By The guardian reporter 5th June 2010 Two foreign companies operating in Tanzania have reported extensive gold finds in the country. While Helio Resources Corporation says it has found the Lupa Tinga Tinga gold field to be as extensive 250 miles long (about 120 km long) extending North West of the Lupa area in Chunya district, Tanzania Royalty Exploration Corporation says preliminary metallurgical test results show high gold recoveries from the in-situ quartz rubble-bed at the Company's Kigosi Gold Project in Tanzania. In a press release posted this week, Helio Resources Corporation has said: ô Helio Resources Corp is pleased to report the latest results from the 2010 diamond drill programme at the SMP Gold Project in the Lupa Goldfields, Tanzania. ôThese results confirm the presence of a NW trending mineralised zone that appears to extend northwest from the Porcupine to the Quill Target over a strike length of at least 250m. Drill results come from two drill holes: GPD67 and GPD78. GPD67, collared approximately 100m north of the main zone of mineralisation at the Porcupine Target, was drilled from NE to SW on an azimuth of 220 into the footwall of the southeast-dipping main zone of mineralisation to test for NW-SE striking, NE-dipping structures. The majority of veins encountered in the mineralised sections of the drill core were oriented at a high angle to the drill core, confirming the presence of a NW trending mineralised zone that appears to extend northwest to the Quill Target, where RC (reverse circulation) drilling intersected 72m grading 0.6g/t gold (see news release date June 1, 2009). Tanzania Royalty has in the meanltime announced a 94.50% Average Gold Recovery from Preliminary Metallurgical Test Work at its Kigosi Project in the country. A press release posted on Business Newswire said Tanzanian Royalty Exploration Corporation is pleased to announce that preliminary metallurgical test results show high gold recoveries from the in-situ quartz rubble-bed associated with the Company's Kigosi Gold Project in Tanzania. During the previously completed RC drilling programs within the Luhwaika Prospect Area at Kigosi, a substantial gold-mineralized surface gravel resource was delineated on a 30 metres x 100 metres grid system. This zone is currently being evaluated through close-spaced pitting and trenching. Highlights from the metallurgical test work conducted on two bulk samples recovered from Luhwaika Prospect Area included: Respective head grades for gold averaged 1.77g/t and 1.59g/t; respective gold grading analyses indicated that 89% and 84% of the gold reports to the 75 micron fraction; heavy liquid separation (HLS) analyses indicated that the gold in both samples is highly amenable to upgrading by gravity separation techniques, with 93% and 84% of the gold respectively reporting to HLS sinks; gravity separation analyses indicated that the majority of gold can be extracted using gravity separation, with 91% and 98% of the gold recoverable as free gold for the two samples; the source of the gold is proximal with trace amounts of pyrite and; no refractory issues with respect to the grade mineralization have been identified. The objectives for this study were twofold. The first involved a grading analysis (assay by size) that helped establish the distribution of gold across various size fractions; the second objective was to understand the nature and mode of occurrence of the gravity recoverable gold as part of the preliminary establishment of cost effective and practical means for the recovery of gold from this potentially economic gravel deposit. The preliminary metallurgical test work was completed using two bulk samples of surface rubble material weighing approximately 45 kg each. The samples were stage-crushed to achieve 100% passing 3.32 mm. After that 20 kg of the crushed material from each sample was subsequently milled to 50% passing -75micron mesh. Grading analysis was conducted on a 1 kg split of each sample (50% -75microns) of which six size fractions (+212 micron, -212/+106micron, -106/+75micron, - 75/+53micron, -53/+25micron & -25micron) were individually produced and assayed independently. Concentrates and tailings from 2 x 4 kg of each sample generated by gravity separation using a Falcon Gravity Separator were assayed in order to calculate the overall gold distribution. "The high degree of liberation and availability of the gold indicated by these results is very encouraging," said Joseph Kahama, the President of Tanzanian Royalty. "While the results of this early work cannot be considered definitive, these tests have demonstrated that the Luhwaika surface rubble assessed to date is amenable to producing excellent gold recoveries using off the shelf gravity-based ore dressing processes," he stated.