CARSON CITY, Nev., April 17, 2015 (GLOBE NEWSWIRE) -- Preston Corporation (OTC-PSNP - ISIN US 74113J1079 - www.prestoncorporation.com) announces the company has acquired an option on the Kwamagome Gold Project located south of Handeni, Tanzania, which is immediately north of the one million ounce East Africa Metals (formerly Canaco Resources) Magambazi Deposit (43-101 Qualified Proven, Probable and Inferred Resource). The Company will pay $1,000,000 to acquire an 80% interest over the next 5 years.
The Kwamagome Gold Project has a 5 to 7 kilometre (3 to 4 mile) long multiple element and gold geochem anomaly that runs across the northern portion of the property. The size of the anomaly, with a width of over 200 metres (650 feet) and length 5 to 7 kilometres, suggests a very large source of mineralization associated with the zone. This represents a structure and continuity of trace amounts of gold and other pathfinder elements in amphibolitic rocks, similar to that found on trend north from the East Africa Metals Magambezi zone.
Several other gold zones located on the Kwamagome Gold Project remain to be explored, including the central "Granite Gniess Zone" and the "Madebe Zone", both of which have gold geochem anomalies. These zones are part of the overall trend that has considerable potential and that East Africa Metals is also following.
The outcrops and rocks researched to date, exhibit a complex structure of brecciated, sheared, fractured, foliated, folded and faulted deformed rock with alteration of silica, chlorite, sulphide and epidote.
The exploration results show the potential variation that exist along strike and surface samples correlated to these elevated zones (in the 0.03 - 0.07 range), which suggests increasing values with depth. The discovery of significant placer gold immediately south and upstream from the anomalous area, which has a low relief with very coarse and pristine gold, indicates a local source. Preston's geologists are incorporating this information into the proposed drill pattern.
The zone on East Africa Metals' property has been defined by their magnetics trends NW from Magambazi and then swings to the NE and enters the Madebe Zone of the Kwamagome Gold Project, before looping around the Granitic Gneiss Zone forming the 5 - 7 km gold zone. The zone constitutes a major structure that has been identified as having Magambazi-type gold deposits on it. This is analogous to the Kirkland Break or other well-established Canadian structural gold trends that host the major gold mines of Canada. In Tanzania geologists are only three years into discovering and understanding this structural feature.
"We know gold mineralization is associated with the long and wide geochem anomaly and the geology confirming what has been observed on surface," stated Preston Corporation's president Laurence Stephenson. "Anticlinal structures have been favourably associated with gold zones worldwide and dramatically enhance the potential on the property. This means that further work is definitely warranted."
Preston's Tanzanian Prospective Gold Deposits Located in Sediment Hosted Vein Models
The Sediment Hosted Vein Model (SHV Model) which has continental shelf sediment emplacement followed by significant tectonic accretion activity related to continental collision and subsequent extension related to continental break up enables the emplacement of mineralizing magmas along regional structures. Evidence in favour of the SHV Model is seen in the presence of significant carbonate and the amphibolite and biotite garnetiferous units as probable continental shelf marine sediments +/- volcanic with potential intrusive equivalents. The association of significant fields of prolific placer gold with SHV is identified throughout the Handeni area. Several examples in North America, Australia and New Zealand, suggest the Handeni area geology conforms to the SHV depositional model.
The SHV term is applied to a family of deposits that occur throughout the world, but are poorly known and understood. They are most prolific in both size and number in Asia. Many are in the former Soviet Union where geologic, geochemical, and geophysical information, which is usually written in Russian, is difficult to obtain. Included in this group of giant gold deposits are Muruntau (80,000,000 oz), Sukhoy Log (20,000,000 oz), Amantaytau, Daugiztau, Kumtor, Bakirchik, Olympiada, Nezhdaninskoe, Natalka, and Maysky in Asia. In Australia, the numerous deposits of the Victorian gold fields include Bendigo, Ballarat, Fosterville and Stawell. In New Zealand, the Otago Schist Belt hosts Macraes Flat. Other smaller deposit examples occur in Nova Scotia (Canada), Nome (Alaska) and in the pre-Cordillera rocks of South America.
Sediment Hosted Vein Deposits have typically low grade gold (1-3 grams per ton) with some high-grade veins representing some of the largest deposits in the world. These have common characteristics of Late Proterozoic to early Paleozoic passive-margin shale-siltstone host rocks, extended crust as basement to the host rocks, multiple episodes of deformation Au±As, Sb, W metal suite, neutral, low to moderate salinity hydrothermal fluid chemistry, minimal to moderate grade metamorphism, active granitic magmatism in the crust and occurrence in association with large placer fields.
From the evidence observed to date the Handeni area is akin to the Sediment Hosted Vein depositional environment, especially the relationship to large placer areas.
Preston's Golden Opportunity
In recent years, Tanzania has seen over $300 million in junior capital financing invested in the country. Two of the world's largest mining companies - American Barrick and Anglo Ashanti - have developed gold mines in Tanzania. Although the luster appears to be off the gold market in recent years, it is still priced at all-time highs as opposed to initial years of the 21st century when gold was $250 to $400 an ounce with a few spikes to the $500 to $800 level. This lack of luster has contributed to few new gold discoveries or new gold mine developments, yet the demand for the yellow metal remains high, suggesting a potential supply/demand imbalance, supported by the fact that gold prices remains relatively high. Preston Corporation www.prestoncorporation.com is perfectly positioned to take advantage of this golden opportunity.
A democratic country, Tanzania gained peaceful independence in 1961, is predominantly English speaking and uses British Common Law. The country has a good infrastructure base and an accessible labour pool of local experienced geologists and other mining personnel. Endorsed by the World Bank and the International Monetary Fund, the country modernized its Mining Act in 1998 to be attractive to foreign mining companies. Since then it has become the 3rd largest gold producing nation in Africa and the fastest growing gold producing nation in the world.
About Preston Corporation
Preston Corporation www.prestoncorporation.com is a mineral exploration company with an objective of enhancing shareholder value through the astute acquisition of exceptional projects in undervalued situations. Preston's president, Laurence Stephenson has over 40 years of mineral exploration experience and has considerable industry connections to specialists in the mining sector. He has worked on mineral exploration projects in Tanzania for many years, and has a thorough understanding of the country's mineral resources and mining regulations. His background includes being part of several teams that raised over $12 million for mineral exploration in Tanzania. The value of the "yellow metal" has persisted over the ages and has been a contributing factor to the rise and fall of empires since the beginning of recorded history. Current gold prices are at an all time high in value when compared over the last 200 years. Preston's management has recognized the inherent value of gold and its worldwide acceptance as the prime metal commodity and has geared its exploration to focus on gold as its primary objective. With that in mind, the company is investigating prospects that have a significant promise to host gold resources.
ON BEHALF OF THE BOARD
Laurence Stephenson, President
President & CEO
311 West Third Street
Carson City, NV 89703
No. 604 Africanus Road
Dar Es Salaam, Tanzania