January 26, 2007
Program Update; Commencement Of Drilling Operations
TORONTO, ONTARIO - Tsodilo Resources Limited ("Tsodilo") (TSX Venture Exchange: TSD) is pleased to announce that the drill investigation of eighteen priority 1 and seven priority 2 magnetic anomalies in the Guma region in the Newdico (Pty) Limited ("Newdico") license blocks in northwest Botswana has commenced.
Prior heavy mineral sampling by Tsodilo has recovered kimberlite indicator minerals with encouraging chemical compositions in the Guma area. The targets were initially identified by the interpretation of high resolution airborne magnetic data over the area with follow up soil sampling and the targets were then delineated using ground magnetic and gravity surveys.
Upon completion of the drilling in the Guma area, the company's drill rig will move back to the Nxau Nxau kimberlite field region to continue drilling priority targets and to further investigate what appears to be ancient paleo drainage channels traversing the Nxau Nxau kimberlite field and leading to the Tsumkwe and Omatako diamond and KIM anomalies to the west in Namibia. Upon completion of the Nxau Nxau drilling, the rig and crew will move to the southern portion of the Newdico licenses to drill test numerous priority 1 target anomalies.
Newdico purchased and commissioned an Atlas Copco CT14 diamond drill rig in July 2006 and between July and mid-December of 2006 approximately 4 kilometers of drill core was collected from 19 targets. The 26 tons of drill core was taken to the Company's facility in Maun, Botswana at the end of last year where it was prepared for further analysis. At the present time, a multitude of samples are in various stages of analysis with outside consultants and laboratories. The complete results of core samples submitted for petrographic description and indicator mineral chemistry are still awaited.
Tsodilo Resources Limited is an international diamond exploration company engaged in the search for economic kimberlites at its Newdico (Pty) Limited ("Newdico') and Gcwihaba Resources (Pty) Limited ("Gcwihaba") projects in northwest Botswana. The Republic of Botswana is the leading producer of diamonds, by value, in the world and its mines are amongst the most profitable. The country is democratically ruled, boasting a growing economy and a stable political environment. Tsodilo has an 90% stake in Newdico (16,800 sq. km under diamond license) while Trans Hex Group, a South African diamond mining and marketing company, holds the remaining 10%. The southern Gcwihaba project area (6,703 sq. km under diamond license and 3,780 sq. km under base and precious metals licenses) is 100% held by the Company. Tsodilo Resources Limited manages the exploration of both the Newdico and Gcwihaba license areas. Please visit the Company's website, www.TsodiloResources.com, for additional information and background on our projects.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. This news release may contain assumptions, estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company's control, which may cause actual results or performance to differ materially from those currently anticipated in such statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
James M. Bruchs - President and Chief Executive Officer
E-Mail - JBruchs@TsodiloResources.com
Telephone +1 416 572 2033
Facsimile + 1 416 987 4369