Tanzania is rich with natural resources including hydropower, tin, phosphates, iron ore, coal, diamonds, gemstones, gold, natural gas and nickel. Because the legal system is based on English common law and English is the official, primary language of commerce – it makes it simpler for mining companies to establish successful operations here. Long-term growth through 2005 featured a pickup in industrial production and a substantial increase in output of minerals, led by gold. Recent banking reforms have helped increase private sector growth and investment. Continued donor assistance and solid macroeconomic policies supported real GDP growth of more than 6% in 2005.

Tanzanian Gold Reserves Deposits

Tanzania has vast amount of natural resources including gold deposits that remain underdeveloped. Growth in 1991-99 has featured a pickup in industrial production and a substantial increase in output of minerals.

DEPOSIT	M/OZ	OWNERSHIP
Golden Ridge	2.2	Barrick
Geita	20	AngloGold Ashanti
Bulyanhulu	19	Barrick
Ridge 8	2.2	AngloGold Ashanti
Kahama/Chocolate Ridge	1.8	Barrick/AngloGold Ashanti
Golden Pride	2.7	Resolute
Tulawaka	0.8	Barrick
Buckreef/Rwamagaza	0.7	Gallery Gold
Kitongo	0.6	Gallery Gold
Nyakafuru	0.7	Gallery Gold
North Mara	4.1	Placer Dome
Buhemba	0.8	Tanganyika
TOTAL:	46.6

Mining Majors in Tanzania

Barrick – Lake Victoria District in Tanzania
At the Buzwagi project in Tanzania, Barrick successfully extended the known mineralization along strike and down dip and more than met the objective of doubling the geological resource, adding 2.0 million contained measured and indicated resource ounces. A scoping study is planned for 2005. As well, a $5 million exploration program is designed to extend the mineralization along strike and will test other areas on the property. Over the past few years, Barrick has reduced its extensive land position to 9,000 square kilometres in the Lake Victoria Goldfields, in order to focus on the prospective areas identified during the regional work. Drill programs are also planned in the Golden Ridge and Nzega West areas.

Barrick – Tulawaka JV

The Tulawaka Mine in Tanzania was obtained by Barrick through the acquisition of Pangea Goldfields Inc. in June 2000. Tulawaka is a 70/30 joint venture between Pangea Goldfields Inc., a wholly-owned subsidiary of Barrick, and Northern Mining Explorations Ltd. The site is located approximately 1,000 kilometres from Dar es Salaam and 120 kilometres west of Barrick’s Bulyanhulu Mine. The Tulawaka Mine began production in the first quarter of 2005. The mine is an open-pit operation, recovering half the gold with gravity separation technology and the balance from conventional carbon-in-leach technology. The mine is expected to produce between 75,000 and 80,000 ounces in 2005 to Barrick’s account at an average cash cost of $270-$275 per ounce.

Barrick – Bulyanhulu

The Bulyanhulu Mine is located in northwest Tanzania, East Africa, approximately 55 kilometres south of Lake Victoria and approximately 150 kilometres from the city of Mwanza. The mine is an underground trackless operation using long hole and drift-and-fill as its principal stopping methods. Ore reserves are accessed via a surface shaft and an internal ramp system. In 2004, the mine produced 349,864 ounces of gold at a total cash cost of $283 per ounce. In 2005, production is expected to be between 320,000 and 325,000 ounces of gold at an average total cash cost of between $340 and $350 per ounce. Based on existing reserves of 19 million ounces and current production capacity, the expected minimum remaining mine life is approximately 24 years.