quarterly report - tanga resources limited...figure 7. winston gold-in soil anomaly tenement...

Quarterly Report for the three months ended 30 September 2015

Summary & Highlights HIGHLIGHTS:

SINGIDA PROJECT

Extensive soil sampling program completed at the

Singida Project: 777 samples taken

Anomalous gold results in laterite soil sampling: results up

to 63ppb Au at South Garauja

12km² area low-level gold zone discovered: open to NW

and SE

New mineralised porphyry system identified at North

Garauja

Figure 1. Tanzanian Project Location Plan

Tanga Resources Limited

ASX Code: TRL

ABN: 41 141 940 230

Registered Office

Ground Floor, 63 Hay Street

Subiaco, WA 6008

t: +61(8) 9381 5686

[email protected]

www.tangaresources.com.au

Issued Capital

267.6 million Shares

20.75 million Options ($0.05

exp 24/12/16)

6.62 million Options ($0.05

exp 31/12/16)

Board & Management

John Jones

Chairman

John Stockley

Technical Director

Mark Wilson

Non-executive Director

Graeme Smith

Company Secretary

.

SINGIDA PROJECT:

The Singida Project comprises a semi-contiguous package of Prospecting Licences covering 475km²

in area along the eastern portion of the Tanzanian Craton (see Figure 2 below). The Company has

been carrying out systematic soil geochemical sampling since 2011 aimed at discovering an

economic gold deposit.

During the quarter the Company announced significant new gold-in soil geochemical results obtained

during recent exploration work on the Singida Project (see Figure 1 above). Gold Vector Pty Ltd,

whose principal geologist is Ed Baltis, was engaged to carry out a geological and structural review of

the Singida Project.

Figure 2. Singida Project Tenement Plan showing structures & soil geochemistry.

PL 7344/2011 South Garauja:

The review of the regional geological and aeromagnetic data by Ed Baltis has led to a change in the

understanding of the structural geology at Singida.

Reconnaissance soil geochemical sampling along regional NW-SE trending fault structures has

shown wide spaced gold-in soil anomalies over a +2km zone in laterite.

Peak values of between 17 to 63ppb Au have been obtained over 2,000m of strike in thick lateritic

soils developed on sheared, quartz veined Archaean mafic rocks with felsic porphyry and Banded

Iron Formation. Rock chip values of up to 93ppb Au have been obtained from scattered outcrops of

quartz veined mafic schist at South Garauja. A discontinuous halo of +4ppb gold values in laterite

covers an area of 2.5km by 2km and is open to the south: where another extensive low tenor gold-in

soil anomaly extends for +4km orientated NW-SE (see Figure 3 below).

Overall sampling in the South Garauja area now defines a broad low level (+4ppb Au) gold-in soil

anomalous area measuring 4km by 3km. The anomalous area is bounded to the southwest and

northeast by major shear structures. This 12 km² area requires detailed in-fill soil sampling.

No previous work has been documented within the area, and the Company believes it has discovered

a northern extension of the Archaean greenstone belt which hosts the Winston gold anomaly 10km to

the south (see Figures 7 & 8 below).

Figure 3. PL 7344/2011 Gold-in soil anomalies at South Garauja.

Peak values within the soil anomalies range from 17 to 63 ppb Au.

PL 7389/2011 North Garauja:

A large altered gabbro-diorite-felsic porphyry system has been identified 10km to the northeast at

North Garauja. The alteration zone is asociated with an intense regional aeromagnetic anomaly and

prominent WNW-ESE fault zones (see Figure 5 below). The porphyry system was identified during

regional mapping by Tanga field geologists.

Quartz veining, alteration (iron sulphides, epidote, K-spar) and brecciation is associated with dioritic

stocks intruded into hornblende gabbro porphyry over about an of 8km by 5km (see Figure 4 below).

Wide spaced (400m line spacing) soil sampling has commenced at the prospect but no results are to

hand.

Figure 4. Silica-epidote-K-spar alteration zone in felsic quartz porphyry at North Garauja.

PL 9293/2013 (Basotu) & PL 9895/2014 (Dorirojiki):

Recent re-assessment of regional geological and geophysical data has led to a new understanding of

the geological controls to gold mineralisation at Winston (PL 9895/2014) and Wandela (PL

10620/2015): see Figure 5 below.

The previously reported Winston and Wandela gold anomalies are now interpreted to sit on limbs of

major anticlinal fold structures in amphibolite, Banded Iron Formation, and sheared basalt; within a

shear zone corridor trending WNW-ESE. The strong gold-in soil anomaly at Winston sits on the

southern limb of an antiformal structure, the bulk of which is under thick laterite cover. The Wandela &

Babadede gold anomalies further west also sit on or close to major fold noses within a stacked series

of antiforms: see Figure 6 below.

The gold anomalies appear to lie within a 10km long corridor orientated east-west, oblique to the

main structural trend.

Figure 5. Regional aeromagnetic image of the Singida Project.

Fault structures are shown as white lines.

Figure 6. Winston-Wandela zone gold-in soil anomalies and interpreted geology.

Figure 7. Winston gold-in soil anomaly

Tenement Applications:

Two Prospecting Licence applications (HQ-01285 & HQ-01290) totalling 75.98km² in area have been

lodged over ground north and west of the Garauja tenements at Singida.

Future Work: Singida Project

Soil sampling follow up at South Garauja & North Garauja-detailed infill sampling and

geological mapping;

Acquistion and interpretation of detailed aeromagnetic and radiometric data over the whole of

the Singida Project area: Airborne Survey flown on behalf of the World bank and Geological

Survey of Tanzania;

Planning for a Reverse Circulation drilling program at Winston, Babadede & Wandela. Capital

Drilling in Tanzania have been contacted to issue a Drill Contract for 2,500m of angled RC

using a Schramm top-drive drill rig at the Singida Project.

Corporate

Capital Raising

In October 2015, the Company raised $342,500 from a placement to sophisticated investors

through the issue of 17,125,000 Shares at $0.02 per share and 8,562,500 Options, exercisable

at $0.05 each and expiring 30 April 2017.

Funds raised from the placement will be used for exploration activities in Tanzania, and for

general working capital.

For further information contact:

Director-Exploration John Stockley

08 9381 5686

[email protected]

Competent Persons Statement:

The information in this report that relates to Exploration Results is based on information compiled by John Stockley

who is a director of the company and fairly represents this information. Mr Stockley is a Fellow of the Australasian

Institute of Mining and Metallurgy. Mr Stockley has sufficient experience to the style of mineralisation and the

type of deposit under consideration, and to the activities undertaken to qualify as a Competent Person as defined

in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration

Results, Mineral Resources and Ore Reserves.

Mr Stockley consents to the inclusion in this report of the matters based on the information in the form and context

which it appears.

Tenement Directory: Tanga Resources Ltd 30th September 2015

Project Tenement Number Beneficial Interest

Singida PL5367/2008 99.95%

Singida PL6870/2010 99.95% expired

Singida PL7144/2011 99.95% expired

Singida PL7246/2011 99.95%

Singida PL7296/2011 99.95%

Singida PL7389/2011 99.95%

Singida PL7344/2011 99.95%

Singida PL7405/2011 99.95%

Singida PL7644/2011 99.95%

Singida PL8208/2012 99.95%

Singida PL8211/2012 99.95%

Geita PL8293/2013 99.95%

Singida PL9293/2013 99.95%

Geita PL4496/2007 99.95% expired

Geita PL4584/2007 99.95% expired

Application HQ-G18151 lodged

Geita PL6659/2010 99.95%

Geita PL9099/2013 99.95%

Singida PL9895/2014 99.95%

Geita PL9520/2014 99.95%

Geita PL9896/2014 99.95%

Singida PL10570/2015 99.95%

Singida PL10572/2015 99.95%

Singida PL 10620/2015 99.95%

Geita PML0000619* 99.95%

Geita PML0000633* 99.95%

Geita PML0000643* 99.95% option to purchase withdrawn

Kahama HQ-P29100 (application) 99.95%

Singida HQ-01285 (application) 99.95%

Singida HQ-01290 (application) 99.95%

*via Deed of Assignment between Willy Lazarus Mwaigwisya and Kudu Resources (TZ) Ltd

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+ See chapter 19 for defined terms. 01/05/2010 Appendix 5B Page 1

Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Name of entity

TANGA RESOURCES LIMITED

ABN Quarter ended (“current quarter”)

41 141 940 230 30 September 2015

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter $A’000

Year to date 3 months $A’000

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration

(127)

(72)

(127)

(72) 1.3 Dividends received 1.4 Interest and other items of a similar nature

received

1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material)

Net Operating Cash Flows (199) (199)

Cash flows related to investing activities

1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets

1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets

1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material)

Net investing cash flows

-

-

1.13 Total operating and investing cash flows (carried forward)

(199) (199)


+ See chapter 19 for defined terms. Appendix 5B Page 2 01/05/2013

1.13 Total operating and investing cash flows (brought forward)

(199) (199)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material)

Net financing cash flows - -

Net increase (decrease) in cash held

(199)

(199)

1.20 Cash at beginning of quarter/year to date 228 228 1.21 Exchange rate adjustments to item 1.20

1.22 Cash at end of quarter 29 29

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

Current quarter $A'000

1.23

Aggregate amount of payments to the parties included in item 1.2

18

1.24

Aggregate amount of loans to the parties included in item 1.10

1.25

Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in

which the reporting entity has an interest



Financing facilities available Add notes as necessary for an understanding of the position.

Amount available $A’000

Amount used $A’000

3.1 Loan facilities

3.2 Credit standby arrangements

Estimated cash outflows for next quarter

$A’000

4.1 Exploration and evaluation

50

4.2 Development

4.3 Production

4.4 Administration

35

Total

85

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 19 28

5.2 Deposits at call 10 200

5.3 Bank overdraft

5.4 Other (provide details)

Total: cash at end of quarter (item 1.22)

29 228



Changes in interests in mining tenements and petroleum tenements Tenement

reference and location

Nature of interest (note (2))

Interest at beginning of quarter

Interest at end of quarter

6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed

PL6870/2010

PL7144/2011

PML0000643*

PL4496/2007

PL4584/2007

Kudu Resources (TZ) Ltd (subsidiary)

99.95% 0%

6.2 Interests in mining tenements and petroleum tenements acquired or increased



Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per security (see note 3) (cents)

Amount paid up per security (see note 3) (cents)

7.1 Preference +securities (description)

7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

7.3 +Ordinary securities

267,581,019 267,581,019

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs

7.5 +Convertible debt securities (description)

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

7.7 Options (description and conversion factor)

20,753,946 6,612,500

20,753,94 -

Exercise price $0.05 $0.05

Expiry date 24 Dec 2016 31 Dec 2016

7.8 Issued during quarter

7.9 Exercised during quarter

7.10 Expired during quarter

7.11 Debentures (totals only)

7.12 Unsecured notes (totals only)



Compliance statement 1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: .......... .............. Date: ..30 October 2015.... (Company secretary)

Print name: Graeme Smith



Notes 1 The quarterly report provides a basis for informing the market how the entity’s

activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of

interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not

required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International

Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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quarterly report - tanga resources limited...figure 7. winston gold-in soil anomaly tenement...

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