VANCOUVER, July 5 /PRNewswire-FirstCall/ -- Tanzanian Royalty Exploration Corporation is pleased to announce that assay results have been received from the first of four diamond drill holes currently being drilled on the Golden Horseshoe Reef (GHR) at its Itetemia Project in Tanzania. The GHR is situated on a sub-parallel structure immediately to the east of Barrick's Bulyanhulu gold mine.
Assay results for GHDD-029 in the GHR include the following:
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Golden Horseshoe Reef
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Hole # From To Intercept Gold Including
(Metres) (Metres) (Metres) (grams/tonne)
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GHDD-029 194.60 215.18 20.58 3.69 2.5m @ 6.13g/t
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4.0m @ 6.75g/t
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The true width of these intercepts is estimated to be 50% of the down hole intersections.
The steeply-dipping to near-vertical mineralized zone consists of a higher-grade hanging wall (2.50 m @ 6.13 g/t) and a similar grading footwall (4.00 m @ 6.75 g/t), with a 13 metre intervening section averaging 2.33 g/t. Duplicate results are still pending.
The mineralization is typically characterized by fine-to-medium-grained sulphides (predominantly pyrite and pyrrhotite) and increased silica and carbonate alteration.
According to Tanzanian Royalty Chairman and CEO, Jim Sinclair, "These initial results suggest a broad distribution of economically attractive gold values in the GHR and reaffirm our belief that its full potential remains to be fully established."
Since the return of the Itetemia prospecting licenses from Barrick East Africa Limited in 2004, no further exploration work had taken place. As part of the Company's re-evaluation of this important asset, historic drill hole data was assembled and examined in considerable detail.
Zones of anomalous gold mineralization were identified from the data and grade composites were re-calculated using a minimum cutoff grade of 6 g/t and a minimum intersect thickness of one metre. Bulk gold content for each composite was subsequently calculated and plotted onto a longitudinal section of the GHR. A spatial distribution analysis of the bulk gold content was then performed, focusing on the higher grade composites exceeding 31 gm/t.
This procedure helped recognize a well-defined, higher grade "pay shoot" with a pitch of 55-60 degrees to the west. A search envelope was subsequently defined that emphasized the pay shoot and allowed for the bulk gold content data to be contoured on a longitudinal section. (See longitudinal section attached).
The latest phase of drilling at Itetemia is targeting specific depths or pierce points along the modeled pay shoot. Three holes have been completed to date (GHDD-029, GHDD-030 and GHDD-031) and the fourth (GHDD-032) is nearing target depth.
"The first three drill holes completed thus far succeeded in intersecting the GHR zone within 50 metres of the planned pierce points and within the 31gm/t envelope," said the Company's president, John Deane.
For longitudinal section please see
http://files.newswire.ca/508/tnx05july06.doc
Future Plans
Should the remaining three drill holes confirm the existence of the modeled pay shoot, an infill diamond drilling program will be considered as a means of providing a greater constraint on the assumed pay shoot, along with a higher drill hole density for resource estimation purposes.
Given the present drill hole density, the precise strike extent of this higher-grade pay shoot remains to be clearly defined at depth. However, higher grade values near surface have been established by drilling for at least 250 metes along strike, Deane noted.
Other Projects
In addition to the exploration activity at Itetemia, Tanzanian Royalty is undertaking a Reverse Circulation (RC) drilling program on several kimberlite targets on its 853 square kilometers Mwadui Project. The world famous Mwadui diamond mine is centrally located within the project area.
Analysis
Fire assay with flame AAS finish was conducted by SGS Laboratories in Mwanza, Tanzania. Duplicates and Standards were inserted in the sample stream sent to SGS and subsequent analysis shows the standards to fall within analytically acceptable (5% standard deviation) limits.
Qualified Person
The Company's Qualified Person is Mr. Peter Chadwick, M.Sc. University of Cape Town (1993), a registered scientist with SACNASP (Reg. # 400082/93) and a Fellow of the Society of Economic Geologists. Mr. Chadwick personally undertook the re-evaluation of the Golden Horseshoe Reef in addition to the geological logging and sampling of the drill core.
Respectfully Submitted,
"James E. Sinclair"
James E. Sinclair
Chairman and Chief Executive Officer
The Toronto Stock Exchange and American Stock Exchange have not reviewed
and do not accept responsibility for the adequacy or accuracy of this
release.
For further information, please contact Investor Relations at
1-800-811-3855
Visit our website: http://www.tanzanianroyaltyexploration.com/
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this news release, such as "measured", "indicated", and "inferred" "resources" that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File # 0-50634, which may be secured from us, or from the SEC's website at http://www.sec.gov/edgar.shtml.
