Tembo Gold Comes Back to Life

Someone called me a month or so back and pitched me on a company I had visited and followed a dozen years ago. I had lost track of the company because I never seemed to hear anything from or about them. Part of the reason was because they weren’t doing anything at all.

Here is the story.

Sutton Resources controlled by Jim Sinclair explored for gold and found the deposit now known as Bulyanhulu. In 1999 Barrick purchased Sutton for $343 million and began construction of a mine. It cost $280 million and went into production in 2001. Today the mine still produces over 100,000 ounces of gold a year and has 2.5 million ounces in reserves. As far back as 2010 Barrick was producing 250,000 ounces of gold a year. Clearly they would like to find new and easy to mine resources.

One of the principals of Sutton staked ground to the west and northwest of the Bulyanhulu deposit and formed a company named Lakota Resources. Lakota was an early advertiser with 321gold but the guy running the company was more interested in drinking than mining. I can understand that, at times I feel exactly the same way.

I visited the property about fifteen years ago. When you look at maps of the structure and the Bulyanhulu mine off to the distance to the southeast it becomes obvious that the gold bearing structure runs from the mine right onto the Lakota property. To confirm, there were hundreds of garimpeiro miners working near surface showings. I was always disappointed that Lakota didn’t actually advance the project.

Click here to read the full story

Original article: Tembo Gold Comes Back to Life

©2022 Midas Letter. All Rights Reserved.