(MENAFN - ProactiveInvestors - Australia) Liontown Resources (ASX: LTR) has earned its initial 51% interest in the Jubilee Reef Gold Project in Northern Tanzania after completing more than 14,000 metres of drilling since starting work last year.
This could increase to about 64% if the work program is completed as planned as Canadian partner Currie Rose Resources (TSXV: CUI) has elected not to contribute to exploration expenditure for the last quarter of 2012.
Liontown is currently undertaking a combined 14,000 metre reverse circulation, aircore and diamond core drilling program to follow up multiple zones of gold mineralisation intersected previously on the project.
The Jubilee Reef Project is located in the Lake Victoria Goldfield, where Liontown is currently earning up to 75% equity in the project via a joint venture with Currie Rose.
The Lake Victoria Goldfield hosts granite/greenstone terrain similar to the Eastern Goldfields of Western Australia, and comprises a plus-50 million ounce gold endowment.
There are a number of 10 million ounce gold projects in this under-explored emerging region.
More recent drilling has returned outstanding results, highlighting the potential for a large-scale gold system at the Masabi Hill prospect.
Masabi Hill shows multiple gold zones with intersections of up to 62 metres at 2.4 grams per tonne (g/t) gold from the Discovery (Central) Zone and up to 74 metres at 1.8g/t gold from the Southern Zone.
The gold anomalism remains open, with the potential for a large gold system with multiple lodes.
Around 11,500 metres of drilling has been completed since the joint venture's inception in 2011, with multiple priority gold prospects and mineralised zones identified.
Mineralisation has been drilled so far over 600 metres of strike and 600 metres of width, and the system appears to be shallow with significant growth potential. The majority of the Masabi granitoid remains untested.
A resource drilling program is targeted for 2013.
There appears to be an emerging gold system of significant size and scale at Jubilee Reef where multiple zones of mineralisation have been defined by Liontown to date, which is bullish for Liontown in 2012/2013.