KAGULA PROJECT REPORT

(PL 10822/2016)

Prepared for

TRILLION MINERALS LIMITED

PLOT No 9/10 Azikiwe Street

P. O Box 7721, Dar Es Salaam, TANZANIA,

EAST AFRICA

Prepared by

Gosbert Kagaruki MSc. (Geophysics)

Interactive Earth Imaging Ltd

P. O Box 21775, TANZANIA, EAST AFRICA

Report by Interactive Earth Imaging Ltd 1

(www.iei.co.tz)
SUMMARY
Kagula Project PL 10822/2016 is located in Kwimba district of Mwanza region; it is about 65kms
ENE of Bulyanhulu mine. The project lies in the Buhungukila belt which comprises structurally
controlled felsic and rhyolite volcanic products. The belt hosts the two sizable gold resources of
Kitongo and Luhala. The project is mainly underlain by banded iron formation, Mafic volcanic
(basalts) and Felsic tuff which are then intruded by granitoids.

A broad soil anomaly is located in to the NE of Kagula north appears to extend to the adjoining
tenements. The anomaly sits on the low ground (silly soil) closer to hilly slope to the north. The
hills north of the tenement could be the source of the anomaly. In view of its proximity to known
mineralization of Luhala this anomaly is traced in this further detailed exploration. Some gold in
rock chips results indicate the mineralization to be more structurally controlled as they fall
along structural lineaments. The significant gold values on WNW-ESE trending set of structural
lineaments include 1.36 g/t, 0.7g/t and 0.17g/t (au in rock chips) and 396ppb, 76ppb and 32
ppb au in soil (Barrick exploration team, 2015)

Interpretation of available data mostly from Barrick was studied, interpreted and planed for
budget for further detailed work on the project, the project area is geologically and structurally
very well positioned with potential targets situated on the areas: - (I) proximal or within the
known occurrences. This provides a trend which exploration can develop venturing the
connection between the two and their potentiality; and (ii) interpreted cross cutting structures
and flexures. We are proposing a budget of 1,550,000 US dollars.

In order to have efficiently work done, we will employ different contractors on site but
managed by Consultant.

This report is a brief compilation of available data and budget for further detailed exploration
after this project being returned to original owner, Mr. Charles Shaba with a company Trillion
Limited after Acacia facing problem with the government.

1.0 INTRODUCTION AND TERMS OF REFERENCE

Terms of Reference

This report is an outcome of the request made by Trillion Minerals Limited to Interactive Earth
Imaging Ltd (IEI) consultants to do purely office evaluation of Kagula project through available
data brought by Barrick after returning his project. Thus, reported are consultant views on the
budget required to take the project further.

Report by Interactive Earth Imaging Ltd 2

(www.iei.co.tz)
Project Area location

Fig. 1 Location Map

Kagula North project is located in the northwestern part of Tanzania, within Kwimba District
of Mwanza Region. Its approximately 65 kms ENE of Bulyanhulu gold mine and or 80km
south of Mwanza city in a straight line. Access to the project from Mwanza city is via a sealed
Mwanza – Shinyanga road for approximately 90kms to Hungumalwa and turning to the west
for approximately 22km through a gravel road to Mwamashimba which is located to the
eastern boundary of Kagula north property.

Regional Geology

The project area is situated in Buhungukila greenstone Belt characterized by dominance of

upper Nyanzian stratigraphy with occasional exposures of lower Nyanzian rocks block faulted
up into the present erosional level. These rocks are intruded by K-feldspar rich granitoids and
subsequently cross-cut by mafic dike swarms. The frequent mafic intrusions and dykes which
are well depicted from aerial by mafic dike swarms
Report by Interactive Earth Imaging Ltd 3
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2.0 GEOLOGY AND MINERALIZATION

GEOLOGY
Kagula north project is dominantly underlain by variably folded Banded Ironstone inter-
bedded with chert and tuff belonging to the upper nyanzian stratigraphy. The granitoids have
intruded the old lithologies. Most of its lowland part is covered by black cotton soil (mbuga)
with most areas around the hills being covered by laterite and or lateritic cover.

STRUCTURE
Kagula north falls to the eastern side of the WNW-ESE- Trending Geita east structural
corridor along which falls numerous gold occurrences (Pamba, Busolwa, Lubando, Kasubuya,
Nyanzaga, Kitongo and Mwamazengo) and of course >18Moz Geita Gold deposit, from
Barrick Exploration reports.

The most prominent structure in the project area is folding of BIF-tuff units, which has resulted
into several antiformal ridges separated by synformal valleys. The major, D1 was due to
compression from NS giving rise to an EW trending fold axis. Doubly plunging antiforms and
synform have produced several isolated whaleback ridges.
Report by Interactive Earth Imaging Ltd 4
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MINERALIZATION

Intense folding at Kagula north in the brittle chert lithology has resulted in brecciation, which
produced dialation zones of induced permeability especially in the fold noses. The
sulphidization of the FeO-units in these zones as well as emplacement of quartz veins in the
fold hinges of BIF and in silicified, sheared and altered tuff form the mineralization. Again,
mineralization occurs in tow-folds as disseminated replacement in BIF and in quart veins.

SOILS AND ROCKS SAMPLING AND GEOLOGICAL MAPPING

There three soil anomalies defined by gold values of 10-50 ppb which are delineated mainly
on the flanks of the hills with few point anomalies including 396ppb, 128ppb, 76pbb and
63ppb. The first anomaly which we are planed as first target (10-45ppb gold) is at the NE
corner. We will put two trenches to ascertain results if they are continuous or coming from
insitu rocks

The second planned target is what is observed on, a shear zone trending 320-340deg hosting
quartz vein about 0.5 wide which is observed at chibuji hill se of the anomaly. We presume
this shear zone extends further to nw hosting similar quartz vein system associated with
mineralization. As being close to Luhala gives more weight for exploration

Third target is chasing second anomaly which sits at the central part along WNW-ESE
trending set of structural lineaments on the flank of Banded iron formation ridge. We are
planned to have more studies on structures as it looks to be structural controlled.

Report by Interactive Earth Imaging Ltd 5

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3.0 INTERPRETATION FOR FURTHER WORK

Fig 2: Kagula North Project: Magnetics image (TMI-RTP – 45 colour shaded)

Fig 2: Kagula North Project: Magnetics image (TMI-RTP – 1VD Image) overlayed by au in soils results
Report by Interactive Earth Imaging Ltd 6
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4.0 REQUESTED BUDGET FOR EXPLORATION

PROPOSED BUDGET FOR FARTHER EXPLORATION

Amount (US$)
1 OFFICE - DESK STUDY & PLANNING 50,000

2 CAMPING EXPENDITURE 145,000

3 TARGET DELENEATION - RAB FENCE & IP 182,000

4 SOCIAL RESPONSIBILITY 20,000

5 GEOCHEM - TRENCHING 160,000

Digging - Sample Collection and Lab analysis

DIAMOND DRILLING - We are 47 holes of

6 estimating about DDH
DRILLING COST ($/m)
Drilling cost ($/m) 50
ASSAY COST ($/m 20
STAFF/Overheads ($/m 12
TOTAL 82

No of Meters 7,050
578,100

7. DATA COMPILATION – REPORTING

50,000
8. PLANNING TO HAVE SMALL GOLD PILOT PLANT -
350,000

TOTAL
BUDGET 1,535,100
5.0 REFERENCES
1. Barth, H., 1990, Provisional geological map of the Lake Victoria Goldfields,
Tanzania, 1:500,000 (with explanatory notes): Geologisches Jarbuch B72, p. 3-59.

2. Hester, B. W., (ed.), 1995: Opportunities for Mineral Resource Development –

Tanzania: Ministry of Water, Energy and Minerals, United Republic of Tanzania,
Second Edition, 108p.

3. Barrick Exploration Report Return to the owner.

4. Unpublished gravity survey.