Tangeray Resources Zambia Ltd

Home , Kabompo, Kasempa, Mufumbwe (constituency)

Mineral Exploration Activities in Mufumbwe Area

GEOLOGICAL REPORT ON

Exploration Licence No. 17797-HQ-LPL

TANGERAY RESOURCES ZAMBIA LTD

December, 2013

MUFUMBWE PROJECT 17797-HQ-LPL CONTENTS

1.0.0 INTRODUCTION ...... 3 1.1.0 LOCATION AND INFRASTRUCTURE ...... 3 1.2.0 SOIL AND VEGETATION…………...………………………………………………………..5 1.3.0 TOPOGRAPHY AND CLIMATE…..…… ...... 5 2.0.0 TENEMENT STATUS ...... 5 3.0.0 GEOLOGY ...... 6 4.0.0 WORK DONE ...... 7 4.1.0 PROJECT VISION AND OBJECTIVE….…………………………………………………...8 5.0.0 PROJECT IMPLEMENTATION ...... 9 6.0.0 CONCLUSION ...... 10 6.0.0 EXPENDITURE ...... 10

INTRODUCTION

This report presents an exploration work carried out by Tangeray Resources Zambia Ltd over the Mufumbwe Licence area (17797-HQ-LPL). It is situated in Mufumbwe districts of Western Province of Zambia. The Mufumbwe licence covers approximately an area of 1126.67 hectares and Tangeray Resources Zambia Ltd holds the mineral and exploration rights of the tenement area for the purposes of identifying an economic base metal resource. The map on figure 1. below shows the locality and extent of the Mufumbwe Licence.

LOCATION AND INFRASTRUCTURE

The licence area is 100 km north of Kaoma and along Kaoma- Kasempa Road. It is in Mumfumbwe district. The licence can only be accessed through D301.During the wet season the access to the area becomes difficult and exploration is pretty slow due to the water logged main gravel road and other tracks. The activities of the inhabitants in the area are subsistence farming, hunting, charcoal and burning.

Figure 1. Topographical location of the licence area The area is not connected to the National Grid. Local inhabitants use charcoal and wood for cooking, candles or kerosene lanterns for lighting at night. Hospitality

industry such as hotels, lodges, guest houses etc. is non-existent. Government schools and clinics are only found along the Kaoma-Kasempa Road. Most merchandise materials are bought from Kaoma and transported to make shift shops transported in open van and bicycles. Houses for local inhabitants are mostly made of bricks constructed from clay. Roofs of huts are usually made of grass and iron sheets in exceptional circumstances. Population is very sparse.

Geographical Coordinate Point System Latitudes Longitudes 1 13o04’54” 25o04’24” 2 13o04’54” 25o05’42” 3 13o07’30” 25o05’42” 4 13o07’30” 25o04’24”

Page 4 of 10 SOIL AND VEGETATION

The variation in soil differences is largely attributed to the geomorphology and underlying rock types. Generally the area is dominated by sandy cover mostly whitish brownish to orange soils in areas with lateritic and fericrite surfaces. Some dambos and dambo margins are of white to white-grey clay to silt soils derived from mainly deposition from the surrounding areas.

Mufumbwe licence area is mostly covered with savannah style of forest. The landscape has an open broadleaved deciduous tree popularly known as the Miombo tree within the soils derived from Kalahari sedimentary rocks. The land area is lightly cultivated with only a few local people owning smaller portions of the land where they cultivate their crops.

Most of the natural vegetation is still intact and in its natural state. Water bodies such as dambos are characterized by scanty bushes and tall grass. Some dambos are perennial whereas others are dry during the dry season. Thick vegetation is characterized by short grass whereas open lands are characterized by tall grass.

TOPOGRAPHY AND CLIMATE The topographic expression of Mufumbwe area is generally flat with low altitude regions along rivers and stream. Generally the major part of Mufumbwe is a plateau with miombo woodlands vegetation. The general height of the area ranges from 1,150 to about 1,250 metres above sea level or slightly higher. Most of the area is gently undulating. Mufumbwe has a humid climate and is classified as subtropical (dry winter and hot-wet summer), with a subtropical moist forest bio-zone. The seasons are divided into three main periods, namely; the rain season (middle November to April), Cold season (April to August) which becomes increasing windy towards August. Hot season begins from September to end November. The hot season is progressively hotter towards October. The rains are heaviest from January to the end of March.

TENEMENT

Licence Code 17797-HQ-LPL

Licence type Large Scale Prospecting Licence

Tangeray Resources Zambia Limited Licence holder

Date of application 24/07/2012

Date issued 03/05/2013

Date of expiry 02/05/2015

Duration of Licence 2 years

Table1: Tenement information on licence code number 17797-HQ-LPL

GEOLOGY

Mufumbwe licence (17797-HQ-LPL) lies within the Katangan high Region of the Lufilian Fold Belt. The Katangan high Region is comprised of Katangan Supergroup rocks, which consists of two dominant member groups namely, the upper and lower Kundelungu. In this region the Kundelungu is known to have been covered by younger sequences higher up in the stratigraphy namely the Kalahari and the Karoo. In a few localities the young sequences higher up in the stratigraphy namely Karoo and Kalahari have been eroded and are represented by a thin horizon of the carbonaceous shales which marks the contact between the Karoo and the upper Kundelungu. The areas to the North east of the Mufumbwe project exhibits formations with hydrothermal hematite and magnetite associated with copper mineralization, the area also exhibits progressive hydrothermal alteration and brecciation, significant disseminated copper carbonate associated with hematite and magnetite are evident in upper parts of Kundelungu sequence in these localities. The Kundelungu consists of regionally of thinly interbedded argillite with thin beds of calcareous sandstone and siltstone. The geological structure of the Kantangan high within the Mufumbwe area consists of meta-sediments including massive hematite alteration which is difficult to recognize from altered parent rocks.

The Mufumbwe licence area has three stratigraphical units on the surface, namely Kundelungu, granite and Kalahari.

Figure 3. Geology of the licence area

25 30 U N B E N D IA N B E 0 100km T L L T E B N A 17797-HQ-LPLR A IB LUFILIAN License AreaK ARC BANGW EULU 10 BLOCK

y le al v a w LT g n E a B u E L I ID Sinda Batholith M U II III IR

LT IV E BE Hook Granite BIQ U 8 O ZAM Chipata Com plex M G ranite BAROTSE BASIN Z M S CHOMA KALOMO BLOCK ZIMBABWE CRATON

LEGEND

Paleozoic to Recent Mozambique belt Kibaran and Irumide belts Strike-slip fault Basement inliers Precambrian, locally Thrust G ranitoids sediment cover in Lufilian Arc Interanional Katanga Supergroup Zambezi belt Archean lower basement boundary

Figure 4. Regional geological map of Zambia and the tectonic setting of 17797-HQ-LPL

Mineral Property Right

The project area is under a mining right licence belonging to Tangeray Resources Zambia Ltd.

WORK DONE

During the period of the first quarter of 2014, Tangeray Resources Zambia Ltd completed to reconnaissance mapping and sampling trips to the 17797-HQ-LPL area. Rock chip samples from the sound field visit were collected from old mine dumps and outcrops within the SPP area and the surrounding environs. All the samples were malachite+/- other copper oxide minerals. Although the samples that were collected, sending to the laboratory did not become a priority and consequently assay are pending.

Mineralization Secondary copper mineralization is confined to the breccia zone and in the fracture zones or joint planes of the shales. The ores include: malachite (as the main ore), chrysocolla and azurite. Accessory minerals are quartz, chlorite and hematite.

Chemical Analysis The analytical results of samples from Geological Survey of Zambia chemistry laboratory are shown in the table below:

Sample Id Copper% Iron% Gold% Malachite% Cobalt% Sample 1 3.56 7.92 0.23 0.42 0.05 Sample 2 5.82 8.55 1.03 1.59 0.04 Sample 3 1.17 9.93 0.05 0.66 0.09

Commodity

Copper, cobalt, gold, malachite, uranium Copper-cobalt Minerals

The copper-bearing and cobalt-bearing minerals in North-western Province include: antlerite Cu3(OH)4SO4, aurichalcite (Zn,Cu)5(CO3)2(OH)6, azurite Cu3(CO3)2(OH)2, bieberite CoSO4•7H2O, bornite CuFeS2, briartite – Ge sulphide Cu2(Fe,Zn)GeS4, bournonite CuPbSbS3, brochantite Cu4SO4(OH)6, carrollite CuCo2S4 or Cu(Co,Ni)2S4, cattierite CoS2, chalcanthite – copper sulphate, CuSO4•5H2O, chalcocite Cu2S, chalcopyrite CuFeS2, chalcosiderite CuFe6(PO4)4(OH)8•4H2O, chalcotrichite, chrysocolla CuSiO23.2H2O or (Cu,Al)2H2Si2O5(OH)4, colbaltian dolomite, colbaltiferous pyrite (pyrite FeS2 with colbalt Co), cobaltite (Co,Fe)AsS, cobaltocalcite, cobaltoan pyrite (Co,Fe)S2, cobaltoan staurolite Co(Ni)2Al9O6(SiO4)4(O,OH)2 with cobalt and Ni, Cobaltpentlandite (Co,NiFe)9S8, cornetite Cu3(PO4)(OH)3, covellite CuS, cubanite (CuFe2S3), cupriferous mica, cuprite Cu2O, cuprosklodowskite Cu(UO2)2(SiO3OH)2•6H2O, cyprine – Cu-bearing , blue or greenish-blue vesuvianite Ca10(Mg,Fe)2Al4[Si2O7]2[SiO4]5(OH,F)4, descloizite (Cu,Zn)Pb(VO4)(OH), devilline CaCu4(SO4)2(OH)6•3H2O, digenite Cu9S5, dioptase CuSiO2O6, duftite PbCuAsO4(OH), garnierite – group name for Ni or Co silicates, gersdorffite (Ni,Fe,Co)AsS, heterogenite CoO(OH), heterogenite-3R CoO(OH), libenthenite Cu2PO4(OH), linnaeite Co3S4, low- copper linnaeite CuCo3S4, low-copper thiospinel, olivenite Cu2AsO4(OH), mackinawite (Fe,Ni)9S8, malachite Cu2CO3(OH)2 or CuCO3•Cu(OH)2, mattagamite (Co,Fe)Te2, melonite NiTe2, peacock ore Cu5FeS4, posnjakite Cu4SO4(OH)6•H2O, stannite (Cu2FeSnS4), stromeyerite (Ag,Cu)2S, tennantite (Cu,Fe,Zn,Ag)12As4S13, tenorite CuO, tetrahedrite (Cu,.Fe,Zn,Ag)122Sb4S13, turquoise CuAl6(PO4)4(OH)8•4H2O, ullmannite (Ni,Co)(Sb,As)S, , zincian libethenite (Zn,Cu)2PO4(OH), and Zincian malachite.

Iron ore

2+ Iron-bearing minerals occurring in Zambia include: miankerite Ca(Mg,Fe ,Mn)(CO3)2 or Ca1.00-1.12(Fe0.50-0.70Mg0.20-0.26Mn0.06-0.12)(CO3)2, breunnerite MgCO3 with 5 to 50 mol. per cent FeCO3, chamosite, chalybite FeCO3, ferrian wad, goethite -FeO•H2O, 3+ haematite -Fe2O3. jacobsite MnFe 2O4, limonite FeO(OH)•nH2O or HFeO2•nH2O, 3+ maghemite -Fe 2O3, magnetite Fe3O4, manganotantalite (Mn,Fe)(Ta,Nb)2O6, melnikovite FeS2; greigite, melnikovite pyrite FeS2, micaceous haematite, marcasite FeS2, martite Fe2O3, pencil ore – red botryoidal haematite, pseudobrookite 2+ Fe2O3•TiO2, titanohaematite, titanomagnetite, triplite, trolilite FeS, ulvöspinel Fe 2TiO4, and vredenburgite.

PROJECT VISION AND OBJECTIVE

The decision to acquire mining right in the area was made, in addition to other economic reasons, to encourage a systematic and organized copper exploitation venture. As such the 8 overall objective is to avoid wasteful mining practices, both environmentally and economically. The local communities, who are mostly involved in illegal and disorganized mining activities, will be incorporated into the mining venture, thereby providing employment and other socio- economic benefit to them. This is in line with the national vision to alleviate poverty through sustainable natural resource utilization. Further, the socio-economic vision for the mining operation can be summarized as follows:

- To discourage illegal mining (for the sake of national benefit through tax from copper exports) - To generate employment opportunities - To discourage wasteful mining practices, environmentally and economically - To contribute to poverty alleviation

It is based on the above that capital investment is being sought, for the mine to attain meaningful profit levels and hence fulfill the intended socio-economic objectives of contributing to the uplifting of the standards of living for the Zambian people.

To increase the production to profitable tonnage margins, the company needs to invest in capital equipment and other resources essential for a successful mining operation.

PROJECT IMPLEMENTATION

The directors have initiated this project with a view to gain experience in experience in mining activities, through operations in the area.

Open excavations and pits will be opened and commissioned using hired machinery and hand tools. Local labourers will be used with direct supervision from the directors.

The company would like to improve production levels and operation modes by acquiring efficient mining machinery and tools, and engaging expert consultants in mineral resources development.

SOCIO-ECONOMIC AND ENVIRONMENTAL CONSIDERATIONS

Tangeray Resources Zambia Ltd is operating a Large-scale prospecting in rural Mufumbwe area of North-western Province. The landscape is flat. Further, the company will operate in an environment friendly manner. Workers will be sensitized on the need to practice safe environmental and human health working modes.

ZAMBIA AND COPPER

Zambia produces a good amount of copper and cobalt plus uranium and gold. The world copper trade is never complete without the Zambian input. It is anticipated that systematic and organized exploitation of the copper deposits will be promoted and supported by various stakeholders. If properly explored and systematically mined, the copper mine could contribute to Zambia’s GDP. Systematic exploration utilizing modern methods and detailed mapping, and investment support in form of loans, offers considerable potential for the discovery of additional deposits of copper.

CONCLUSIONS

The copper-gold-cobalt deposits are in rural Mufumbwe District. The mining of copper ore will be environmentally friendly and the environmental management plan will be drawn later. The character of the site will be preserved No agricultural activities are seen for several kilometres around the sites Tangeray Resources Zambia Ltd will do business with Zambian companies. Tangeray Resources Zambia Ltd will only employee Zambians.

EXPENDITURE The table shows expenditure incurred within the licence area

FILED $20,000 GEOLOGICAL SURVEYS

Consultancy $10, 000

LABORATORY $5, 000

TEST

TableTOTAL2. Expen $35,000

Mineral Exploration Activities in Liteta Area

GEOLOGICAL REPORT ON

Exploration Licence No. 17782-HQ-LPL

TANGERAY RESOURCES ZAMBIA LTD

December, 2013

TANGERAY RESOURCES ZAMBIA LTD 1

LOCATION AND ACCESS

The project area is in Liteta of Central Province of Zambia. Access to the area is through the Great North Road. The site is located on the topographic map of Zambia at scale 1: 250,000. The Latitude - Longitude coordinates outlining the area of interest are as shown below.

Fig. 1. Topographic map of 18798-HQ-LPL

COORDINATES

Lat Lat Lat Long Long Long Order Deg Min Sec N/S Deg Min Sec E/W 1 14 44 30 S 27 55 48 E 2 14 44 30 S 28 6 54 E 3 14 48 18 S 28 6 54 E 4 14 48 18 S 27 55 48 E

The area is 139.50 square kilometers.

Historically, the area has been a prospective area for copper and gold mineralization as far back as from 1950s. Various international prospectors have traversed the area in search of mineral deposits. This is evidence by several prospect markings, old bore holes and archived records at Kalulushi Chamber of Mines in the Copperbelt and the

Geological Survey Department in Lusaka. As such, most of the local people are aware of the potential of mineral wealth in the area. This has prompted most of the local people to engage in illegal mining activities for several years, following up old prospect beacons.

Regional Structure

Regional Geology

The geology of the Liteta is composed of quartzites and schists of the Plateau Series belonging to the Luano Valley, which is part of the craton that has remained stable during the orogenic deformations probably since Archean. In general the area is overlain by a thick sequence of quartzites and pelites of the Plateau Series unconformably overlying the older volcanics and granites. Krishna et al (19--) observed that the gold occurrences in the valley in general are confined to the conglomerates of the Plateau Series and it’s peripheral with the Basement rocks. Krishna et al (19--) concluded that the alluvial gold occurrences along Mulembo, Milambo, and Msekesha streams warrant further investigations for small-scale exploitation. Speed (1984) also observed that; a) the sediments are consistently enriched in gold relative to other world sandstones; b) that the depositional environment was suitable for heavy mineral concentrations. The conglomerates and sandstones in braided river system are similar to that of Witwatersrand though the latter are more mature and the source is greenstone belt; c) gold content correlates well with some of the sedimentary features to suggest that the mineralization is of

3 paleoplacer origin. Speed (1984) also observed that if the analogue with Witwatersrand is valid then only occasional 50-100cm interval in a 1000-2000m sequence may be enriched to economic level.

Local Geology

The deposits are broadly strata-bound and are hosted by a series of NE striking calcareous conglomerates, siltstones and ironstone horizons of the Kundelungu Group. Surface exposures of gossans stained with malachite are quite prevalent in the area. The mineralisation zone is quite extensive though the depth of mineralisation varies as one traverses from site to site. In general, the ore zone is transgressive to the stratigraphic host sequence.

The prospect area is characterised by some of the following features:

(a) deep dissection by erosion into gullies and craggy landforms (b) abundant outcrops (c) silicified grey to tan in coloured shales and siltstones

The secondary mineralisation consists of plugs of malachite and subordinate azurite. The average depth of excavations made in the area is 2m.

3.2 Gold Reserve estimation Native gold has a high density (19gm/cm3), and is chemically resistant to weathering. Therefore it can be transported in large distances by water and can be preferentially concentrated in suitable hydrodynamic conditions. Such concentrations are called placer deposits and can occur within fluvial or coastal of a gold placer deposit are:

1. A gold – bearing source 2. Erosion of this source 3. Transport of detritus from the source by water, and suitable hydrodynamic conditions for the concentration of gold.

The reserves for the eastern part of gold prospect are estimated at 240 000t of gravel at 3.5g/t gold. The mine life is expected to be 6 years at the rate of 30 000 tonnes/annum. A large-scale mining licence covering an area bound by Latitudes 14o 44’ 12”S and 14o55’ 06”S and longitudes 28o59’ 54”E and 30o08’ 30”E is recommended by way of panning.

Area Magnetics

PROJECT IMPLEMENTATION

The directors have initiated this project with a view to gain experience in experience in mining activities, through operations in the area.

Open excavations and pits will be opened and commissioned using hired machinery and hand tools. Local labourers will be used with direct supervision from the directors.

The company would like to improve production levels and operation modes by acquiring efficient mining machinery and tools, and engaging expert consultants in mineral resources development.

SOCIO-ECONOMIC AND ENVIRONMENTAL CONSIDERATIONS

Tangeray Resources Zambia Ltd is operating a Large-scale prospecting in Liteta area of the Central Province.

Further, the company will operate in an environment friendly manner. Workers will be sensitized on the need to practice safe environmental and human health working modes.

EXPENDITURE 5

The table shows expenditure incurred within the licence area

FILED GEOLOGICAL $15,000 SURVEYS

Consultancy $5, 000

SOIL SAMPLING $10, 000 TOTAL $ 30,000

Table 2. Expenditure

Mineral Exploration Activities in Solwezi Area

GEOLOGICAL REPORT ON

Exploration Licence No. 17798-HQ-LPL

TANGERAY RESOURCES ZAMBIA LTD

December, 2013

TANGERAY RESOURCES ZAMBAI LTD

1.0 INTRODUCTION

LOCATION AND ACCESS

The project area is in Solwezi District of North Western province. Access to the area is through the Chingola – Solwezi road. The site is located on the topographic map of Zambia number 1226 B4 at scale 1: 50,000. The Latitude - Longitude coordinates outlining the area of interest are as shown below.

Fig. 1. Topographic map of 17798-HQ-LPL

Lumwana Mine is 160 Kmwest and Kansanshi Mine 50 Km north-west of the concession. These are the mines that are doing well in copper, gold and uranium mining in Zambia. This area is therefore conducive for mining of the said minerals.

COORDINATES

1. 12o 26’ 48” 26o 39’ 06” 2. 12o 26’ 48” 26o 44’ 18” 3. 12o 30’ 00” 26o 44’ 18” 4. 12o 30’ 00” 26o 40’ 42” 5. 12o 32’ 30” 26o 40’ 42” 6. 12o 32’ 30” 26o 39’ 06”

The area is 68.8920 square kilometers. TANGERAY RESOURCES ZAMBAI LTD

OBJECTIVES

The main objectives of this project are:

 to mine cobalt and gold in concession 13008HQ-SML in Solwezi area at a profit.  to contribute to the development of this country by earning foreign exchange through sale of gold and cobalt minerals abroad  to develop the rural communities of Zambia, in this case Solwezi rural.

PROJECT DELIVERABLES

 improved capital base  improved copper production  improved market satisfaction  improved revenues  improved Solwezi rural economy

ELEVATION

The deposit is located in a relatively flat area and nearly 1250 m a.m.s.l. to just above 1320 m a.m.s.l.

LEGALITY

The owner of the mine is Tangeray Resources Zambia of Lusaka. The license area (17798-HQ- LPL) has the following details:

Licence Code 17798-HQ-LPL

Licence type Large Scale Mining Licence

Tangeray Resources Zambia Ltd Licence holder

Date issued 5/3/2013

Date of expiry 5/2/2015

Duration of Licence 2 years

Area 68.8920 Km Sq

Minerals

Copper, gold and cobalt.

Drainage

The area is drained by the Luhanzhila River from east to west and Kanukalo, Chijempakema and Chimiolo streams north soutwards.

Regional Structure

The country west of the Copperbelt in the NW Province is underlain by a series of domes. The eastern domes (the Luswishi and Solwezi domes), have an oval .outline whereas the western domes are more 3 elongated and orientated SW-NE. This is parallel to the regional structural trend which is characteristic of the western part of the Lufilian Arc. There are three western domes, the Mwombezhi and the Kabompo with the third being a poorly exposed, possible SW extension of the Kabompo dome.

Some controversy exists over the formation of the domes which may have been the result of simple uplift along axes parallel to the Lufilian Arc, or have been created by NE thrusting and ramping during the Lufilian Orogeny (Coward and Daly, 1984). The Lufilian Orogeny, (840-465 Ma), was a multiple event which comprises at least three phases of folding. This complex folding has resulted in smaller structural basins and domes being formed within the regional domes structures by later episodes of cross-folding about a N to NW axes (Appleton, 1978). South of the Kabompo and Mwombezhi domes, the effects of the Lufilian Orogeny decrease although locally intense folding is still found within the Katanga lithologies.

Faulting in the area of the licence areas is most obvious in the vicinity of the domes. The faults are orientated either NE (parallel to the domes), or NW. Graben structures are a major feature of the area (Kabompo Gorge). These post-Lufilian faults are less conspicuous further S. Where faults cross the Katanga succession they are represented by fault breccias which in places appear to have had a polyphase formation with several episodes of movement with recementation of the fault breccia by migrating solutions after each phase of movement (Klinck, 1977).

Metamorphism

The highest metamorphic grades in the NW Province occur in the dome areas. The grade progressively decreases away from the domes and in a southerly direction (Ridgeway and Ramsay, 1986). The inner zone of amphibolite-grade passes outward through an epidote-amphibolite metamorphic-facies to a greenschist-facies zone. The northern part of the Mwombezhi licence area falls within the epidote- amphibolite facies along the southern edge of the amphibolite core. The northern part of licence area is underlain by greenschist facies whilst the southern part is underlain by unmetamorphosed Kalahari Group

LOCAL GEOLOGY

The prospect area is characterised by some of the following features:

(a) deep dissection by erosion into gullies and craggy landforms (b) abundant outcrops (c) silicified grey to tan in coloured shales and siltstones

The secondary mineralisation consists of plugs of malachite and subordinate azurite. The average depth of excavations made in the area is 2m.

Several types of alteration have been mapped as being silicification, chloritisation and sericitisation.

Wall rock alteration is pervasive, consisting of argillitisation (kaolinitisation), carbonatisation, silicification and minor chloritisation. These are important guides to mineralisation and would be important in order to locate the primary sulphide mineralisation. Late stage veining consisting of calcite, hematite, and siderite is common.

Structure

The Cu ore bodies are in a fault block in a well-faulted terrain, and it follows a bedding contact, which has been locally displaced. This structure is well-delineated using magnetic surveys and is an important link to mineralisation as these acted as pathways for mineralisation. Thrust faulting is an important structure in 4 the area and the several units or scales separated by faults, i.e. block of fairly dipping shales, bounded on 2 sides by faults, beyond which the structural trends may be quite different. The general regional strike trends appears to be NE – SW.

Summary – Geology, Mineralisation and Exploration

The deposits are broadly stratabound and are hosted by a series of NE striking. N-W dipping (76°) calcareous conglomerates, siltstones and a limestone horizon of the Kundelungu Group. An adjacent caclastic calcareous fault breccia zone contains mineralised clasts but appears to be post-mineralisation age. In detail, the ore zone is transgressive to the stratigraphic host sequence and dips steep (73° NW) with a steep plunge to the NE (72°).

The primary mineralisation is epigenetic, hydrothermal stratabound consisting of cross-cutting veins of calcite, dolomite, quartz, specularite, pyrite, chalcopyrite and bornite. Disseminated bornite and chalcopyrite occurs in the limestone wall rocks. Polished section work identified subordinate molybdenite, sphalerite, magnetite and a number of gold grains. Native silver has also been reported.

2.0 GEOLOGY

The deposit is hosted by Kundelungu rocks. The rocks are poorly exposed in the area. The copper mineralization is found as malachite vein. The vein is hosted by laterite/ferricrete. The malachite mineralization occurs as vein mineralization. It occurs as green copper carbonate. Cuprite is also present in minor amounts. Haematite, goethite and magnetite are the chief iron ore minerals. These minerals occur as grey, light brown, black and yellow minerals. Ilmenite, magnetite, haematite, rutile, and siderite are present as accessory minerals.

Fig. 2. Geological Map covering Plot 17798-HQ-SML.

Fig. 3. Magnetics Map covering Plot 17798-HQ-LPL.

The magnetic map (Fig. 3) shows that the plot encompasses the magnetic low in nT (nanoTesla) passing through it. This area is favourable for the occurrence of gold and cobalt mineralization. As the magnetic map shows the mineralization occurs in the area of intermediate nT readings.

3.0 ORE

The copper is found as green malachite. Quartz veins permeate the rock. Fe-ore occurs as brown oxide. Malachite is exposed at grid reference 12o57’03” south, 26o00’11” east.

3.1 Copper Content

Copper content in the rocks was analysed at Geological Survey Department. The analyst used the Niton Analyser. The analysis was done by Mr Brighton Mulenga. The samples analysed as follows: a 35.64 % (Malachite), 5.25 % (Iron) b 32.31 % (Malachite), 2.81 % (Iron)

The samples averaged 33.975 % copper and 4.03 iron. This is the average of two samples.

4.0 RESERVES

The completed trenching programme was enough to outline 4860000 tonnes of copper ore; averaging 1.1 – 1.8 % copper (Table 2) (RST, 1969a, b, c, 1970a, b), just on one portion of the 4.3995 square kilometer 6 area.

The ore is exposed as copper malachite (CuCO3•Cu(OH)2 ore, chrysocolla (CuSiO23.2H2O or (Cu,Al)2H2Si2O5(OH)4) ore, cuprite ore and azurite (2CuCO3•Cu(OH)2 ore in laterite/ferricrete. Bornite has iridescent tarnish, chalcopyrite has iridescent tarnish, deep brass yellow; cuprite (Cu20) has red colour, azurite is blue, malachite is bluish green. Chalcopyrite has 4.2 approximate specific gravity, bornite is 5.1, cuprite is 6.0 and copper is 8.9. The host rock is brown quartzose rock. The ore is exposed as malachite ore in ferricrete/laterite and siltstone.

Getting a specific gravity of 4.0 g/cc (4000 kg/cubic metre) the reserves in tonnes are calculated as: volume of ore = 1500m x 6.0 m x 45 m depth = 405000 cubic metres. The tonnage is 405000 m3 x 4000 = 1620000000 kg = 1620000 tonnes. This is from the area where minor trenching has been done. The strike length has been estimated for 1500 m. Then tonnage is this 1 620 000 tonnes of Cu at 5.6 % from one vein. There are three veins in the plot which have the same mineralization. That is, 1 620 000 x 5 = 4 860 000 tonnes in the whole plot.

Copper-cobalt-uranium Minerals

The copper-bearing and cobalt-bearing minerals in North-western Province include: antlerite Cu3(OH)4SO4, aurichalcite (Zn,Cu)5(CO3)2(OH)6, azurite Cu3(CO3)2(OH)2, bieberite CoSO4•7H2O, bornite CuFeS2, briartite – Ge sulphide Cu2(Fe,Zn)GeS4, bournonite CuPbSbS3, brochantite Cu4SO4(OH)6, carrollite CuCo2S4 or Cu(Co,Ni)2S4, cattierite CoS2, chalcanthite – copper sulphate, CuSO4•5H2O, chalcocite Cu2S, chalcopyrite CuFeS2, chalcosiderite CuFe6(PO4)4(OH)8•4H2O, chalcotrichite, chrysocolla CuSiO23.2H2O or (Cu,Al)2H2Si2O5(OH)4, colbaltian dolomite, colbaltiferous pyrite (pyrite FeS2 with colbalt Co), cobaltite (Co,Fe)AsS, cobaltocalcite, cobaltoan pyrite (Co,Fe)S2, cobaltoan staurolite Co(Ni)2Al9O6(SiO4)4(O,OH)2 with cobalt and Ni, Cobaltpentlandite (Co,NiFe)9S8, cornetite Cu3(PO4)(OH)3, covellite CuS, cubanite (CuFe2S3), cupriferous mica, cuprite Cu2O, cuprosklodowskite Cu(UO2)2(SiO3OH)2•6H2O, cyprine – Cu- bearing , blue or greenish-blue vesuvianite Ca10(Mg,Fe)2Al4[Si2O7]2[SiO4]5(OH,F)4, descloizite (Cu,Zn)Pb(VO4)(OH), devilline CaCu4(SO4)2(OH)6•3H2O, digenite Cu9S5, dioptase CuSiO2O6, duftite PbCuAsO4(OH), garnierite – group name for Ni or Co silicates, gersdorffite (Ni,Fe,Co)AsS, heterogenite CoO(OH), heterogenite-3R CoO(OH), libenthenite Cu2PO4(OH), linnaeite Co3S4, low- copper linnaeite CuCo3S4, low-copper thiospinel, olivenite Cu2AsO4(OH), mackinawite (Fe,Ni)9S8, malachite Cu2CO3(OH)2 or CuCO3•Cu(OH)2, mattagamite (Co,Fe)Te2, melonite NiTe2, peacock ore Cu5FeS4, posnjakite Cu4SO4(OH)6•H2O, stannite (Cu2FeSnS4), stromeyerite (Ag,Cu)2S, tennantite (Cu,Fe,Zn,Ag)12As4S13, tenorite CuO, tetrahedrite (Cu,.Fe,Zn,Ag)122Sb4S13, turquoise CuAl6(PO4)4(OH)8•4H2O, ullmannite (Ni,Co)(Sb,As)S, , zincian libethenite (Zn,Cu)2PO4(OH), and Zincian malachite.

Iron ore

2+ Iron-bearing minerals occurring in Zambia include: miankerite Ca(Mg,Fe ,Mn)(CO3)2 or Ca1.00- 1.12(Fe0.50-0.70Mg0.20-0.26Mn0.06-0.12)(CO3)2, breunnerite MgCO3 with 5 to 50 mol. per cent FeCO3, chamosite, chalybite FeCO3, ferrian wad, goethite -FeO•H2O, haematite -Fe2O3. jacobsite 3+ 3+ MnFe 2O4, limonite FeO(OH)•nH2O or HFeO2•nH2O, maghemite -Fe 2O3, magnetite Fe3O4, manganotantalite (Mn,Fe)(Ta,Nb)2O6, melnikovite FeS2; greigite, melnikovite pyrite FeS2, micaceous haematite, marcasite FeS2, martite Fe2O3, pencil ore – red botryoidal haematite, pseudobrookite Fe2O3•TiO2, titanohaematite, titanomagnetite, triplite, trolilite FeS, ulvöspinel 2+ Fe 2TiO4, and vredenburgite.

5.0 EQUIPMENT

The main equipment needed are excavator, front-end loader, tipper, bull-dozer and jack hammer.

6.0 MANPOWER

It is estimated that the mine will be run by a mine manager. He will be followed by workers who will include drivers, casual workers.

7.0 Environment

The environmental impact brief will be submitted later.

Mineral Property Right

The Briamat Mine project area is under a mining right licence 17798-HQ-LPL belonging to Tangeray Resources Zambia Ltd, P. O. Box 35094, Lusaka

Commodity

Copper and cobalt.

PROJECT VISION AND OBJECTIVE

The decision to acquire mining right in the area was made, in addition to other economic reasons, to encourage a systematic and organized copper exploitation venture. As such the overall objective is to avoid wasteful mining practices, both environmentally and economically. The local communities, who are mostly involved in illegal and disorganized mining activities, will be incorporated into the mining venture, thereby providing employment and other socio-economic benefit to them. This is in line with the national vision to alleviate poverty through sustainable natural resource utilization. Further, the socio-economic vision for the mining operation can be summarized as follows:

To increase the production to profitable tonnage margins, the company needs to invest in capital equipment and other resources essential for a successful mining operation.

PROJECT IMPLEMENTATION

Tangeray Resources Zambia Ltd this project with a view to gain experience in mining activities, through operations in the area.

Open excavations and pits will be opened and commissioned using hired machinery and hand tools. Local labourers will be used with direct supervision from the directors.

The company would like to improve production levels and operation modes by acquiring efficient mining machinery and tools, and engaging expert consultants in mineral resources development.

INVESTMENT REQUIREMENTS

17798-HQ-LPL is seeking financial resources assistance to improve its operations in the copper-au-Co mine. 8

Quarrying Machinery and Operation modes being sought.

A successful mining operation for the company will require the following capital Mining and Processing equipment, and resources:

MACHINERY:

The other machinery needs are given below.

Open pit mining

 Excavator - Hydraulic type with 100-150 kW diesel engine - 0.7 –1.3 m3 shovel size  Compressor  Jack-hammers  Water pump (diesel)

Haulage

 Front-end loader  Tractor - 40-60kW power rating - Seven ton one axle rear dumper trailer type  Dump track - Seven ton one axle rear dumper trailer type - Hand Tools:

 2 x 14 pound hammers  2 x 8 pound hammers  2 x 6 pound hammers  8 shovels – lasher type  4 wheelbarrows - 100-120 kg capacity - (Wheelbarrows are light enough to allow short uphill runs on rough grounds, typical of large- scale mining sites)  10 foot print chisels  4 picks  Metal buckets

SITE COORDINATION TRANSPORT  Four Wheel drive van (4wd) OCCUPATIONAL HEALTH AND SOCIAL SERVICES

 Protective Clothing: - 20 overalls - 20 pairs gum boots - 20 hard hats (helmets) - 4 dust coats  Infrastructure: - 5 x (2 roomed) Low cost houses - 1 strong room -

A. Machinery

Rate/Cost Total cost

1. Hiring of Bulldozer 200 hrs @US$ 200/hr or US$ 40,000.00 permanently sought 2. Excavator Permanently bought US$ 200,000.00

3. Hire of Dump Track 400 hrs @ US$ 200/hr or US$ 80,000.00 permanently 4. Water pump Permanently bought US$ 4000.00

5. Wheel Barrows (4) Permanently bought US$ 120.00

B. Support and Other Services

1. 20 labour force including one Salaries and Allowances per (1) site Supervisors annum US$2 ,000.00 - Geological and other 2. Specialist and Compliance mapping services US$ 3000.00 services - Area charges

3. Welfare Food and Medication US$ 4000.00

4. Infrastructure Site Buildings US$ 8000.00

5. Transport - Two (2) 4wd vehicles and - US$ 100,000.00 a 3 Ton Light Truck - Fuel and overhead - US$ 30,000.00 expenses

TOTAL US$ 471120.00 For one (1) year operation

- 1 processing plant - 1 site Office block (5 roomed) - Bore hole and water tank

OTHER COSTS

- Working Capital for Site Supervisors and Labourers - Mining right fees and area charges - Consultancies (Geological, Mining and Mapping)

Below is a twelve-month tentative operation cost:

Investment Requirements

VIABILITY OF THE PROJECT

Copper Reserves Known and proven reserves are in the area. The known copper reserves are 721920 tonnes averaging 1.10 % copper. Existing mining activities have exposed encouraging reserves. Systematic and organized working/exploitation will expose further profitable reserves. Copper has been found in the area. Zambia produces a good amount of copper. The world market of copper is never complete without the Zambian 10 input. It is anticipated that systematic and organized exploitation of the copper deposit will be promoted and supported by various stakeholders. If properly explored and systematically mined, the copper deposit could prove to be one of the richest suppliers in Zambia. Systematic exploration utilizing modern methods and detailed mapping, and investment support in form of loans, offers considerable potential for the discovery of additional deposits of copper-U.

Copper Ore Production

The production capacity is envisaged to be 244 000 tonnes of copper,ore i.e. US$ 1,263,600,000 per year. The mine is worth 244 000 x US$ 5 200 /tonne which is US$1,263,600,000 from the plot.

Copper content

17798-HQ-LPL will be able to produce 20 250 tonnes of excavated copper ore per month. That means the reserves will be exhausted in 24 years.

Market

Market for the copper and cobalt is there in USA, UK, Japan, China, Germany and RSA.

MINING IN GENERAL

OPERATION STATEMENT

The role of mining worldwide, both in developed and developing countries should not be underestimated. The situation in large-scale mining can be characterized by a socio-economic and environmentally related vicious circle that, without external assistance, can hardly be broken. Despite the difficult conditions that beset small-scale mining, the industry holds a substantial position in the mining industry worldwide. Of the total world mining production, a considerable proportion is accounted for by small-scale mining. About 90% of world copper productions is from Chile, DRC and Zambia. Figure A. Large-Scale Mining socio- economic-environmental vicious circle

Low Output/ Production

Increasing mining Low Wages/Pay Scale efforts

Decreasing Reserves Neglect of Safety and Environmental Protection Measures

Destructive Over Mining

Poor Work Conditions

large-scale mining activities and mine workers have an integral interrelationship with their natural, cultural, technological and economic surroundings. Mining disturbs nature through the depletion of its natural 11 resources and its deleterious impact on the environment. Mining on one hand, and culture and people on the other, have greatly influenced each other since prehistoric times. Mining activities provided culturally significant metals and precious stones. Mining has always, still to this day, led the way for rural and technological development. Mining, with its tools and equipment, utilizes this technology to generate income through the materials it produces.

A comprehensive promotion of large-scale mining must consider the social suitability, assessed needs, profitability and environmental compatibility. Only then can subsequent improvements in the working conditions of large-scale miners be achieved.

LARGE-SCALE MINING IN ZAMBIA

About seventy percent (70%) of mining projects and operations in Zambia are under the category of Large- Scale Mining. It is this category that most Zambian village/rural and other local communities are directly involved in. Mineral resources are widespread through out the country, in both rural and urban areas. The current urban set-up of the world-renowned Copperbelt region was once a rural area that has been transformed and developed due to the mineral resources of copper and cobalt.

In Zambia, the large-scale miners have been struggling to operate gainfully. Most of them have failed to exploit the proved reserves of the mineral resources of Zambia. The main reason for this state of affair is lack of investment capital into the large-scale mining activities. The lack of reasonable capital, to enable procurement of machinery and professional human resources, has hampered the smooth operation of the mining rights. Conventional, and most of the times crude and dangerous methods, are used to mine the mineral resources. This has caused social, economical and environmental losses to the nation of Zambia. The nation loses out economically due to unprofessional working modes, which tend to leave out the most valuable minerals resources still buried in unplanned barrows (open pits). The national faces some environmental hazard due to lack of professional advice to the small-scale and large-scale mining communities.

Zambia is currently in a phase of trying to alleviate poverty. One of the means being tabled is the sustaining of lives in the rural areas. Supporting rural livelihood socio-economic activities, such as agriculture, is one of the ways to alleviate poverty nationwide.

Communities in the peri-urban and rural areas are conducting most small-scale mining activities. As such, small-scale mining activities, in which most of the beneficiaries are local communities, is one of the ways to address the issue of alleviating poverty in the nation.

Some donor international communities have realized the above facts. The European Union has provided financial facilities to assist small-scale miners (through a loan) develop their mining ventures to gainful margins and sustain their operations.

SOCIO-ECONOMIC AND ENVIRONMENTAL CONSIDERATIONS

Tangeray Resources Zambia Ltd is operating a small-scale mine in rural Solwezi area of North-western Province. The landscape is flat.

Further, the company will operate in an environment friendly manner. Workers will be sensitized on the need to practice safe environmental and human health working modes

ZAMBIA AND COPPER, THE CONCLUSION

Systematic exploration utilizing modern methods and detailed mapping, and investment support in form of loans, offers considerable potential for the discovery of additional deposits of copper.

CONCLUSIONS

The copper-cobalt deposits are in rural Solwezi District.

The mining of copper ore will be environmentally friendly and the environmental management plan will be drawn later.

The character of the site will be preserved

No agricultural activities are seen for several kilometres around the sites

Tangeray Resources Zambia Ltdwill do business with Zambian companies.

From copper-cobalt gold uranium mineralisation, 17798-HQ-LPL is seeking investment assistance for copper and cobalt mining.

17798-HQ-LPL mining equipment for comparison with other large-scale mines:

EQUIPMENT

Estimated project costs:

UNIT COST TOTAL COST ITEM QUANTITY US$ US$ Excavator (already bought) 1 180000 180,000 4x4 Vehicle 1 7000 7,000 2nd hand prefab Parkhomes 2 4500 9,000 Bell Haulers/Dump trucks (one dump track already bought) 2 193000 386,000 Generator – Haz, 380 V (already bought) 1 7500 7,500 Concrete mixer 1 1000 1,000 Jack hammer (two already bought) 2 4500 9,000 Bulldozer 1 200000 200,000 Water pump (two machines already bought) 1 5500 5,500 Compressor 1 12000 12,000 Solar Panel 2 2000 4,000 Computer + accessories 1 4500 4,500 Washing plant 1 9500 9,500 Camping equipment 1 4200 4,200 Strong room/warehouse 1 3500 3,500 Motorola radios 10 250 2,500 Major equipment sub-total 845,200 Shovel 50 Chisel 100 Pick 50 Wheel-barrow 20 Chain 10 Ladder 10 Hard hat 30 Overall 60 Boot 60 Torch 30 Bucket 20 Hammer 10lb 20 Safety Goggle 50 Leather gloves 60 Screen 2 Minor equipment sub-total 10,000 Equipment – Total

APPENDIX 2 - COST OF MINING COPPER WORKFORCE POSITION NUMBER Unit/month SubTotal Mine manager 1 200 200 14

Chiselman 2 80 160 Driver/mechanic 5 90 450 Guards 5 50 250 Sorter 1 100 100 Labourers 60 50 3000 TOTAL 34 27920

APPENDIX 3 DIRECT PRODUCTION EXPENSES - 12 months ZMK K'000 US$ Fuel, oil and lubricants 900000 185567 Explosives 72000 14845 Area charges paid to Ministry of Mines 2000 412 Freight & customs 12000 2474 Equipment repairs 22000 4536 Purchase of new spare parts/Overheads 18000 3711 SubTotal 979000 211546 ADMINISTRATIVE EXPENSES - 6 months Accountancy fees 2500 515 Advertising 500 103 Depreciation 8000 1649 Donations and subscriptions 5000 1031 Electricity and water 1200 247 Fuel and oil 10000 2062 Postage and telephone 2500 515 Protective clothing 2200 454 Printing and stationery 2500 515 Insurance and licences 8500 1753 Office expenses 3050 629 Legal fees 2000 412 Professional fees - hire of geoscientists 8000 1649 Medical expenses 6500 1340 Motor vehicle expenses 6000 1237 Rent and rates 2500 515 Repairs and maintenance 5580 1151 Salaries 70000 14433 Travelling 5000 1031 SubTotal 151530 31243

TOTAL PROJECT COST 942283

Mineral Exploration Activities in Lufwanyama Area

GEOLOGICAL REPORT ON

Exploration Licence No. 17799-HQ-LPL

TANGERAY RESOURCES ZAMBIA LTD

©April, 2014

INTRODUCTION

Tangeray Resources Zambia Ltd is a Zambian incorporated company that was granted with prospect licence17799-HQ-LPL on 3rd May, 2013.

17799-HQ-LPL is situated in the Copperbelt Province, in Lufwanyama District (Figure 1), approximately 40 kilometeres south-west of Kalulushi town.

Fig. 1. Topographic Map showing 17799-HQ-LPL

LICENCE SCHEDULE

The licence covers an area of 504.1438 km². The licence was granted on May 2013, and renewed every two year.

Code Type StatusGrp DteGranted Parties AreaValue 17799- Prospecting Tangeray Resources Zambia Ltd 50414.3800 HQ-LPL Licence Active 03/05/2013 (100%) ha

The license is bound by the coordinates shown on the table below:

Lat Lat Lat Long Long Long Order Deg Min Sec N/S Deg Min Sec E/W

1 13 0 0 S 27 45 24 E 2 13 3 36 S 27 49 36 E 3 13 14 54 S 27 49 36 E 4 13 14 54 S 27 39 12 E 5 13 11 6 S 27 39 12 E 6 13 11 6 S 27 38 48 E

Vegetation

The Plot 17799-HQ-LPL is a miombo woodland in which Isoberlinaangolensisand Julbernardiapaniculata are prevalent is a variant termed mesicmiombo, usually found to occur in high rainfall areas of Zambia. But a variant of xeric Miombo associated with the low rainfall areas is devoid of Isoberliniaangolensisand Julbernardiapaniculata.

The Mopane Woodland

The mopane woodland is a one storeyed vegetation type with an open canopy. It is found in regions with rainfall in the range 400-800 mm per year. Mopane woodland is dominated by the leguminous taxon Colophospermummopane (tribe Detarieae in family Fabaceae), a species is known to be endemic in southern Africa. Taxa found in this woodland include species of Acacia, Adansonia,Albizia, Combretum, Commiphora, Commiphora,Kirkia, Lannea, Lonchocarpus, Pterocarpus, Selerocaryaand Ximenia.

Acacia-Combretum Woodland

This is a physiognomic unit characterized by open park-like deciduous woodland. In the major river valleys, the woodland occurs along the fringe of Zambezi and Kafue rivers. The woodland is dominated by species of Acacia and Combretum. Sclerocaryabirrea (Musebe), which is adapted to low altitudes of the Zambezi valleys.

Drainage

Lufwanyama River flows through the Plot from SE to NW. Museleshi is on the eastern part of the area.

General Geology of 17799-HQ-LPL

Rocks of Basement Complex comprise biotitefeldsparthic gneiss, hornblende- biotite gneiss, granitic gneiss, migmatites and schists. These are intruded by

3 younger granites. These basement rocks from the core of the Mwombezhi Dome and are overlain unconformably by metasedimentary rocks of the Katanga Supergroup. The Kitungulu Formation at the base is a prominent ridge-forming quartzite. Overlaying the Kitungulu Formation are domomites and dolomitic schist, calcareous biotiteshist with slate and banded ironstone, calcite-dolomite marble of the Chafugoma Formation. This formation outcrops extensively in both Mwombezhi Dome and Jiwundu Swamp areas, and together with banded ironstone, forms the topmost unit of the Mine Series. A conglomerate dolomite within the calcite-dolomite marble of the Chafugoma Formation marks the top of the Mwashia and is probably equivalent to the Grand Conglomerate of the Congo and the Copperbelt.

The overlaying rocks of the Kundelungu Group consist mainly of the Solwezi Formation. This comprises biotiteschists bearing scapolite, amphibolites and garnet. A conspicuous feature of the schists is the detailed structural complexity shown by relics of syntectonic crystallized biotieacd rotated garnet porphyroblasts.

The general structure of the Mwombezhi Dome is basically simple, with the Katanganseccession dipping off the dome at 30 to 35o. However, in the middle part of both lobes, extremely complex structure is interpreted as recumbent folding. Evidence for the existence of this was found in a borehole in which some of the beds in the inverted limb, including the Lower Roan Group, were repeated three times (Mindeco, 1976). At least two subsequent phases of folding were associated with the Lufilian deformation. The relationship between the overfolding and the formation of the main dome structure is not known. The first folding was accompanied by extensive thrust faulting. The structure of highly faulted, fractured calcite-dolomite marbles in the Jiwundu Swamp area is believed to be a synform.

There are few references specific to mineralization within or past exploration on 17799-HQ-LPL that were located. It is possible that some mineral occurrences listed by Guernsey, 1941, lie within the concession, and of so probably would be located in the southwest. The 1991 Watts Griffiths McOuat (WGM) report does no matter significant prospect that can be confirmed to occur within the licence area, however included here is map showing minerals occurrences as reported by WGM within the vicinity of 17799-HQ-LPL.

The entire plot 17799-HQ-LPL is underlain by Lower Roan with basal conglomerate; the main copper-bearing unit and Undifferentiated Basement Complex; mainly granitic gneiss and migmatites.

Fig. 2. Geological Map showing 17799-HQ-LPL.

22 Lower Roan with basal conglomerate; the main copper-bearing unit; 12 Undifferentiated Basement Complex; mainly granitic gneiss and migmatites.

Magnetic Survey

The magnetic map shows the distribution of magnetic anomalies. The high values above 300 gammas correspond with Fe-rich areas. The map will show the magnetic trends in the area. The magnetic anomalies are related to mineralization. The magnetic map shows the plot to be located between the magnetic high corresponding to magnetite or pyrrhotite (maroon to orange colour) and magnetic low (green colour) with literary no magnetic responses. This zone is conducive for base metal mineralization.

The magnetic map shows magnetic readings in nanoTesla. The very high magnetic data if from 72.5 – 62.5 nT and is depicted as purple. The red is for

5 readings from 62.5 – 50.5 nT. The orange colour is for readings between 50.5 and 45.8 nT. These are medium readings together with 45.8 – 41.8 nT (yellow). The low nT readings from 41.8 – 36.6 nT are depicted as green so is blue colour for 36.6 – 12.2 nT. The purple colour is attributed to magnetite, pyrrhotite and ilemnite. The colours related to base metal concentration are yellow and orange, intermediate nT. The low nTcolours are related to non- magnetic minerals. The faults, mylonitic and brecciated (fractures) zones are conduits for metalliferous fluids. Exploration and prospecting should not overlook these structural features.

Fig. 3.The magnetic map of 17799-HQ-LPL .

Previous Work

Large concessions were granted to Copper Venturs Limited, and, in 1923, the Rhodesia Congo Border Concession Limited (RCBC) was formed to explore the concessions. From 1923 to 1940, RCBC undertook what was probably the largest and most comprehensive prospecting campain undertaken up till then. In fifteen years, 404,040Km2 were prospected and mapped so well that very few copper and iron occurrences were missed and the maps have stood the test of subsequent prospecting. Little prospecting was carried out during

6 the Second World War, but Rhodesia Selection Trust Mine Services (RSTMS) Limited (then Mufulira Copper Mines Limited) resumed exploration in 1947. Systematic prospecting of 69,900Km2 of the Mwinilunga area resulted in the discovery of the Lumwana Prospect at the end of 1960. Drainage geochemical sampling revealed anomalous copper in the area and subsequent detailed geochemical work and geological mapping preceeded the drilling of the first diamong drill hoel at Malundwe in November 1961. This hole intersected 1.33% Cu over 13.41m. by the end of 1964, detailed geological mapping of the most of degree sheet 1225NE at 1 : 50, 000 scale, detailed geochemistry, geophysics and drilling had proved copper occurrences. The RSTMS prospecting technique which was developed to cover areas as rapidly and efficiently as possible is described by McGregor (1964). Work was discontinued in 1964, but resumed in 1969 when an extensive diamond drilling programme was initiated by Mwininlinga (1970) Ltd.

Work done by Tangeray Resources Zambia Ltd During the period prospecting period, Tangeray Resources Zambia Ltd completed to reconnaissance mapping and sampling trips to the 17799-HQ- LPL area. Rock chip samples from the sound field visit were collected from old mine dumps and outcrops within the LPL area and the surrounding environs. All the samples were cobalt and malachite+/- other copper oxide minerals. Although the samples that were collected, sending to the laboratory did not become a priority and consequently assay are pending.

Regionally the licence area lie in a relatively Greenfield area in an area that several copper-gold occurrences occur. These copper-gold occurrences are generally of small extent. Many exploration successes in this part of Zambia, in terms of prospect definition, have highlighted the fact that there are many more conceptual targets in addition to the Copperbelt-type Lower Roan stratabound copper-cobalt deposits. The possible targets would be epigenetic stratabound copper mineralisation accompanied by silver, gold and uranium and /or StrataboundCopperbelt-type mineralization in Upper Roan and even overlying Kundelungu rocks. The area has potential for IOCG type of mineralisation also. Expenditure

For the ending April 8th2011 a total of USD13, 100.00 was spent on exploration activities on the kasombo – chimakuve project as tabulated in table below.

Table Expenditure for the year ending April9th 2011

Category Cost USD

Administration 11,500.00

Contractor/consultant services 9,500,00

Filed support 6,000.00

Geology and geological research 10 500,00

Total 37,500.00

Note: contractor/consultant services includes all travel, accommodation, filed support costs incurred by that contactor/consultant. Also expenditure here is tabled in USD but the reason the amounts appear approximant is due to the fact that expenditure incurred involves several different currencies.

Future Work & Recommendations

Whilst there is undoubted evidence of base metal mineralization within the licence area and adjacent, it would seem that these working in themselves do not have the making of significant base metal deposit. However whilst it would appear that the copper deposits are not of the classic sediment-hosted Copperbelt style, there is the possibility of Iron Oxide copper-gold (IOCG) style deposits in this concession. AIM Resources, east of Kabwe and Zambezi Resources south of Lusaka have been exploring for this style of mineralization, and telfer-style with some success at an exploration level.

The fact that exploration companies such as RCM, ZamAnglo, Charter hall and others active in the 1960s and 1970s did not routinely assay for gold, if ever, also points to an unrecognized potential for Telfer and Carlin style of mineralization. Although recent explorers (like Phelps dodge) did assay for gold with little success, at the conceptual level the potential for gold mineralization remains backed up by generally anecdotal references to surface and alluvial gold indication within the district area.

Further work will be conducted cognisant of the potential style of mineralization and shall include the follows:

1. Mapping and Sampling of alteration zones and surrounding areas.

2. Stream sediment sampling and soil sampling, ensuring that the samples are assayed for low level gold and also the gold pathfinder elements e.g., As, Bi, Mo, Sb, and W, targeting areas of alteration and drainage thereof.