TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) ("Tsodilo" or the "Company") is pleased to provide an update of its metals exploration activities in northwest Botswana.
Tsodilo has 12,810 km² under Metals (base, precious, platinum group, and rare earth) prospecting licenses located in the Ngamiland District of northwest Botswana. The presence of sulphides containing copper, nickel and cobalt became apparent while drilling kimberlite magnetic targets in the Company's Precious Stone -- Diamond licenses as reported earlier (see, Press Release of April 20, 2009 on the Company's website
). The Company, through its wholly owned subsidiary, Gcwihaba Resources (Pty) Ltd. ("Gcwihaba"), immediately applied for metal prospecting licenses over this area. The licenses were granted to Gcwihaba by the Ministry of Minerals, Energy and Water Resources (MMEWR) effective the fourth quarter of 2008. These licenses lie directly north of the Hana Mining Ltd. and Discovery Metals Ltd. Copper -- Silver (Cu-Ag) projects.
In late 2008, Tsodilo began a drill program based on the positive petrography and element analysis results of core samples obtained from the initial holes that intersected sulphide mineralization. The license area is covered by shallow Kalahari sands and the selection of drill targets is driven by geophysics in the form of Versatile Time-Domain Electromagnetic (VTEM) system, High Resolution Airborne Aeromagnetic data (HRAM) collected on 250 meter spacing and ground magnetic data collected at between 20 and 50 meter line spacing. The combination of these data allows for the identification of both sulphide bearing conductive metasediments as well as metasedimentary and volcanic rocks that have been mineralized by magnetic pyrrhotite minerals. "Our exploration methodology of combining VTEM data with high resolution ground and airborne magnetic data is spot on as our drill targets are sited on conductors and all holes intersect either carbonaceous shales, metapelites, schists or metavolcanics. These metasediments and metavolcanics host massive and disseminated sulphides containing chalcopyrite, bornite, magnetite, and pyrrhotite. The VTEM data was acquired at 2km (2,000m) line spacing and hence the abundance of magnetic pyrrhotite in these sediments makes it possible to complement the electromagnetic data with high resolution magnetic data both along and in-between the VTEM profiles", states Mike de Wit, President and COO.
The objective of this current phase of the project (Phase 1) is to cover the whole license area of 12,810km² with a widely spaced drill program (approximately 100 holes and 16,000 meters of drilled footage), focused on regional geophysical targets. As of September 1, 2010, 63 holes totalling 12,828 meters have been drilled inside the metal licenses. The majority of holes drilled so far have been in the Panhandle project west of the Okavango Delta. Presently, the drilling is concentrated on a highly magnetic zone (Xaudum Magnetic Anomaly) in the middle-upper part of the Panhandle project where so far layered magnetite units have been recognised within the metasedimentary sequence. Phase 1 results will further delineate areas of high interest for more detailed exploration and also to produce a robust geological model of the whole area that will drive the more detailed follow-up drilling program of Phase 2. The Company's recently acquired Paradigm GOCAD(r) software will form the backbone for data management, interoperability, interpretation and modelling of this potential economic mineral deposit.
The Company has its own Atlas Copco CT14 diamond drill rig and has ordered an additional rig in order to complete Phase 1 by the end of the first quarter of 2011. "We'll spend close to $1,000,000 to equip an additional drill operation and it will be money well spent as it continues our philosophy of controlling our operations with respect to production and costs" commented James M. Bruchs, Chairman and CEO.
The Company recently acquired a Thermo Scientific Niton XRF Analyzer. Initial readings and previously reported values from core samples taken from the middle and northern exploration zones gave readings (up to) as follows: Copper (Cu) 6.02%; Titanium (Ti) 2.14%; Hafnium (Hf) 0.99%; Cobalt (Co) 0.79%; Barium (Ba) 0.22%; Nickel (Ni) 0.12%; Niobium (Nb) 0.08%; Molybdenum (Mo) 0.078%; Zirconium (Zr) 0.024%; Strontium (Sr) 0.017%; and Selenium (Se) 0.0069%.
Initial independent laboratory assay results of core samples taken from the reconnaissance drilling program have yielded results of up to 0.42% Cu and 0.07% Ni in the southern portion of the Panhandle project and this area has now been earmarked for more detailed exploration once Phase 1 has been completed. Complete assay results are being incorporated into our modelling and will be released upon completion of Phase 1. The focus is now shifting to the middle-central and northern areas of the Panhandle project following the Company's strategy of completing the reconnaissance drilling phase over the whole project area.
Petrographic analyses of the first few core samples indicate the presence of chalcopyrite, magnetite and pyrite. Magnetite, which is often irregularly distributed and locally clustered, is present as oxide phases, including both hematite/magnetite and goethite/hematite. Mineralisation is stratabound, and is disseminated and finely laminated to discordant throughout the metasedimentary sequence. The rocks in most of the central part of the Panhandle project are described as carbonaceous and pyritic metapelites and black shales, mica schists, quartzites, dolomites and meta-evaporites. Basic igneous rocks have been intersected in several of the holes, and most of the metasediments and metavolcanics drilled have been regionally metamorphosed in the lowermost amphibolite facies accompanied by Ca-Na metasomatism (scapolite-albite).
The metasedimentary sequence of the central Panhandle license area is similar to the stratigraphy described from the Kalumbila Co-Ni-Cu deposit of northwest Zambia and it has been suggested that the Kalumbila carbonaceous metapelites may be the chronostratigraphic equivalent of the Katangan Roan Ore shales which is an important exploration target. In January of 2010, First Quantum Minerals completed its purchase of Kiwara PLC, the holder of the Kalumbila license for $260M. An independent estimate for Kiwara PLC's 80% owned Kalumbila copper-nickel deposit in Zambia defined an inferred resource of 1,380Mt at an average grade of 0.78% Cu (total), 0.04% Ni and 0.03% Co, at a total copper cut-off grade of 0.3% in 2009. The Kalumbila license is located on the periphery of the 11 km² Kabompo Dome.
James M. Bruchs, states, "The C$5,000,000 IFC equity investment in June has allowed us to significantly ramp up our exploration program. Our mineralized strike is approximately 143 kilometers in length and we are proceeding on a fast track to complete the extensive work necessary to determine the type and magnitude of this mineralization. Our preliminary results and modeling indicate an IOCG type deposit but other scenarios are possible. We are very encouraged by the results so far and believe our efforts will result in the opening of a new economic mineralized province in northwest Botswana".
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic kimberlites and metal deposits at its Newdico (Pty) Limited ("Newdico') and Gcwihaba Resources (Pty) Limited ("Gcwihaba") projects in northwest Botswana. The Company has an 96% stake in Newdico (3,940 km² under Precious Stone - diamond licenses) while Trans Hex Group, a South African diamond mining and marketing company, holds the remaining 4%. The Gcwihaba project area (5,870 km² under Precious Stone - diamond licenses; 12,810 km² Metal (base, precious, platinum group, and rare earth) licenses; and, 1,430 km² under Radioactive Minerals licenses) is 100% held by the Company. Tsodilo manages the exploration of both the Newdico and Gcwihaba license areas. Overall supervision of the Company's exploration program is the responsibility of Dr. Mike de Wit, President and COO of the Company and a "qualified person" as such term is defined in National Instrument 43-101. Dr. de Wit has reviewed the information contained herein and approved the contents of this Press Release.
National Instrument 43-101 - Standards of Disclosure for Mineral Projects, Form 43-101F1 and Companion Policy 43-101CP requires that the following disclosure be made: All references contained herein with respect to the potential quantity and grade derived by any method is at this stage of development conceptual in nature. At the present time, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the development of the Company's projects) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in equity markets, political developments in Botswana and surrounding countries, changes to regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the future, the uncertainties involved in interpreting exploration results and the other risks involved in the mineral exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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, Chairman and Chief Executive Officer: JBruchs@TsodiloResources.com
Mike de Wit, President and Chief Operating Officer: MdeWit@TsodiloResources.com
Head Office: Telephone +1 416 572 2033; Facsimile + 1 416 987 4369