The three Lugushwa exploration permits, covering an area of 641 square kilometers, are located approximately 150 kilometres southwest of the town of Bukavu.
Drilling at the project has intercepted wide zones of gold mineralization. Lugushwa has an Indicated Mineral Resource in the oxide portion of 16.91 million tonnes grading 1.35g/t Au containing 0.73 million ounces of gold and an Inferred Resource of 6.17 million tonnes grading 1.56g/t Au containing 0.31 million ounces of gold. Lugushwa (transition and fresh rock) has an Inferred resource of 65.01 million tonnes grading 1.54g/t Au containing 3.22 million ounces of gold.
Alluvial gold was first discovered at Lugushwa in the 1920s, although mining of these deposits does not appear to have begun until 1958. Limited exploration for primary gold deposits began in 1963 and led to the discovery of several deposits, including the Mapale G7, Simali, and 'Filon de Luxe,' deposits and the D18-19 and G20-21 Lugushwa deposits, plus some smaller zones. The majority of the primary gold mineralization was based on selective surface and underground development along specific mineralized quartz veins and stockworks. No significant open pit mining for primary gold mineralization has ever been conducted at Lugushwa.
Between 1958 and 1996, at least 457,000 ounces of gold were produced from alluvial sources, with a further 10,000 ounces of gold being produced from primary sources.
The geological setting of the main mineralized trend at Lugushwa consists of meta-pelites, meta-siltstones, quartzite and dioritic sills. Mineralized quartz veins and stockworks occur as a network of interlocking conjugate sets with trends oriented from NE-SW and E-W to ESE-WNW with steep dips towards the SE and NW, and moderate dips towards the north respectively. Mineralization also occurs in the host rock between the quartz veins associated with disseminated sulphides.
Drilling and mapping at Lugushwa to date has provided a clearer understanding of the mineralization controls. Gold mineralization is related to series of stacked shoots, often localized along shallowly plunging fold axes and in contacts of contrasting lithologies mainly metapelites, metasiltstones and metadiorites.
The on-going 2016 -2017 exploration program has been limited as the Company’s immediate strategy is to direct its energy and resources towards optomizing production at the Twangiza and Namoya Mining operations. Current exploration activities in Lugushwa are limited to low level ground maintenance and oxide target generation activities for future follow-up. The activities are mainly along extensions to the known 15.3 kilometre northeast – southwest mineralized trend. These activities include geological mapping, channel and rock chip sampling, limited auger drilling, pitting and low cost regional BLEG sampling.