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TECHNICAL REPORT ON THE NKULUWISI PROPERTY_ MBEYA_ TANZANIA

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TECHNICAL REPORT ON THE NKULUWISI PROPERTY_ MBEYA_ TANZANIA Powered By Docstoc
					TECHNICAL REPORT ON THE NKULUWISI PROPERTY,
                           MBEYA, TANZANIA




                                        Prepared for
                    Great Basin Gold Rusaf Gold Ltd.




                   NI 43-101 TECHNICAL REPORT



                                    AUTHORS:
               NATHAN ERIC FIER, C.P.G., P.ENG.




                              NOVEMBER 30, 2009
                                                                                                                                                       PAGE

1.0      SUMMARY.......................................................................................................................................... 1
         1.1 Executive Summary.................................................................................................................. 1
2.0      INTRODUCTION AND TERMS OF REFERENCE.............................................................................. 4
3.0      RELIANCE ON OTHER EXPERTS .................................................................................................... 5
4.0      PROPERTY SITE DESCRIPTION AND LOCATION.......................................................................... 6
5.0      ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY 9
6.0      HISTORY ............................................................................................................................................ 9
7.0      GEOLOGICAL SETTING.................................................................................................................. 10
8.0      DEPOSIT TYPES.............................................................................................................................. 13
9.0      MINERALIZATION ........................................................................................................................... 14
10.0 EXPLORATION ................................................................................................................................ 16
11.0 DRILLING ......................................................................................................................................... 18
12.0 SAMPLING METHOD AND APPROACH......................................................................................... 19
13.0 SAMPLE PREPARATION ANALYSIS AND SECURITY ................................................................. 20
14.0 DATA VERIFICATION...................................................................................................................... 21
15.0 ADJACENT PROPERTIES............................................................................................................... 22
16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ........................................................ 22
17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ................................................... 22
     17.1 Mineral Resources.................................................................................................................. 22
18.0 OTHER RELEVANT DATA AND INFORMATION............................................................................ 33
19.0 INTERPRETATION AND CONCLUSIONS....................................................................................... 33
20.0 RECOMMENDATIONS..................................................................................................................... 33
                                                                              TABLES

Table 1    Nkuluwisi Mineral Resource Summary – Base Case
Table 2    Nkuluwisi Mineral Resource Summary for Various Cutoff Grades
Table 3    List of Abbreviations
Table 4    Mineral Concessions
Table 5    Core Samples Reviewed During Site Visit
Table 6    Most Significant Drill Results
Table 7    Statistics of Data Provided to EBA
Table 8    Non Declustered Composite Statistics
Table 9    Measured Resource Estimate for Nkuluwisi – Cumulative Totals
Table 10   Indicated Resource Estimate for Nkuluwisi – Cumulative Totals
Table 11   Inferred Resource Estimate for Nkuluwisi – Cumulative Totals
Table 12   Nkuluwisi Mineral Resource Summary – Base Case
Table 13   Nkuluwisi Mineral Resource Summary for Various Cutoff Grades
Table 14   Nkuluwisi Mineral Resource Summary – Base Case
Table 15   Recommended Phase III Exploration Drilling at Nkuluwisi and Lupa
                                                                           FIGURES

Figure 1    Property Location - Lupa Goldfields, Tanzania
Figure 2    Nkuluwisi Property and Adjacent Mineral Claims (PLs)
Figure 3    Regional Geology
Figure 4    Local Geology with Exploration Potential and Recommendations
Figure 5    Block Model Isoshells
Figure 6    Regional Geophysics
Figure 7    Local Geophysics
Figure 8    Drill Hole Location Map
Figure 9    Block Model Long Section with Trends
Figure 10   Block Model Cross-Sections (1)
Figure 11   Block Model Cross-Sections (2)
Figure 12   Local Exploration Potential
                                                                                                                        1




1.0   SUMMARY

1.1   EXECUTIVE SUMMARY
      EBA Engineering Consultants Ltd. (EBA) of Vancouver, BC, was retained by Great Basin
      Gold Rusaf Gold Ltd. (GBGR) to prepare an independent Technical Report on the
      Nkuluwisi gold property in southern Tanzania. The purpose of this report is to support an
      initial Mineral Resource estimate. This report was prepared in accordance with the National
      Instrument 43-101 (NI 43-101) standards and is date November 30, 2009.
      GBGR has completed an exploration program consisting of sampling and drilling sufficient
      to complete a Mineral Resource estimate. These estimates are stated in Tables 1 and 2
      which compile with CIM definitions for Resource and Reserve Estimations.


       TABLE 1: NKULUWISI MINERAL RESOURCE SUMMARY - BASE CASE *
             Category                 Measured Resource               Indicated Resource            Inferred Resource
         Resource (tonnes)                 553,500                         2,147,850                     4,582,600
            Grade (g/t)                      0.93                             0.86                          0.91
              Grams                        515,600                         1,867,500                     4,198,100
          Resource (tons)                  610,100                         2,367,600                     5,051,400
          Grade (oz/ton)                    0.027                            0.025                         0.026
          Total Gold (oz)                  16,600                           60,000                        135,000

          * Numbers are rounded. Composites capped at 7.2 g/t gold. Cut-off grade of 0.5 g/t gold based on a gold price of
          US$850 and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources.

      In EBA’s opinion, the classification of the Mineral Resources as stated is appropriate and
      conforms to the definitions of NI 43-101 and the CIM Standards on Mineral Resources and
      Reserves Definitions and Guidelines adopted by the CIM Council on December 11, 2005.
      A summary of the resource at various cutoff grades is presented in Table 2.


      TABLE 2: NKULUWISI MINERAL RESOURCE SUMMARY FOR VARIOUS CUTOFF GRADES *
            Category                Measured Resource             Indicated Resource            Inferred Resource
          Cutoff Grade                                                     1.0
        Resource (tonnes)                 147,825                       491,400                     1,459,350
           Grade (g/t)                      1.63                          1.54                         1.42
             Grams                        240,933                       754,653                     2,081,182
         Resource (tons)                  162,947                       541,670                     1,608,642
         Grade (oz/ton)                    0.047                          0.045                       0.041
         Total Gold (oz)                   7,740                         24,260                       66,910
          Cutoff Grade                                                     1.5
                                                                                                               2


  Resource (tonnes)                 71,887                       215,325                      286,200
     Grade (g/t)                     2.06                          1.88                         2.03
       Grams                       148,437                       405,875                      582,980
   Resource (tons)                  79,241                       237,353                      315,478
   Grade (oz/ton)                    0.060                         0.054                       0.059
   Total Gold (oz)                  4,770                         13,050                       18,740
    Cutoff Grade                                                    3.0
  Resource (tonnes)                  3,712                           -                          6,412
     Grade (g/t)                      3.23                           -                          3.38
       Grams                        11,994                           -                         21,733
   Resource (tons)                   4,092                           -                          7,068
   Grade (oz/ton)                    0.094                           -                         0.098
   Total Gold (oz)                    390                            -                           700

   * Numbers are rounded. Composites capped at 7.2 g/t gold. Cut-off grades are variable based on a gold price of
   US$850 and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources.



In EBA’s opinion, the classification of the Mineral Resources as stated is appropriate and
conforms to the definitions of NI 43-101 and the CIM Standards on Mineral Resources and
Reserves Definitions and Guidelines adopted by the CIM Council on December 11, 2005.
The initial GBGR objectives for exploring the Nkuluwisi property in 2008 were to prove
the existence of a minimum of 500,000 ounces of gold at a grade of greater than or equal to
1.5 g/t gold. This target size was not achieved during the 2008 drill program due to a less
than expected mineralized grade and numerous holes were placed by GBGR staff with no
independent consultation and drilled in areas which were inconsistent with the mineralized
trend and surface outcrop of mineralization. The mineralized zone at Nkuluwisi is up to
30 metres wide with a majority of the current resource considered potentially open pittable
making it possibly attractive at lower (1 g/t gold) grades. Recommendations include further
compilation of all surface geological, geophysical, geochemical and structural data to
evaluate areas where further drilling might be warranted at Nkuluwisi and nearby targets.
The southeast extension of the Nkuluwisi mineralization is considered to have the highest
exploration potential and further drilling would be targeted along trend and to depth.
Exploration priorities should focus on additional drilling to target the +1 km long
mineralized Nkuluwisi zone at 100 m centers totalling approximately 2000 m drilling.
Drilling of other targets in the Lupa district is recommended with approximately 2000 m of
drilling. This further exploration drilling at Nkuluwisi and Lupa district is recommended at a
minimum cost of approximately US$1.2 million. With exploration success, an additional
US$3 million is suggested. With this additional drilling and exploration success, the
minimum target of 500,000 ounces of gold at a grade greater than or equal to 1.5 g/t gold is
potentially achievable.
                                                                                             3


Technical Summary
The Nkuluwisi gold prospect is located approximately 15 km northwest of the village of
Saza, within the Lupa Goldfield in south-western Tanzania. The Lupa Goldfield occupies a
triangular area of about 2,600 km2, approximately 850 km from Dar es Salaam and 80 km
northwest of the commercial centre Mbeya.
Under Tanzanian Mineral Law, a Prospecting Licence (PL) can be retained for 7 years after
the date of paper filing with the Tanzanian government. No government work
commitments apply to the PL’s. A 3% gross royalty applies to production.
Nkuluwisi gold mineralization is hosted within a felsic and mafic intrusive complex and
occurs in one of two structural corridors (the second termed “Rukwa”), which are defined
by elongate magnetic susceptibility lows. The Nkuluwisi zone is a zone of major
displacement 20 km long and up to 1.8 km wide. It is known to contain about a thousand
auriferous quartz veins.
Historical production from the Lupa Goldfields is estimated to be over 23 tons of gold
produced from about 80 sites in placers, rubble zones and lodes. Lode mining began in
1934 at Ntumbi and in 1939 at New Saza. The New Saza mine (1939-65) produced 8.4 tons
of gold grading 7.5 g/t, and the Ntumbi mine (1937-65) produced 1.7 tons of gold grading
12.1 g/t (unverified from Taiga Consultants Ltd). A total of 18.6 tons of gold have been
reported (unverified) from the Lupa area, but it is estimated that production has actually
exceeded 30 tons.
A total of 111 drill holes totalling 13,440 m and 49 surface samples were drilled and
sampled along an approximately 1 km long strike length through an approximate 50 m wide
corridor and to a depth of 100 m. Of these drill holes and surface samples 41 drill holes and
18 surface samples are within the block model area which was used to evaluate the resource.
Section-line spacing along the identified mineralized zone is approximately 125 m. There
are also several drill holes outside of the main target zone, approximately along strike of the
shear structure, for an additional 500m east and west of the main target area.
The resource estimate was carried out using a block model constructed in GEMS
(Gemcom). The block model consisted of blocks measuring 5 m by 5 m by 5 m. No
rotation was applied to the model. Grade for gold was interpolated into blocks using
Inverse Distance to the 5th power (ID5).
                                                                                                  4




2.0   INTRODUCTION AND TERMS OF REFERENCE
      At the request of GBG Rusaf Gold Ltd., a subsidiary of Great Basin Gold Ltd., EBA
      Engineering Consultants Ltd.(EBA) of Vancouver, BC, carried out a resource estimation
      for the Nkuluwisi gold property. The Nkuluwisi site is controlled by Shield Resources Ltd.
      (Shield)., which is 100% owned by Rusaf Gold Ltd., with 40% owned by Great Basin Gold
      Ltd. EBA has relied upon Great Basin Gold and its subsidiaries for supplying the
      geological information, background data and drill data base that are used in this report.
      This report was prepared in accordance with the National Instrument 43-101 (NI 43-101)
      standards of reporting. Resource estimation conforms to the CIM mineral Resource and
      Mineral Reserve definitions referred to in NI 43-101, Standards of Disclosure of Mineral
      Projects. The effective date of this report is November 30, 2009.
      Shield’s assets at Nkuluwisi include a tent camp, fenced core cutting and storage area, and
      miscellaneous vehicles.
      Sources of Information
      A site visit was carried out by N. Eric Fier, CPG, P.Eng. of EBA during the period of
      August 8 to 15, 2008. During the site visit, discussions were held with personnel from
      GBGR on exploration activities. Documentation reviewed is listed at the end of this report
      in Section 21.
      Units of measurement used in this report conform to the SI (metric) system as shown in
      Table 3, unless otherwise noted. Total contained gold is present in imperial measurements
      (Troy ounces; 31.1035 grams), as is the custom in the exploration industry.


       TABLE 3: LIST OF ABBREVIATIONS
            µ                  Micron                  kPa                    Kilopascal
           °C               degree Celsius             kVA                 kilovolt-amperes
           °F             degree Fahrenheit            kW                      Kilowatt
           µg                 Microgram                kWh                   kilowatt-hour
            A                  Ampere                    l                       Litre
            A                  Annum                    l/s                litres per second
           bbl                  Barrels                 m                        Metre
           Btu           British thermal units          M                   mega (million)
           C$              Canadian dollars             m2                   square metre
           Cal                 Calorie                  m3                    cubic metre
           Cfm           cubic feet per minute         min                      Minute
           Cm                Centimeter                masl              metres above sea level
           cm2            square centimeter            mm                     Millimeter
            D                    Day                   mph                  miles per hour
                                                                                                            5



          TABLE 3: LIST OF ABBREVIATIONS
              dia.               Diameter                  MVA                     megavolt-amperes
             dmt              dry metric tonne             MW                          Megawatt
              dwt             dead-weight ton              MWh                      megawatt-hour
              Ft                    Toot                   m3/h                  cubic metres per hour
              ft/s            foot per second            opt, oz/st               ounce per short ton
              ft2               Square foot                 oz                   Troy ounce (31.1035g)
              ft3                cubic foot               oz/dmt               ounce per dry metric tonne
               g                   Gram                    ppm                      part per million
              G                 giga (billion)              psia          pound per square inch absolute
              gal              Imperial gallon              psig           pound per square inch gauge
              g/l              gram per litre               RL                     relative elevation
              g/t             gram per tonne                 s                          Second
             gpm         Imperial gallons per minute         st                        Short ton
             gr/ft3         grain per cubic foot           Stpa                    Short ton per year
             gr/m3          grain per cubic metre          Stpd                    Short ton per day
              hr                   Hour                      t                       metric tonne
              ha                  Hectare                   tpa                  metric tonne per year
              hp                Horsepower                  tpd                   metric tonne per day
              in                    Inch                   US$                    United States dollar
              in2               Square inch                USg                    United States gallon
               J                    Joule                 USgpm                  US gallon per minute
               k               kilo (thousand)               V                           Volt
             kcal                Kilocalorie                W                            Watt
              kg                 Kilogram                  wmt                     wet metric tonne
              km                 Kilometre                  yd3                        cubic yard
             km/h            kilometre per hour              yr                          Year
             km2              square kilometre


3.0   RELIANCE ON OTHER EXPERTS
      This report has been prepared by EBA of Vancouver, BC Canada. EBA has relied on
      others for information contained within this report. EBA makes no guarantees nor does
      EBA warrant the reliability of information. EBA used information from provided reports
      under the assumption that they were prepared by Qualified Persons. The information,
      conclusions, opinions, and estimates contained herein are based on:
      •     Information available at the time of preparation of this report;
      •     Assumptions, conditions and qualifications as set forth in this report; and
      •     Data, reports and other information supplied by Great Basin Gold and its subsidiaries.
      The following reports and data were provided to EBA by Great Basin Gold and its
      subsidiaries:
                                                                                              6


      •   Shield Resources Quarterly Report, July 2008 top September 2008.
      •   A PowerPoint presentation titled “Shield Resources, Lupa Goldfields” by Protocol
          Exploration and Mining Services Ltd.
      •   Multiple Microsoft Excel spreadsheets which included assay results for gold, primary,
          secondary and tertiary geology classifications, and survey data from each borehole.
      •   Excel worksheet containing Shield Gold Properties in the Lupa Goldfields with
          prospecting licences list updated March 23, 2007.
      •   Other miscellaneous documents, spreadsheets, figures and presentations.

4.0   PROPERTY SITE DESCRIPTION AND LOCATION
      The Nkuluwisi gold prospect is located approximately 15 km northwest of the village of
      Saza, within the Lupa Goldfield in south-western Tanzania. The Lupa Goldfield occupies a
      triangular area of about 2,600 km2, approximately 850 km from Dar es Salaam and 80 km
      northwest of the commercial centre Mbeya. The property is located along trend with Helio
      Resources targets within the Saza and Kenge Shear Zones.
      The property consists of 38 contiguous concessions (PL’s) of which 2 include the Nkuluwisi
      property. The Nkuluwisi concessions are approximately 458 square kilometres.
7
                                                                                            8



Ownership and concession history of the Nkuluwisi property were reviewed by EBA.
Figure 2 presents the current Nkuluwisi Property and adjacent mineral claims (PLs).




Table 4 presents a list of mineral claims and ownership for the Nkuluwisi property.


 TABLE 4: MINERAL CONCESSIONS
                                                                           Initial Expiry
    Name          Lease No.       Status    Area (SQ KM)    Issue Date
                                                                                Date
  Nkuluwisi    PLR 1941/2002      Active,      305.8       June 5, 2002     June 4 2004
                                 Renewed
  Nkuluwisi     PL 3593/2005      Active,      152.9       Sept 21, 2005   Sept 20, 2008
                                 Renewed
                                                                                                9


      Under Tanzanian Mineral Law, a Prospecting Licence (PL) can be retained for 7 years after
      the date of paper filing with the Tanzanian government. No government work
      commitments apply to the PL’s. A 3% gross royalty applies to production.

5.0   ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
      PHYSIOGRAPHY
      Physiography
      The Lupa Goldfield forms a highland, reaching elevations of well over 2,500 m, and is
      bounded to the southeast and southwest by low lying alluvial plains separated from the
      highlands by Cenzoic Rift Valley faults. The Lupa Goldfield is capped by a mature erosion
      surface typical of the Central Plateau. Tilting has caused rejuvenation of the drainage with
      incision of streams and consequent exposure of mineralized zones, which would otherwise
      be covered by surface debris.
      Accessibility
      Access to the Lupa Goldfield is by gravel road from Mbeya, a town situated on the
      TAZARA railway line. Mbeya is also served by the paved highway from Dar es Salaam to
      Zambia. An airport is currently under construction.
      Local Resources
      The village of Saza, located approximately 15 km from the property has a population of
      approximately 5,500. Main road access (improved dirt) is from the city of Mbeya which is
      located 200 kilometres south of the property or approximately a 4 hour drive. Mbeya, the
      capital of the region has a population of est. 120,000 and more services are available to
      support an exploration and mining operation.
      Climate
      Tanzania is located immediately south of the equator, and thus seasonal temperature
      variations are not extreme. The hottest months are from October to May, while cooler
      weather prevails from May to September. The rainy season is from November to May, and
      the dry season from June to October. Year-round temperatures near Mbeya range from -
      6ºC in the highlands to 29ºC in the lowlands. Average annual rainfall is around 900 mm,
      with the rainy season being from November to May.

6.0   HISTORY
      Historical production from the Lupa Goldfields is estimated to be over 23 tons of gold
      produced from about 80 sites in placers, rubble zones and lodes (various company websites
      and presentations, e.g. Seab Gems Inc, Helio Resource Corp., Obtala Resources PLC.).
      Lode mining began in 1934 at Ntumbi and in 1939 at New Saza. The New Saza mine (1939-
      65) produced 8.4 tons of gold grading 7.5 g/t, and the Ntumbi mine (1937-65) produced
      1.7 tons of gold grading 12.1 g/t (unverified from Taiga Consultants Ltd). A total of 18.6
                                                                                               10


      tons of gold have been reported (unverified) from the Lupa area, but it is estimated that
      production has actually exceeded 30 tons.
      In the late 1990s, exploration companies such as Ormonde Mining, Princes Resources and
      Anmercosa Exploration (AngloGold) conducted systematic exploration work at various
      localities within the Lupa Goldfield. The work included geochemical, geophysical and
      geological surveys. Discovered mineralization has been confined to quartz veins and narrow
      shear zones.
      Systematic studies of the area include regional mapping by the Geological Survey of
      Tanzania. A 1970-74 study (not available to EBA) included geophysics, drilling and alluvial
      testing by TECHNOEXPORT, a Soviet exploration group.

7.0   GEOLOGICAL SETTING
      Regional Geology
      Most of Tanzania is underlain by the Tanzanian Craton, which consists predominantly of
      Archean granites and greenstones, ranging from greenschist to lower amphibolite facies,
      and subdivided into mafic volcanic rocks with immature basin sedimentary rocks of the
      Kavirondian Supergroup. Higher-grade metamorphic units (gneisses, schists, amphibolites,
      migmatites and quartzites) of the Dodoman Supergroup predate the granite-greenstones
      within the southern and south-western parts of the craton. Archean (post granite-
      greenstone) granodiorites and tonalites make up the rest of the craton, particularly in the
      northern part.
      The Tanzanian Craton is flanked by three major belts on its south-western, southern and
      eastern sides. The Paleo-Proterozoic Usagaran mobile belt flanks the eastern and southern
      margins and consists mainly of granulites and biotite gneiss with quartzites. The Paleo-
      Proterozoic Ubendian mobile belt flanks the southern and south-western margins and
      consists of mainly gneiss with mafic and ultramafic intrusions, late granites and minor
      marbles. The Karagwe-Ankolean mobile belt flanks the north-western margins and consists
      of granites, argillites, phyllites, low-grade sericite schists and quartzites.
      Post-orogenic granites, gabbros, anorthosites, peridotites, pyroxenites and serpentinites
      intrude the craton and marginal mobile belts. The southern and eastern parts of the craton
      are overlain by Karoo, Jurassic, Cretaceous and Recent (Holocene) sedimentary sequences.
      The NW-SE trending Ubendian mobile belt hosts the Lupa Goldfield (and Nkuluwisi
      property) and is composed entirely of the Ubendian Supergroup. This Paleo-Proterozoic
      belt includes a variety of high-grade metamorphic rocks of both sedimentary and igneous
      origin and possibly contains a large component of reworked Archean rocks. The
      predominant rock type is gneiss with minor mafic and ultramafic intrusions, late granites
      and rare marbles. Daly (1988) and Daly et al. (1985) classified crustal blocks of the
      Ubendian belt into eight terranes as follows (from Shlüter, 1997):
            Katuma:         gneisses with layers of amphibolite and schist
                                                                                             11


       Upangwa:        meta-anorthosite
       Mbozi:          metabasites and intermediate granulites with quartzite
       Lupa:           metavolcanics
       Ufipa:          gneissic granite
       Nyika:          cordierite granulites
       Ubende:         metabasites
       Wakole:         alumino-silicate schists
At least three episodes of metamorphism are recognized in the Ubendian belt (Nanyaro et
al., 1983) and are summarized here from Shlüter (1997). The first episode reached
amphibolite facies and in places up to granulite facies, affecting all the Ubendian
sedimentary and volcanic rocks. Evidence of this event is preserved in xenoliths within
metabasites. The second episode similarly affected the entire belt reaching amphibolite
facies, and metamorphosing mafic intrusions into garnet-bearing metabasites. A retrograde
metamorphic event represents the third episode and is recognised in shear zones which are
characterized by typical minerals of the greenschist facies. This retrogression produced
chlorite-epidote-sericite-bearing rocks (Nanyaro, 1989).
Three generations of deformation are recognized as foliations, lineations, shearing and
faulting, and elongated granitic and mafic-ultramafic intrusives (Nanyaro, 1989). These
structures are preserved as a (D1) WNW striking foliation and recumbent folds overprinted
by (D2) NW-SE trending foliation and dextral shear zones, reactivated to develop (D3)
sinistral, brittle-ductile shear zones and foliation (Lenoir et al., 1994). The eight crustal
blocks described briefly above were created during D2, and the three episodes of
metamorphism are correlated to the above three generations of deformation.
The Lupa Goldfield occurs within the Ubendian mobile belt, on the south-western flanks of
the Tanzanian craton. It is bound on the north by a set of crustal-scale structures, separating
the Lupa plateau from the Tanzanian craton. It is bound on the east by the Usagaran rift
and by the Rukwa trough on the southwest. Both these structures are defined by normal
fault systems related to the East African rift valley. Metabasites, felsites, diorites and
gabbros are the predominant rock types within the Lupa Goldfield, with intermediate to
basic (granodiorite to gabbro) intrusions. These intrusion show strong structural control
suggesting syntectonic emplacement and are referred to as the Ilunga granites. First order
structures within the Lupa Goldfield appear to be E-W with second order conjugates
trending from ENE-WSW to WNW-ESE. Third order structures consist of a variety of
small-scale tensional veins and local ore “blows”.
12
                                                                                              13



      Local Geology
      Nkuluwisi gold mineralization is hosted within a felsic and mafic intrusive complex and
      occurs in one of two structural corridors (the second termed “Rukwa”), which are defined
      by elongate magnetic susceptibility lows (Figure 4). The Nkuluwisi zone is a zone of major
      displacement 20 km long and up to 1.8 km wide. It is known to contain about a thousand
      auriferous quartz veins.




8.0   DEPOSIT TYPES
      Deposit types in the Lupa Goldfield fall into the “orogenic” gold deposit category and
      include replacement/sulphidation of banded iron formation, quartz veining within or along
      granite-greenstone (metabasite) contacts, within granitic gneisses, and in cases as shear
      zones and stockworks associated with silicification in granitic rocks.
      Orogenic gold deposits are commonly hosted in greenschist to amphibolite facies Archean
      “greenstone” belts, such as the Ubendian mobile belt. Gold deposition typically post-dates
      peak metamorphism and accompanies retrograde metamorphism in the greenschist facies
      host rocks, while in amphibolite facies rocks mineralization is commonly syn-peak
      metamorphism. Favourable structural settings include areas of competency contrast
      between adjacent rock units where faults and shears are likely to occur.
                                                                                                 14


      Archean greenstone belts are predominantly volcano-plutonic terrains of oceanic back-arc
      felsic to mafic rocks. Although gold deposits occur in all lithologies of greenstone belts,
      three types are common: (1) iron-rich mafic igneous rocks, i.e. tholeiitic basalt and
      differentiated dolerite sills; (2) iron-rich clastic metasedimentary rocks and banded iron
      formation (BIF); and (3) dioritic to felsic porphyritic stocks and dykes. Nkuluwisi gold
      mineralization is similar to the third type.
      Six styles of gold mineralization are typical in orogenic gold deposits: (1) Quartz-carbonate
      veins are the most common style of mineralization, consisting of quartz veins with <25%
      carbonate, <10% sulphide, ± albite, tourmaline and scheelite. Sulphides are mainly pyrite
      with arsenopyrite and pyrrhotite. Veins types include laminated fault-fill and extensional
      veins forming complex, vertically extensive networks. (2) Sulphide replacement in BIF
      consists of strata-bound replacements of Fe-rich layers by mainly pyrite, arsenopyrite, or
      pyhrrotite. (3) Disseminated stockwork zones consist of 5-20% sulphides occurring as
      uniform dissemination or along foliation-parallel bands in highly strained rocks. This
      mineralization style is characterized by an absence of through-going quartz-carbonate veins.
      (4) Sulphide replacement and crustiform veins consist of lodes of crustiform-colloform
      carbonate veins and breccias with varying proportions of sulphide replacements of the wall
      rocks or vein carbonates themselves. (5) Sulphide-rich veins and veinlet zones contain 25-
      100% sulphide bearing quartz-carbonate veins. (6) Semi-massive to massive sulphide lenses
      are comprised of pyrite, chalcopyrite, sphalerite, and galena, and uncommonly pyhrrotite
      and magnetite.

9.0   MINERALIZATION
      Nkuluwisi gold mineralization occurs within a sheared “mesothermal” gold system. It is a
      structurally controlled felsic intrusive style of gold mineralization where gold and other
      chalcophile elements were scavenged from the mafic crust. The model suggests complex
      vein/shear systems due to local competency variations. There is an increase in complexity
      to the south and east, and a decrease to the northwest of the Lupa Goldfield.
      Through detailed chip and core logging, three generations of quartz veins have been
      identified on the Nkuluwisi property. The first generation quartz veins (Q1) are associated
      with the granitic units and are related to deformation and alteration within these units. The
      majority of the sulphide mineralization is associated with Q1 veins along fringes of high
      alteration. The second generation of quartz veins (Q2) is distinguished from the other two
      by its prominent purple colour resulting from hematite alteration. Sulphide mineralization
      within these veins is less common than in Q1, and occurs as disseminations throughout the
      vein rather than along the fringes. The youngest generation of quartz veins (Q3) cross-cuts
      all units and is believed to be associated with dolerite (diabase) intrusions after Au
      mineralization took place. They are white, calcite-bearing veins with no associated
      mineralization.
      Drill section interpretations indicate that the vein system is bound by distinct, dark, very
      fine-grained dolerite units on both the hanging wall and foot wall. The mineralized zone
                                                                                          15


appears to be subvertical, pinching and swelling both with depth and along strike. Towards
the west (Figure 5) the mineralized zone becomes very narrow and seems to disappear
completely along strike. The zone is structurally controlled, defined by prominent, dextral-
normal faults and usually associated with dolerite intrusions.
Gold mineralization is strongly associated with a brittle-ductile shear zone with distinct
foliation patterns (bands), pseudotachylites, fractures and faulting. Sulphides mainly occur
within the ductile component of the shear zone within a 10-20 m chill margin from the
hanging wall / foot wall dolerite contact. Where dolerite dykes are thought to cross-cut the
granitic unit, mineralization is sometimes directly associated with the dyke margin.
                                                                                                16




10.0   EXPLORATION
       Modern exploration of the Nkuluwisi property began in 2006 with the discovery of
       mineralized outcrop.
       Exploration has consisted of drilling, geochemical soil sampling and geophysical surveys.
       Geological and geotechnical logging of drill core from diamond drill core has been carried
       out along with chip logging and sampling from reverse circulation (RC) drilling. Surface
       sampling has included grab samples and soil samples and has included 1:20,000 scale
       mapping of the Nkuluwisi Shear. The exploration program has targeted the contact
       between the dolerite and granite units as well as through the Nkuluwisi shear zone.
       Surface Sampling
       Surface sampling included sampling of areas identified by geophysical anomalies as well as
       historical soil anomalies and completing grid soil surveys. Soil sample grids were done on
       200 m x 50 m spacing with an average sample depth of 50 cm. A total of 500 samples were
       taken in 2008. For each soil sample the following information was collected: location;
       depth, slope angle, and soil type.
       Soil sample pits with dimensions 50cm x 50cm to a depth of 35 to 75 cm were excavated
       and a representative 2-3 kg sample was taken across the bottom of each pit. The sample
       was sieved to 2 mm fraction. All sampling equipment was cleaned between each sample.
       A total of 43 grab/rock samples were taken from the Ilunga (Nkuluwisi) area in the third
       quarter of 2008, 14 of which were submitted for geochemical analysis. The remaining 29
       were to be submitted.
       A total of 23 trenches were excavated based on geophysical targets. Due to the thickness of
       overburden, bedrock was seldom reached, thus limiting the success of the trenching
       program.
       Data obtained from the soil sampling program was used to make soil maps and delineate
       geochemical anomalies. Soil anomalies were determined to follow magnetic anomalies
       including that along the Nkuluwisi Shear Zone.
       No underground work has taken place at Nkuluwisi.
       Geophysics
       A high resolution fixed wing airborne magnetic and radiometric survey was flown over an
       area of 540 km2 in 2006 (8,250 line km with 100 m line spacing).
       Induced polarization (IP) and direct current (DC) resistivity surveys totalling 100 line km
       were carried out in 2006/2007 over Nkuluwisi.
                                                                                   17


Geophysical work has helped delineate the mineralized zones at Nkuluwisi by defining
contacts and interpretation of structural controls (Figures 6 and 7).
                                                                                                   18




11.0   DRILLING
       Drilling in 2007 to test geophysical targets consisted of 58 core holes totalling 8,045 meters
       of both reverse circulation (RC) and diamond drill (DD). This program was unsuccessful in
       defining a resource target based on the IP anomalies which were being tested by Rusaf.
       Further review found that IP anomalies being drilled were related to footwall and
       hangingwall alteration associated with disseminated pyrite, therefore, most drill holes did
       not intersect mineralization but were adjacent to it. Also, during the 2007 exploration
       program, mineralized outcrop and mineralization in trenches was discounted over the use of
       IP geophysical data to select targets. The use of surface data was not respected until the
       2008 program was proposed by N. Eric Fier, C.P.G, P.Eng.
       A drill program in 2008 consisting of 53 holes totalling 5,395 meters of both reverse
       circulation (RC) and diamond drill (DD) was designed based on surface mapping, trenching
       and limited success of the 2007 drill program. Drilling included 3,527 meters in 34 RC holes
       and 1,868 meters in 19 DD holes. Primary objectives of the drilling program were to
       determine/confirm (1) the potential of selected drill areas within the Lupa Goldfield to host
                                                                                                   19


       potentially economic gold mineralization and (2) test downhole depth and strike continuity
       of ground geophysics profiles, geological mapping (grab samples), trend of artisinal
       workings and the airborne data.
       Drill holes were logged to record major and secondary lithologies as well as discrete features
       such as inclusions, veins and fracture fillings. Up to three mineralization types and style
       were recorded along with alteration and intensity. Geotechnical parameters including RQD,
       recovery and gain/loss of core were recorded as well as structural data. A photographic
       record was retained of all core.
       The database provided to EBA contains 111 holes totalling 13,440 m. A drill hole location
       plan view of the main area of interest is shown in Figure 8.




12.0   SAMPLING METHOD AND APPROACH
       Limited information is available for the 2007 sampling programs. It is believed by EBA that
       these were completed in a professional manner.
       As of September 2008, 3,263 RC chip samples and 2,258 DD core samples were submitted
       to ALS for assay analysis.
       RC samples consisted of 1 m samples split 3 ways. A field archive sample of approximately
       35 kg was retained and a sample of 0.5 kg to 1 kg weight was submitted for analysis.
                                                                                                20


       For diamond drill core major lithological units were sampled, with sample size ranging from
       50 cm to 100 cm in length. Core was split in half with the bottom half being sent for
       analysis and top half saved as an archive.
       For all core samples each hole was bagged as a separate batch and transported to the
       qualified ALS-Chemex lab in Mwanza, Tanzania.
       EBA believes that sample methods and approach have been completed in a professional
       manner and within acceptable limits.

13.0   SAMPLE PREPARATION ANALYSIS AND SECURITY
       Limited information is available on the 2007 exploration program.
       Laboratory analysis was completed by ALS laboratories in Mwanza, Tanzania and North
       Vancouver, Canada during the 2008 program. Work orders were sent via e-mail for each
       batch and progress was tracked online via web retrieve.
       Sample tracking was completed by recording the following data in an electronic spreadsheet:
          •   Date of dispatch from site
          •   Date of arrival at prep lab
          •   Date of arrival at analytical lab
          •   Date of receipt of final results.
       Samples were prepared in the lab by drying and crushing of entire sample to greater than
       70% passing a 2 mm sieve. The samples were then split with 1 kg pulverized to greater than
       85% passing a 75um sieve. Au was analyzed by fire assay and atomic absorption. Metals
       were analysed using conventional ICP AES analysis with aqua regia digestion.
       Blanks, Standards and Duplicates
       Laboratory blanks, standards and duplicates were reviewed and, with the exception of
       missing analytical data for four blank samples and minor mislabelling of standards, QAQC
       data was viewed as within acceptable limits.
       Standards, blanks and duplicates were inserted regularly into the sample stream for
       QA/QC. Every 30th sample was a standard, every 20th a blank and every 10th a duplicate.
       Three standards were used: OXG60 (1.025 g/t), OXE56 (0.611 g/t) and OXC58
       (0.201 g/t). As well, 5% f all samples, including standards and blanks, were sent to a
       secondary lab.
       Duplicates were conducted by attaching a second empty bag to a sample and the laboratory
       would split the sample.
       EBA believes that sample preparation and security have been completed in a professional
       manner and within acceptable limits.
                                                                                                           21



14.0   DATA VERIFICATION
       During the site visit, core was inspected for visual alteration and mineralization to confirm
       their existence and verify the deposit-type. Eighteen samples (drill, grab, and outcrop) were
       collect by N. Eric Fier, CPG, P.Eng on October 27, 2007 of altered and mineralized areas
       to verify grade as presented in the following Table 5.

       TABLE 5: CORE SAMPLES REVIEWED DURING SITE VISIT
                                                                                Approx.
                                                                       Length
       Location   Sample No.     Date    Northing    Easting    Type            Weight      Description with grade
                                                                       metres
                                                                                 (kg)
                                                                                          Qtz vein w/hem, llim, Mnox,
        Lupa         LU 1       27-Oct    507704     9060736    Chip    2x2        2       bxwork near side of road
                                                                                           Core hole LGFD 006 92-
        Lupa      LGFD 003254   27-Oct   Drillhole              Core     1         1          93m, 0.49 gpt Au
                                         Drillhole                                         Core hole LGFD 006 97-
        Lupa      LGFD 003259   27-Oct                          Core     1         1          98m, 0.08 gpt Au
                                         Drillhole                                         Core hole LGFD 036 43-
        Lupa      LGFD 003982   27-Oct                          Core     1         1          44m, 0.95 gpt Au
                                         Drillhole                                         Core hole LGFD 036 47-
        Lupa      LGFD 003986   27-Oct                          Core     1         1          48m, 0.02 gpt Au
                                         Drillhole                                        RC hole LGFR 005, 38-39m,
        Lupa      LGFC 002511   27-Oct                          RC       1         1              5.74 gpt Au
                                         Drillhole                                        RC hole LGFR 005, 45-46m,
        Lupa      LGFC 002518   27-Oct                          RC       1         1              9.87 gpt Au
                                         Drillhole                                        RC hole LGFR 005, 60-61m,
        Lupa      LGFC 002534   27-Oct                          RC       1         1              0.06 gpt Au
                                         Drillhole                                        RC hole LGFR 054, 28-29m,
        Lupa      LGFC 006704   27-Oct                          RC       1         1              3.06 gpt Au
                                         Drillhole                                        RC hole LGFR 054, 40-41m,
        Lupa      LGFC 006717   27-Oct                          RC       1         1              4.30 gpt Au
                                         Drillhole                                        RC hole LGFR 054, 45-46m,
        Lupa      LGFC 006723   27-Oct                          RC       1         1              0.27 gpt Au
                                         Drillhole                                        RC hole LGFR 004, 20-21m,
        Lupa      LGFC 002393   27-Oct                          RC       1         1              1.18 gpt Au
                                         Drillhole                                        RC hole LGFR 004, 24-25m,
        Lupa      LGFC 002397   27-Oct                          RC       1         1              0.95 gpt Au
                                         Drillhole                                        RC hole LGFR 005, 30-31m,
        Lupa      LGFC 002404   27-Oct                          RC       1         1              0.21 gpt Au
                                                                                           Outcrop above hole 054,
                                                                                           quartz vein w/hem, feox,
        Lupa       NK01-9929    27-Oct    486716     90855301   Chip     1         2                 mnox
                                                                                          Sample in bottom of trench
        Lupa       NK02-9930    27-Oct    486603     9085347    CH       2         3      #2, altered granite - 4 gpt Au
                                                                                           Shear zone in granite min
        Lupa        RK-9931     27-Oct    478606     9084162    CH       1         2        300m long, feox, mnox
                                                                                                     22



       TABLE 5: CORE SAMPLES REVIEWED DURING SITE VISIT
                                                                               Approx.
                                                                      Length
       Location   Sample No.      Date    Northing   Easting   Type            Weight    Description with grade
                                                                      metres
                                                                                (kg)
                                                                                         High grade from dump,
        Lupa       GG-9932       27-Oct   526424     9064539    G                 1         sulfides, cu stain

       Results of the same core collected by GBGR staff were comparable.
       A validation of the drill database was completed and there were several intervals with no
       assay information. In addition there were 17 of assay intervals that exceeded the depth of
       hole and six samples for which there were no intervals defined.
       Analytical results for standards, blanks and duplicates were reviewed as part of the overall
       QA/QC of the drill hole database. With the exception of some mislabelling of standards,
       analytical results were viewed as within acceptable limits.
       EBA believes that the data compilation and verification were completed in a professional
       manner by qualified persons and are adequate for reporting purposes.

15.0   ADJACENT PROPERTIES
       The Lupa goldfields are the second largest gold fields in Tanzania which cover an area of
       approximately 2600 square kilometres. Properties adjacent to Nkuluwisi prospect include
       Helio Resources SMP Project which has had success in drilling and defining resources and
       is shown on the in Figure 1.

16.0   MINERAL PROCESSING AND METALLURGICAL TESTING
       Mineral processing and metallurgical testing are not addressed in this report.

17.0   MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

17.1   MINERAL RESOURCES
       The collection and compilation of all information with respect to resource estimation for
       Nkuluwisi was completed by GBGR. No historic mineral resources have been estimated.
       Database
       Drill hole data provided to EBA was in the form of multiple Microsoft Excel spreadsheets,
       which included analytical results, collar and downhole survey information and geology. Data
       from these spreadsheets were imported into GEMS™ for review and resource modelling.
       At the time of the resource estimation interpretative cross sections from site geologists,
       surface structural geology data and site topography were limited. The resource model was
       estimated using drill hole data with lithology units and gold assay data.
                                                                                                  23


The following table shows drill hole intervals that contain the most significant drill results.


 TABLE 6: MOST SIGNIFICANT DRILL RESULTS
    Hole ID         Interval        From (m)         To (m)        Interval (m)      Au (g/t)
                  Mineralized
                                     227.36          247.68           20.32           0.65
                     Zone
   NKDD007
                   Including         245.00          246.00           1.00            2.87
                   Including         246.00          246.50           0.50            4.97
                  Mineralized
                                     94.03           107.00           12.97           0.76
                     Zone
   NKDD016
                   Including         102.80          103.30           0.50            5.08
                   Including         105.00          106.00           1.00            2.69
                  Mineralized
                                     36.58           54.00            17.42           2.97
                     Zone
                   Including         44.40           52.50            7.60            6.31
   NKTW001        Mineralized
                                     64.70           86.50            21.80           0.61
                     Zone
                   Including         70.50           71.50            1.00            3.05
                   Including         85.00           86.00            1.00            2.90
                  Mineralized
                                     35.13           55.00            19.87           2.09
   LGFR005           Zone
                  Mineralized
                                      0.00           28.47            28.47           1.18
   NKRC034           Zone
                  Mineralized
                                     94.03           102.00           7.97            1.80
   NKRC016           Zone
                  Mineralized
                                      2.00            7.00            5.00            1.54
   NKRC035           Zone
                  Mineralized
                                     121.80          122.80           1.00            2.58
  NKDD006R           Zone
                  Mineralized
                                     18.59           31.07            12.48           0.95
   LGFR004           Zone



Block Modelling
A block model was created using Gemcom’s GEMSTM software program to complete a
preliminary resource for Nkuluwisi.
A three dimensional shape of the mineralization was created by digitizing the mineralized
zone on 25 m spaced vertical sections. Gold assay values in the drill database were used to
establish the mineralized zone, using a value of 0.5 gpt to differentiate between mineralized
and unmineralized rock within the shape. The mineralized shape was reviewed on 25 m
elevation plans and the interpretation was adjusted as required. The mineralized sections
were used to create a three dimensional solid shape and separate rock codes were assigned
                                                                                           24


to the mineralized solid and the material outside of the mineralized solid. Rock codes were
applied to the corresponding assays within the drill hole assay sample database based on it’s
the sample interval location with respect to the mineralization solids. Intervals falling
outside the solids were assigned a rock code of “5” and points within the mineralized solid
were assigned a value of “1”. A topographic surface was modelled based upon the
elevations of the drill collars. Blocks above the topography surface were given a rock code
value of “0” for air.
The block model consists of 5 x 5 x 5 m blocks arranged in 45 rows, 180 columns and
75 levels. The block model origin is X = 486300, Y = 9085250 and Z = 1175 and it is
rotated 12 degrees clockwise from north. Numerous iterations for calculating the block
model were completed and results were reviewed to establish sensitivities within the model.
Blocks were interpolated using an inverse distance method to the third power, constrained
by a search ellipse, and log normal probability plots of gold grades within the mineralized
shape were used to establish a cut off grade. Two meter composites samples greater than
0.05 gpt located within the mineralized shape were graphed on a log normal probability
plot, the 97.5 percentile value of 7.12 gpt was used as a cut off value for limiting the
influence of high grade samples. A minimum of four and a maximum of eight samples were
used to estimate the grade within a single block of the model. An integration level of three
(nine needles per block) oriented horizontally along rows were used.
A long section of the block model showing gold grade and drill holes is presented in
Figure 9. This section shows higher grade mineralization located near the surface with lower
grade gold zoning to depth.
25
                                                                                       26



Cross sections through the Nkuluwisi Shear Main Zone are shown in Figures 10 and 11.
27
                                                                                           28




Statistics
Samples contained within the mineralization wireframe were collected and subject to
statistical analysis. It was observed that the samples were taken over varying lengths and so
it was necessary to composite to a uniform length. Samples within the zone were
composited to 2 metre lengths.
The following table summarized the statistics of the database provided to EBA.


 TABLE 7: STATISTICS OF DATA PROVIDED TO EBA
                                     Within Database       Within Block Model
    No. of drill holes                     111                     41
 Total depth of drill holes
                                         13,440                   5,589
           (m)
  No. of surface samples                   49                       18
  No. of assay intervals                 10,773                   4,381

Non-declustered composite statistics:


 TABLE 8. NON DECLUSTERED COMPOSITE STATISTICS
                   Statistic                              Gold
                   Number                                  128
                     Mean                                 1.300
              Standard Deviation                          1.495
             Coefficient Variation                        1.151
                   Median                                 0.970
                  Maximum                                 15.40
                  Minimum                                  0.50

The composite data for gold is observed to be positively skewed and therefore it is
appropriate in EBA’s opinion to cap the high grade to a predetermined value. Two metre
composite samples greater than 0.5 g/t located within the mineralized solids were graphed
on a log normal probability plot, the 97.5 percentile value of 7.2 g/t was used as a cut off
value for limiting influence of high grade samples.
Geostatistics
Geostatistical analysis for the drillhole database for the Lubando deposit was done for gold
using the available assay data and 2 m composites. The block model was populated using
ID5 method of calculation.
                                                                                            29



Search Parameters
The search ellipse for estimating the Measured resource is a sphere with a 15 m radius.
Minimum samples used to estimate a block were three and maximum was eight. The search
ellipse for estimating the Indicated resource is a sphere with a 35 m radius. Minimum
samples used to estimate a block were three and maximum was eight. The resource
estimated from the search parameters for “Measured” was subtracted from this estimation
to get the actual Indicated resource.
The search ellipse for estimating the Inferred resource is oriented to be approximately
planar parallel to the mineralization zones. The block is oriented ESE-WNW (12 degrees
rotation from EW), while the search ellipse anisotropy angles are defined by rotation ZXZ
as follows: rotated 0º about Z from X towards Y, 0º about X from Y towards X and 90º
about Z from X towards Y. An ellipsoidal search radii of 150 m along X, 75 m along Y and
300 m along Z was used. Minimum samples used to estimate a block were three and
maximum was twelve. The inferred resource was obtained from subtracting the Measured +
Indicated from the results of this search.
Classification
Standard resource classification was used to comply with NI 43-101. These classifications
include Measured, Indicated and Inferred resource estimations.
Gold values were interpolated in two passes. The first pass matches code “1”, which
interpolates blocks inside the mineralization solids. The following pass (code 5) interpolates
the area outside of the mineralization solids. Each pass does not overwrite any of the blocks
interpolated in the previous passes. The same interpolation parameters are used in each pass
with the exception of the search radius. A spherical search ellipse with 25 m radius was used
outside of the mineralized zone. The interpolation was constrained by an interpreted
topography surface that was generated from the collar elevations of the boreholes.
Summary of modeling parameters;
•   Number of samples (raw data): 10,773
•   Method of Calculation: ID5
•   Composite Length: 2m
•   Number of Composite Samples within mineralized shape: 990
•   Number of samples within mineralized shape greater than 0.05 gpt: 270
•   Top cut value: 7.2 g/t
•   Search Ellipse within mineralized solid:
    Measured: radius = 15 m, minimum samples 3, maximum samples 8
    Indicated: radius = 35 m, minimum samples 3, maximum samples 8
                                                                                                                30


              Inferred: Radius x = 150 m, y = 150 m, z = 300 m, minimum samples 3, maximum
              samples 12.
         Block Model Validation
         The block model was tested against several sensitivities including search radius,
         interpolation method, cut off values and geological interpretations. The resource is most
         sensitive to geological interpretation; therefore structural mapping data should be integrated
         into the model to provide a higher degree of confidence.
         A specific gravity (SG) of 2.7 was used for mineralized and unmineralized zones for
         calculation of tonnage from volumes. No site specific data was available; however these
         values are consistent with published values typical of basalts and diorites which form the
         host rocks for this deposit. Further test work is required.
         Cut Off Grade
         The assumed economic cut off grade is calculated based upon the following formula and
         values:

         = (ore cost) $/t – waste cost $/t)/ ($net value/g Au x Recovery)
         = (US$15/t – US$2/t) / (US $ 850/oz / 31.3 g/oz x 90%)
         = 13 / 24.4 = 0.53g/t
         Mineral Resources
         Mineral resources were calculated based upon the above cut of grade and parameters. A
         minimum cut off grade of 0.5 g/t was used in the estimation of the resources as a Base
         Case. A summary of resources is presented in tables 9 to 13.
         Estimates are based on composites capped at 7.2 g/t gold.


TABLE 9: MEASURED RESOURCE ESTIMATE FOR NKULUWISI – CUMULATIVE TOTALS
                Cutoff      Tonnes           Au             Au             Au            Tons            Au
  ZONE
                Grade     (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)
                                                         Contained                                    Contained
                 (g/t)                   Grade (g/t)                     Oz/ton
                                                          Total (g)                                   Total (oz)
Mineralized      3.0         3,712           3.23         11,994         0.094           4,092           386
Shear Zone       1.5        71,887           2.06         148,437         0.060          79,241         4,772
                 1.0        147,825          1.63         240,933         0.047         162,947         7,746
                0.925       174,150          1.52         264,011        0.0442         191,966         8,490
                 0.9        187,650          1.48         278,754        0.043          206,847         8,962
                 0.5        553,500          0.93         515,629        0.027          610,123        16,578
                 0.1        963,562          0.66         644,857        0.019         1,062,134       20,733
                                                                                                              31



TABLE 9: MEASURED RESOURCE ESTIMATE FOR NKULUWISI – CUMULATIVE TOTALS
              Cutoff     Tonnes           Au             Au             Au            Tons            Au
  ZONE
              Grade    (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)
                                                      Contained                                    Contained
               (g/t)                   Grade (g/t)                    Oz/ton
                                                       Total (g)                                   Total (oz)
              0.001      969,975          0.66         645,393         0.019        1,069,203       20,750
              Total      969,975          0.66         645,393         0.019        1,069,203       20,750



TABLE 10: INDICATED RESOURCE ESTIMATE FOR NKULUWISI – CUMULATIVE TOTALS
              Cutoff     Tonnes           Au             Au             Au            Tons            Au
  ZONE
              Grade    (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)

                                                      Contained                                    Contained
               (g/t)                  Grade (g/t)                     Oz/ton
                                                       Total (g)                                   Total (oz)
               1.5        215,325         1.88         405,875        0.054          237,353        13,049
               1.0        491,400         1.54         754,653        0.045          541,670        24,263
              0.97        515,362         1.51         778,197        0.0440         568,084        25,018
Mineralized    0.9        684,787         1.36         934,480        0.039          754,841        30,044
Shear Zone     0.5       2,147,850        0.86        1,867,535        0.025        2,367,575       60,042
               0.1       3,695,962        0.65        2,413,938        0.019        4,074,059       77,609
              0.001      3,693,937        0.65        2,413,759        0.019        4,071,827       77,604
              Total      3,693,937        0.65        2,413,759       0.019         4,071,827       77,604



TABLE 11: INFERRED RESOURCE ESTIMATE FOR NKULUWISI – CUMULATIVE TOTALS
              Cutoff     Tonnes           Au             Au             Au            Tons            Au
  ZONE
              Grade    (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)   (Cumulative)

                                                      Contained                                    Contained
               (g/t)                   Grade (g/t)                    Oz/ton
                                                       Total (g)                                   Total (oz)
               3.0         6,412          3.38         21,733         0.098           7,068           698
               1.5        286,200         2.03         582,980        0.059          315,478         18,743
              1.25       1,219,050        1.53        1,861,489       0.0445        1,343,759        59,867
               1.0       1,459,350        1.42        2,081,182       0.041         1,608,642        66,911
Mineralized
               0.9       1,577,475        1.39        2,192,205       0.040         1,738,851        70,480
Shear Zone
               0.5       4,582,575        0.91        4,198,050       0.026        5,051,372        134,970
               0.1       9,963,337        0.61        6,144,583       0.018        10,982,586       197,552
              0.001     10,041,975        0.61        6,151,351       0.017        11,069,269       197,770
              Total     10,041,975        0.61        6,151,351       0.017        11,067,269       197,770
                                                                                                                        32



TABLE 12: NKULUWISI MINERAL RESOURCE SUMMARY - BASE CASE *
       Category                    Measured Resource               Indicated Resource               Inferred Resource
   Resource (tonnes)                    553,500                         2,147,850                        4,582,600
      Grade (g/t)                         0.93                             0.86                             0.91
        Grams                           515,600                         1,867,500                        4,198,100
    Resource (tons)                     610,100                         2,367,600                        5,051,400
    Grade (oz/ton)                       0.027                            0.025                            0.026
    Total Gold (oz)                     16,600                           60,000                           135,000

    * Numbers are rounded. Composites capped at 7.2 g/t gold. Cutoff grade is 0.5 g/t gold based on a gold price of US$850
    and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources.



   TABLE 13: NKULUWISI MINERAL RESOURCE SUMMARY FOR VARIOUS CUTOFF GRADES *
          Category                 Measured Resource             Indicated Resource             Inferred Resource
        Cutoff Grade                                                      1.0
      Resource (tonnes)                  147,825                       491,400                        1,459,350
         Grade (g/t)                       1.63                          1.54                            1.42
           Grams                         240,933                       754,653                        2,081,182
       Resource (tons)                   162,947                       541,670                        1,608,642
       Grade (oz/ton)                     0.047                          0.045                          0.041
       Total Gold (oz)                    7,740                         24,260                          66,910
        Cutoff Grade                                                      1.5
      Resource (tonnes)                    71,887                      215,325                         286,200
         Grade (g/t)                        2.06                         1.88                            2.03
           Grams                          148,437                      405,875                         582,980
       Resource (tons)                     79,241                      237,353                         315,478
       Grade (oz/ton)                       0.060                        0.054                          0.059
       Total Gold (oz)                     4,770                        13,050                          18,740
        Cutoff Grade                                                      3.0
      Resource (tonnes)                    3,712                           -                             6,412
         Grade (g/t)                        3.23                           -                             3.38
           Grams                          11,994                           -                            21,733
       Resource (tons)                     4,092                           -                             7,068
       Grade (oz/ton)                      0.094                           -                            0.098
       Total Gold (oz)                      390                            -                              700

        * Numbers are rounded. Composites capped at 7.2 g/t gold. Cut-off grades are variable based on a gold price of
        US$850 and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources.
                                                                                                                       33


       In EBA’s opinion, the classification of Mineral Resources as stated is appropriate and
       conforms to the Mineral Resources and Reserves Definitions and Guidelines adopted by
       the CIM Council on December 11, 2005.

18.0   OTHER RELEVANT DATA AND INFORMATION
       Environmental Considerations
       No environmental liabilities were defined at the Nkuluwisi site. No previous mining was
       noted.

19.0   INTERPRETATION AND CONCLUSIONS
       GBGR has completed an exploration program consisting of sampling and drilling sufficient
       to complete a Mineral Resource estimate. This estimate is stated in Table 14.


        TABLE 14: NKULUWISI MINERAL RESOURCE SUMMARY - BASE CASE *
              Category                Measured Resource               Indicated Resource           Inferred Resource
          Resource (tonnes)                553,500                         2,147,850                    4,582,600
             Grade (g/t)                     0.93                             0.86                         0.91
               Grams                       515,600                         1,867,500                    4,198,100
           Resource (tons)                 610,100                         2,367,600                    5,051,400
           Grade (oz/ton)                   0.027                            0.025                        0.026
           Total Gold (oz)                 16,600                           60,000                       135,000

          * Numbers are rounded. Composites capped at 7.2 g/t gold. Cutoff grade is 0.5 g/t gold based on a gold price of
          US$850 and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources.

       In EBA’s opinion, the classification of Mineral Resources as stated is appropriate and
       conforms to the Mineral Resources and Reserves Definitions and Guidelines adopted by
       the CIM Council on December 11, 2005.

20.0   RECOMMENDATIONS
       The area southeast of the main trend remains untested as existing drill holes are either off
       trend or too shallow to test for the extension of the mineralization (Figure 12). Surface
       samples along trend indicate the continuation of the main zone; however, drill holes missed
       the target area. This south-eastern target area is approximately 500 m in strike length and
       drilling is recommended on 100m spaced sections, with two holes per section to test
       potential mineralization at shallow (20 to 50 m) and at moderate (50 to 150) depths.
                                                                                          34




Drilling to the northwest of the main mineralized body has intersected erratic low grade
gold mineralization. An inferred NNW trending fault may offset the main mineralization
which is considered to currently have low exploration potential based on the available
information used in this study. It is recommended to compile surface geology along with
structural mapping, geochemical data and geophysics on a single plan map in order to re-
evaluate the potential of this area.
Locally and regionally, there are several targets which need to be investigated for resource
potential:
•   Chisu Reefs – 16 m wide mineralized shear zone.
•   Ntumbi – 50 quartz reefs with Au mineralization.
•   Rantumbi – 15 quartz reefs with Au mineralization.
•   Kwaheri Zone – wide mineralized shear zone
•   Discovery Reef – 3 m wide shear and veining with footwall mineralization
•   Hodges – 5 m wide with mineralized hanging wall.
•   Twiga – wallrock at 5 to 6 gpt Au.
•   Kalangali – 15 m wide shear zone.
                                                                                            35


The following work is recommended to further define the resource for this target area
(Table 15):
•     Compile and review all surface geological, geophysical, geochemical and structural data
      onto a single plan map for establishing drill targets;
•     Additional drilling to target the 1.5 km long mineralized zone to 200 m depth at 50 to
      100 m centers totalling approximately 2000 m of core drilling;
•     Additional drilling to target other areas near Nkuluwisi with approximately 2000 m of
      drilling;
•     Further QA/QC;
•     Systematic surface mapping and trenching of the exposed outcrop should be carried out
      to establish structure and surface expression of the mineralized zone, this data should
      then be incorporated into the resource model; and
•     Density test work.
Identification of similar sized targets in proximity to the Nkuluwisi property could
contribute to an overall property size of the targeted 500,000 ounces at a grade equal to or
greater than 1.5 g/t gold.


    TABLE 15: RECOMMENDED PHASE III EXPLORATION DRILLING AT NKULUWISI AND LUPA
         Item                   Description                      Price/unit    Cost (US$)
     Drilling core     4000 m (20 holes at 200 m each)            $150/m        600,000
        holes
     RC Drilling        2000 m (10 holes at 200 m each)           $60/ m        120,000
    Geologist/Staff   2 geologists, 2 technicians, 1 general    $2,000/day      180,000
                                     labourer
        Camp            Camp costs for 3 month for 15          $30,000/month    90,000
                                     persons
      Laboratory           Assays from drill samples             $30 each       50,000
       Analysis
         Misc.             Vehicles, communications, etc.                        30,000
      Contingency                       15%                                     160,500
        Total                                                                  $1,230,500

If this phase is successful then an expanded program is recommended at a minimum cost of
US$3,000,000 which will include a preliminary economic assessment. With this additional
drilling and exploration success, the minimum target of 500,000 ounces of gold at 1.5 g/t
gold is potentially achievable.
EBA is of the opinion the Nkuluwisi and other Lupa targets warrant the recommended
budget.
                                                                                                  36



REFERENCES
Daly, M.C. 1988. Crustal shear zones in Central Africa: a kinematic approach to Proterozoic
       tectonics, Episode 11, pp5-11.
Daly, M.C., J. Klerkx and J.T. Nanyaro. 1985. Early Proterozoic exotic terranes and strike-slip
       accretion in the Ubendian belt of southwest Tanzania, Terra Cognita 5, 257.
Lenoir, J.-L., J.-P Liegois, K. Theuissen, and J. Klerkx. 1994. The Paleoproterozoic Ubendian shear
        belt in Tanzania: Geochronology and Structure. Journal of African Earth Sciences, v. 19, pp.
        169-184.
Nanyaro, J.T. 1989. Proterozoic gold-base metal veins in the Mpanda mineral field, western
      Tanzania. Koninkl. Mus. Midd. Afrika Tervuren Belge Ann. Reeks in-8º 97, pp. 1-44;
      Tervuren.
Nanyaro, J.T., N.K. Basu, A.H. Mruma, A. Njare, G.L. Mwakuluka, I. Mduma, K.M. Mdiguza, P.
      van Straaten, J. Klerkx and K. Theunissen. 1983. Structural evolution of the Ubendian belt,
      preliminary results of a traverse between Karema and Mysanda (Tanzania). Mus. Roy.
      Africaine Centr. Tervuren Dept. Geol. Min. Rapp. Ann. 198, pp. 147-152; Tervuren.
Shlüter, T. Geology of East Africa. With contributions by C. Hampton. Borntraeger, 1997: Berlin,
        484 pp.
                                                                                               37




CERTIFICATE OF QUALIFICATIONS
      N. ERIC FIER
      I, N. Eric Fier, C.P.G., P. Eng., as an author of this report entitled “Technical Report on
      the Nkuluwisi Property, Mbeya, Tanzania”, prepared for GBG Rusaf Gold Ltd., and dated
      November 30th, 2009, do hereby certify that:
         1) I am a Director for EBA Engineering Consultants Ltd. My office address is 9th
            Floor, 1066 West Hastings Street Vancouver, B.C.
         2) I am a graduate of Montana Tech, Butte, Montana, in 1984 and 1986 with a
            Bachelor of Science degree in Geological Engineering and Mining Engineering,
            respectively.
         3) I am registered as a Certified Professional Geologist registered with the American
            Institute of Professional Geologists (Reg.# 10622) and a Professional Engineer in
            British Columbia (Reg.# 135165). I have worked as a geologist and mining engineer
            for a total of 24 years since my graduation. My relevant experience for the purpose
            of the Technical Report is:
                 a) Review and report as a manager and consultant on numerous exploration
                    and mining projects around the world for due diligence, operations and
                    regulatory requirements, including:
                        •   Numerous technical reports on the Yellowknife Gold Project
                            (Archean Gold) from January 2005 to present.
                        •   Technical Report on the Courageous Lake Deposit (Archean Gold),
                            NWT.
                        •   Geotechnical Preliminary Assessment of the Yellowknife Gold
                            Project (Archean Gold), NWT
                        •   Geotechnical Preliminary Assessment of the DO27 Project, NWT
                        •   Engineering consultant for the NICO Project, NWT
                        •   Feasibility Study for the Minto Project, Yukon
         4) I have read the definition of "qualified person" set out in National Instrument
            43-101 ("NI43-101") and certify that by reason of my education, affiliation with a
            professional association (as defined in NI43-101) and past relevant work experience,
            I fulfill the requirements to be a "qualified person" for the purposes of NI43-101.
         5) I am responsible for all sections of the Technical Report.
         6) I am independent of the Issuer applying the test set out in Section 1.4 of National
            Instrument 43-101.
                                                                                       38


   7) I have had no prior involvement with the property that is the subject of the
      Technical Report.
   8) I have read National Instrument 43-101F1, and the Technical Report has been
      prepared in compliance with National Instrument 43-101 and Form 43-101F1.
   9) To the best of my knowledge, information, and belief, as of the date of the report,
      the Technical Report contains all scientific and technical information that is
      required to be disclosed to make the technical report not misleading.
   10) I have visited the site in August 8 to 15, 2008.


Dated the 30th day of November, 2009




N. Eric Fier, C.P.G., P. Eng.

				
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