Re: News Releases - Monday, December 17, 2007
Title: Tanzanian Royalty Announces Results from
Drill Program Conducted on Behalf of Sloane Developments
Tanzanian
Royalty is pleased to announce that it has received all assay results from a
Phase 1 drill program conducted on behalf of Sloane Developments on the
Company's Itetemia Gold Project in Tanzania.
According to Tanzanian Royalty Chairman and CEO Jim Sinclair, "We are
delighted to have Sloane as a royalty partner and are even more pleased with
the aggressive approach it's taken to exploiting the potential at
Itetemia."
"Without a doubt, Sloane's drill program has greatly enhanced the economic
potential at Itetemia and we see a bright future for this project and for all
the others that we are developing under a royalty strategy that is truly unique
in the minerals industry," Sinclair said.
The Itetemia Project is located in the western part of the Lake Victoria
Goldfields approximately five kilometres east of Barrick's Bulyanhulu Mine, an
18 million ounce gold deposit. Consequently both power and water supplies are
located within two kilometres of the Itetemia project area.
In the first phase drill program, 10 Reverse Circulation (RC) holes were
completed aggregating 1,489
metres along with eight diamond holes totaling 2,286.5 metres. The
drill program targeted the shallowest part of the previously established Golden
Horseshoe reef with a view to developing an open pit resource with a notional
floor level of 200 metres
below surface.
In order to support the preparation of a resource estimate, drill holes were
sited to provide data at grid points at or below 50 x 50 metres spacing. A
number of deeper holes were also sited to test the extent of the mineralized
body at depth and along strike.
The drill program indicated that the near surface mineralized zones are very
consistent and they exhibit good open pit potential. Before funding a second
phase drill program next summer, Sloane has informed Tanzanian Royalty that it
intends to complete a 43-101 compliant resource estimate to facilitate planning
for the Phase 2 drill program.
The following results represent the highlights of the recent drill program on
the Itetemia Gold Project:
RC Drilling Highlights:
Hole No
|
From (m)
|
To (m)
|
*Intercept (m)
|
Gold g/t
|
Including
|
Comments
|
GHRC-001
|
97
|
102
|
5
|
1.69
|
|
SE shoot margin
|
GHRC-002
|
106
|
127
|
21
|
1.79
|
9m @ 3.04
|
In shoot
|
GHRC-003
|
133
|
158
|
25
|
2.04
|
13m @ 2.99
|
In shoot
|
GHRC-004
|
92
|
107
|
15
|
4.33
|
8m @ 7.58
|
In shoot
|
GHRC-005
|
104
|
136
|
32
|
2.83
|
20m @ 3.88
|
In shoot
|
GHRC-006
|
127
|
140
|
13
|
7.68
|
4m @14.67
|
In shoot
|
GHRC-007
|
76
|
100
|
24
|
0.90
|
7m @ 1.49
|
NW shoot margin
|
GHRC-009
|
65
|
85
|
20
|
0.50
|
|
NW shoot margin
|
Diamond Drilling highlights:
Hole No
|
From (m)
|
To (m)
|
*Intercept (m)
|
Gold g/t
|
Including
|
Comments
|
GHDD-033
|
149.55
|
170.13
|
20.58
|
3.00
|
2m @9.83
|
In shoot
|
GHDD-034
|
331.26
|
349.24
|
17.98
|
2.56
|
1m @14.60
|
In shoot
|
GHDD-035
|
211.13
|
229.50
|
18.37
|
0.90
|
2.17m @2.60
|
NW shoot margin
|
GHDD-036
|
274.88
|
286.26
|
11.38
|
0.60
|
4.66m @1.13
|
NW shoot margin
|
GHDD-037
|
189.50
|
216.97
|
27.46
|
2.20
|
1.00m @20.30
|
In shoot
|
GHDD-038
|
235.83
|
260.30
|
24.47
|
1.78
|
5.02m @4.08
|
In shoot
|
GHDD-039
|
229.67
|
259.60
|
29.93
|
2.01
|
|
In shoot
|
GHDD-040
|
2 33.00
|
253.60
|
20.60
|
1.93
|
11m @2.79
|
In shoot
|
*True thicknesses for these intersections are approximately 50 percent of
down hole thicknesses.
Sloane's Royalty Agreement with Tanzanian Royalty calls for a work commitment
of $US1 million within a two-year period of which $400,000 is expendable in the
first year of the agreement and the remaining amount in the second year. Further
provisions call for the completion of a bankable feasibility study and the
announcement of a production decision before the fifth anniversary of the
agreement and the achievement of commercial production before the seventh
anniversary. Sloane has the right to earn 100% of Tanzanian Royalty's 90%
interest in the Itetemia Project in exchange for meeting its obligations which
also include the payment of annual option fees and a sliding scale royalty at
commercial production.
Service Agreement
Tanzanian Royalty conducted all field operations for the Itetemia drill program
under a service agreement with Sloane Developments. Drilling was supervised by
John Deane, Tanzanian Royalty's Qualified Person.
Analysis
Fire assay with flame AAS finish was conducted by Humac Laboratories in Mwanza, Tanzania.
Standards were inserted in the sample stream sent to Humac, and subsequent
analysis shows that all the standards fall within analytically acceptable
limits. The figures used in this press release are the average grades taken for
between one and three duplicates run by the labs on each analysis.
Qualified Person
The Company's Qualified Person is Mr. John Deane, the President of Tanzanian
Royalty Exploration Corporation Limited. He has an M.Sc. from the University of Cape Town (1993) and is a registered
scientist with SACNASP (Reg. No.400005/05).
Sloane is a private minerals exploration company working in Tanzania since
2005. The company is pursuing a listing on AIM of the London Stock Exchange in
2008.
Respectfully Submitted,
"James E. Sinclair"
James E. Sinclair
Chairman and Chief Executive Officer
For further information, please contact Investor Relations at 1-800-811-3855
Visit our website: www.TanzanianRoyaltyExploration.com
The Toronto Stock Exchange and American Stock Exchange have not reviewed and do
not accept
responsibility for the adequacy or accuracy of this release
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 No. 0-50634,
which may be secured from us, or from the SEC's website at
http://www.sec.gov/edgar.shtml.
Certain information presented in this release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking statements are
based on numerous assumptions, and involve known and unknown risks,
uncertainties and other factors, including risks inherent in mineral
exploration and development, which may cause the actual results, performance,
or achievements of the Company to be materially different from any projected
future results, performance, or achievements expressed or implied by such
forward-looking statements. Investors are referred to our description of the
risk factors affecting the Company, as contained in our Form 20-F, File No.
0-50634, for a more information concerning these risks, uncertainties, and
other factors.
Copyright � 2007 TANZANIAN ROYALTY EXPLORATION
CORPORATION (TNX) All rights reserved. For more information visit our website
at http://www.tanzanianroyaltyexploration.com/
or send email to info@tanzanianroyaltyexploration.com.
We have no wish to send you unwanted messages.
Message sent on Mon Dec 17, 2007 at 4:32:12 PM Pacific Time