CDSG ADDS GOLD PROJECT IN TANZANIA
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Las Vegas, NV., April 29, 2024 (GLOBE NEWSWIRE) -- China Dongsheng International, Inc. (OTC Markets: CDSG) (the “Company” or “CDSG”) is pleased to announce CDSG has entered into a co-production agreement with an individual based in Tanzania to recover gold from a large alluvial gold field within the active Nachingwea District, Lindi Region of southern Tanzania.
Harp Sangha, Chairman of CDSG states, “This additional project is a further step towards our strategy of acquiring non-exploration, near-term low-cost gold producing projects; to bring robust cash flow into the company. Our local geologic team has visited the Mkuvia project site on several occasions and a production plan and budget is currently being drafted. I first visited this site in Spring 2008 when it was acquired for $1 Million and in excess of $4 Million was spent on exploration and the commissioning of the NI 43-101. The project was dropped in 2011 by the entity at the time and has been under care and maintenance by our people on the ground.”
Management is pleased to see a resurgence in gold demand by central banks, portfolio managers, and retail investors as evidenced recently by Costco selling approximately $200 million worth of gold per month. Management has been patient and have managed to hold these projects for over 10 years on the believe that the gold market would return.
The Mkuvia project is centered over a large laterally extensive deposit of gold-bearing unconsolidated alluvial sediment in the Nachingwea District, an area currently well known for high grade gold exploration and production, with good local road infrastructure and within proximity of the seaport of Mtwara. The project area had small-scale artisanal mining activities as well as planned gold processing by several US based companies prior to the previous downturn in the price of gold (2011-2013).
Gold was first discovered in the region by the Geologic Survey of Tanzania and a NI 43-101 compliant resource was eventually established on a section of target area in 2009, and the report was commissioned by the current CDSG Chairman. The detailed study and resource was based on a series of large lithologically-distinct samples removed from over 150 excavated and surveyed pits dug into the alluvial material as well as stream sediment, pan concentrate samples and rock samples through the area. The NI 43-101 report will be published to the company website this week.
Gold recovery from Mkuvia region’s alluvium has been ongoing by local artisanal miners for a decade, however, the central zone has excellent potential for low-cost extraction of its placer gold by industrial scale techniques. Such deposit types are attractive due to their low-cost methodology of recovery and ability to supply high grade gold (often in the 90%+ purity range) reducing further processing costs.