Tanzanian Royalty Exploration Corporation
(the “Company” or “TRX”) is pleased to announce that an infill reverse circulation (RC) drilling program has commenced on the Buckreef project, the Company’s advanced stage exploration gold project located in the Lake Victoria Goldfields of northern Tanzania within the Rwamagaza Greenstone Belt.
The Buckreef project contains National Instrument 43-101 (“NI 43-101”) compliant gold resources at a 0.5 g/t cutoff grade in the following categories: Measured, 5.176 million tonnes grading 2.05 g/t (341,000 oz); Indicated, 24.97 million tonnes averaging 1.19 g/t (954,000 oz); Inferred, 17.173 million tonnes grading 1.51 g/t (835,000 oz).
James E. Sinclair, President and CEO of Tanzanian Royalty notes that: “Any potential expansion of the existing Buckreef resource along established geological trends would enable us to optimize production rates with a subsequent improvement in operating costs.”
The Company has commenced a 58-hole RC drilling program totaling 7,000 metres and a drilling contractor has been engaged to conduct the drilling. The objective of the first phase of infill drilling is to probe and corroborate significant gold mineralization in the Eastern Porphyry (EP) Prospect which was never reported from previous RC drilling by Iamgold Corp. The EP Prospect lies approximately 0.8 km east of the main Buckreef Prospect. The second phase of this drilling program will include both infill and step-out strike extension exploration drilling targeting the eastern extension of the near surface mineralization at the Tembo Prospect and the north-east extension of the main Buckreef Prospect.
In addition, an infill diamond drilling (DD) program consisting of 6000 metres of initial 12 diamond drill-holes is planned for the first week of September 2011 to investigate the down-dip extension of the high grade shoots below the previously projected economic final depth of the pit design by Iamgold. These deep DD drill-holes will be mostly infilling gaps from previous Iamgold drill-holes and the results will be used to evaluate the potential for upgrading some of the inferred resource at the main Buckreef Prospect to the indicated category as well as to delineate potential additional inferred resources. In addition, some of the diamond core holes will be used to ascertain the rock geotechnical properties as part of our preliminary investigations on the open pit wall stability.