Tsodilo Resources Limited
TSX VENTURE : TSD

Tsodilo Resources Limited

July 28, 2005 15:01 ET

Tsodilo Resources Limited: Exploration Program Update Further Drilling Of Kimberlite A15 Commences

TORONTO, ONTARIO--(CCNMatthews - July 28, 2005) - Tsodilo Resources Limited ("Tsodilo") (TSX VENTURE:TSD) is pleased to announce the commencement of a program of reverse circulation (RC) drilling of kimberlite A15 in order to collect a representative sample of kimberlite material for micro-diamond analysis. The RC rig has an air-flush coring system and if possible a series of cores of the kimberlite will be collected for further analysis. As announced in our April 27, 2005 press release, the mineral composition of the A15 kimberlite is encouraging and has been likened to that of the Jericho (NWT, Canada) and the Grib (Arkhangelsk, Russia) kimberlite pipes, which have proved to be economically viable.

Kimberlite A15 has an indicated diameter of approximately 800 to 1,000 meters and is located approximately 25 kilometers east of the Namibia / Botswana border in the Company's Newdico license block. A15 is situated (1.5 to 7 kilometers) between two previously discovered diamondiferous kimberlites. The A15 kimberlite lies within the Nxau Nxau kimberlite field where 23 kimberlites have been identified to date. The commencement of drilling had been delayed from an earlier date due to the unexpected but necessary replacement of equipment on the contractor's drill rig.

Further Exploratory Drilling in the Nxau Nxau Field

Once the priority A15 drilling has been completed, the drill rig will explore several other magnetic anomalies in the Nxau Nxau field which have similar magnetic characteristics to the A15 kimberlite and have been recommended for priority investigation by the Company's Geophysical consultant.

Other Exploration in Progress

Contract geophysical crews recently completed ground magnetic and gravity surveys over six airborne magnetic targets in the Guma District, where garnet and ilmenite grains were recovered during a deflation KIM sampling program in late 2004. A drilling program at Guma will commence later this year.

Detailed grid deflation soil sampling for KIM's is in progress in the Nxau Nxau District over two targets where garnet and ilmenite grains were recovered during a regional sampling exercise in early 2004. A total of 50 samples are planned. Upon completion of the soil sampling work in the Nxau Nxau region, a crew will then proceed to the Gcwihaba license blocks to conduct sampling over target 2021A7. Geophysical gravity and magnetic images of 2021A7 can be viewed on the Company's website in the section titled: Imagery - Geophysics.

The Company's geophysical consultant has reviewed and remodeled the airborne magnetic survey results to define paleo channels below the late Kalahari aeolian sand cover. A geophysical gravity and magnetic survey over this area has recently been completed and the data is being analyzed. Drilling to investigate these possible alluvial paleo channels that could have transported the G10's, other indicator minerals and diamonds found in secondary deposits at Omatako and Tsumkwe in Namibia, is also planned for this year's drilling program.

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 license) is 100% held by Tsodilo subsidiary Gcwihaba Resources (Pty) Limited. Tsodilo manages the exploration of both 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
    Head Office: +1 (416) 572-2033
    + 1 (416) 572-4164 (FAX)
    E-Mail: JBruchs@TsodiloResources.com