Gallery Gold Limited Tanzania

TECHNICAL REPORT ON THE

BUCKREEF GOLD PROJECT

PREPARED FOR
IAMGOLD Corporation

NI 43-101 Report

Authors:

M J TOMKINSON
L J PUTLAND

Date: 18 January 2006

Gallery Gold Limited Tanzania

TABLE OF CONTENTS
TABLE OF CONTENTS ..................................................................................... 2
3 SUMMARY .................................................................................................. 4
4 INTRODUCTION AND TERMS OF REFERENCE...................................... 7
5 DISCLAIMER .............................................................................................. 8
6 PROPERTY DESCRIPTION AND LOCATION ........................................... 9
7 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,
INFRASTRUCTURE AND PHYSIOGRAPHY ........................................... 11
8 HISTORY .................................................................................................. 13
9 GEOLOGICAL SETTING .......................................................................... 15
10 DEPOSIT TYPES...................................................................................... 16
11 PROPERTY GEOLOGY AND MINERALIZATION .................................... 17
Buckreef Gold Mine .......................................................................................... 17
12 EXPLORATION......................................................................................... 21
13 DRILLING.................................................................................................. 23
14 SAMPLING METHOD AND APPROACH.................................................. 24
15 SAMPLE PREPARATION, ANALYSES AND SECURITY......................... 26
16 DATA VERIFICATION............................................................................... 27
17 ADJACENT PROPERTIES ....................................................................... 28
18 MINERAL PROCESSING AND METALLURGICAL TESTING.................. 30
Buckreef ........................................................................................................... 30
January 1993 .............................................................................................. 30
October 1995 .............................................................................................. 31
September 2001 ......................................................................................... 31
August 2003................................................................................................ 32
October 2004 .............................................................................................. 34
Summary of Buckreef Testwork .................................................................. 36
Busolwa............................................................................................................ 36
19 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ............ 41
Buckreef ........................................................................................................... 41
General statement ...................................................................................... 41
Features of the Geology Relevant to Resource Estimation ......................... 41

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Gallery Gold Limited Tanzania

Hellman and Schofield Resource Studies ................................................... 41

Data Collection and Verification .................................................................. 41
Wireframe Modelling for Resource Estimation ............................................ 41
Statistical Analysis ...................................................................................... 41
Variography ................................................................................................ 42
Multi Indicator Kriging Resource Model Estimation ..................................... 42
Block Support Adjustment........................................................................... 42
Resource Classification............................................................................... 43
Global Resource Estimates......................................................................... 43
Busolwa............................................................................................................ 44
General statement ...................................................................................... 44
Features of the Geology Relevant to Resource Estimation ......................... 44
Hellman and Schofield Resource Studies ................................................... 44
Data Collection and Verification .................................................................. 45
Wireframe Modelling for Resource Estimation ............................................ 45
Statistical Analysis ...................................................................................... 45
Variography ................................................................................................ 46
Multi Indicator Kriging Resource Model Estimation ..................................... 46
Block Support Adjustment........................................................................... 47
Resource Classification............................................................................... 47
Global Resource Estimates......................................................................... 47
20 OTHER RELEVANT DATA AND INFORMATION..................................... 49
21 INTERPRETATION AND CONCLUSIONS ............................................... 50
22 RECOMMENDATIONS ............................................................................. 51
23 REFERENCES.......................................................................................... 52
24 DATE......................................................................................................... 53
25 CERTIFICATES OF QUALIFICATIONS.................................................... 54
26 APPENDICES ........................................................................................... 57

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Gallery Gold Limited Tanzania

3 SUMMARY
Gallery Gold Limited (Gallery) has compiled this report to provide scientific and technical
information regarding the mineral exploration and mineral resources of the Buckreef Project.
The report is based on a wide variety of in house and external consultants reports which are
cited in Section 23 REFERENCES. It is complete up to 1 November 2005 and has been
compiled in support of information released on 5 December 2005 regarding a potential
transaction between Gallery and IAMGOLD Corporation.
The Buckreef Project is located in north central Tanzania immediately to the south of Lake
Victoria in the Mwanza Provincial District. It lies some 110km SW of the town of Mwanza
located on the southern shore of the lake. It is accessible from Mwanza by unpaved roads of
varying quality. The western end of the project is serviced by an unsurfaced airstrip at the
Buckreef Gold Mine.
The project comprises two main resources. At the western end of the area lies the defunct
Buckreef Gold Mine, operated by the Tanzanian State during the late 1980’s. Drilling by a
number of companies had delineated a significant resource remaining in the ground at
Buckreef, a considerable portion of which is could be amenable to extraction by open pit
methods. Following a merger between Gallery and Spinifex Gold Limited (Spinifex) at the end of
2003, Gallery acquired the Buckreef Mine area and commenced further drilling to better refine
the resource and to further test targets surrounding the old mine. In total (including drilling prior
to the Gallery-Spinifex merger) 370 holes have been drilled at Buckreef for 46 872m including
21 753m of diamond core.
Some 30km to the east of the Buckreef Mine, a small resource had previously been delineated
by Spinifex and earlier companies at the Busolwa-Buziba Prospect. On completion of the
merger and following further work at the Buckreef Mine, Gallery embarked on a major drilling
campaign to define an economic resource at Busolwa-Buziba. The earliest drilling at the
prospect was carried out by Tanganyika Gold Limited (a progenitor company of Spinifex) who
completed 171 drill holes for a total of 13 381 m (6 diamond holes for 496 m and the rest RC
drilling). East Africa Mines Limited (now a wholly owned subsidiary of Gallery) have drilled a
further 610 holes for 46 876m.

Analysis of spending by East Africa Mines both before and following the merger between
Gallery and Spinifex indicates that, up to 30 September 2005, a total of US$13.5 million has
been spent on exploration and delineation drilling on the Buckreef Project

The Buckreef and Busolwa-Buziba deposits are hosted by mafic volcanic rocks belonging to the
east-west trending Rwamagaza Greenstone Belt (RGB), a sequence of Archean supracrustal
rocks lying within the Tanzanian Craton. The Buckreef deposit is hosted by a steeply dipping,
NE-SW trending brittle-ductile shear zone with an early phase of iron rich carbonate alteration,
rebrecciation, and a later phase of auriferous grey quartz veining. The Busolwa-Buziba deposit
is a more disseminated hydrothermal system developed in zones of east-west trending,
pervasive cleavage development and porphyry dyke intrusion within a relatively monotonous
sequence of pillow basalts and minor ultramafic rocks. The gold at Busolwa is associated with a
series of variably deformed quartz + carbonate ± hematite ± magnetite ± pyrite veins with
pervasive silicification and sericitization.
Gallery holds exclusive prospecting rights over the entire known eastern portion of the RGB
from the Buckreef Mine to ± 10km east of Busolwa, an area of some 212 km2.

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 Gallery Gold Limited Tanzania

Gallery’s 100% owned subsidiary East Africa Gold Mines Limited (EAM) entered into an
agreement for the redevelopment of the Buckreef Gold Mine with the Government of the United
Republic of Tanzania on 5 May 1994. The agreement has been extended on a number of
occasions, including most recently on 29 July, 2002. Under the terms of the agreement EAM is
earning an 80% interest in the areas covered by the Buckreef Mining Licence and the Buziba
and Rwamagaza Prosepcting Licences through the funding of exploration and the finalising of a
Feasibility Study program into mining operations in the licensed areas.
A small proportion of the Busolwa mineralization falls within the Buziba ML but the majority falls
under the Mawe Meru Prospecting License. EAM entered into the Mawe Meru Farmin and Joint
Venture Heads of Agreement with Mawe Meru Resources Ltd (MM) on 31 January 2004. Under
the terms of the agreement EAM is earning a 75% joint venture interest in the Busolwa and
Mawe Meru tenements through the funding of exploration activities and the completion of a
Feasibility Study by July 2007.
Preliminary metallurgical work programs have been undertaken on both the Buckreef and
Busolwa-Buziba ore types. The testwork on Buckreef ore has indicated that oxide and
transitional ore types are amenable to treatment using typical CIL processing techniques and
fresh ore may benefit from flotation and a finer grind with recoveries anticipated to be in the low
90%’s. Testwork on Busolwa ores has indicated that they are amenable to treatment using
gravity and CIL processing techniques. Metallurgical recoveries are anticipated to be in the low
to mid 90%’s.
Hellman & Schofield Pty Ltd (H&S) was retained by Gallery Gold Limited (GGL) to undertake
estimates of recoverable gold resources at the Buckreef Prospect (Buckreef) and Busolwa
Prospect (Busolwa), Tanzania.
Recoverable gold resources have been estimated using the Multiple Indicator Kriging (MIK)
technique implemented via the GS3 software produced by H&S (Table 3.1). The model
estimates resources into panels which approximates the drill hole sample spacing throughout
the majority of the study area.
The recoverable resource estimates within each panel have been classified according to the
distribution of sampling in the kriging neighbourhood. This classification scheme takes into
account the uncertainty in the estimates related to the proximity and distribution of the informing
composites.

MEASURED INDICATED MEASURED & INDICATED INFERRED

TONNES GOLD CONT TONNES GOLD CONT oz TONNES GOLD CONT TONNES GOLD CONT
(,000) GRADE oz (,000) (,000) GRADE (,000) (,000) GRADE oz (,000) (,000) GRADE oz (,000)
(g/t) (g/t) (g/t) (g/t)

Buckreef 3,349 2.7 285 2,556 2.2 177 5,905 2.4 462 5,886 2.2 411
Busolwa 2,747 1.9 170 2,747 1.9 170 6,079 1.9 362

TOTAL 3,349 2.7 285 5,303 2.0 347 8,652 2.3 632 11,965 2.0 773

Table 3.1 - Resources for the Buckreef and Busolwa Deposits as at 1 November 2005 (JORC compliant)

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Gallery Gold Limited Tanzania

Preliminary studies have commenced to determine baseline environmental and hydrological

conditions and the impact the development of the project may have on local and regional
communities.

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Gallery Gold Limited Tanzania

4 INTRODUCTION AND TERMS OF REFERENCE

The authors of this report have been requested by IAMGold Corporation to prepare a Technical
Report compliant with NI43-101 on the Mupane Gold Project in support of the proposed
transaction between IAMGold Corporation and Gallery Gold Limited.
This report documents all the exploration and development work carried out across the Buckreef
project area up to 1 November 2005. Since that time only a minor amount of metallurgical
drilling has been undertaken at the Buckreef deposit itself and only geological compilation work
on the Busolwa-Buziba Prospect. Sources of information for this report are in-house company
reports produced for Tanganyika Gold Limited, Spinifex, East Africa Mines Limited, and Gallery.
Much of the resource estimation work has been carried out by Hellman and Schofield Limited
based in Perth, Australia.
The authors of this report are both executives of Gallery Gold Limited and are “competent” or
“qualified persons” as defined by NI-43 101, both authors have inspected the Buckreef Project
and are fully acquainted with all aspects of the project including exploration history, geology,
metallurgy, resource estimations and project development.

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Gallery Gold Limited Tanzania

5 DISCLAIMER
This report is based on information provided Gallery Gold Limited and various consultants,
which reflect various technical and economic conditions prevailing at the time of compilation of
the report. These conditions can change significantly over relatively short periods of time and as
such the information and opinions contained in this report may be subject to change.
The revised resource estimates included in this report were prepared by independent consulting
firm, Hellman & Schofield Pty Ltd. The authors of this report are not in a position to take
responsibility for the Buckreef and Busolwa Mineral Resource estimates stated in Section 19 of
this report. Hellman and Schofield has provided a separate certificate of responsibility in
relation to Section 19 of this report.
This report includes technical information, which requires subsequent calculations to derive
subtotals, totals and weighted averages. Such calculations may involve a degree of rounding
and consequently introduce an error. Where such errors occur, the authors does not consider
them to be material
The authors of this report do not undertake or accept any responsibility or liability in any way
whatsoever to any person or entity in respect of these parts of this document, or any errors in or
omissions from it, whether arising from negligence or any other basis in law whatsoever.

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Gallery Gold Limited Tanzania

6 PROPERTY DESCRIPTION AND LOCATION

The Buckreef Project encompasses approximately 212 km2 of contiguously held tenements
extending east-west for approximately 40km covering the eastern half of the RGB centred on 3º
7’ 18’’ N and 32º 7’ 5’’ E (Figure 6.1). The status of the tenements and ownership details are
provided in Table 6.1.

Figure 6.1 - Location of the Buckreef Project within the Lake Victoria Goldfields, Tanzania. Green areas
represent mapped Archean Supracrustals.

Within this tenement there are numerous small scale artisinal gold workings and the two main
projects which together comprise Gallery’s Buckreef Project, namely the now defunct Buckreef
Gold Mine and the Busolwa-Buziba resource.
The Buckreef Mine lies at the western end of the project area and the Busolwa-Buziba resource
lies some 20km to the east (Figure 6.2). At the Buckreef Mine the head frame and plant remain
in situ but in both cases no proper care and maintenance has been undertaken. A small tailings
disposal facility is also present at Buckreef as well as the original mine and office buildings and
permanent accommodation/mess facilities which are still being utilized by Gallery Gold
exploration.
At Busolwa-Buziba a well established exploration camp exists at the western end of the defined
resource with power generation and bore water.

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 Gallery Gold Limited Tanzania

Figure 6.2 - Gallery Gold Prospecting and Mining Licences within the Buckreef Project area. Also
shown are the two principal resources at Buckreef and Busolwa

Licence Number PL 215/94 PL 2556/2004 PL 2177/2003 PL 1564/2000 PL 3615/2005 PL 3542/2005

Rwamagaza
Name Rwamagaza North Rwamagaza South Rwamagaza West Nyamalimbe Mabamba
Location Region Mwanza Mwanza Mwanza Mwanza Mwanza Mwanza
District Geita Geita Geita Geita Geita Geita
Area Rwamagaza Rwamagaza Rwamagaza Rwamagaza Rwamagaza Rwamagaza
Sheet QDS 46/1 QDS 46/1 QDS 46/1 QDS 46/1 QDS 46/1 QDS 46/1
Size Km sq 150 26.81 10.51 34.07 5.359 3.00
1/3/2006 10/7/2006
Expiry 24/9/2007 4/6/2007 (extension to be applied (extension to be applied 6/10/2008 8/10/2008
for) for)

Licence Number PL 3700/2005 PL 2286/2003 PL 1969/2002 ML 04/92 PL 2427/2004

Name Copacabana Mawe Meru Bukoli Buckreef Buziba
Location Region Mwanza Mwanza Mwanza Buckreef Mwanza
District Geita Geita Geita Geita Geita
Area Busanda Rwamagaza Bukoli Geita Buziba
Sheet QDS 46/1 QDS 46/1,2 QDS 46/1,2 QDS 46/1 QDS 46/1
Size Km sq 51.44 75.2 25.36 3.45 5.304
4/9/2005
Expiry 6/11/2008 17/7/2006 (renewal application 11/6/2017 18/1/2007
accepted)

Table 6.1 - Gallery Gold Prospecting and Mining Licences within the Buckreef Project area.

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Gallery Gold Limited Tanzania

7 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,

INFRASTRUCTURE AND PHYSIOGRAPHY
The Buckreef Project area lies 85km due south of Lake Victoria in the Mwanza Administrative
Division of Tanzania in East Africa (Figure 7.1). The area south of Lake Victoria consists of
gently undulating low hills and flat alluvium and black cotton soil filled valleys (M’buga). The
original vegetation is typical savannah with a variety of tree species, predominantly acacias,
scattered through grassland. The area of the Lake Victoria Goldfields has been heavily modified
by human activity, in particular subsistence farming and tree clearing (mainly for charcoal).
Certain areas have also been subject to major overgrazing.

Figure7.1 – Tanzania showing the location of the Buckreef Project area

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Gallery Gold Limited Tanzania

Infrastructure is generally poor. The project area is located 110km south west of the town of
Mwanza which lies on the eastern shore of the Smith Sound, a southward extending arm of
Lake Victoria. Mwanza has a population of approximately 1 million people and is connected to
Dar es Salaam by a poorly maintained tar road.
Access to the project from Mwanza is via a series of unpaved roads of varying quality. The
project area itself is heavily populated with scattered individual kraals and agglomerations of
dwellings related to transient “artisinal gold rushes”.
The climate is semi arid with a well defined wet season between December and May. Annual
rainfall varies from 400-800mm. The period from June to August is usually dry. The elevation of
around 1200m prevents excessively high temperatures.

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Gallery Gold Limited Tanzania

8 HISTORY
Gold was discovered in the Lake Victoria Goldfields (LVGF) by German explorers in the late
1890’s. The first significant exploration and production in the LVGF occurred during the 1930’s
resulting in the discovery of the Geita Gold Mine. During this period several small gold mines
exploiting near surface reefs and stamp mills operated throughout the RGB (Figure 6.1). They
were particularly concentrated around the villages of Rwamagaza (Thompson’s Quarry, Blue
Reef, Boss Reef, Miombo Reef, Auriental / Tembo) and Nyaragusu (Mawe Meru, Auriental).
Auriferous quartz veins were reported from the current Buckreef Mine area in 1945 although no
work was reported on the discovery. Geological reconnaissance reports from the 1950’s attest
to ongoing production at a number of localities near Rwamagaza, including the Buckreef area.
The extensive small scale mining from local and Colonial mining activity is evident from the
numerous pits and adits covering the entire GGN tenement package covering over 45 km of the
RGB (Figure 6.1).
In 1959 government regional airborne geophysical surveys were flown over the Rwamagaza
greenstone belt. Ground follow-up was carried out from 1965 to 1968 in a joint effort between
the United Nations and the Tanzanian Mineral Resources Division. The Buckreef quartz vein
was rediscovered in 1965.
No official production figures are available from the small scale mining about Rwamagaza and
Nyaragusu but it would have been relatively small.
The Buckreef area has a long history of small scale mining and exploration work by the UNDP,
the Tanzanian Mineral Resources Division, Williamson Diamonds and since 1994 by East
African Mines Limited. The Buckreef deposit itself was mined underground by the Tanzanian
State Mining Company (Staminco) from 1982 to 1988. The operation was closed in 1990 due to
a number of operational reasons and the workings were allowed to flood. It is estimated that
approximately 100,000 tonnes of ore was mined at a diluted grade of approximately 3g/t to 4g/t
Au.
The Buckreef Redevelopment Agreement was signed between The United Republic of
Tanzania and East Africa Mines Limited (EAM) on 5th of May 1994. The tenements covered by
this Agreement include the Buckreef Mining License ML04/92, the Rwamagaza group of
Prospecting Licences (Rwamagaza PL215/94, Rwamagaza West PL1564/2000, Rwamagaza
South PL2177/2003 and Rwamagaza North PL2556/2004) and the Buziba Prospecting License
(PL2427/2004) approximately 20 km east of Buckreef (Figure 6.2). The Tanzanian Government
retains 20% equity in these areas.
The Buckreef Redevelopment Agreement was due to expire on 31st July 2004 but a 3 year
extension was granted to 30 July 2007. The extension was granted on the basis of restricted
access to the Rwamagaza License area due to illegal miners, and, to allow completion of work
over the Buckreef – Rwamagaza Project area. The work commenced in November 2003
following completion of a merger between Spinifex Gold, the original parent company to EAM,
and Gallery Gold Limited (Gallery) of Australia. Gallery then became the parent company to
EAM.
There was a significant increase in the tempo of exploration and feasibility work following the
Gallery/Spinifex merger in 2003. Geophysical and soil surveys as well as regional and more
detailed drilling programs have been completed at Buckreef and Rwamagaza (Tembo, Miombo,
and Bingwa). EAM also successfully joint ventured into additional exploration properties at

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Gallery Gold Limited Tanzania

Glass Reef (PRL2319/2003), Mawe Meru (PL2286/2003) and Bukoli (PL1969/2002) as shown
in 6.2. This has given EAM access over 40 kilometres contiguous strike length of the RGB.

Up to 30th September 2003, EAM had spent a total of US$ 5,064,746 on the Buckreef
Mining License, US$ 3,978,586 on the Rwamagaza Prospect Licences and US$
171,426 on the Buziba Prospecting License. Up to 30th September 2005, two years later,
EAM has spent a total of US$ 7,575,808 on the Buckreef Mining License, US$
4,578,866 on the Rwamagaza Prospect Licences and US$ 1,385,561 on the Buziba
License.

Up to 30th September 2003, EAM had completed 57,097.78 m Diamond, RC/AC/RAB
drilling on Buckreef Mining License, 102103.70m Diamond, RC / AC / RAB drilling on the
Rwamagaza Licences and 5,041.00m Diamond / RC / AC / RAB drilling on the Buziba
License. Up to 30th September 2005, two years later, EAM had cumulatively completed
79,265.33m Diamond, RC/AC/RAB drilling on Buckreef Mining License, 130,478.50m
Diamond, RC / AC / RAB drilling on the Rwamagaza Licences and 47,558.81m
Diamond, RC / AC / RAB drilling on the Buziba License.

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Gallery Gold Limited Tanzania

9 GEOLOGICAL SETTING
The Buckreef Project area covers the eastern portion of the east-west trending Rwamagaza
Greenstone Belt (RGB) which is one of a number of Archean supracrustal belts lying within the
Tanzanian Craton of east Africa. Little work has been undertaken in the Tanzanian Craton to
understand the large scale setting and development of the supracrustal sequences and
understanding of the regional geology has been severely hampered by the lack of outcrop (less
than 2%) as well as the lack of a single multiclient aeromagnetic dataset. Most geological data
on the region exists within individual mining company databases and no large scale
compilations have been undertaken. Isotopic dating suggest the supracrustal sequences are
approximately 2.6 Ga in age.
The RGB itself consists largely of a monotonous sequence of basaltic flows with well preserved
volcanic features such as varioles, pillows, and flow top breccias. Aeromagnetic data and minor
outcrop indicates the presence of a number of elongate serpentinized ultramafics bodies parallel
to the flow stratigraphy. It is unclear if these are truly intrusive bodies or the cumulate portions of
thick high Mg basaltic lava flows
At Buckreef, and to a lesser extent at Busolwa, drilling has indicated the presence of thin
interflow units of predominantly pelitic and cherty sediments.
At both Busolwa and Buckreef a variety of porphyritic textured felsic intrusions occur. These are
dyke and vein like bodies and typically intrude along crosscutting structures (Buckreef) or sub
parallel to flow stratigraphy (Busolwa).
The deformation history of the RGB is very poorly understood. Aeromagnetic data reveals
several generations of crosscutting, late stage, brittle-ductile faults and shears, which offset flow
stratigraphy and have locally been intruded by the felsic porphyries and by a late stage set of
doleritic dykes. Early formed ductile structures are not easily defined in aeromagnetic data
although local scale convergence and truncation of stratigraphic trends does suggest the
presence of stratigraphy parallel shear zones.
In drill core the host rocks at Buckreef and Busolwa are generally undeformed although
metamorphosed to lower greenschist facies. In the case of Busolwa a non-penetrative fabric is
developed which orientated core suggests dips steeply to the south sub parallel to stratigraphy.
Individual zones in which this fabric is well developed cannot be traced for distances of more
than a few hundred metres on drill sections but a number of such zones occur throughout the
200m of thickness of stratigraphy which hosts the mineralization. Shape fabrics indicate
predominantly flattening strain and true thoroughgoing ductile shear zones have not been
encountered at Busolwa.

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Gallery Gold Limited Tanzania

10 DEPOSIT TYPES
The RGB lies within the Lake Victoria Goldfield. The goldfield contains a large number of small
scale, artisinal workings and five currently producing operations three of which lie within 60km of
the project (Figure 10.1). These deposits all represent variations on the theme of Orogenic Gold
deposits. Typically they are hosted by sedimentary units intercalated with volcanics and all are
associated with quartz veining. The largest deposit at Geita is hosted by ferruginous cherty-
pelite units termed “iron formation”.
The RGB itself hosts numerous small scale gold deposits belonging to the Archean Lode Gold
or Orogenic Gold class which have been or are being exploited by small scale miners. The
Tulawaka Mine operated in JV by Barrick Gold and Northern Explorations Limited ( 0.4 M oz)
lies at the far western end of the RGB, 56km to the west of the Buckreef Mine (Figure 10.1)
All the deposits currently being worked by small scale miners in the Buckreef Project area
consists of narrow discontinuous quartz veins within variably cleaved basaltic host rocks.

Figure 10.1 - Location of the Buckreef Project within the Lake Victoria Goldfields, Tanzania. Green areas
represent mapped Archean Supracrustals.

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Gallery Gold Limited Tanzania

11 PROPERTY GEOLOGY AND MINERALIZATION

Two separate deposits form the Buckreef Project. The former producing Buckreef Gold Mine
lies at the western end of the project area whilst the as yet undeveloped Busolwa-Buziba
resource lies 20km to the east (Figure 11.1).

Figure 11.1 - Gallery Gold Prospecting and Mining Licences within the Buckreef Project area. Also shown are the two
principal resources at Buckreef and Busolwa

Buckreef Gold Mine

The Buckreef Mine was developed on an ENE-WSW trending, 5-30m wide, brittle-ductile fault
zone developed within relatively undeformed mafic volcanics (Figure 11.2). The fault zone
contains early developed pervasive iron carbonate alteration which has undergone later brittle
fracturing and brecciation with recementation by multiple events of grey to white quartz veining.
Finely disseminated pyrite occurs in a halo surrounding the zones of quartz veining. The degree
of quartz veining is directly related to the tenor of gold mineralization. Deep drilling has led to
the definition of higher grade shoots plunging steeply to the north. Several narrow, more
discontinuous sub parallel zones of similar alteration and mineralization have been defined both
to the west and to the east of the main fault zone.
A final white “buck” quartz vein event is evident in the main zone and this is barren of gold
mineralization but is the only visible sign of the structure in outcrop.
The mineralized structure at Buckreef is clearly defined geologically in terms of alteration and
deformation styles and the resources are well constrained.
The mineralization on the main structure can be divided into three zones separated by altered
but less well mineralized material. The Buckreef North and Main Zones comprise by far the
largest portion of the know resource. The Main Zone strikes for 600m dips steeply to the west
and is known to extend to at least 400m below surface. The Buckreef North Zone extends for
250m, also dips steeply to the west and has been intercepted in drilling 400m below surface.

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Gallery Gold Limited Tanzania

Figure 11.2 - Buckreef deposit at the western end of the Buckreef Project area. Grey filled areas
represent projection of orebodies to surface. Black diamonds represent RC and diamond drillholes.

Gold mineralization at Buckreef is non refractory in both fresh and oxide material and is
associated with small amounts of fine grained pyrite within the grey quartz veining. Detailed
logging of drillcore reveals a prominent deepening of the oxidation profile above portions of
both the Main and North Zones.

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Gallery Gold Limited Tanzania

Busolwa-Buziba resource

Figure 11.3 – Busolwa-Buziba Project at the eastern end of the Buckreef project area. Black
outlines represent potential open pits. Black diamonds represent RC and diamond drillholes

The Busolwa-Buziba mineralization is hosted in similar pillowed mafic rocks to that at Buckreef
but the mineralization is much less confined and appears to be related both to discontinuously
developed zones of cleavage and to zones of intense potassium feldspar + quartz alteration
associated with a suite of feldspar porphyry dykes. The gold mineralization itself comprises two
sets of quartz veins which developed contemporaneously with the cleavage zones. Veins show
all degrees of deformation into the fabric suggesting that mineralization continued right through
the deformation event. Numerous examples of virtually undeformed veins bearing the same
quartz + carbonate + K feldspar + hematite + pyrite + gold mineralogy are known in drillcore
indicating mineralization probably continued post deformation also.
The geometry of the mineralization is highly irregular forming a zone up to 200m thick extending
east-west for at least 2500m on the northern margin of a small granitic body. The mineralized
alteration envelope appears to dip steeply to the south sub parallel to the flow stratigraphy and
to the variably developed cleavage. Nearly all the gold mineralization is related directly to the
veining and the deformation and dismembering of many of these veins has given rise to the
highly variable distribution of gold through the zone. The feldspar porphyritic dykes and
associated quartz-K feldspar-biotite alteration have also acted to localize veining by forming
rheological contrasts in the mafic sequence during the deformation events. Thus the original
disposition of these dykes and their irregular alteration has also influenced the geometry and
continuity of the later gold mineralization.
Minor amounts of chalcopyrite, pyrrhotite and magnetite are known in the zone but the only
sulfide of any note in the system is pyrite. Locally some of the cleavage zones show biotite +
magnetite + pyrite alteration but only where the quartz veins are developed does this material
contain gold suggesting this alteration is not directly related to the gold mineralizing event.
The mineralization at Busolwa-Buziba has been broken down into four zones based on geology,
continuity, and grade distribution (Figure 11.3). The Busolwa Main Zone lies immediately to the
north of the granite body. Mineralization in this zone is continuously developed in a 200m thick
zone over 700m of strike. Drilling reveals gold mineralization extends to at least 150m below
surface dipping to the south. Much of the mineralization in the Main Zone is in the form of

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Gallery Gold Limited Tanzania

variably deformed veins in discontinuous cleavage zones within the host mafics. Further to the
west the Silanga Zone consists of intense quartz + K feldspar + hematite alteration and felsic
porphyry dyke intrusion in which later brittle deformation has resulted in emplacement of
irregular tensional veins similar to those at the Main Zone. Overall the Silanga Zone also dips
steeply to moderately south, extends for at least 600m along strike and is known to extend to
150m below surface in drilling. To the SE of the Main Zone the Granite Contact Zone is a series
of poorly defined, shallow to moderate south and north dipping, irregular quartz veins. The
Njombo Zone is a poorly defined zone similar in alteration and veining to the Silanga Zone but
located approximately 400m to the south (hangingwall).

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Gallery Gold Limited Tanzania

12 EXPLORATION
The Buckreef Project area has a long history of exploration that includes work by the UNDP, the
Tanzanian Mineral Resources Division, and Williamson Diamonds. The Buckreef Mine itself was
operated by the Tanzanian State Mining Company (Staminco) between 1982 and 1990. In 1990
the underground operation was terminated for a number of operational reasons and the mine
was allowed to flood. Record keeping of production was very poor and estimates of gold
produced vary wildly. Some accounts indicate that approximately 100 000 tons of ore were
mined at a diluted grade of 3-4 g/t Au.
The Buckreef Redevelopment Agreement was signed between The United Republic of Tanzania
and East Africa Mines Limited (EAM) on 5 May 1994. The tenements covered by this Agreement
include the Buckreef Mining License ML04/92, the Rwamagaza group of Prospecting Licences
(Rwamagaza PL215/94, Rwamagaza West PL1564/2000, Rwamagaza South PL2177/2003 and
Rwamagaza North PL2556/2004) and the Buziba Prospecting License (PL2427/2004)
approximately 20 km east of Buckreef. The Tanzanian Government retains 20% equity in these
areas. The Buckreef Redevelopment Agreement was due to expire on 31 July 2004 but a 3 year
extension was granted to 30 July [Link] exploration history of Buckreef is summarized in
Table 12.1

Date Activity

13 diamond drill holes by UNDP identified a “possible ore zone’ 107 metres long, 8 metres wide and
1960’s
extending to 122 metres depth.

13 diamond drill holes by Tanzanian Mineral Resources Division.

1968
Underground development on 30m and 61m levels by Williamson Diamonds Ltd. Indicated ore reserve of
Early 1970’s
106,000t @ 8.7g/t Au between 23m and 76m levels using minimum mining width of 1.5 metres.

Tanzanian government approved investment decision and Buckreef Gold Mining Company (BGMC)
1972
formed.

1973-79 Further underground development and 3 diamond drill holes by BGMC.

Treatment plant and other facilities established with financial assistance from Swedish International
Development Agency. Best estimate of production from available records indicates the mine processed
1978-81 139,470 t @ 7.87 g/t Au Feed Grade (approx. 35,400 oz) however bullion produced amounts to 10,100oz.
The latter figure is more reliable as there were ongoing difficulties with the weightometer and overstating
of gold assays.

1982-1988 Gold production commenced but reached only 25-40% of forecast targets.

Review of operations by British Mining Consultants Ltd who found Buckreef assay laboratory assays 65%
1988
higher than overseas check assays.

Mining ceased and workings flooded. Total ore extracted estimated at approximately 100,000t @ 3-4g/t
1990
Au.

Buckreef Redevelopment Agreement signed between The United Republic of Tanzania and East Africa
5 May 1992
Mines Limited (EAM). on 5th of May 1994. Tanzanian Government retains 20% equity.

Aircore, RC and diamond drilling by East African Mining Corporation (now East Africa Gold Mines Ltd). In
1992-Nov 2003 total 16 324m of drilling undertaken in 67 drillholes comprising 961m of RC drilling (18 holes) and 15
363m of diamond drilling in 49 holes (with 2173m of precollar). RC

Table 12.1 – Summary exploration history at the Buckreef Mine

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Gallery Gold Limited Tanzania

The Busolwa-Buziba resource was originally explored by Tanganyika Gold Limited (TGL) a
forerunner of Spinifex. They drilled a total of 205 RC and diamond holes into the mineralization
in the late 1990’s. Subsequently East Africa Mines Limited (EAML) have continued to drill the
deposit with a further 46 876m of RC and diamond drilling in 610 holes with drilling ongoing at
time of writing. A summary of the exploration history is provided below:

TGL drilling:

Drilling Phases 1, 2, 3 and 4

Total number of Drill Holes = 171

13 381 total metres

Six recorded as diamond core holes (136.00 metres pre-collar and 496.00 metres
diamond)

165 recorded as RC drill holes (12 749.00 metres).

EAML drilling:

Drilling Phases 5 and 6

Total number of Drill Holes = 610 (drilling ongoing at time of writing)

46876 total metres

Extensive Gradient Array IP was completed over the Buckreef and Busolwa areas by
professional geophysical contract companies from Australia (Search Geophysics) and South
Africa ((Spectral Geophysics) using 10KVA and 4 – 7KVA transmitters respectively. The
surveys have successfully highlighted areas of mineralisation associated with silicification and /
or sulfide alteration. The survey date also provides important structural and lithological
information to assist exploration. This data was processed and interpreted by Geophysical
Consultant, Graham Elliott, of Southbush Geophysics, Perth, Western Australia.
There has been no recorded production from the Busolwa-Buziba resource but the area has
been the subject of considerable amounts of artisinal mining activity which is ongoing at time of
writing. This activity is small scale and largely confined to areas of oxidized rock above the
water table.

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13 DRILLING
Significant amounts of Aircore (AC), Rotary Air Blast (RAB), Reverse Circulation (RC) and
Diamond Drill (DD) holes have been completed at the Buckreef and Busolwa resource areas.
The AC and RAB drilling is only used to identify potential mineralization and are excluded from
all resource estimations.
The RC and DD drilling at both areas was supervized by experienced geologists and completed
by professional drilling contract companies. RC and DD drilling was completed by AfriDrill, West
Side Drilling, Resource Drilling, Drillcorp, Stanley Mining Services and most recently by Tandrill.
With the exception of early RC drilling by EAM at Buckreef and TGL at Busolwa the RC drilling
equipment, including auxiliary boosters and compressors, is appropriate to provide good quality
samples. Sampling methods are described in Section 14: SAMPLING METHOD AND
APPROACH. All RC drilling undertaken by EAM at Busolwa was completed using 5¼” hammers
with auxiliary booster / compressors that allowed between 550 - 600 psi to be maintained at the
hammer. This normally provides dry sampling. Wet samples, as sometimes occur at rod
changes or infrequent broken ground, are recorded and collected in polyweave bags contained
within plastic drums. After settling, bags are air dried and then riffle split in the same manner as
dry samples. Holes that were unable to be kept dry are stopped.
The early generation RC holes identified as having potential for down hole water contamination
were all twinned using appropriate RC or DD.
Resource RC drill spacing is completed at nominal 40m - 20m x 20m spacing at Buckreef and
50m – 25m x 20m at Busolwa. To minimize interference and sampling by artisinal miners the
RC 1m samples are collected daily and transported to a central sample farm where they are laid
out in lines. Signs and individually marked plastic bags allow easy identification for possible
check sampling. This needs to be completed within 3 – 6 months to minimize contamination due
to deterioration of bags in the sun.
For diamond drilling core recovery is generally very good, particularly at Buckreef. Most DD
holes commenced with a tricone roller bit where near surface sampling was not required,
followed by HQ diameter which is reduced to NQ / NQ2 when fresh rock is reached or difficulties
were encountered. At Buckreef mine site this was caused by intersection of stope voids. Ten
HQ core holes were also drilled at Buckreef to twin anomalous RC and DD holes as part of a
QC check program on historical assay practice and grade continuity. During the last 2 months
PQ metallurgical samples have been collected at Buckreef and Busolwa. Since 2000 at
Buckreef, and for all DD holes at Busolwa, DD core was orientated. Down hole core marking
was by “spear” method and more recently using the Easymark tool. EAM standard procedure is
to mark a Top-of-Hole Reference line which may be solid / dashed / dotted depending on
confidence attached to the fitting. All core is cut approx 1cm away from the Reference Line. This
allows the drawn Reference Line to be visible in the core box. The retained half core is stored
on site in a secure core yard facility. Wet and dry core photography of uncut core is available for
all DD holes completed since BMDD024 at Buckreef and MWBD007 at Busolwa.
Surveys of inclination and azimuth were completed at nominal 30m – 50m intervals for all RC
and DD holes completed since 2000 and the majority of holes before that. The survey tool was
usually an Eastman single shot or Reflex camera and was operated by the drill contractor as
part of normal drilling.

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Gallery Gold Limited Tanzania

14 SAMPLING METHOD AND APPROACH

Sampling is dependant on the drilling method used and is considered conventional and
appropriate by JORC standards.
It is recognized that collection of samples, particularly for RC AC RAB samples, can introduce a
strong bias to assay results. Written sampling methodology and submission procedures are in
place.
For RC drilling the entire hole is collected through a cyclone at 1m intervals into large plastic
bags. Each meter sample is riffle split on site. RC sample weight and moisture (dry, damp, wet)
are recorded for every meter interval along with the End of Rod (EOR) depth. This enables
assessment of the significance of wet RC drilling and rod changes. There are procedures in
place for blow backs after every metre sample, cleaning the cyclone after EOR and maintaining
sufficient air pressure. RC assay samples are taken as either 3m composites or, in the case of
Busolwa resource drilling, at 1m intervals. During composite sampling the individual 1m riffle
split reduced samples are collected in the field and retained for future analysis if warranted. This
occurs for composite assay intersections with nominal 0.2 g/t Au or persistent low grade
intervals. Calico bags were previously used to collect assay samples but due to inconsistent
weave quality were replaced by plastic bags sealed by staplers.
Unique SampleID ticket books with corresponding tear off sample tickets are printed and used
to record sample details and assay samples.
RC holes are stopped if persistent wet samples are encountered. Infrequent wet samples, as
sometimes occurs at rod changes or infrequent broken ground, are recorded and collected in
polyweave bags contained within plastic drums. After settling, bags are air dried and then riffle
split in the same manner as dry samples. The decanting of excess water before settling is
recognized to affect grade. Grade will be reduced if gold is fine or upgraded if gold is coarse.
The majority of RC samples collected since 1992 are homogenized and reduced on site by
passing reduced samples at least 4 times through a single tier Jones riffler. This is in preference
to the stacked 3 tier splitter. The 2 – 3 kg sample produced with the Jones riffler has been
demonstrated to be a more representative sample than that produced by stacked three tier
splitters.
The entire length of AC and RAB drill holes is collected as 1m samples. Composite 3m assay
samples are submitted for assaying. The 1m retained sample is only occasionally submitted for
analysis but is available if it is required.
Diamond drill core is all logged and processed for sampling on site. The majority of diamond
drilling is NQ / NQ2. Core loss and drillers inconsistencies are accounted for and 1m depth
intervals are marked on the core along with a Top of Hole Reference Line. Sample intervals
collected for assaying are normally standard 1m or 0.5m lengths. Variable length sampling on
lithological boundaries is also completed when required. These lithological based samples do
not exceed 1m in length. The core is sawed length ways along the Reference Line and a
standard “right” hand side collected for assaying. Regular cleaning of the core, core yard, saw
and sampling equipment along with a prohibition on jewellery in the core yard all minimize likely
contamination.
Retained RC AC RAB samples are all collected from the field and stored in central sample
farms at the Buckreef and Busolwa sites. The retained half of the DD core is stored in
galvanized core trays at the Buckreef and Busolwa core yards for future reference. All assay

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Gallery Gold Limited Tanzania

samples are batched on site and collected for analysis by trucks from the analytical Laboratories
used in Mwanza.

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Gallery Gold Limited Tanzania

15 SAMPLE PREPARATION, ANALYSES AND SECURITY

The majority of the drill samples from Buckreef and Busolwa were analyzed at the independent
SGS and Humac Laboratories in Mwanza. Check sampling has been completed at ALS –
Brisbane, ALS - Johannesburg and Genalysis Laboratory – Perth. All laboratories are
internationally accredited. Conventional sample preparation, analytical, internal quality control
and reporting procedures are used at all laboratories and are considered appropriate to meet
JORC reporting standards.
Gold analysis is by conventional Fire Assay using a 50g charge and reading by Atomic
Absorption Spectrography (AAS). The laboratory preparation procedure at primary Humac
laboratory is as follows:

Samples are oven dried prior to preparation and splitting

RC / AC / RAB samples are cone crushed to -2mm

Core samples are jaw crushed to -6mm and then cone crushed to -2mm

A nominal 1 – 1.5kg sub sample is riffle split and pulverized by ring mill to -150# (master
pulp). A barren flush was not used between samples, only before commencing work on
the batch and subsequently inter-batch.

Approximately 200g of the pulp is collected from the master pulp.

Fire Assay 50g of the pulp, determination for Au by AAS, 0.01ppm LLD.
Generally a minimum of 10% of samples (new aliquots, pulps taken from 200g pulp) are
repeated on a different day to the original analyses. Each fusion batch contains at least one
Certified Reference Material and one blank supplied by the laboratory.
Humac reported on a quarterly basis the results of internal standards, blanks and random
repeats as well as the results of wet sieve analysis.

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Gallery Gold Limited Tanzania

16 DATA VERIFICATION
Systematic quality control, comprising field insertion of regular standards, duplicates (replicates)
and blanks, is undertaken on all sample batches collected at Buckreef and Busolwa. This allows
an assessment and recognition of field sampling and analytical data quality. QC data is
reviewed on receipt of assay data and assessed monthly which allows immediate action on
sampling and analytical issues.
Written field Quality Control procedures are in place and are as follows:

Commercially available Geostats (Australia) standard reference samples are
inserted into sample batches at a minimum frequency of 1 in 40, frequently within
recognized mineralized zones. This normally means that every RC or DD hole has
at least 2 – 3 Standards.

Field Duplicate samples are second splits off the sample cyclone and are carried out
routinely. The RC Field Duplicate sample interval is selected by the geologist and is
taken from within the mineralized zone. It has a separate SampleID to the original
split. Duplicates are taken at a nominal frequency of 1 in 40.

Blanks are 1m drill samples that returned an assay value of less than 0.01 g/t Au.
This is confirmed by resampling the interval and submitting for check analysis.
Blanks positions are selected by the geologist and are inserted within zones of
mineralization. This allows assessment of cross contamination from higher grade
samples during the sample preparation stage. Blanks are submitted at a nominal
frequency of 1 in 40.
Routine laboratory Quality Control sampling (pulp duplicates and pulp repeats) is also
completed on pulps retained at the laboratory. This provides an indication of sample preparation
/ sub sampling / sample digest and assay error at the primary laboratory.
In depth documentation of sample QA/QC procedures is provided in the following reports:
• Hellman and Schofield - Review of Quality Assurance and Quality Control Data,
Buckreef Prospect, Tanzania, August 2004
• Hellman and Schofield Pty Ltd, June 2005. Estimates of the Gold Resources at Busolwa
Prospect, Tanzania, unpub.
• Hellman and Schofield Pty Ltd, December 2005. Estimates of the Gold Resources at
Busolwa Prospect - Draft, Tanzania, unpub.

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Gallery Gold Limited Tanzania

17 ADJACENT PROPERTIES
The Buckreef Project area in total encompasses 212 km2 of Archean supracrustal rocks on the
eastern portion of the RGB. The RGB in this area comprises mainly a very poorly outcropping
sequence of pillowed basalts with minor interflow sediments (cherts and carbonaceous pelites).
Outcrop is very limited and no regional map has ever been produced for the belt. High
resolution aeromagnetic data flown by Anglo Gold Ashanti Limited reveals the presence of a
number of linear bands of high magnetic susceptibility which seem to follow broad stratigraphic
trends. Limited drilling across these bands suggests they are variably serpentinized ultramafics.
It is unclear whether they represent the basal portions of thick basalt flows or true ultramafic
flows or intrusions. IP data at both Buckreef and Busolwa-Buziba also indicates the presence of
a series of feldspar rich porphyritic intrusions which have dyke like geometries. At Buckreef
Mine itself these bodies intrude structures which crosscut the main east-west stratigraphic
trends whilst further east at Busolwa-Buziba the dykes appear to be largely intruded sub-parallel
to stratigraphy and the non-pervasive east-west trending fabric.
The supracrustal rocks of the RGB are bounded to the north and south by large granitoid
massifs (“external granitoids”). The contacts are not exposed but, based on aeromagnetic data,
they appear to be largely structural in nature. Aeromagnetic data also reveals the presence of a
small granite body underlying and immediately to the south of the defined resource (“internal
granitoid”). This granite is exposed on the hill immediately to the south of the main prospect
where is consists of a medium grained quartz-feldspar granitoid intensely veined by white (non-
auriferous) quartz veins. The contacts between the mafic rocks and this granite have been
intersected in drilling and they appear to be largely structural with no evidence of crosscutting
intrusive relationships. There is little doubt that the mineralization at Busolwa-Buziba lies close
to the northern contact of this granite and is spatially if not genetically related to the granite
body. Interpretation of aeromagnetic data suggests at least two more similar “internal
granitoids” immediately to the east of the Busolwa-Buziba area, both of which have associated
and untested gold-in-soil anomalism.
The RGB has been subject to a phase of laterite development with formation of predominantly
iron rich ferricrete caps rocks and relatively minor underlying zones of bleaching and mottling.
Following this the area was subject to a periods of erosion and nearly all the lateritic profiles
have been completely stripped. Isolated remnants of laterite remain in situ but these are largely
recemented transported laterites. As a result of this period of erosion the weathering profile
across the belt is relatively shallow although variable across both Buckreef and Busolwa-
Buziba. Major zones of secondary enrichment are therefore not developed at either Buckreef or
Busolwa-Buziba but there is evidence of localized enrichments in the shallow oxidation profiles
in both areas. The RGB in general is covered by a thin layer of elluvial regolith which is
amenable to standard soil sampling techniques. The mineralization at Busolwa-Buziba is
strongly developed in the overlying soil profile and soil sampling over the deposit would have
resulted in its identification even without the artisinal workings in the area.
A possible exception to the shallow oxidation and lack of supergene gold enrichment exists
along the northern margin of the RGB at the contact with the granite body to the north. Here
several small resources are currently being drill tested by Gallery (most notably that at Bingwa
to the NE of Buckreef) and these have a pronounced and relatively deep zone of oxidation and
supergene enrichment associated with them.
Between the Buckreef Mine and the Busolwa-Buziba Prospect there are numerous shallow
small scale artisinal gold workings. These are predominantly developed on narrow

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discontinuous quartz veins within cleaved mafic volcanics. Typically the workings do not extend
below the level of oxidation. Examples of such areas are Iceni, Rwamagaza Reefs, Miombo,
and Bingwa (Figure).
The Buckreef Project area has been subject to several phases of exploration including regional
soil sampling and more focussed rotary air blast (RAB) and aircore drilling programs. This work
resulted in the discovery of numerous gold anomalies which have only been sporadically tested.
Ongoing work at both Buckreef and Busolwa-Buziba utilizing high resolution aeromagnetics and
IP is producing a much better understanding of the deformation history of the RGB and the
location of the gold mineralization. This greater understanding is being utilized to generate
numerous new targets for drill testing.
Critical to the ongoing exploration effort in the RGB is the development of new geological
models (predominantly regarding the structural evolution of the belt) based on geological
mapping, geophysical data, and remote sensing applications. At both Buckreef and Busolwa-
Buziba construction of 3D geological and resource models is seen as high priority to better
define the existing resources and to discover new deposits in the region to help supplement the
existing resources.

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Gallery Gold Limited Tanzania

18 MINERAL PROCESSING AND METALLURGICAL

TESTING
The Buckreef deposit has had a series of progressive testwork programs undertaken on it over
a 13 year period, post closure of the mining and processing operations.
The more recently discovered Busolwa has had two preliminary metallurgical testwork programs
conducted on samples collected from the deposit.
Recent metallurgical testwork undertaken by Gallery on Buckreef and Busolwa samples has
been completed by Independent Metallurgical Laboratories (IML), a third party metallurgical
laboratory based in Perth, Western Australia, under the supervision of Mr Linton Putland,
Gallery – Group Projects Manager.
Preliminary metallurgical testwork has been carried out on samples collected from both the
Buckreef and Busolwa deposits. Testwork samples were composited by Gallery for both
deposits, based on their oxidisation characteristics, and to be spatially representative of the
deposits.
The metallurgical testwork and results undertaken on the Buckreef and Busolwa deposits is
summarized as follows:

Buckreef
The Buckreef deposit consists of three mineralized zones - Main, North and South. Each of
these zones contains an oxide, transitional and primary (fresh) ore component.
The oxide ore consists mainly of laterite and saprolite and is classified as strong saprolite.
Transitional ore is considered to be moderately weak saprolite with lots of weathering along the
joints. The primary zone contains pyritic sulfides.
The dominant mineralization in the ore body is silica, dolomite and massive quartz, which varies
from being carbonate rich with lots of quartz veining, siliceous with quartz veining through to
thick quartz veining. Gold is associated with grey quartz. Pyrite is also associated with the
quartz, in varying proportions and is a fine grain disseminate either silicified or carbonated.

January 1993
In January 1993, 6 drill holes were put down the Buckreef ore body in the Main zone,
BP005, BP008, BP010, BP011, BP014 and BP009A. These holes depths were shallow
at less than 37 metres thus the sample composites associated with these holes
represent mainly oxide and transitional ore types although some primary ore sample
composites were taken.
Leaching testwork was conducted by the operations at the on site laboratory. Recoveries
varied between 23 and 89%, averaging 49.5%. There didn’t appear to be a relationship
between recovery and depth or drill hole location. A composite, made from equal
proportions of all these samples, was ground to a P80 of 75um. Under the same
leaching conditions as the underground samples a recovery of 94.4% was achieved.

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Gallery Gold Limited Tanzania

October 1995
9 composites were tested via cyanide leaching. The samples were sourced from the
Main, Hanging wall and North zones from varying depths between 0 and 60 metres.
Samples of oxide, transitional and sulfide were tested from each zone.
A summary of the recoveries is presented in table 18.1.

Table 18.1

The testwork results indicate that as the ore is ground finer the recovery increases for all
ore types. The transitional and sulfide ore showed the biggest improvement in recovery
with grind.

September 2001
53 samples were taken from drill holes BMRCD185 (Main Zone 118-136m), BMRCD
191 (Main Zone 87-106m) and BMRCD204 (Main Zone 96-113 m). One composite from
each drill hole was prepared.
Five leach tests were conducted on each Composite:-

Direct leach

CIL

CIL - Peroxide assisted leach (PAL)

Time leach test

pH optimization test

A summary of the recoveries for each test is in table 18.2.

Table 18.2

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Gallery Gold Limited Tanzania

Comments and Observations from these tests were:-

Samples 185 and 191 both showed an improvement in recovery of 7 and 5%
respectively by CIL leaching compared to direct leaching, indicating the ore is slightly
preg robbing. Sample 204 showed no benefit using CIL.

The peroxide assisted CIL leach did not show any improvement in recovery for
samples 185 and 191 but was beneficial for sample 204 with an additional 5%
improvement in recovery.

The timed leach test recoveries, should have been similar to the other recoveries but
were the lowest of all the tests. These lower recoveries indicate a problem with the
test procedure, as the cyanide dosage appeared to be sufficient at 5kg/t, which is the
highest dosage of all the tests. The pH was excessive, at >12, and may have
inhibited the leaching.

The leaching rate for all samples was fast with over 70% of the gold extracted within
5 hours.

August 2003
6 composites were taken from the Main, West and Northern Zones at varying intervals
between 85 and 484 metres. The composites were prepared from samples taken every
metre at the designated intervals from each drill hole.
Timed leach tests were conducted on all composites at approximate grinds of P80 75um
and leached with 500ppm cyanide. The results are summarized in Table 18.3.

Table 18.3

Observations from this testwork are:-

The tests were not carried out with carbon in the leach (CIL) and the recoveries may
have been understated if any preg robbing occurred.

Recovery is highly variable and doesn’t appear to be related to ore depth.

Several of the composites were slow leaching which continued right up to 48 hours,
whereas the other samples leached quickly within 8 hours and stopped. It was noted
that 249 came from the West zone and 023 came from the North zone and were
slow leaching, whilst all other samples were fast leaching and came from the Main
zone.

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From the above testwork the composites that gave the lowest and highest recoveries
(BMDD023 and BMRCD222) were selected for further testing to understand the gold
deportment.
This work entailed:-

Conduct mineralogical analysis on the head samples

Gold assays by size on an initial 48 hour leach residue

Regrinding the leach residue

Gold assays by size on the reground leach residue

Re-leaching the reground residue

Gold assays by size on the reground, releached residue

Diagnostic leaching on the reground, releached residue

A summary of these testwork results is presented in Tables 18.4.

Table 18.4

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Gallery Gold Limited Tanzania

Observations from this work were:-

Grinding finer liberated 10% and 25% more gold from Composite BMDD023 and
BMRCD222 respectively.

The large proportion of gold liberated from the +38um fraction after fine grinding of
Composite BMDD023 illustrates the gold is finer and more dispersed than Composite
BMCRD222, particularly as the finer grind only improved the recovery to 83.6%.

The arsenic content was approximately 22g/t in the composites, whilst the sulfur
content was 4.2% and 1.8% for BMDD023 and BMRCD222 respectively.

The diagnostic leaching indicated that the sulfides contained similar proportions of
gold locked in sulfides, but Composite BMDD023 had a higher proportion of gold
locked in silicates. This indicates the gold is finely dispersed in the silicates for this
composite.

Mineralogical analysis of the head and leach residues confirmed the gold was
associated with sulfides in pyrite and that the gold was fine, less than 18um,
although a single 50um grain of gold was found in Composite BMCRD222.
Chalcopyrite was also found in both samples and contained gold.

October 2004
2 composites of fresh (sulfide) Buckreef material were prepared from 95 individual
samples.
The objective of the test program was to examine metallurgical response of these
samples in terms of gold recovery using cyanide leaching, flotation and diagnostic
analysis of the flotation products. Results are summarized as follows.
The testwork entailed:

Duplicate gold grade analysis of head samples by fire assay (FA) and selected
element scan by ICPOES;

Grind establishment on composite 1 and 2, to determine grinding conditions
necessary to mill 1kg of sample to P80 of 75, 53 and 25 ;

48-hour carbon in leach (CIL) tests on composite 1 and 2 at P80 of 75, 53 and 25 m
to determine gold recovery by cyanide leaching at different grind sizes;

Flotation test on composite 1 and 2 to determine gold recovery by flotation;

Diagnostic leach on float products of composite 1 and 2 to determine gold
deportment in the samples;

Duplicate assayed head grades and the calculated head grades were reasonably
consistent for both composites 1 and 2 implying that the gold distribution is uniform
within these samples.
Leaching of composites 1 and 2 was carried out using the CIL method. Results are
summarized in the Table 18.5.

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Gallery Gold Limited Tanzania

Sample Grind Reagents, kg/t Grade Au, g/t Recovery

P80 NaCN Lime Calc. Head Residue % Au
Composite 1 75 1.79 0.63 4.43 1.01 77
(CIL) 53 1.56 0.57 4.33 0.89 79
25 1.50 0.68 4.33 0.69 84
Composite 2 75 1.64 0.49 4.40 0.60 86
(CIL) 53 1.46 0.52 4.24 0.58 86
25 1.80 0.44 4.22 0.38 91
Table 18.5

Observations from this work are:-

Cyanidation gold recovery was improved by leaching at a finer grind size for both
Composite 1 and 2.

Flotation tests were carried out on composites 1 and 2 at a grind size of P80 75µm. The
results are summarized in Table 18.6.
Mass, Assay Grade Distribution
Sample Products
% Au, g/t S ,%
2-
Au, %
2-
S ,%
Float Con 1 – 4 28.5 15.5 14.1 90.6 98.2
Float Tail 71.5 0.64 0.10 9.4 1.8
Composite 1
Total 100.0 4.88 4.08 100.0 100.0
Head assay 5.14 3.88
Float Con 1 – 4 18.8 24.5 15.1 93.1 98.2
Float Tail 81.2 0.42 0.07 6.9 1.8
Composite 2
Total 100.0 4.95 2.89 100.0 100.0
Head assay 5.04 2.72
Table 18.6

Observations from this work are:-

Flotation gold recovery was in excess of 90% for both composites.

Sulfur recovery was high for both samples being 98% for each indicating that the
sulfide minerals had been floated close to extinction.

All four (4) float concentrates were combined to yield a single concentrate for each
composite. The concentrates and flotation tails were then subjected to a diagnostic
analysis.
Observations from this work were:-

Cyanidation of the flotation concentrates recovered 77.8% of the gold for composite
1 and 78.5% of the gold for composite 2. Regrinding and re-leaching of the
cyanidation residues recovered an additional 13.9% of the gold for composite 1 and
12.7% of the gold for composite 2.

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Gallery Gold Limited Tanzania

If a throwaway flotation tail is considered and the flotation concentrate is reground

and leached then the overall gold recovery would be 83.4% for composite 1 and
84.8% for composite 2 i.e. relative to the flotation feed.

Summary of Buckreef Testwork

Buckreef oxide material is free milling with cyanidation recoveries in the low 90’s.

Buckreef Sulfides –
• Consists of Main, West and North zones.
• Recovery by cyanidation highly variable, returning values between the mid 70’s
and low 90’s.
• No relationship between recovery and depth is apparent.
• No relationship between zone and recovery has been identified.
• Ore is moderately hard but no detailed comminution testwork has been
conducted.
• Recovery improves with decreasing grind size, suggesting flotation followed by
fine grinding as a potential processing route.

Busolwa
The Busolwa deposit consists of two main areas, Busolwa Main and Silanga.
The Busolwa-Buziba mineralization is hosted in similar pillowed mafic rocks to that at
Buckreef but the mineralization is much less confined and appears to be related both to
discontinuously developed zones of cleavage and to zones of intense potassium
feldspar + quartz alteration associated with a suite of feldspar porphyry dykes. The gold
mineralization itself comprises two sets of quartz veins which developed
contemporaneously with the cleavage zones. Veins show all degrees of deformation into
the fabric suggesting that mineralization continued right through the deformation event.
Numerous examples of virtually undeformed veins bearing the same quartz + carbonate
+ K feldspar + hematite + pyrite + gold mineralogy are known in drillcore indicating
mineralization probably continued post deformation also.
Initial testwork conducted in April 2005 focussed on multi-element head grade analysis
and cyanide leaching response.
33 oxide samples were composited from 2 oxide sources and 13 sulfide samples were
composited into five sulfide sources. Details of the composite samples and expected
assays are shown in Table 18.7.

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Gallery Gold Limited Tanzania

Table 18.7

Multi element head assays were completed for all composites and are shown in Table
18.8.

Table 18.8

Table 18.9 shows a summary of the gold assay values against the gold leached
calculated head grades.

Table 18.9

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Gallery Gold Limited Tanzania

The results in Table 18.9 show that the head assays generally correlated well with the
calculated (leached) grade with the exception for the Sulfide 2 composite. This
composite shows an assay grade of 4.00 g/t as compared to a calculated grade of 1.96
g/t indicating the possible presence of coarse gold in the head assay sample.
Grind establishment test were carried out on representative sub samples spit from both
oxide composites and on four of the five sulfide composites. Using these grind times the
seven composites were ground to a P80 of 75µm.
The results of cyanidation tests conducted on the composites are summarized in Table
18.10.

Table 18.10

The leach results indicate that the composites were amenable to rapid leaching. In all
seven tests the eight hour leach recovery figure was equal to or greater than 92% of the
48 hour or total recovery figure. In six of the composites this figure was equal to or
greater than 95% of the 48 hour recovery result (Table 18.11).

Table 18.11

In July 2005, reserve samples from the April 2005 testwork program were used to
generate a single oxide and single sulfide composite for Busolwa.
Baseline testwork was undertaken to determine:

Gravity separation of the two composites using a centrifugal concentrator;

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Gallery Gold Limited Tanzania

Cyanide leaching of both the gravity concentrates and tailings.

The head assays and calculated head grades are presented in Table 18.12.

Table 18.12

The results of the gravity separation testwork are summarized in Table 18.13. The
assays of each of the Knelson concentrator products were calculated from the cyanide
leach tests.

Table 18.13

Cyanidation tests were then conducted on the Knelson concentrator products. The
results of these tests are shown in table 18.14.

Table 18.14

These results were combined to give overall recovery achieved by gravity separation
followed by cyanidation of the gravity separation products is shown in table 18.15.

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Gallery Gold Limited Tanzania

Table 18.15

Observations from this work are:-

Gravity Separation recovered more than 45% of the gold into low weight
concentrates for both the oxide and sulfide composites.

Cyanidation of both the gravity concentrates and gravity tailings gave an overall gold
recovery of 94.9% for the oxide composite and 90.2% for the sulfide composite. The
cyanidation tails grade of each of the gravity concentrates were 1.92g/t Au for the
oxide and 3.57 g/t Au for the sulfide indicating that additional recovery could be
gained through optimizing the cyanidation of the gravity concentrates.
Additional metallurgical sampling and testwork is currently in progress for both the
Buckreef and Busolwa deposits.

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Gallery Gold Limited Tanzania

19 MINERAL RESOURCE AND MINERAL RESERVE

ESTIMATES
Buckreef

General statement
Hellman & Schofield Pty Ltd (H&S) was retained by Gallery Gold Limited (GGL) to
undertake estimates of recoverable gold resources at the Buckreef Prospect (Buckreef),
Tanzania. H&S has estimated the recoverable resources using Multiple Indicator
Kriging, a method that has been demonstrated to provide reliable estimates of
recoverable open pit resources in gold deposits of diverse geological styles.

Features of the Geology Relevant to Resource Estimation

The geology of the Buckreef gold deposit is described in Sections 9 and 11 of this
report.

Hellman and Schofield Resource Studies

The material that follows in Section 19 “Buckreef” is derived from the following reports
provided by H&S:

Hellman & Schofield - Estimates of the Gold Resources at Buckreef Prospect,
Tanzania, March 2005.

Data Collection and Verification

Data collection issues relevant to resource estimation are discussed in Section 13 of this
report. Sample preparation issues are discussed in Section 14, while data verification
issues are discussed in Section 15.

Wireframe Modelling for Resource Estimation

Drill holes were viewed in cross-section and interpreted mineralized domains, at
approximately 0.3g/t Au minimum included grade, interpreted as cross-section outlines
snapped to drill hole traces in 3D. The cross-section outlines were then formed into 3D
wireframes and the wireframes used to allocate primary (mineralisation) domain codes.
A barren quartz-porphyry dyke is noted as cutting mineralisation on section 2580N and a
vertical dip has been assumed for that unit. Otherwise no geological controls were
considered in the interpretation process.
The wireframed surfaces included the mineralised envelopes, major rock type
boundaries, weathering and oxidation surfaces and the land surface.
There has been limited underground mining undertaken at Buckreef. Wireframes of the
underground openings were also provided and utilized in the modeling process.

Statistical Analysis
H&S investigated the univariate statistics of gold grades within mineralised domains at
Buckreef.

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H&S made the following observations:

In Domain 1 (South and East Lodes) and Domain 2 (Main Lode) there is a notable
tendency to higher gold grades in oxide and transition zones compared to the
primary gold mineralisation for these lodes.

The composite grades for the North Lode (oxide, transitional and primary)
generally show much lower mean grades compared to the rest of the mineralized
domains. The mean grades of each sub-domain for North Lode are all below 2.00
g/t Au, while, in the majority of cases, the mean grades seen for the remainder of
the domains are well above 2.0 g/t Au.

All distributions are highly skewed, as expected for a gold deposit. Coefficients of
variation (C.V.) are moderate (range between 1.3 to 2.9), which reflects the
relatively consistent gold grades coupled with only moderate maximum grades
seen in the mineralized domains.

Variography
The spatial continuity of gold grades is important in resource estimation. H&S studied
this aspect in considerable detail using variography based on directional correlograms.
Variogram analysis of the spatial continuity of gold grades within the Main and North
Lodes at Buckreef indicates a relatively weak long-range continuity in the horizontal
plane parallel to local structural trends in the mineralisation (towards mine grid 000 for
Main Lode and towards mine grid 330 for North Lode). In cross section, this weak long-
range continuity is steeply dipping to the west.

Multi Indicator Kriging Resource Model Estimation

H&S considered that Multiple Indicator Kriging (MIK) represented the most appropriate
approach in estimating the Buckreef resource, quantifying the tonnage and grade of
economic material within large blocks (panels). MIK of gold grades used indicator
variography based on the resource sample grades, with continuity of gold grades
characterised by indicator variograms. At Buckreef, primary panel dimensions of 10mE
x 20mN x 5mRL have been used by H&S.
The size of the resource model panels reflects the philosophy that accurate estimation of
the grade of small blocks from assays in wide spaced drillholes is impossible, and that
large panels will lead to more robust resource estimates, which will more closely
resemble the resources achieved during mining. The application of a block support
correction to the MIK estimates is used to enable the estimation of the proportions of
each panel above a series of cutoff grades.

Block Support Adjustment

The H&S resource results are intended to reflect the tonnes and grade that can actually
be recovered from each panel during mining. A block support correction (or variance
adjustment) was used to achieve this. It is assumed that each panel will be mined as a
number of smaller blocks called selective mining units (SMUs), representing the smallest
volume of rock that can be mined separately as either ore or waste, given excavators
and trucks of a particular size.
Block support corrections were derived from the gold variograms for each domain and
applied on a panel-by-panel basis using a normal/log-normal method that incorporates

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Gallery Gold Limited Tanzania

both variance adjustment and symmetrization of the histograms of estimated grades to

derive estimates of recoverable resources for SMUs. Assumed mining block dimensions
were 2mE x 5mN x 2.5mRL at Buckreef. In H&S’s opinion, these dimensions
approximated the selectivity that could be expected with the scale of mining
contemplated by GGL and application of dilution or ore loss factors was not warranted.

Resource Classification
The resource is divided into measured, indicated and inferred categories. This
classification reflects a degree of confidence assigned to each panel based on how
many samples were available to estimate the panel grade and proportions, and the
spread of these samples in space around the panel.
For measured and indicated categories, at least 12 samples were found in the search
volume. In the inferred category, at least 6 were required. The space around the centre
of each panel was divided into eight octants. For measured and indicated categories, at
least four octants contained samples. In the inferred category, at least two octants
contained samples.
Search distances were also used in the classification. The search distances for each
deposit were estimated by H&S based on the statistical analysis of the data provided.
For Measured resources the easting, northing and elevation search radii was set to 10,
25 and 25 metres respectively. For Indicated and Inferred resources they were set at
15, 37.5 and 37.5 metres respectively (representing a 50 per cent expansion of the
Category 1 radii).
Finally, irrespective of the above criteria, all mineralisation that lay outside the main
mineralised envelopes was classed as inferred on the assumption that this material may
be patchy, may not be subject to grade control drilling, and may therefore not be mined.

Global Resource Estimates

Table 19_1 summarises the estimated recoverable resources for the Buckreef deposit
combined, at a variety of gold cutoff grades. H&S consider these resources to be
recoverable by mining, and thus recommend that no dilution factors are applied when
estimating reserves based on these resources.

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Gallery Gold Limited Tanzania

Measured Indicated Measured & Indicated Inferred

Cut-off Mt Au (g/t) Mt Au (g/t) Mt Au (g/t) Mt Au (g/t)

(g/t Au)

0.5 3.96 2.34 3.21 1.85 7.18 2.12 7.6 1.8

0.6 3.76 2.44 2.96 1.95 6.72 2.22 6.9 2.0
0.7 3.55 2.55 2.75 2.06 6.30 2.34 6.4 2.1
0.8 3.35 2.65 2.56 2.15 6.91 2.43 5.9 2.2
0.9 3.16 2.76 2.38 2.25 5.54 2.54 5.4 2.3
1.0 2.97 2.88 2.22 2.35 5.18 2.65 5.1 2.4
1.1 2.79 3.00 2.06 2.44 4.85 2.76 4.7 2.5
1.2 2.62 3.11 1.92 2.54 4.54 2.87 4.3 2.6
1.5 2.17 3.48 1.52 2.85 3.69 3.22 3.5 2.9

The estimation and classification of the resources by H&S are consistent with the
Australian Code for “the Reporting of Identified Mineral Resources and Ore Reserves” of
2004 (the Code) as prepared by the Joint Ore Reserves Committee of the Australian
Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral
Council of Australia (JORC).
Furthermore, the resource classification is also consistent with Canadian National
Instrument 43-101 Standards of Disclosure for Mineral Projects of February 2001 (the
Instrument) and the classifications adopted by CIM Council in August 2000.
The H&S resource estimate was undertaken by Nic Johnson, who is a member of the
Australian Institute of Geoscientists, and has more than five years experience in the use
of geostatistics for estimation of recoverable resources in gold deposits. Nic is both a
“Competent Person” and a “Qualified Person” with respect to the JORC Code and CIM
Standards respectively.

Busolwa

General statement
Hellman & Schofield Pty Ltd (H&S) was retained by Gallery Gold Limited (GGL) to
undertake estimates of recoverable gold resources at the Busolwa Prospect (Busolwa),
Tanzania. H&S has estimated the recoverable resources using Multiple Indicator
Kriging, a method that has been demonstrated to provide reliable estimates of
recoverable open pit resources in gold deposits of diverse geological styles.

Features of the Geology Relevant to Resource Estimation

The geology of the Busolwa gold deposit is described in some detail in Sections 9 and
11 of this report.

Hellman and Schofield Resource Studies

The material that follows in Section 19 “Busolwa” is derived from the following report
provided by H&S:

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Gallery Gold Limited Tanzania

Hellman & Schofield - Estimates of the Gold Resources at Busolwa Prospect - Draft,
Tanzania, December 2005.

Data Collection and Verification

Data collection issues relevant to resource estimation are discussed in Section 12 of this
report. Sample preparation issues are discussed in Section 13, while data verification
issues are discussed in Section 14.

Wireframe Modelling for Resource Estimation

The interpretations of primary mineralized wireframes for incorporation into the resource
model was completed by H&S utilising the following parameters;
1. Where no geological features could be utilized to guide interpretations drill holes
were viewed in cross-section and interpreted mineralized domains, at
approximately 0.3g/t Au minimum included grade, were interpreted as cross-section
outlines snapped to drill hole traces in 3D. The cross-section outlines were then
formed into 3D wireframes.
2. In the western zone of the study area there is a clearly observed correlation
between samples logged as porphyry and the occurrence of gold. For this area the
sectional outlines were interpreted based on logged porphyry in drill holes and
these were then formed into a 3D wireframe.
The primary wireframes were used to allocate primary (mineralisation) domain codes.
The primary domains are further subdivided into oxide, transition and primary material
types (sub-domain 1, 2 and 3, respectively). In addition to the five primary mineralized
domains, domain 0 captures all peripheral resource composites and is included in the
modeling process.
The wireframed surfaces included the mineralised envelopes, major rock type
boundaries, weathering and oxidation surfaces and the land surface.

Statistical Analysis
H&S investigated the univariate statistics of gold grades within mineralised domains at
Busolwa.
H&S made the following observations pertaining to the summary statistics for the
mineralized modeling domains at Busolwa:

There was no notable tendency for grades to be either higher or lower in oxide,
transition or primary zones within the primary domains.

All domains and sub-domains generally show mean grades around 0.5 to 0.7 g/t Au.
The exception to this is the oxide component to the South Zone (Domain 1). This
material has an average grade in excess of 1.2 g/t Au. The mean of this sub-group
is affected by a single very high composite grade, grading 1665g/t Au, and appears
to be out of character when compared to the remainder of the composite data sets.

All distributions are highly skewed, as expected for a gold deposit. Coefficients of
variation (C.V.) are moderate to very high (range between 1.5 to over 5.0), which
reflects the highly variable nature of the gold grades coupled with in some cases
extremely high maximum grades (i.e. 1660 g/t Au in Domain 1 – oxide) seen in the
some of the domains.

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Gallery Gold Limited Tanzania

H&S noted that with regards to the grade thresholds and class means used for
modelling, the highest class is set at the 99th percentile and therefore represents only
1% of the data. In a highly skewed distribution, such as that seen in the gold grades at
Busolwa, this indicator class can contain a disproportionate amount of the metal. This is
particularly apparent if extreme sample grades are present, e.g. Domain 1 Sub-Domain
1. Therefore a decision whether to limit the impact of the extreme grades on the final
estimates must often be made.
This is able to be done in the MIK method through either excluding the potentially
problematic sample grades from the calculation of the indicator statistics or using some
alternative measure for the average grade of the highest class (i.e. median opposed to
the mean). At Busolwa the highest composite grade is 1665 g/t Au and is contained in
Domain 1 Sub-Domain 1. The second highest grade in this domain is 102 g/t Au. If the
highest grade is maintained for the calculation of the indictor statistics the mean of the
highest class is 94.34 g/t Au, while the median is 9.69 g/t Au. The current resource
estimate has used the median grade to represent the average grade of the highest
indicator class this problematic domain. H&S have noted that this will need to be
reviewed once additional resource data has been acquired.

Variography
The spatial continuity of gold grades is important in resource estimation. H&S studied
this aspect in considerable detail using variography based on directional correlograms.
Gold and indicator variograms were calculated and modelled by H&S for the following
data subsets generated by the flagging of the resource composites to each of the
mineralized wireframes:

Domain 1, All sub-domains, South Zone

Domain 3, All sub-domains, East Main

Domain 5, All sub-domains, Western Zone
Domain 1 indicator and gold variograms were used for the estimation of Domain 0 and
Domain 3 indicator and gold variograms were applied to Domain 2 and 4.
Indicator transforms were undertaken with probability thresholds 0.1, 0.2, 0.3, 0.4, 0.5,
0.6, 0.7, 0.75, 0.8, 0.85, 0.9, 0.95, 0.97 and 0.99 for data in each data subset. The
indicator variograms generated from the data were complicated and are difficult to
visualise. The spatial continuity observed in the variograms is consistent with the
known geological interpretation at Busolwa. The fitted models generally have a fairly
large short range structure and a smaller long range structure consistent with the strike
of the shear.

Multi Indicator Kriging Resource Model Estimation

H&S considered that Multiple Indicator Kriging (MIK) represented the most appropriate
approach in estimating the Busolwa resource, quantifying the tonnage and grade of
economic material within large blocks (panels). MIK of gold grades used indicator
variography based on the resource sample grades, with continuity of gold grades
characterised by indicator variograms. At Busolwa, primary panel dimensions of 10mE
x 20mN x 5mRL have been used by H&S.
The size of the resource model panels reflects the philosophy that accurate estimation of
the grade of small blocks from assays in wide spaced drillholes is impossible, and that

46
Gallery Gold Limited Tanzania

large panels will lead to more robust resource estimates, which will more closely
resemble the resources achieved during mining. The application of a block support
correction to the MIK estimates is used to enable the estimation of the proportions of
each panel above a series of cutoff grades.

Block Support Adjustment

The H&S resource results are intended to reflect the tonnes and grade that can actually
be recovered from each panel during mining. A block support correction (or variance
adjustment) was used to achieve this. It is assumed that each panel will be mined as a
number of smaller blocks called selective mining units (SMUs), representing the smallest
volume of rock that can be mined separately as either ore or waste, given excavators
and trucks of a particular size.
Block support corrections were derived from the gold variograms for each domain and
applied on a panel-by-panel basis using a normal/log-normal method that incorporates
both variance adjustment and symmetrization of the histograms of estimated grades to
derive estimates of recoverable resources for SMUs. Assumed mining block dimensions
were 2mE x 5mN x 2.5mRL at Busolwa. In H&S’s opinion, these dimensions
approximated the selectivity that could be expected with the scale of mining
contemplated by GGL and application of dilution or ore loss factors was not warranted.

Resource Classification
The resource is divided into measured, indicated and inferred categories. This
classification reflects a degree of confidence assigned to each panel based on how
many samples were available to estimate the panel grade and proportions, and the
spread of these samples in space around the panel.
For measured and indicated categories, at least 16 samples were found in the search
volume. In the inferred category, at least 8 were required. The space around the centre
of each panel was divided into eight octants. For measured and indicated categories, at
least four octants contained samples. In the inferred category, at least two octants
contained samples.
Search distances were also used in the classification. The search distances for each
deposit were estimated by H&S based on the statistical analysis of the data provided.
For Measured resources the easting, northing and elevation search radii are set to 50,
25 and 15 metres respectively. For Indicated and Inferred resources they are set at 75,
37.5 and 22.5 metres respectively (representing a 50 per cent expansion of the Category
1 radii).
Finally, irrespective of the above criteria, all mineralisation that lay outside the main
mineralised envelopes was classed as inferred on the assumption that this material may
be patchy, may not be subject to grade control drilling, and may therefore not be mined.

Global Resource Estimates

Table 19_2 summarises the estimated recoverable resources for the Busolwa deposit
combined, at a variety of gold cutoff grades. H&S consider these resources to be
recoverable by mining, and thus recommend that no dilution factors are applied when
estimating reserves based on these resources.

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Gallery Gold Limited Tanzania

Cut-off Measured Indicated Resources Measured & Indicated Inferred

(g/t Au) Mt Au g/t Mt Au g/t Mt Au g/t Mt Au g/t

0.5 11.91 1.13 11.91 1.13 31.5 1.0

0.6 9.46 1.28 9.46 1.28 24.3 1.2
0.7 7.66 1.43 7.66 1.43 18.8 1.3
0.8 6.32 1.58 6.32 1.58 14.7 1.5
0.9 5.29 1.72 5.29 1.72 11.6 1.6
1.0 4.48 1.86 4.48 1.86 9.3 1.8
1.1 3.83 1.99 3.83 1.99 7.7 2.0
1.2 3.31 2.13 3.31 2.13 6.4 2.1
1.3 2.89 2.26 2.89 2.26 5.5 2.2
1.4 2.54 2.38 2.54 2.38 4.8 2.4
1.6 1.99 2.62 1.99 2.62 3.7 2.6

The estimation and classification of the resources by H&S are consistent with the
Australian Code for “the Reporting of Identified Mineral Resources and Ore Reserves” of
2004 (the Code) as prepared by the Joint Ore Reserves Committee of the Australian
Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral
Council of Australia (JORC).
Furthermore, the resource classification is also consistent with Canadian National
Instrument 43-101 Standards of Disclosure for Mineral Projects of February 2001 (the
Instrument) and the classifications adopted by CIM Council in August 2000.
The H&S resource estimate was undertaken by Nic Johnson, who is a member of the
Australian Institute of Geoscientists, and has more than five years experience in the use
of geostatistics for estimation of recoverable resources in gold deposits. Nic is both a
“Competent Person” and a “Qualified Person” with respect to the JORC Code and CIM
Standards respectively.

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Gallery Gold Limited Tanzania

20 OTHER RELEVANT DATA AND INFORMATION

GGL has commenced a series of studies in the Buckreef and Buslowa are to determine the
potential effect the development of the project may have on the region. The studies currently
underway are:

Baseline Environmental studies – URS (Aust) Pty Limited.

Baseline Hydrological studies and groundwater modelling at Busolwa – Aquaterra.

Social Impact Assessment for the Buckreef and Busolwa regions – Social Sustainability
Services (Aust).

Phase 2 Metallurgical Testwork – Busolwa – Independent Metallurgical Laboratories
(Commencing February 2006)

Phase 2 Metallurgical Testwork – Buckreef – Independent Metallurgical Laboratories
(Commencing February 2006)

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Gallery Gold Limited Tanzania

21 INTERPRETATION AND CONCLUSIONS

Both the Buckreef and the Busolwa-Buziba deposits can be classed as Orogenic gold systems
developed in structural sites during deformation and hosted by Archean supracrustal rocks
within the Tanzanian Craton.
RC and diamond drilling at both properties has outlined gold resources in 3 dimensions with
sufficient continuity and dimensions/grades that they can be extracted economically
Metallurgical testwork on Buckreef ore has indicated that oxide and transitional ore types are
amenable to treatment using typical CIL processing techniques. The testwork has indicated that
fresh ores sourced from Buckreef may benefit from flotation and a finer grind. Metallurgical
recoveries from Buckreef ores are anticipated to be in the low 90%’s.
Metallurgical testwork on Busolwa ores has indicated that they are amenable to treatment using
gravity and CIL processing techniques. Metallurgical recoveries are anticipated to be in the low
to mid 90%’s.
Mineral resources have been estimated by Hellman and Schofield and Gallery in a manner
consistent with best practice as outlined by the JORC code.
The exploration potential of the Rwamagaza Greenstone Belt, which hosts the Buckreef and
Busolwa-Buziba orebodies has not yet been fully realized. Several smaller resources have
already been defined and further exploration is warranted both close to the known resources
and regionally in the belt.
The continuity and grade of the Buckreef resources are sufficiently well constrained that much
of the resource lies within the measured category and more can be added through further
diamond and RC drilling. Detailed infill drilling at the Busolwa –Buziba resource suggests that
resources can be upgraded in classification by further infill drilling. The nature of the
mineralization at Busolwa-Buziba (low grade. disseminated) does not lend itself to testing by
underground development.

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Gallery Gold Limited Tanzania

22 RECOMMENDATIONS
Gallery already has work ongoing on both resources as well as regional exploration in the belt.
To further enhance the Buckreef Project it is planned to:

Infill drill the entire Busolwa-Buziba resource on 25 x 25m centres to raise the inferred
resource to indicated and measured categories

Infill drill the Buckreef North resource to further constrain the resource

Commence detailed hydrological, environmental, and social impact studies

Complete feasibility studies over both Buckreef and Busolwa-Buziba

Carry out a deep drilling campaign at Buckreef to determine the potential to develop
underground mining operations following the open pit mining operation

Carry out further infill drilling on satellite resources to the main deposits

Follow up on regional soil and RAB/aircore drilling to discover further resources

Progress the Buckreef Project through a Bankable Feasibility Study to a development
stage.

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Gallery Gold Limited Tanzania

23 REFERENCES
Binns, M., 1997. Resource Estimates for Properties in the Lake Victoria Goldfields, Northwest
Tanzania: Buckreef, Nyakafuru, Kitongo. Technical report by Minstat Pty Ltd.
Brabham, G. R. (November 2003) “Estimates of Open Pit and Underground Gold Resources at
Buckreef Prospect, Tanzania”. Hellman & Schofield Pty Ltd Confidential Report to Gallery Gold
Ltd.
Dumlao, F., & Tanner, H., 1999. East Africa Gold Corporation – Buckreef Project Resource
Estimation. Technical report by Exploration & Mining Consultants, Nedlands, Western Australia,
January 1999.
Groves, I., 1997. Geology and Exploration Potential of the Mawe Meru Project, Rwamagaza
Greenstone Belt, Tanzania, unpub.
Hellman and Schofield, March 2005. Estimates of the Gold Resources at Buckreef Prospect,
Tanzania, unpub.
Hellman and Schofield Pty Ltd, June 2005. Estimates of the Gold Resources at Busolwa
Prospect, Tanzania, unpub.
Hellman and Schofield Pty Ltd, December 2005. Estimates of the Gold Resources at Busolwa
Prospect - Draft, Tanzania, unpub.
Hellman and Schofield Pty Ltd, December 2005. Busolwa Updated Resource Estimate,
Tanzania, unpub.
Isaaks, E.H. & Srivastava, R.M., 1989. An Introduction to Applied Geostatistics. Oxford
University Press, New York.
JORC Code, 2004 Edition. Australian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.
Journel, A.G. & Huijbregts, C.J., 1978. Mining Geostatistics. Academic Press, New York.
Journel, A.G. & Huijbregts, C.J., 1978. Mining Geostatistics. Academic Press, New York.

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Gallery Gold Limited Tanzania

24 DATE

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Gallery Gold Limited Tanzania

25 CERTIFICATES OF QUALIFICATIONS
MARCUS J TOMKINSON
I Marcus J Tomkinson, do hereby certify that:
1) I am an employee of Gallery Gold Limited, 9 Havelock Street, West Perth, Australia
2) I am a graduate of Keel University, Staffordshire, UK (BSc Geology/Education) and
Southampton University, Hampshire, UK (PhD Geology)
3) I am a fellow of the Australian Institute of Mining and Metallurgy
4) I have worked as a geologist for 22 years as a geologist since graduation. My relevant
experience for the purpose of this technical report is:

Experience at all levels of exploration from geologists to country exploration
manager and GM Exploration in over 20 countries with 6 companies

Experience of mine geology and reserve/resource estimations from South
Africa, Australia, South America, and Thailand
2) I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI
43-101”) and certify that, by reason of my education, affiliation with a professional
association (as defined by NI 43-101) and past relevant work experience, I fulfil the
requirements to be a “qualified person” for the purposes of NI43-101
3) I contributed to writing all sections of the technical report
4) I have visited the site at Buckreef and Busolwa-Buziba on numerous occasions in 2005
5) I am not aware of any material fact or material change with respect to the subject matter
of the technical report that is not reflected in the technical report, the omission of which
to disclose which makes the technical report misleading
6) I have read the National Instrument 43-101F1, and the technical report has been
prepared in compliance with National Instrument 43-101 and Form 43-101F1
7) I consent to the filing of this technical report with any stock exchange and other
regulatory authority and any publication by them, including electronic publication in the
public company files on their websites accessible by the public, of this technical report.
Dated January 19, 2006

(Signed)
Marcus J Tomkinson, BSc., PhD., F AusIMM.

54
Gallery Gold Limited Tanzania

LINTON J PUTLAND
I Linton J Putland, do hereby certify that:
1) I am an employee of Gallery Gold Limited, 9 Havelock Street, West Perth, Australia
2) I am a graduate of the Western Australian School of Mines, Kalgoorlie, Western
Australia (BEng Mining)
3) I am a member of the Australian Institute of Mining and Metallurgy
4) I have worked as a Mining Engineer for 18 years since graduation. My relevant
experience for the purpose of this technical report is:

Experience at all levels of mining engineering from operations, management
and technical services.

Experience in conducting and managing Feasibility Studies and project
evaluations.
8) I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI
43-101”) and certify that, by reason of my education, affiliation with a professional
association (as defined by NI 43-101) and past relevant work experience, I fulfil the
requirements to be a “qualified person” for the purposes of NI43-101
9) I contributed to writing all sections of the technical report
10) I have visited the site at Buckreef and Busolwa-Buziba on numerous occasions in 2005
11) I am not aware of any material fact or material change with respect to the subject matter
of the technical report that is not reflected in the technical report, the omission of which
to disclose which makes the technical report misleading
12) I have read the National Instrument 43-101F1, and the technical report has been
prepared in compliance with National Instrument 43-101 and Form 43-101F1
13) I consent to the filing of this technical report with any stock exchange and other
regulatory authority and any publication by them, including electronic publication in the
public company files on their websites accessible by the public, of this technical report.
Dated January 19, 2006

(Signed)
Linton J Putland, BEng (Mining), AusIMM.

55
Gallery Gold Limited Tanzania

NICHOLAS J JOHNSON
As an author of the following reports:
• “Hellman & Schofield, March 2005, Estimates of the Gold Resources at Buckreef Prospect,
Tanzania, Unpub.
• “Hellman & Schofield, December 2005, Estimates of the Gold Resources at Busolwa
Prospect, Tanzania, Unpub.
I hereby state:-
1. My name is Nicolas James Johnson and I am a full time employee with the firm of
Hellman & Schofield Pty. Ltd. of Suite 6, 3 Trelawney Street, Eastwood, NSW. My
residential address is 38 Holland Way, Kingsley, Western Australia.
2. I am a practising geologist. I am a member of the Australian Institute of Geoscientists.
3. I am a graduate of La Trobe University and hold a Bachelor of Science (Honours)
degree (1988).
4. I have practiced my profession continuously since 1988.
5. I am a “qualified person” as that term is defined in National Instrument 43-101
(Standards of Disclosure for Mineral Projects) (the “Instrument”).
6. I have personally visited the Buckreef and Busolwa Projects in November, 2004.
7. I participated in the resource estimation studies, which are summarised in Section 17
(but not the reserves listed in section 17.13).
8. I am not aware of any material fact or material change with respect to the subject matter
of the Study, which is not reflected in the Study, the omission of which would make the
Study misleading.
9. I am independent of Gallery Gold Limited pursuant to section 1.5 of the Instrument.
10. I have read the National Instrument and Form 43-101F1 (the “Form”) and the Study has
been prepared in compliance with the Instrument and the Form.
11. I do not have nor do I expect to receive a direct or indirect interest in the Gallery Gold
Limited, and I do not beneficially own, directly or indirectly, any securities of Gallery Gold
Limited or any associate or affiliate of such company.
Dated at Perth, Western Australia, on 18th January, 2006,

(Signed)
Nicholas J Johnson
Consultant Geologist
Hellman and Schofield Pty Ltd

56
Gallery Gold Limited Tanzania

26 APPENDICES

57