Tembo Gold Corp.

TSX VENTURE : TEM
OTCQX : TBGPF
FRANKFURT : T23


Tembo Gold Corp.

January 15, 2013 11:42 ET

Tembo Reports First Deep Diamond Drill Result in Drill Hole TDD0041 at Ngula 1 Target With 22.81 g/t Gold Over 15.00 Meters

TORONTO, ONTARIO--(Marketwire - Jan. 15, 2013) - Tembo Gold Corp. (TSX VENTURE:TEM)(OTCQX:TBGPF)(FRANKFURT:T23) ("Tembo", or the "Company) is very pleased to report the results of the first deep hole from the 2012 initial drill program at Ngula 1 target on the Tembo Project in the Lake Victoria goldfield of Tanzania. The results of this deep hole strongly support the Company's geological model that mineralization grades will improve with depth, as was the case at the adjacent Bulyanhulu Mine of African Barrick Gold.

Highlights of the latest drill results include:

  • TDD0041: 22.81g/t Au over 15.00m from 299.00m including 34.78g/t Au over 9.70m from 302.30m, including 205 g/t gold over 1 meter

Tembo Gold President & CEO, David Scott stated, "These exceptional results from diamond drill hole TDD0041 at Ngula, strongly support the model that the regional geological controls on mineralization will result in improved gold grades at Tembo with depth. Given the robust nature of the structures hosting the mineralization and these results, our expectation and confidence of discovering multiple parallel laterally and vertically extensive zones of high-grade gold mineralization at depth has increased. Having achieved high grade and wide intersections in both the northern and southern half of the shear package in steep north dipping structures supports this. We eagerly anticipate the 2013 drilling program which will be designed to delineate resources and extend the depth and strike of high grade mineralization at Ngula 1."

The latest Ngula 1 drill hole results are presented in Table 1 and the highlights of the drilling results to date are depicted on Figure 1. The drill hole section through diamond drill hole TDD0041 is depicted on Figure 2.

Ngula 1 Target

The Ngula 1 target consists of a 600m long, 150-200m wide package of massive and locally intensely sheared mafic meta-volcanic rocks bounded to the north and south by thin meta-sedimentary units. Within the package there are a number of strong sub-parallel, near vertical north dipping, east-west shear structures. These shear structures consistently host gold mineralization in association with quartz veining, alteration and sulphides, predominantly pyrrhotite, pyrite and chalcopyrite. These east-west structures are of variable thickness, ranging from less than a meter to 50m, and it is interpreted that they are intersected by northwest and northeast trending secondary shear structures that result in thicker zones of deformation and alteration and higher-grade mineralization.

The drilling program to date has consisted of alternating 100m spaced diamond drill hole and reverse circulation drill hole sections drilled from the south to test the zone at vertical depths between 50m and 200m from surface, and 100m spaced diamond hole drill sections drilled from the north testing to similar depths. The earlier drill results announced in 2012 (March 13, June 7, and September 26) provide initial definition of these zone of deformation and mineralization and drill holes intersected variable grades and widths of mineralization within numerous robust parallel east west shear structures.

These intersections include:

  • TDD0004: 3.13 g/t Au over 25.89m including 8.87 g/t Au over 3.89m;
  • TDD0005: 10.76 g/t Au over 4.00m, including 93.3 g/t Au over 0.38m;
  • TRC0013: 17.23g/t Au over 4.00m from 19.00m, including 48.8g/t Au over 1.00m, and 13.00g/t Au over 1.00m from 104m;
  • TRC0014: 19.80g/t Au over 1.00m from 114.00m and 10.00g/t over 1.00m from 122.00m; and
  • TDD0054: 8.17g/t over 11.05m from 116.95m.

A comparison with shallow early drilling at Bulyanhulu reveals that like Bulyanhulu, Ngula 1, despite displaying consistent deformation, alteration and sulphide mineralization, has inconsistent grades near surface. As drilling progressed to greater depths at Bulyanhulu, grades and grade continuity improved, with a 1km ore body near surface extending to approximately 4km at depth with grades showing a marked improvement below 200m.

Diamond drill hole TDD0041 was drilled from the north to enter the northern margin of the shear package at the upper meta-sedimentary marker at a vertical depth of 200m and to exit at a vertical depth of approximately 400m, whereas earlier holes entered the zone at depths between 50m and 100m and exited at between 100 and 200m. The drill hole has reached a depth of 387m and will be deepened to a depth of approximately 500m to intersect further potential wide mineralized structures when drilling recommences. The drill hole has intersected a broad zone of deformed and foliated metavolcanic rocks with strong chlorite and epidote alteration and abundant disseminated pyrrhotite and pyrite mineralization. A gold mineralized zone of 22.81g/t over 15 m from 299m downhole is associated with sub vertical shearing and quartz veining and may correlate to the well-mineralized gold bearing shear in drill hole TDD0054 and other wide zones of shearing and mineralization that host low-grade gold. This zone is located in the northern half of the metavolcanic package. Within the southern half a similarly well-developed shear structure is interpreted to host the mineralization in TRC0013, TDD0004 and TDD0005. The pervasive nature of the alteration, the width of the deformation zones and the wide distribution of gold through these zones suggests strong shear structure controlled zones of mineralization that should have extensive lateral and vertical continuity. The stronger and higher-grade mineralization in this drill hole suggests that the tenor of gold is increasing at depth.

The Ngula 1 drilling to date indicates:

  • There are several robust steep north dipping sub-parallel east west shear structures containing gold;
  • The width of the structures and mineralization along strike and down dip is variable;
  • Gold mineralization tenor at the depths drilled to date (shallower than 200m) is inconsistent;
  • Structures bifurcate and converge but drilling is too wide spaced for detailed and certain correlation between individual structures in both directions;
  • Extensive alteration, shearing, quartz veining and sulphide mineralization typify high-grade gold bearing zones.
  • Zones are developed that display the typical characteristics of well-mineralized gold intersections, appear to correlate with high-grade zones, but contain low grade gold;
  • The structures are converging with depth and where they converge, higher grades and wider intersections are expected;
  • The deepest hole drilled to date has given the best results.

Figure 2 is an interpretative section depicting the current interpretation of boreholes drilled along the TDD0041 section line at Ngula 1. Boreholes TDD0041 and TDD0004 correlate with a southern and northern structure respectively. Correlations and shear zone dimensions are interpreted between boreholes and the section illustrates the characteristics of the multiple shear zones.

Follow-up drilling of the Ngula 1 target at Tembo is planned for 2013. This program will be designed to in-fill the shallow drilling to approximately a 50m drill hole spacing in order to improve geological interpretation, define gold distribution with a view to modeling a shallow potential open pit resource; deep drilling will test the entire structural zone along strike and at depth to assess the continuity and gold tenor of the TDD0041 mineralized structure and the down dip and along strike continuity of the parallel gold bearing structures intersected up dip.

Table 1: Tembo Project, Ngula 1 Target, New Drill Results as of January 15, 2012
NGULA 1 >0.50g/t >2.00g/t
BH ID From To Width
(m)
Au
g/t
Width Au
g/t
Width
(m)
Au
g/t
TDD0041 120.00 121.00 1.00 0.60 1.00 0.60
237.60 238.10 0.50 1.89 1.50 1.58
238.10 239.10 1.00 1.43
241.00 242.00 1.00 1.00 2.00 0.94
242.00 243.00 1.00 0.87
299.00 299.80 0.80 2.72 15.00 22.81
299.80 300.30 0.50 1.25
300.30 300.80 0.50 1.98
300.80 301.30 0.50 0.74
301.30 301.80 0.50 0.67
301.80 302.30 0.50 1.12
302.30 302.80 0.50 110.00
302.80 303.30 0.50 300.00
303.30 303.80 0.50 18.20
303.80 304.30 0.50 23.10
304.30 304.80 0.50 22.50
304.80 305.30 0.50 5.75
305.30 305.80 0.50 14.40
305.80 306.30 0.50 37.50
306.30 306.80 0.50 3.94
306.80 307.30 0.50 4.15
307.30 307.80 0.50 4.80
307.80 308.30 0.50 0.37
308.30 308.80 0.50 19.60
308.80 309.30 0.50 1.10
309.30 309.80 0.50 0.47
309.80 310.30 0.50 7.64
310.30 310.80 0.50 1.41
310.80 311.30 0.50 35.10
311.30 312.00 0.70 43.50
312.00 313.00 1.00 1.14
313.00 314.00 1.00 0.46

Notes:

  1. Widths represent drill intersection widths not corrected for drill hole inclination and dip of the geological zone. True widths have not been determined. The drill hole inclination of 60deg and sub vertical dip of the structures suggests that the true width will be approximately 86% of the intersected width.
  2. Drill holes have not been drilled in numerical sequence and not all drill holes in a sequence have necessarily been drilled. Drill hole numbers represent the original drill hole identification assigned when planned.
  3. No capping of high-grade values has been applied to the assay results.

To view Figures 1 and 2 please click on the following link: http://media3.marketwire.com/docs/TEM0115.pdf

Table 2: Tembo Project, Ngula 1 Target, Drill Hole Collar Coordinates, Drill Hole Inclination and Azimuth, and Depth for the Latest Drill Hole
Hole ID Easting Northing Elevation Azimuth Dip EOH
TDD0041 436700 9647440 1243 180 -60 387.00

QA/QC

A stringent QA/QC practice is being applied to all sample batches. A Verified Reference Material standard is inserted every 20th sample, a known blank or blank standard every 20th sample and all samples with assays greater than 0.5 g/t Au are re-assayed. 1% of all samples are submitted to an alternative laboratory for check analysis. In addition the laboratory adheres to an internal QA/QC procedure including standard samples and repeats and blanks inserted independently.

The above information has been prepared under the supervision of David Scott, Pr. Sci. Nat., who is designated as a "Qualified Person" with the ability and authority to verify the authenticity and validity of the data.

Conference Call / Webinar

The Company will be hosting a webinar and conference call on Wednesday January 16th at 4:15pm EST. President and CEO, David Scott, will discuss the latest developments with the drilling program at the Tembo Property. To register to attend this webinar, please visit http://www.tembogold.com/webinar or call 416.907.4148.

About Tembo Gold Corp.

Tembo Gold (TSX VENTURE:TEM) is a Canadian publicly listed mineral exploration company focused on the exploration and development of gold projects in Tanzania and the rest of Africa. The Company currently has 100% interest in the Tembo Gold Project that is located adjacent to African Barrick's Bulyanhulu Mine in the prolific Lake Victoria Greenstone belt in Tanzania. The company is led by a highly experienced team with a proven history of developing, financing, and operating mining projects in Africa. The company has commenced its 90,000m drill program on its Tembo Gold Project.

On Behalf of the Board of Directors of Tembo, David Scott, President & CEO

Forward-Looking Statements

Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe" and similar expressions. In particular, this news release contains forward-looking statements in respect of the use of the net proceeds from the Private Placement, the completion and timing of additional closings of the Non-Brokered Private Placement, the payment of certain finders' fees and the listing of the Common Shares on the TSXV. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. With respect to forward-looking statements contained in this news release, the Company has made assumptions regarding, among other things, the ability to develop the Company's properties, the economic climate in the jurisdictions where the Company carries on operations and commodity prices. Although the Company believes that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, a significant drop in the price of gold, political turmoil in Tanzania and other risk factors set forth in the Company's continuous disclosure. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.

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