African Barrick Gold ups resource estimate

African Barrick Gold (ABG) has announced a fourfold increase in its mineral resource estimate for the Tusker deposit at the Nyanzaga Project in Tanzania.

The new estimates are in excess of four million ounces of gold, compared to the previously declared resource of 313,000 ounces indicated and 650,000 ounces inferred.

"[The] significant uplift increases our confidence that the [Nyanzaga] project, which comprises the Tusker and Kilimani deposits, has the potential to be our next mine in Tanzania," the company said.

Since acquiring 100% of the Nyanzaga Project in May 2010, African Barrick Gold has undertaken an extensive step-out and infill drilling programme at both the Tusker and Kilimani deposits. A total of 91,537 metres has been drilled at the project since May 2010, representing an investment of $21.7 million (£13.8 million).

Further exploration is scheduled to commence later in the quarter, with the objective of defining the resources at depth at Tusker.

"This confirmation of the potential scale of the Nyanzaga project represents an extremely important step in the development of African Barrick Gold as one of the leading gold companies in Africa and underpins our confidence in the future growth potential of the company," commented chief executive Greg Hawkins.

"We already operate three of the continent's foremost gold mines and this is evidence of the potential for Nyanzaga to be a fourth," he reminded investors.

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