I have been following the company for a year or so and just recently purchased shares. I know a little about placers and found this deposit that seems to have some promising characteristics. Sampling proceeds with first pass results due soon. Company states they are ramping up to have a processing system operating summer 2009.

Here is a link to a reconnaissance visit report with panned sample results. Counts of colors per pan give a glimpse of the value of the alluvium; the results are encouraging so far IMO.

http://www.douglaslakeminerals.com/p...

Ask questions and discuss the soon to come assay results and volume estimates. Tanzanian mining regulations require a resource estimate prior to issuing a mining permit. While the Tanzanian standard is not as comprehensive as the 43-101, if a mining permit is obtained, early processing results will provide data that hopefully rise to the threshold level of in 43-101 resource estimates.

Placers are different in evaluation and mine planning. Grades are best understood when results are reported in grams per cubic meter, a volumetric quantity. Sand and gravel processing and sales are based on this volumetric quantity therefore an analysis of a placer mine is parallel to planning and evaluating costs of a sand and gravel quarry.

This is an early stage project. The company has numerous mineral licenses in Tanzania. The CEO of the Tanzanian Geological Survey is a Director of the Company. The Chinese have taken a 25% position in the Company and have provided staged funding for the current sampling program underway. A Tanzanian company has been contracted to sample and report an initial estimate on size and grade of locations where samples were gathered. The Chinese are expected to contribute an analysis within the next several months.

The Company reports a large footprint for the paleo-placer, I will be more confident in this as positive values are reported and found to be wide spread. I know what some will think.... PLACER beware. If this is a large volume of sand and gravel, start-up capital costs are a magnitude smaller than required for a hard rock deposit can be planned and expanded in stages. Gold recovery treatment can be as simple as washing the placer "ore" and ending up with the metal in hand. The real test of a placer is ... can you get gold in your pan? Small operations span the property. I like that kind of exploration evidence. If the colors are in the pan… the property should pay.


Not investment advice, do the research and DD, post your comments.