The Lake Victoria Project comprises 129 mineral licences and applications covering an area of ~2,700 square kilometres that are scattered throughout Tanzania’s premier gold mining region, the Lake Victoria Goldfield (LVG) where the Company’s resource based projects, Itetemia and Luhala are also located. The mineral tenements are spread across four administrative regions, Mwanza, Shinyanga and Kagera in this part of northern Tanzania. The most convenient access is from the city of Mwanza, Tanzania’s second city, where, Kibo has its exploration  office. From Mwanza, access to the majority of the tenements is first by ferry and then by a network of tarred and gravel roads. The operating gold mines in the region have contributed to the improvement in the regional road network in recent years but, given such a large area, access to many of the tenements is still by gravel roads in variable states of repair.

The project is divided into six blocks based on location for ease of description. The block boundaries are somewhat arbitrary as each block comprises smaller blocks of contiguous and non-contiguous licences at various stages of application, offer, issue and renewal scattered throughout the LVG. The six blocks are:

• The Mhangu Block
• The Geita East Block
• The Geita North Block
• The Geita West Block
• The Central Block
• The UN Road Block

The geology of the LVG is broadly similar to other gold producing Archaean greenstone terrains throughout the World and comprises a number of east west trending linear greenstone belts separated by granite-gneiss terrains. The Lake Victoria project tenements surround, straddle and occur within all the major greenstone belts in the LVG and include the Geita, Buhungukira, the Sarama-Rwamagaza and the Ushirombo Greenstone Belts. Additionally a significant number of the tenements are close to gold deposits, operating large scale mines and artisanal workings. Gold mineralisation within the LVG is controlled by a combination of favourable host rocks such as banded iron formation, quartz reefs and porphyries, and favourable structural settings. The Lake Victoria project is well located in this regard and many of the tenements occur on or close to regional structural lineaments and contacts that geologists consider to be controls on gold mineralisation in the area.

Gold discoveries and mine developments to date in the LVG have been mainly based on re-evaluation and extension of historic gold mines and occurrences (e.g. Geita, Bulyanhulu, North Mara). The LVG is now at an exploration maturity stage where companies, assisted by the increased knowledge of the geology and gold mineralisation of the region, are continuing to extend their search for mineralisation further away from the near surface showings and historic gold mining districts. This has already resulted in exploration discovery success in the first phase of systematic company exploration during the mid-nineties with discoveries at Tulawaka, Myabi and in recent years Buswagi.

The Lake Victoria project presents the Company with a large early stage gold prospective licence portfolio in Tanzania’s main gold mining region. The Company's tenements encompass many areas adjacent to known gold discoveries where experience has shown from other parts of the world (e.g. Yilgarn Block, Western Australia) that significant new discoveries can be made with focused and systematic application of modern mineral exploration techniques.

A Stage 1 field exploation programme on priority Prospecting Licences (PLs) was implemented during 2012. The main component of this programme was infill soil sampling over PLs that showed anomalous gold-in-soil values from earlier regional soil sampling surveys. Four PLs were selected for sampling, PLs 6283/09, 7589/12,7590/12 (Mhangu Block) and PL 5243/08 (Central Block). The results for the Mhangu Block PLs showed encouraging results and provide trenching and RAB drill targets for follow up. The results for PL 5243/08 did not produce any significant soil anomalies and will not be a follow up priority.The results of the Stage 1 field  programme are discussed in detail on the Company's  2012  operational updates  (refer News section of website)  and illustrated on the  maps on the right.