampawo, on the west side of the Singo granite, is too small to be the sole source of the extensive alluvial gold in the nearby Kamalenge area.  Possible Fort Knox-style mineralization within the Singo granite is a more likely source.    		Stream sediment and detailed TL soil surveys on the three northern licences (Kahungye, Rutaka and Rugoma) of the Mitoma project have outlined several robust  insitu  gold anomalies that are ready for drill-testing.  Pits dug to bedrock have confirmed the geochemical anomalies and detected gold mineralization in the weathered mica-schists.  The anomalous pattern of Au + pathfinders (As, Sb, W, Sn, Bi) is typical of that associated with IRG deposits.  The two southern licences, Kabira and Kabira East, have significant stream sediment gold anomalies that require follow-up with TL soils and mapping.    		On the Mwerusandu property the Mwerusandu licences have significant Sn anomalies that require further investigation, and there are elevated gold values in the sediments and TL soils.  On the Nyamulindira licence TL soils have identified a significant gold anomaly over mica-schists adjacent to an arena granite, with a strike length of about 1,000 m.  This zone is open to the south, with the same granite/metasediment contact zone continuing for some 14 km through the adjoining Kiana Mine licence.  Channel-sampling of a trench across this anomaly returned 20.4 g/t Au over 3.5 m.   The current extent of the gold anomaly is ready for drill-testing.         
98
  ****            14.0      RECOMMENDATIONS On the  Lugazi  property the first priority would be to acquire the final data from the airborne geophysical survey that was completed in March 2007.  This should then be interpreted by a geophysicist with experience in East African geology and conditions.  Ground EM should also be carried out on the soil anomalies in EL 0020.  A first phase of RC drilling should target the gold-in-soil anomalies. Regional soil sampling should be carried out on EL 0167 and, once granted, on two new adjacent areas just applied for.  Initial soil anomalies in both EL 0167 and the new areas should be infilled, and pits should be dug to investigate the depth continuity of the anomalies and the bedrock beneath the TL anomalies.  Phase II would largely consist of additional RC drilling, contingent on the results of the first phase.    		On the  Mubende  property Phase I should consist of a test program of augering and pitting in selected drainages, to select the best method of sampling the stream sediments across the area.  Recovered gold particles should be examined to determine their provenance, and the anomalies resulting from the sediment sampling should be followed up with TL soil sampling.  Phase II should consist of infill TL soil sampling and detailed geological mapping in the most promising areas.    		On the  Mitoma  property Phase I should consist of shallow RC drilling to test the principal soil anomalies on the Kahungye and Rugoma licences.  Infill/confirming stream sediments would be taken on the Kabira licences to the south, as well as TL soils to follow up the sediment anomalies.  Phase II would include infill soil sampling at Kabira as well as additional RC drilling at Kahungye-Rugoma, contingent on the results of the initial holes, and at Kabira if warranted by gold-in-soil anomalies.    		On the  Mwerusandu  property the first phase programs should include additional sediment sampling at Kiana and Mwerusandu, followed by TL soil sampling and mapping over areas of interest.  The soil sampling would include extension to the south of the existing anomalous zone at Nyamulindira, with lines oriented both east-west and north-south to cover the soil anomaly and a major E-W structure.  The major soil anomaly and trench mineralization at Nyamulindira should be tested with RC drilling.  Contingent on the results of the initial drilling, a second phase of RC would be required to test the depth and strike extensions of the mineralization.    		With the introduction of RC drilling to follow up the targets generated, a conventional quality control system of duplicate sampling and the insertion of blanks and standards should be implemented.                      
99
            
Table 14.1  Phase I Exploration Budgets

**Project**

**Stream									Seds.**

**Soils**

**Geophys.**

**Geology									/LandSat**

**RC Drilling**

**Reports**

**Licence**

**Fixed Costs**

**Total**

**Lugazi**

0

100,000

95,000

0

150,000

5,000

12,000

22,500

**$384,500**

**Mubende**

19,000

80,000

0

5,000

0

5,000

4,000

22,500

**$135,500**

**Mitoma**

5,000

59,000

0

5,000

150,000

5,000

4,000

22,500

**$250,500**

**Mwerusandu**

12,000

65,000

0

14,000

140,000

5,000

2,000

22,500

**$260,500**

**Totals**

**$36,000**

**$304,000**

**$95,000**

**$24,000**

**$440,000**

**$20,000**

**$22,000**

**$90,000**

**$1,031,000**
			Table 14.2  Phase II Exploration Budgets
**Project**

**Stream									Seds.**

**Soils**

**Geophys.**

**Geology									/LandSat**

**RC									Drilling**

**Reports**

**Licence**

**Fixed									Costs**

**Total**

**Lugazi**

0

0

0

1,000

140,000

0

0

7,500

**$148,500**

**Mubende**

0

15,000

0

1,000

0

0

0

7,500

**$23,500**

**Mitoma**

0

26,000

0

1,000

140,000

0

0

7,500

**$174,500**

**Mwerusandu**

0

0

0

0

240,000

0

0

7,500

**$247,500**

**Totals**

**$0**

**$41,000**

**$0**

**$3,000**

**$520,000**

**$0**

**$0**

**$30,000**

**$594,000**
			Table 14.3  Total Exploration Budgets 2007
**Project**

**Stream									Seds.**

**Soils**

**Geophys.**

**Geology									/LandSat**

**RC									Drilling**

**Reports**

**Licence**

**Fixed									Costs**

**Total**

**Lugazi**

0

100,000

95,000

1,000

290,000

5,000

12,000

30,000

**$533,000**

**Mubende**

19,000

95,000

0

6,000

0

5,000

4,000

30,000

**$159,000**

**Mitoma**

5,000

85,000

0

6,000

290,000

5,000

4,000

30,000

**$425,000**

**Mwerusandu**

12,000

65,000

0

14,000

380,000

5,000

2,000

30,000

**$508,000**

**Totals**

**$36,000**

**$345,000**

**$95,000**

**$27,000**

**$960,000**

**$20,000**

**$22,000**

**$120,000**

**$1,625,000**
  In the author’s opinion, the character of the properties in AMF’s portfolio is of sufficient merit to justify the nature and scale of the programs outlined above.  The budgets developed by AMF for these programs are considered appropriate by the author.  
100
            15.0      REFERENCES  
-         2003.  Uganda – Mining Act				-         2006.  Uganda – Opportunities for Mining Investment.  The Republic of Uganda.
  Antoine, L., 2007.  On the interpretation of remote sensed and airborne geophysical data over			     the Lugazi Exploration Licence.  Geoscientific and Exploration Services, unpublished			     report for Flemish Investments Limited.			Baker, E.M. & Andrew, A.S., 1991.  Geologic, fluid inclusion and stable isotope studies of			     the gold-bearing breccia pipe at Kidston, Queensland, Australia. Econ. Geology			     86:810–830.			Bakke, A.A., 1995.  The Fort Knox ‘porphyry’ gold deposit – Structurally controlled			     stockwork and shear quartz vein, sulphide-poor mineralization hosted by a Late			     Cretaceous pluton, east-central Alaska.  In: Schroeter, T.G., (Ed) Porphyry deposits of			     the northwestern Cordillera of North America.  Can. Inst. Mining Metall., Spec. Vol.			     46, pp 795-802.			Blevin, P.L., 2004.  Redox and compositional parameters for interpreting the granitoid			     metallogeny of eastern Australia: implications for gold-rich ore systems.  Resource			     Geology 54(3): 241-252.			Cahen, L. et al, 1984.  The Geochronology and Evolution of Africa.  Clarendon Press,			     Oxford.			Kuehn et al. (1990) Regional setting and nature of gold mineralization in Tanzania and			     southwest Kenya: Precambrian Research, v. 46, p. 71-82			Milne, B.D., 2005.  Exploration to date and exploration results, Mitoma Concessions, SW			     Uganda.  Internal report for FIL.			Mustard, R., 2001.  Granite-hosted gold mineralization at Timbarra, northern New South			     Wales, Australia.  Mineralium Deposita 36: 542-562.			Pickford, M., Senut, B. and Hadoto, D., 1993.  Geology and Palaeobiology of the Albertine			     Rift Valley Uganda-Zaire, Vol. 1: Geology.  CIFEG Occas. Publ. 24, 1-190; Orleans.			Pohl, W., 1994.  Metallogeny of the northeastern Kibara belt, Central Africa – Recent			     perspectives. – Ore Geol. Rev. 9, 105-130; Rotterdam.			Quandt, D., Ekstrom, C., Craig, C., 2007.  Technical Report for the Fort Knox Mine.  NI 43-			     101 Report prepared for Kinross Gold Corp. and Fairbanks Gold Mining Corporation			     Inc.			Schlüter, T., 1997.  Geology of East Africa. Gebrüder Borntraeger, Berlin-Stuttgart			Skead, M.B., 2006.  NI 43-101 Technical Report, Twangiza Project, South Kivu Province,			     Democratic Republic of Congo.  Report submitted to SEDAR for Banro Corp.  
101
           		Skead, M.B., 2007.  Fourth NI 43-101 Technical Report, Twangiza Project, South Kivu  		     Province, Democratic Republic of Congo.  Report submitted to SEDAR for Banro  		     Corp.    		Thompson, J.F.H., et al, 1999.  Intrusion-related gold deposits associated with tungsten-tin  		     provinces.  Mineralium Deposita 34: 323-334.    		Thompson, J.F.H. and Newberry, R.J., 2000.  Gold deposits related to reduced granitic  		     intrusions.  Society of Economic Geologists, Review Series, 13: 377-397.                                           
102
            16.0      CERTIFICATE  
to accompany the report entitled “Report on the Mineral Exploration Properties of African Mineral Fields Inc. in the Republic of Uganda”, dated May 15, 2007.
  
          I, Martin J. Taylor, do hereby certify that:
    I am an independent consulting geologist residing at 32 Raymond Avenue, Toronto, Ontario, Canada, M6S 2B3.
- I graduated from the University of Bristol in Bristol, England in 1970 with a B.Sc. in Geology.  I have practised my profession continuously since that time.   I am a practising member in good standing of the Association of Professional Geoscientists of Ontario, licence number 0040.I have experience in exploration for gold deposits in Archaean and Proterozoic terranes in East Africa, including those in lateritic environments.  I have 6.2 years previous experience in gold exploration in the Lake Victoria Goldfields of Tanzania.
- I have read the definition of "qualified person" set out in National Instrument 43-101 ("NI 43-101") and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43 -101.   I have visited 13 of the 14 properties described in this report.  I have also reviewed the available licence documents and underlying agreements relating to the individual licences though, as a professional geoscientist, I am not qualified to verify their legal status.  I am the sole author of this report.I have no personal knowledge as of the date of this certificate of any material fact or change which is not reflected in this report.
- Neither I nor any affiliated entity of mine is at present, or under an agreement, arrangement or understanding expects to become an insider, associate or affiliated entity of African Mineral Fields Inc., or any associated or affiliated entity.   Neither I nor any affiliated entity of mine own, directly or indirectly, nor expect to receive any interest in the properties or securities of African Mineral Fields Inc., or any associated or affiliated companies.Neither I nor any affiliated entity of mine have earned the majority of our income during the preceding three years from African Mineral Fields Inc., or any associated or affiliated companies.
- I have not previously worked on these properties.   I have read the NI 43-101 and Form 43-101F1 and have prepared this technical report in compliance with these documents and in conformity with generally accepted Canadian mining industry practice.			
			Dated this 15th day of May, 2007 at Mwanza, Tanzania.			<Signed>			Martin J. Taylor, P.Geo.

103

**APPENDIX I****Letter from Department of Geological Survey and Mines**

****

****

104

105
****
106

****

****

107