August 27, 2003
Quarterly Report For The Three Months Ended June 30, 2003
TORONTO, ONTARIO- Tsodilo Resources Limited (TSX Venture Exchange: TSD) is pleased to provide an update on the results of its activities for the three months ended June 30, 2003. The Corporation's principal activity remains the exploration of the Ngamiland and Gcwihaba diamond properties, in northwest Botswana. These properties are proximal to two important kimberlitic heavy mineral concentrations, immediately to the west in Namibia, that contain both G10 garnets and diamonds. The properties managed by Tsodilo has been identified as prime targets for locating the source of these anomalies, on the basis of an in-house geomorphological model that interprets the unexplained kimberlitic heavy minerals concentrations as being secondary and deposited by rivers with headwaters in northwest Botswana.
The Corporation has a 75% interest in the 17,000 square kilometre Ngamiland project in northwest Botswana, on which there is encouragement for the existence of undiscovered kimberlites in three separate areas of the property. The Corporation's minority partner in this project, Trans Hex Group Limited, is an established South African diamond mining company who has committed to fund their 25% share of the exploration expenditure. To the south of the Ngamiland project area the Corporation has entered into a 50/50 joint venture with SouthernEra Resources Limited, to explore the 7,000 square kilometre Gcwihaba project. Tsodilo is operator of both projects.
As at June 30, 2003 the Corporation had net working capital of $135,000 (March 31, 2003: $38,000). Efforts to raise finance on terms favourable to the Corporation continue. Significantly, Tsodilo has no debt and at August 26, 2003 only 6,588,005 issued and outstanding common shares (March 31, 2003: 5,676,391); with fully diluted common shares currently outstanding of 9,280,858 (March 31, 2003: 7,788,437).
On a consolidated basis, Tsodilo posted a net loss from operations in the three months ended June 30, 2003, entirely attributable to general and administration expenses, of $77,000 (1 cent per common share), compared to $54,000 in 2003. The principal overhead expense items included in the net loss from operations were the remuneration of officers and staff and investor relations activities The Corporation had no employees during the comparable period of 2003; the new board of directors and management being appointed in late June 2002.
Exploration expenditure incurred during the quarter ended June 30, 2003 at the Ngamiland project in Botswana, of $80,000 (2003: nil), related mainly to the ground geophysical survey, management time spent on assessing the results of this survey, as well as the results from additional soil samples collected and planning of the drilling program that will begin in September 2003, and maintaining the prospecting licences in good standing.
Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Ngamiland and Gcwihaba projects 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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