July 09, 2004
Exploration Program Update; Technical Committee Appointed; Management Update
July 9, 2004 TORONTO, ONTARIO - Tsodilo Resources Limited (TSX Venture Exchange: TSD) ("Tsodilo" or the "Company") is pleased to report on the progress of the Company's Ngamiland diamond exploration programs.
TECHNICAL COMMITTEE APPOINTED
The Company is pleased to announce the formation of a technical committee composed of Dr. Andrew Moore, VP Exploration of Tsodilo, Dr. Pieter Gresse, a senior geologist at Trans Hex Group and Mr. Peter Walker, a consulting geologist to the Company, for the express purpose of reviewing, developing and monitoring the Company's exploration program.
Mr. James M. Bruchs, the President & CEO of Tsodilo, comments "we are very fortunate to have these three highly qualified individuals combining their respective talents in the furtherance of our Newdico project. Each member of the committee brings their own niche expertise which will prove invaluable to the project. These gentlemen in conjunction with our Chairman, Dr. Christopher Jennings, provide us with the talent and experience required to succeed in this challenging Kalahari environment".
FURTHER EVALUATION OF THE A12 AND A37 KIMBERLITES
The Technical Committee has reviewed the data of the recently completed microprobe analysis of the kimberlite indicator minerals extracted from A12 and A37 samples and the conclusions of the Company's consulting mineralogist, Paul Zweistra of Mineral-Logic. The Committee has recommended that micro-diamond analysis of the samples presented for treatment would be unwarranted.
The microprobe analyses of the kimberlitic ilmenites extracted from the A12 samples collected during the 2003 drilling program define a diamond preservation potential index of 0.50 (1 being the maximum preservation and <1 indicating resorbtion). Ilmenite and garnet analyses of samples from A37 were neither revealing nor conclusive with respect to the diamond carrying potential of this kimberlite.
Therefore, based on the recommendation from the Technical Committee, the Company has decided to forego the micro-diamond analysis on these samples and intends to proceed to a second phase drill program of the A12 and A37 kimberlites to define their size and shape as well as determining the relationship of the various kimberlite phases to the crater sediments and to obtain further samples with a higher probability of carrying diamonds. We expect to begin the systematic drilling of these kimberlites in late August or early September.
SOIL SAMPLING PROGRESS
The soil sampling field work is now complete and all samples are currently at the laboratory for kimberlite indicator mineral (KIM) recovery. A total of 177 samples were collected in the Gcwihaba license block over 59 airborne magnetic anomaly targets.
The soil sampling field work is nearing completion. A total of 243 samples are planned to be collected over 81 airborne magnetic targets in addition to 42 samples collected along the Namibian / Botswana border.
PLANNED GRAVITY SURVEY
In addition to detailed gravity surveys to be performed over those targets selected as a result of the recent KIM soil sampling, the Company will shortly commence a gravity survey down sections of the Namibian / Botswana border fence line in our Newdico and Gcwihaba license blocks. This survey should more accurately determine the location of basal Kalahari drainage lines that are projected back from the Tsumkwe and Omatako diamond and G10 garnet occurrences.
TERMINATION OF JOINT VENTURE NEGOTIATIONS
Tsodilo and SouthernEra have been unable to agree upon the terms of a mutually satisfactory joint venture agreement which was referred to in a joint news release with SouthernEra dated July 8, 2003. Accordingly, the parties have agreed to discontinue their discussions with respect to a joint venture agreement on the Company's Gcwihaba property. As a result of the termination of these discussions, SouthernEra will have no interest in the Gcwihaba Project and Tsodilo and SouthernEra will have no rights or obligations to one another concerning the property.
Dr. Andrew E. Moore has resigned from the Board of Directors. Dr. Moore remains as Vice President of Exploration responsible for the design and conduct of the Company's exploration program.
Under the terms of the Stock Option Plan of the Company and a policy adopted by the board of directors in September 2002, 40,000 stock options were granted to an officer and an employee on July 1, 2004 at $0.75 per common share. These options are valid for five years and vest in four equal instalments on July 1, 2004, January 1, 2005, July 1, 2005, and January 1, 2006.
Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Newdico and Gcwihaba projects in northwest Botswana. Tsodilo has a 75% stake in Newdico while Trans Hex Group, a South African diamond mining and marketing company, holds the remaining 25%. The southern Gcwihaba Project area is held by Tsodilo subsidiary Gcwihaba Resources. Tsodilo manages the exploration of both licence areas. 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: JBruchs@TsodiloResources.com
Head Office: Telephone +1 416 572 2033 Facsimile + 1 416 5724164