Tsodilo Resources Limited
TSX VENTURE : TSD

Tsodilo Resources Limited

May 24, 2006 08:43 ET

Tsodilo Resources Limited Exploration Program Update

TORONTO, ONTARIO--(CCNMatthews - May 24, 2006) - Tsodilo Resources Limited ("Tsodilo" or the "Company") (TSX VENTURE:TSD) is pleased to provide an update on their plans and actions for exploration in both their Newdico (Pty) Limited ("Newdico") and Gcwihaba Resources (Pty) Limited ("Gcwihaba') license blocks in Botswana.

EXPLORATION PROGRAM UPDATE

Tsodilo's Botswana subsidiary, Newdico (Pty) Limited, has taken delivery of an Atlas Copco CT 14 diamond core drill rig. The drill rig and support trucks are currently being shipped to Botswana from Europe and should be on site in mid to late June. This acquisition will allow Tsodilo to markedly increase the flow of new drill results to the market as well as allow a substantial reduction in drilling costs.

The Company's exploration strategy of geophysical survey and surface sampling has been successful in locating 23 kimberlites among the mafic Karoo dykes in NW Botswana. The Nxau Nxau kimberlite field is located over the southern portion of the Angola/Congo craton and represents an excellent target for exploration in a region of southern Africa that is known to host major economic diamond deposits. The drill-confirmed discovery of 23 kimberlites in the Nxau Nxau field, with at least 18% of these being diamondiferous, confirms the ability of the exploration strategy to pinpoint kimberlite of very deep-seated origin in an extensional region with a suitably low geothermal heat flow.

The exploration team is currently on the ground cutting tracks and preparing the drill sites for 22 priority drill targets in the Nxau Nxau area. Anomalies C15, A41 and 2021A7 are just three of the priority targets to be drilled in the next few months and their geophysical signature can be viewed on our website at: http://www.TsodiloResources.com/s/Imagery.asp.

Two section lines will also be drilled during the 2006 season in order to locate and evaluate Kalahari paleo drainage channels which transported G10 garnet and the diamonds that exist in secondary deposits to the west of the Company's license areas in Tsumkwe and Omatako. The Omatako and Tsumkwe deposits are major unexplained diamond-positive KIM anomalies.

Tsodilo has also acquired a state-of-the-art Geometrics cesium-vapour magnetometer with built-in GPS to run magnetic grid surveys over airborne magnetic targets. This is a prelude to a large airborne magnetic program which is scheduled for later in the year. This low-level (20m height), closely spaced survey is aimed at discriminating between the highly responsive dolerite dykes in the dyke swarm to the south of Nxau Nxau and the more subtle magnetic signature of kimberlites.

Tsodilo Resources is an international diamond exploration company engaged in the search for economic kimberlites at its Newdico and Gcwihaba projects in northwest Botswana. The Republic of Botswana is the largest producer of diamonds, by value, in the world. Tsodilo has an 81% stake in Newdico (16,800 sq. km under license) while Trans Hex Group, a South African diamond mining and marketing company, holds the remaining 19%. The southern Gcwihaba project area (6,703 sq. km under diamond license and 3,780 sq. km under base and precious metals licenses) is 100% held by Tsodilo subsidiary Gcwihaba Resources (Pty) Limited. Tsodilo manages the exploration of both the Newdico and Gcwihaba license areas. The design and conduct of the Company's exploration program is the responsibility of Peter Walker, a qualified professional geologist registered with the South African Council for Natural Scientific Professions. Please visit the website, www.TsodiloResources.com, for additional information and background on our projects.

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Tsodilo Resources Limited
    James M. Bruchs
    President and Chief Executive Officer
    +1 (416) 572-2033
    + 1 (416) 987-4369 (FAX)
    JBruchs@TsodiloResources.com