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Request for Expression of Interest to Jointly Develop Gold Mining at Miyove With Ngali Mining Ltd (Expression No: 01/NM/April/2021

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REQUEST FOR EXPRESSION OF INTEREST TO JOINTLY DEVELOP GOLD MINING AT MIYOVE WITH NGALI MINING LTD (EXPRESSION NO: 01/NM/APRIL/2021

Purpose of the document

This document is meant to call for interested and qualified Companies to express their interest to partner with Ngali Mining Ltd in the Miyove hard rock Gold mining projects (Exploration and Expraitation).

Introduction

Ngali Mining Ltd is a Private Limited (NML) Company registered under the Rwandan law, fully owned by NGALI Holdings and the latter being a public-owned enterprise. The company was established to undertake the exploration, extraction/exploitation and commercialization of strategic mineral resources that can be found underneath the territory of Rwanda and beyond.

In 2017, NML acquired 5 blocks gold concessions in Miyove from the Government of Rwanda. After reviewing existing data and consulting the local miners, NML organized and executed small exploration campaigns. As results, NML set up a working framework with artisanal miners by providing guidance in exploratory mining advanced technics and collection of gold.

Short Description of Miyove Concessions

Located in Gicumbi and Burera Districts, Miyove gold mining concessions are dominated by highlands of the Northern Province. Its altitude ranges between 1,800–2,400 meters. Steep slopes and large valleys in round shape characterize the highlands. The land use in this area is dominated by cultivated land, which occupies more than 80% of the land in this region. The soils have medium fertility and high acidity.

The Miyove gold mining perimeter is delimitated in the northwest by the Rugezi Marsh, which is a high altitude valley, created due to the uplift of Buberuka Highlands.

The Miyove gold mining concessions cover a total surface area of 1450 hectares. Residential houses and agricultural crops such as Irish potatoes, bananas, sorghum and sweet potatoes dominate the land use around the area. The local people practice domestic farming like cows, goats and sheep. There is also different basic infrastructure like electricity, water supply, good roads, schools, churches etc.

Mineralization is represented by low-sulfide gold-quartz formation in the form of veins and lenses of quartz often brecciated, with limonites and hematite in the oxidation zone. studies indicates the thickness of vein zones varies from the a few meters to dozens of meters and the strike length varies from the dozens of meters to plus 1000 meters and there is good spatial correlation between secondary gold anomalies and ore deposits in the host rocks.

 Location map of the Miyove concessions

The following is the map of the concession blocks and a table showing the details of the blocks and their sizes in hectares.

Block Name

Area (ha)

Ruhunde

               175

Gitovu

               400

Miyove

               125

Rusekera

               375

Mubuga

               375

Total

           1,450

Exploration and Mining Historical information of Miyove

Gold mineralization discovery dates back to the 1930’s when the Minetain Company reported discovery of gold at Masogwe (1938), Karenda (1945) and Baradega (1949). These three gold pioneers are roughly on strike over a 5 kilometers length. The gold mineralization was explored using pits and trenches into the oxidized host rocks. The Karenda area (1947) was exploited by two quarries (150 and 50 meters in length and 60 meters deep). Production was stopped in 1952 reportedly due to the reduction of gold content and reaching the non-oxidized host rocks.

1952-1959: Production continued and the western flank of Karenda and Baradega. The work included 140 meters long, 25-30 meters deep quarry, and a series of deep pits with cross cuts. Records indicate recovery of 397 kilograms (~14000 ounces) of gold. The gold grade is presented as a range from 1 to 237 grams gold per ton. Documentation of grade and ounces produced are poor.

1958-1959: The Remina Company evaluated the area and estimated the gold content as 664 kilograms (23,400 ounces) at a grade of 4-7 grams gold per ton.

1970: Somirwa Company completed a 165 meters adit targeting the western flank of Karenda. The workings did not reach the ore zone.

1984 – 1985: United Nation Development Program/Department of Technical Cooperation for Development (UNDP/DTCD) (RWA/801001) (Croese 1985) completed regional geological mapping and geochemical (soil) sampling. The geological mapping was completed at a scale of 1:200,000. The geochemical sampling was initially completed on 800-meter line spacing with 50-meter centres. Additional infill sampling was completed on 200 and 100-meter lines with 50-meter centres. This sampling defined a 2 kilometers long geochemical anomaly parallel to the Baradega workings. The anomaly was tested by three trenches with one of the trenches producing a sample interval (unknown if chip or grab samples) averaging a number of grams of gold per ton over 17 meters.

1986-1988: A UN funded exploration program (RWA/NR 83/001) comprised of geological mapping, geochemical sampling, geophysics, excavations and diamond drilling was completed to assess the gold mineralization at Karenda-Baradega-Masogwe and Mutonga. Geological mapping was completed at 1:1000 to 1:5000 scales. Geochemical sampling further defined the gold anomalies and Magnetics and VLF-EM surveys were completed over 100 meter spaced grids at 20-40 meter centers. Pits and trenches were completed to evaluate the geochemical anomalies. Diamond drilling consisted of 16 holes totaling ~2259 meters.

2012-2014: Review the geology of the region, review the mineralization, geological model and exploration methods employed, design of QAQC protocols covering the main exploration procedures, site visits and geochemical soil sampling survey in southern-eastern part of the license, design and supervise trenching and drilling programs.

SRK ES have taken the available data across the Masogwe prospect site and produced a three dimensional interpretation of the mineralization hosted. These wireframes have subsequently been used to estimate a pre-resource mineral inventory of mineral potential. These numbers cannot be considered as compliant to any internationally recognized reporting code such as that issued by JORC or the CIM, however they do go some way to demonstrating the gold hosting potential of Masogwe.

SRK ES concludes that this one project area among five hosts a mineralized body containing around 2.4Mt@ 1.35g/t Au for 104,000 Oz Au. SRK ES would hope that this could be significantly increased and classified into a compliant Mineral Resource should additional exploration take place and prove the continuity of the currently observed bodies. Other aspects such as robust QAQC programme and wide spread density measurements will also be required to reach this aim.

The results from the very recent studies are encouraging and deserves venturing in the development of Miyove gold mining. NML is ready to share and discuss full reports with the interested developers.

Partnership modalities:

  1. NML is ready to pledge the Miyove concession into a JV company formed by NML (1st developer) and the Partner (2nd co-developer) after preliminary value of the mine has been identified from further exploration works.
  2. The Partner will build on existing exploration data and invest into further exploration/investigations work to increase confidence of the data prior to investing into mining production.
  3. NML is ready to accept the conversion of the Partner’s investment into shares of the JV company
  4. Any investment to be made by the Partner will be done in cash and through the JV Company. The expenditure plan will have to be approved by both NML and the Partner. (Right of 1st refusal in case the Partner can offer some of the services)
  5. The shares distribution of the JV Company will consider the investment of the Partner and the value of the mine based on existing resource estimates data (value of the mine).

Expression of interest offer should reach Ngali Mining office of Procurement located at BODIFA MERCY HOUSE KIMIHURURA Opposite parliament. Deadline date is on 28th May 2021 at 10am, opening the tender would be on the same date at 11am In Ngali Mining Boardroom. Your offers should be in in three copies of which one is original. Telephone contacts for any clarification is 0788301956 and email is c.mucyo@ngalimining .rw

 Done by:

 

Gervas HIGIRO

MANAGING DIRECTOR,

NGALI MINING LTD