TORONTO, CANADA - Tsodilo Resources Limited (TSX Venture Exchange: TSD) ("Tsodilo" or the "Company") is pleased to announce the completion of the first phase reconnaissance drilling program. The exploration program of Phase 1 has identified three different targets all within Katangan-age sedimentary rocks similar to those of the Central African Copperbelt of the DRC and Zambia: the Xaudum Rapitan-type BIF magnetite project in the north; Copperbelt style sedimentary rock -- hosted stratiform mineralisation; and the Sepupa skarn deposits associated with late-stage intrusions in the southern part of the Company's licence area.
These mineralogically different targets are the focus of the Phase 2 follow-up drilling program which started in the later part of 2011 and coincided with the commissioning of the Company's second Atlas Copco CT 14 diamond core drill rig.
The Company has started to outline the Xaudum BIF magnetite project which lies in an almost north-south orientation. The magnetic anomaly associated with the iron formation is approximately 50 km in length with multiple bands of magnetite rich sediment within Katangan age diamictites. Iron oxides are primarily magnetite with hematite replacing magnetite in some near surface drill intercepts. Initial assay results of the layered magnetic BIF rocks have reached assay values of over 59% Fe ('iron'). Drilling on the magnetite target is likely to continue for most of this calendar year. Drill testing of sedimentary copper targets will commence in the 3rd Quarter while more detailed drilling on the skarn deposits will take place in the 4th Quarter.
Drilling to date indicates that the rocks within the license area are lithologically similar to those hosting major deposits in Zambia and DRC. Geochronlogical research has confirmed that the ages are the same as those in the African Copperbelt. In particular, sequences lithologically identical to those hosting First Quantum's giant Sentinel deposit in northwest Zambia have been intersected in several drill holes. Large-scale hydrothermal alteration of the sedimentary rocks, similar to that observed in the Zambian Copperbelt and in the area of the Sentinel-Lumwana-Kansanshi deposits of northwest Zambia, has been intersected in a number of drill holes. The intrusions associated with the Sepupa skarns have ages similar to those of intrusions associated with copper-bearing magnetite deposits in central Zambia.
"The recognition that Katangan rocks, identical to those hosting the world-class deposits of the Central African Copperbelt, occur throughout the Tsodilo license block makes this area incredibly attractive as a major new copper play. The demonstrated presence of syn-sedimentary faulting and large-scale hydrothermal alteration from our regional drilling indicates that the right features are present for major base metal deposits" said Mike de Wit, President and COO.
36 diamond drill holes were completed to a cumulative depth of 9,242 meters and 7, 635 meters of core was recovered.
Rock samples from approximately 50 boreholes were submitted to independent parties and 177 petrographic thin sections; 9 polished sections; 11 SEM images; 36 XRF analyses; and 5 samples were subject to geochronological age testing and reported on by AEON.
14,671 samples were assayed primarily by ALS Minerals in Johannesburg, South Africa using a variety of analytical tools.
7,362 line kilometers of ground magnetic data were collected. This data was leveled and interpreted by the Company's in-house geophysical unit. This represents coverage of some 264 kmē on a 50 meter line spacing.
James M. Bruchs, Chairman and CEO commented, "The worked performed in 2011 and previously years has set the stage for Tsodilo to concentrate on high priority, potentially economic deposits with the goal of establishing shareholder value. Connecting the world class deposits in Zambia and the DRC to our northeast with those to the west and southwest in Namibia with us sitting in between suggests this area has previously unappreciated, world-class potential."
About Tsodilo Resources Limited: Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Newdico (Pty) Limited ("Newdico") and Gcwihaba Resources (Pty) Limited ("Gcwihaba") projects in northwest Botswana. The Company has a 97% stake in Newdico (3,949 km2 under Precious Stone - diamond licenses). The Gcwihaba project area: 3,728 km2 under Precious Stone - diamond licenses; 12,096 km2 Metal (base, precious, platinum group, and rare earth) licenses; and, 6,925 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.
The Company has offices in Toronto, Canada and Gaborone and Maun, Botswana. Please visit the Company's website, www.TsodiloResources.com, for additional information and background on our projects.
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.