August 29, 2002
Report For The Three Months Ended June 30, 2002
Tsodilo Resources Limited (CDNX: TSD) is pleased to provide an update on its activities for the three months ended June 30, 2002.
In Botswana, the Company has a 75% operating interest in approximately 17,000 square kilometres of extremely prospective ground on the Congo craton; on which there is encouragement for the existence of undiscovered kimberlites in three separate areas of the property. Tsodilo has carried out the first systematic soil sampling programme, on a five square kilometre grid, as well as sampling on a more detailed grid over the Nxau Nxau kimberlite field and over selected magnetic anomalies. The results from the processing and analysis of these samples are being evaluated as they are received from independent laboratories and the conclusions will be made available shortly.
Significantly, at June 30, 2002 the Company had no debt and only 4,745,019 issued and outstanding common shares, 5,840,319 on a fully diluted basis. Net working capital on hand was $110,000, which included cash and equivalents of $107,000 (March 31, 2002: $48,000), compared to a working capital deficiency of $904,000 at March 31, 2002. The Company is dependent on obtaining future financing for continued exploration and development of its properties and for the acquisition and development costs of new project opportunities. The Loan from Related Party represents 25% of the loans payable by the Botswana subsidiary, Newdico (Proprietary) Limited, and is due to the Company's joint venture partner, Trans Hex Group Limited.
On a consolidated basis, Tsodilo recorded a net profit of $5.84 million (116 cents per common share) in the quarter ended June 30, 2002 as a result of the restructuring approved by shareholders on April 9, 2002, which included the disposal of a number of subsidiary companies that had accumulated substantial losses over the past six years. In the comparable period of fiscal 2002 the Company incurred a net loss of $229,000 (2 cents per common share). General and Administration expenses incurred during the current quarter amounted to $54,000 (2002: $235,000). No exploration expenditure was incurred during the three months under review (2002: $765,000), as operations only recommenced with the taking office of the new board of directors and management team in late June 2002.
Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Ngamiland project in northwest Botswana. The design and conduct of the Company's exploration program is the responsibility of Dr. Andrew Moore, a professional geologist registered with the South African Council for Natural Scientific Professions.
FOR FURTHER INFORMATION PLEASE CONTACT:
James M. Bruchs - President and Chief Executive Officer: E-Mail firstname.lastname@example.org
Dr. Andrew E. Moore - Vice President, Exploration: E-Mail email@example.com
Stephen Woodhead - Chief Financial Officer and Corporate Secretary: E-Mail firstname.lastname@example.org
Head Office: Telephone +1 416 572 2033 Facsimile + 1 416 572 4164