The Ruhuhu project is located in southwest Tanzania, and extends the upper Karoo sequence of the Ngaka Subbasin in the Ruhuhu Basin, approximately 70 km northwest of Songea near the Mozambique border. Application for the licences was based on historical airborne anomalies previously identified in the 1970s by Uranerzbergbau and the request for licences was subsequently granted in July 2005.
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The Ruhuhu project area geology comprises Late Permian lacustrine and arid playa lakes sediments (K-5 and K-6 series of the Karoo rocks) overlain by the Triassic K-7 fluvio-deltaic deposits (K-7 series of the Karoo - Kingori sandstone). The joint venture geologists have identified the Mkuju target in this area where uranium mineralisation occurs within sandstone which is thought to belong to the Kingori Sandstone series. Paladin's Kayelekera (a sandstone-hosted uranium deposit within the Karoo succession, northern Malawi) occurs in similar sandstone lithologies of the northern part of the North Rukuru Basin. These Rukuru sandstones are thought to broadly correspond to the Kingori sandstone beds of the Ruhuhu Basin.