High Grade Gold Exploration in Tanzania Investor Presentation, Q1 - - PowerPoint PPT Presentation

TSX-V: TEM

High Grade Gold Exploration in Tanzania

Investor Presentation, Q1 2014

This presentation includes certain statements that may be deemed forward-looking. All statements in this presentation, other than statements of historical facts, that address future production, mineral resource or mineral reserve potential, results of exploration drilling, geological potential and continuity of geological features, exploitation activities and events or developments that the company expects, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that actual results or developments may differ materially from those projected in the forward-looking statements. Additional information with respect to exploration on the Tembo gold property can be found in the technical report entitled "Report on the Tembo Gold Project (pursuant to National Instrument 43-101 of the Canadian Securities Administrators) Geita District, Mwanza Region, United Republic

• f Tanzania", effectively dated October 30, 2011, as revised July 31, 2012 (the "Report.") The

Report is available on the company's website and under its SEDAR profile at www.SEDAR.com. The information contained in this presentation has been prepared under the supervision of David Scott, Pr. Sci. Nat., who is designated as a "Qualified Person" with the ability and authority to verify the authenticity and validity of the data.

TSX-V: TEM / FSE: T23 www.TemboGold.com 2

Cautionary Note

• Highly Prospective Tanzanian Gold Asset

– A 101km2 contiguous area consisting of 33 active licences and 5 under application, adjacent to African Barrick's 14Moz Bulyanhulu Mine in the prolific Lake Victoria greenstone belt of Tanzania – Significant initial drill results with best intercepts including:

• TDD0004: 3.13 g/t gold over 35.89m, including 4.46 g/t gold over 2.60 and 9.38 g/t gold over 6.30m
• TDD0005: 10.76 g/t gold over 4.00m, including 93.3 g/t gold over 0.38m
• TDD0054: 8.17g/t gold over 11.05m
• TRC0013: 16.10 g/t gold over 3.00m
• TRC0423: 10.17g/t gold over 6m from 36.0m including 19.1g/t gold over 3m
• TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m from 302.30m

– Currently over 1,600m of mineralized strike to depth of 150m at two project areas

• High Quality Management Team

– CEO: David Scott, formerly of Barrick Gold’s subsidiary Kahama Mining Corporation, 32 years’ experience, 15 years in Tanzania – Director: Bob Foster, Dr. Foster has 39 years of experience as a professional economic geologist and has particular expertise in the genesis of and exploration for gold. He is Chief Executive of Stratex International Plc, an AIM-quoted company operating in Turkey and East and West Africa. – Exploration Manager: Peter Haworth, 33 years experience in exploration and mine geology and in mine management, extensive drill project and greenstone gold experience in southern, east and west Africa

• Extensive Artisanal Activity

– Over 2,000 artisanal miners, mining to depths in excess of 30m in over 100 active shafts – Artisanal mining along a combined strike in excess of 10km along northwest (Bulyanhulu parallel), northeast and east-west structures – Extracting high grades between 5 and 58 g/t gold material

TSX-V: TEM / FSE: T23 www.TemboGold.com 3

Tembo at a Glance

Clean capital structure with limited shares outstanding

4

Capital Structure

TSX-V: TEM / FSE: T23 www.TemboGold.com

Capital Structure Options and Warrants Holders Listings

TSX Venture TEM Frankfurt Stock Exchange T23

TSX Venture Symbol TEM 52 Week Range $0.07 - $0.40 Issued & Outstanding 135,813,234 Fully Diluted 237,261,503 Cash Position ~$4,500,000 Market Cap. ~$18,000,000 Warrants 97,364,269 Options 4,084,000 NAMF II 28% Concept Capital Management Limited 17% Stratex Gold A.G 13% 49 North Resources 3% BEC 3%

**As of February 19, 2014

MANAGEMENT TEAM

Firsthand and Extensive Experience

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Former Bulyanhulu management leading the company

• DAVID SCOTT – Director, President & CEO

– Former Technical Services Manager for Barrick Gold’s subsidiary Kahama Mining Corporation; responsible for all Technical Services at Bulyanhulu including on-mine exploration activities – Over 32 years of African exploration and mining experience with 15 years in Tanzania – Extensive knowledge of Tanzanian geology including direct experience at Bulyanhulu – Holds a BSc, Geology from the University of the Witwatersrand as well an M.Sc., and is a registered Professional Natural Scientist (Pr. Sci. Nat.)

• JOHN SEAMAN – CFO

–

• Mr. Seaman has been involved with several successful mining projects and is currently the CFO for Premier Gold Mines

– Previously held the position of CFO of Wolfden and Pediment which were both bought out by majors

• PETER HAWORTH - Exploration Manager

– 33 years experience in exploration and mine geology and in mine management, extensive drill project and greenstone gold experience in southern, east and west Africa – Holds a BSc (Engineering) (Mining Geology) degree from the University of the Witwatersrand, a Master of Business Leadership degree from the University of South Africa and a Mine Managers Certificate of Competency

• JANN BERESFORD - Senior Geologist

– Holds a MSc Engineering degree from the University of Portsmith and has four years experience as a senior and project geologist on large drilling programs in Zambia and the DRC

• PAUL MAGEGE - Country Manager

– A founding shareholder with strong local relationships and a skilled administrator TSX-V: TEM / FSE: T23 www.TemboGold.com 6

Management

• NEIL GARDYNE - Director

– Geologist with over 35 years' experience in exploration and mining ventures in Southern Africa – Has been involved in managing Private Equity/ Venture Capital funds focusing on early stage exploration and mine development in Africa for the past 12 years. – Holds a BSc (Hons) degree in Geology from the University of Kwa-Zulu Natal, and is currently a Director on the Board of NAMF II (Mauritius) Ltd, Decorum Capital Partners (Pty) Ltd, and NAMF Corporate Advisory Services (Pty) Ltd.

• BOB FOSTER (BSc, PhD, FIMM, CEng, FGS, CGeol) – Director

– Professional economic geologist with over 39 years of experience with a particular expertise in the genesis

• f and exploration for gold deposits, having worked in Europe, Central Asia, North and South America, and

throughout Africa. – Joined Southampton University in 1984 and spent 15 years managing a large applied research group investigating ore-forming processes and mineral exploration strategies – Currently CEO of Stratex International Plc, an AIM-quoted company operating in Turkey and East and West Africa.

• FRANK HOEGEL - Director

– Currently serves as Chief Executive Officer of Peter Beck Performance Fonds GbR, and advisory board of Concept Capital Management, an Asset Management Company – Completed his degree in Master of Business Administration (FH) with a focus on Financial Management, Banking and International Business & Management from the University of Nürtingen, Germany.

• MARC CERNOVITCH – Director and V.P Business Development

– Extensive capital markets experience having held various roles for multiple jr. resource companies for the past 10 years

• COLIN TAYLOR – Director

– Experienced in a wide range of managerial roles within the resource industry in both Canada and abroad

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Directors & Management

TEMBO GOLD PROJECT

Historic and Recent Work

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An established mining camp with several multi-million ounce gold deposits

• Six modern mining operations
• Significantly improved infrastructure
• Strong gold endowment
• Well understood geological granite

greenstone terrane with parallels worldwide

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Lake Victoria Mining Camp

M&I Inferred Company Mine Gold (Moz) Gold (Moz) African Barrick Bulyanhulu 13.7 3.3 African Barrick North Mara 4.9 0.1 African Barrick Buzwagi 4.3 0.4 African Barrick Nyanzaga 3.5 0.6 African Barrick Golden Ridge 0.7 0.1 African Barrick Tulawaka 0.3 0.0 AngloGold Ashanti Geita 9.4 3.2 Resolute Golden Pride 0.9 0.6 Resolute Nyakafuru 0.5 0.5 Tanzanian Royalty Buckreef 1.7 1.0 Total 39.9 9.9

Source: The Mining Almanac, which has not been verified by the Q.P.

101km2 land package adjacent to African Barrick’s 14Moz Bulyanhulu mine

• Large contiguous ground holding

– 94km2 active licence area and 7km2 under application

• Project credentials

– Historic exploration database with good results – >10km of extensively continuous artisanal workings – Numerous magnetic lineaments correspond with lines of artisanal mining shafts

• Adjacent and along strike of African Barrick’s

Bulyanhulu mine

– Bulyanhulu deposit, a 4km long, 2km deep, 2m wide, high-grade >11g/t gold – Bulyanhulu geology and structure continues onto Tembo property – Bulyanhulu SML underexplored – Extensive transported cover which gives erratic soil geochemistry results – 13.7Moz gold Resource and 3.3Moz gold Inferred as of African Barrick Gold Annual report and Accounts 2011 TSX-V: TEM / FSE: T23 www.TemboGold.com 10

The Tembo Project

Exploration results suggest a highly prospective area that is under-drilled

• Airborne magnetics

– Defines the extent of the greenstone geology that hosts gold mineralisation – Confirms geological continuity with the area to the southeast – Clearly defines magnetic structures corresponding to artisanal mining activity and Indicates there are >100km of potential structures

• Geochemistry

– Soils, RAB/aircore, and pitting – Widespread distribution of scattered anomalous gold values – Transported cover up to 10m thick masks geology and precludes strong cohesive anomalies

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Historical Exploration

Significant artisanal activity further confirms gold mineralization

• Over 2,000 artisanal miners operating over 100 active mine shafts
• More than 2,800 shafts located along Bulyanhulu parallel, east-west, and

northwest trending structures totaling over 10km of artisanal mining zones

• Mining to depths generally in excess of 30m and reportedly as deep as 90m
• Milling on site, with grades ranging between 5 and 58 g/t gold

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Artisanal Activity

2011 LIDAR survey identifies over 10km of artisanal mining zones

• LIDAR survey and field mapping

– Digital terrain model (DTM) and high resolution orthophoto identified numerous previously unrecorded areas

• f mining

– Individual laterally continuous zones of mining shafts extend up to 2km in strike and for a total of >10km – The zones correspond to conjugate structures reflected in the magnetics

• Artisanal mining

– Mineralized rock from artisanal pits consists predominantly of quartz vein and sheared meta-volcanic host with abundant evidence of sulphide – Grades ranging between 5 and 58g/t gold returned from artisanal face sampling

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LIDAR and Recent Field Mapping

35,328m in 192 holes (57 DD and 135 RC) completed to date

• Ngula 1

– 7,785m of DD (32 holes) and 7,035m of RC drilling (37 holes) completed – Targeting two structural zones focusing on a southern set of east- west, and interpreted northwest and northeast intersecting structures

• Nyakagwe East

– 3,746m of DD (10 holes) and 2,238m of RC drilling (20 holes) completed – Targeting two northwest trending structural zones

• Mgusu

– 737m of DD (2 holes) and 6,735m of RC drilling (51 holes) completed – Targeting a large number of intersecting multidirectional mineralized structures

• Nyakagwe Village

– 1,541m of DD (9 holes) and 1,315m of RC (11 holes) compleated – Testing beneath highly active workings

• Iyenze and Ngula 2

– Initial preliminary drilling at Iyenze (RC) and Ngula 2 (DD) returned poor results – 3,001m of RC and 1,195m of DD drilled respectively – Both targets remain to be further tested TSX-V: TEM / FSE: T23 www.TemboGold.com 14

Tembo Drilling Status

Q1 2014 - Continued target development and depth extent testing

• Additional drillholes at Ngula 1,

Nyakagwe East and Nyakagwe Village to further develop these targets during Q1 14

• Geophysical survey (IP) to test the

northwest structures of the Buly trend and to the north and south

• Detailed review of all geological

information, structural and assay data to determine the next steps

• If considered appropriate in fill and

down dip drilling to establish an initial resource on one or more targets

• Ongoing development through initial

drilling of other targets

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Immediate Work Program

Several drill holes encountered multiple zones of mineralization

• Highlights Include:

– TDD0004: 3.13 g/t gold over 25.89m from 41.00m including 9.38 g/t gold over 6.30m; – TDD0005: 5.14 g/t gold over 8.50m, including 15.59 g/t gold over 2.68m; – TDD0010: 6.44 g/t gold over 1.20m; – TDD0012: 8.60 g/t gold over 0.98m; – TDD0054: 8.17 g/t gold over11.05m from 116.95m including 18.90 g/t gold over 0.82m and 28.80 g/t gold over 1.00m; – TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m from 302.30m, including 205 g/t gold over 1m – TRC0013: 17.23g/t gold over 4.00m from 19.00m and 13.00 g/t gold

• ver 1.00m from 104.00m

– TRC0014: 19.80 g/t gold over 1.00m from 114.00m and 10.00 g/t gold over 1.00m from 122.00m

• First Drill Holes

– 48 drill-holes completed, 29 reverse circulation (RC) and 19 diamond drilling (DD) – Diamond and RC drilling on 100m spaced section lines along a 600m strike length – Heel-toe RC drilling conducted to test between primary structures – Testing multiple east-west and crosscutting mineralized structures at depths between 50m and 250m beneath and along strike of artisanal workings – Multiple gold-bearing structures intersected

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Ngula 1 Drill Results

>600m strike length, multiple structures, grades ranging between 1-300g/t gold

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Ngula 1 Drilling Update

Note: Detailed information on all drill results available on the company website

– Deep drilling follow-up

• Drilling has intersected high

grade and wide mineralisation but inconsistent results

• TDD0041 deepened in the

latest 2014 drilling

• Additional deep diamond

drillhole TDD0040 completed 100m to the west

• Step-back drilling TDD0043 to

the east and intersecting 100m deeper than TDD0041 completed

• Results awaited

High grade drill results and artisanal grab samples confirm significant mineralization

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Mgusu Drilling Update

Note: Detailed information on all drill results available on the company website

Consistently developed and mineralized structures to be tested

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Nyakagwe East Drilling Update

Note: Detailed information on all drill results available on the company website

– Follow-up in-fill and deeper drilling

• 1000m strike extent of gold

mineralization on northern structure confirmed by 2012 drill program

• 2014 follow-up drilling to in-fill

known strike and extend drilling to the southeast

• Additional drilling of the

southern structure

• Drilling of 8 hole program in

progress

• Results awaited

Multiple high grade gold intersections both near surface and at 300m depth

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Nyakagwe Village

Note: Detailed information on all drill results available on the company website

– High grade 2012 intersections followed up to the east

• Initial drilling at Nyakagwe

Village intersected high grades in multiple structures

• 2014 follow-up drilling is testing

the extensions of these structures to the east towards Nyakagwe East and down dip to the south

• 4 diamond drill holes targeting

the depth and lateral extension

• f the structures
• Drilling is in progress and

results of completed holes awaited

The northwest trending Buly set of magnetic lineaments to be tested

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Buly Trend Geophysics

Note: Detailed information on all drill results available on the company website

– The Bulyanhulu Mine Reef 1 structure and sub-parallel structures

• The Reef 1 structure is one of a number of

sub-parallel northwest trending magnetic lineaments known to host high grade mineralization

• IP is to be conducted across the entire zone
• Mineralization is associated with sulphide

and quartz veining

• Zones of high chargeability and low

resistivity expected to be encountered and constitute drill targets

• Limited workings exist over the ‘Reef 1’

structural extension under transported cover

High grade drill results and artisanal grab samples confirm significant mineralization

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Mgusu Drilling

Note: Detailed information on all drill results available on the company website

High grade gold mineralization demonstrated on multiple targets

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Drill Results Overview

Tembo Gold is committed to being a valuable member of its community

• Tembo Gold engages with the

community

– Since inception of the project Tembo Gold has been committed to stakeholder engagement and becoming a valued member of the community – Solid early groundwork was conducted to identify community risks and needs – Meaningful relationships are based on mutual trust being established – Considerable scope identified to improve the social-economic status of the surrounding villages and positively impact the natural environment – A systematic and documented approach to HSEC matters has been adopted – Approach aligns with international best practice, the Equator Principles and the IFC Performance Standards

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Our Community

• HIGHLY PROSPECTIVE GOLD ASSET: Located adjacent to African Barrick's 14Moz Bulyanhulu Mine in

the prolific Lake Victoria Greenstone belt, the 101km2 property has highly prospective geology, encouraging earlier exploration with promising results, and multiple targets identified

• HIGH QUALITY MANAGEMENT TEAM: CEO: David Scott, formerly of Barrick Gold’s subsidiary Kahama

Mining Corporation, 32 years experience, 15 years in Tanzania

• EXTENSIVE ARTISANAL ACTIVITY: Over 2,000 artisanal workers, mining from over 100 mine shafts

some to depths in excess of 70m along a >10km strike, extracting high grade 5 to 58 g/t gold material

• SIGNIFICANT INITIAL DRILL RESULTS: Best intercepts include TDD0041: 22.81g/t Au over 15.00m

from 299.00m including 34.78g/t Au over 9.70m from 302.30m; TDD0004: TDD0004: 4.46 g/t gold

• ver 2.60 and 9.38 g/t gold over 6.30m; TDD0005: 10.76 g/t gold over 4.00m, including 93.3 g/t gold
• ver 0.38m and; TRC0013: 16.10 g/t gold over 3.00m and 4.01 g/t gold over 3.00m, TRC0423: 10.17g/t

gold over 6m from 36.0m including 19.1g/t gold over 3m, with over 1,500m of mineralized strike identified in two project areas

• SEVERAL NEAR TERM CATALYSTS: Expedited work program underway with ~35,000 of drilling

completed to date

• WELL CAPITALIZED: ~$4.5M in cash

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Investment Summary

APPENDIX

Additional Info

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Artisanal mining of well developed quartz veins

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Artisanal Mining Faces

Several drill holes encountered multiple zones of mineralization

• Highlights Include:

– TDD0004: 3.13 g/t gold over 25.89m from 41.00m including 9.38 g/t gold over 6.30m; – TDD0005: 5.14 g/t gold over 8.50m, including 15.59 g/t gold over 2.68m; – TDD0010: 6.44 g/t gold over 1.20m; – TDD0012: 8.60 g/t gold over 0.98m; – TDD0054: 8.17 g/t gold over11.05m from 116.95m including 18.90 g/t gold over 0.82m and 28.80 g/t gold over 1.00m; – TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m from 302.30m, including 205 g/t gold

• ver 1m

– TRC0013: 17.23g/t gold over 4.00m from 19.00m and 13.00 g/t gold over 1.00m from 104.00m – TRC0014: 19.80 g/t gold over 1.00m from 114.00m and 10.00 g/t gold over 1.00m from 122.00m

• First Drill Holes

– 48 drill-holes completed, 29 reverse circulation (RC) and 19 diamond drilling (DD) – Diamond and RC drilling on 100m spaced section lines along a 600m strike length – Heel-toe RC drilling conducted to test between primary structures – Testing multiple east-west and crosscutting mineralized structures at depths between 50m and 250m beneath and along strike of artisanal workings – Multiple gold-bearing structures intersected

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Ngula 1 Drill Results

Multiple zones of mineralization at varying depths

• Highlights Include:

– TDD0019: 3.51 g/t gold over 2.45m from 67.35m including 11.30 g/t gold over 0.34m; – TDD0029: 61.8 g/t gold over 0.68m from 277.24m, and 3.93 g/t gold over 1.47m, including 5.28 g/t gold

• ver 0.62m from 140.53m ;

– TDD0104: 4.72g/t gold over 2.11m from 66.80m; – TDD0030: 2.62g/t gold over 3.29m from 48.21m including 5.79g/t gold 1.00m; – TRC0234: 5.46g/t gold 2.00m from 109.00m – TRC3470: 6.48g/t gold over 2.00m from 8.00m

• First Drill Holes

– 52 drill-holes completed, 41 reverse circulation and 11 diamond drill holes – Drilling on 100-200m spaced section lines along a 1,000m strike length – Testing multiple northwest trending structures at depths between 50 and 250m beneath and along strike of artisanal workings – Multiple gold-bearing structures intersected along the full strike tested and continuity across unmined areas indicated – Free-gold bearing structure intersected deep in the footwall

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Nyakagwe East

Preliminary metallurgical test work indicates ~90-95% gold recoveries

• Gold Deportment Procedure

– Artisanal face samples grouped and composited into low, medium and high- grade – Amenability to gravity recovery tested by Knelson concentrator – Mineralogical characterisation of gold established – Gold exposure and grainsize determined – Diagnostic leach of gravity tails and direct cyanidation of bulk sample

• Test Work Results

– Gold is well liberated and well exposed – Direct cyanidation of head samples indicates high gold recoveries for medium (94.7%) and high grade (98.9%) composites but low recovery (87.3%) for low grade composite – Gravity recovery plus direct cyanidation of gravity tails would be an effective method to recover the gold

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Preliminary Metallurgical Testing

10 20 30 40 50 60 70 80 90 100 Grav.Conc Grav.Tails

Mass Gold Sulphur 10 20 30 40 50 60 70 80 90 100 Grav.Conc Grav.Tails Gravity Separation of the Medium grade sample Mass Gold Sulphur 10 20 30 40 50 60 70 80 90 100 Grav.Conc. Grav.Tails Distribution (%) Gravity Separation of the High grade sample Mass Gold Sulphur

Mineralized reefs along steeply dipping northwest striking structure

• A 14m million ounce narrow-vein

shear hosted gold deposit with silver and copper mineralisation

• Shear zone situated within a narrow

argillite unit at a contact within a volcanic sequence

• Sulphide mineralization primarily

pyrite and chalcopyrite in smokey quartz veins and sheared argillite

• Volcanic sequence consists of mafic

to intermediate meta-volcanic flows

• verlain by felsic pyroclastic ash tuffs
• The zone strikes approximately 310

degrees and dips steeply to the northeast

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Bulyanhulu Geology

Reef 1 continues to extend further to the west

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Bulyanhulu Long Section

African Barrick Gold Preliminary Results 2013 Presentation February 2014