November 28, 2003
Quarterly Report For The Three And Six Months Ended September 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 six months ended September 30, 2003. All activity remains focussed on the Ngamiland and Gcwihaba diamond properties in northwest Botswana. Both projects are managed by Tsodilo, and have been identified as prime targets for locating the source of two important kimberlitic heavy mineral concentrations immediately to the west, in Namibia, that contain both G10 garnets and diamonds. Tsodilo has a 75% interest in the 17,000 square kilometre Ngamiland project, with Trans Hex Group; and to the south, a 50% interest in the 7,000 square kilometre Gcwihaba project, with SouthernEra Resources.
In September 2003 Tsodilo commenced drilling on select targets within the Ngamiland concession and intersected kimberlite in each of the first two holes, drilled on the magnetic target designated A12. Ground gravity and magnetic surveys carried out over A12 indicate a surface area of 12 to 16 hectares; thus significantly larger than any known kimberlites in the Nxau Nxau area. This is encouraging, as in southern Africa the largest pipes in a cluster are typically the economic pipes. At the next target, designated A38, the three holes drilled did not intersect kimberlite; or identify the source of the isolated bulls-eye magnetic anomaly associated with this target. Further investigation is needed. Finally, six holes were drilled on the target designated A37; chemical analysis from an independent laboratory is pending.
At September 30, 2003 Tsodilo had net working capital of $420,000 (March 31, 2003: a deficiency of $35,000). Exploration expenditure incurred during the period totalled $274,000, while Tsodilo recorded a net loss from operations in the six months ended September 30, 2003, entirely attributable to general and administration expenses, of $198,000, compared to $199,000 in 2003. The necessary funding for exploration is raised in the capital markets through the issuance of stock by way of private placements. Currently, there are 7,644,917 issued and outstanding (10,411,076 on a fully diluted basis) common shares. The Company has no debt.
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.
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James M. Bruchs -- President and Chief Executive Officer: E-Mail email@example.com
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Stephen Woodhead -- Chief Financial Officer and Corporate Secretary: E-Mail email@example.com
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