As a result of a review by the British Columbia Securities Commission, Tanzanian Royalty Exploration Corporation (TSX: TNX; NYSE-MKT: TRX) (the “ Company”) is issuing this news release to clarify our disclosure.
Further to the Company’s press release on April 25, 2012, the Company filed a National Instrument 43-101 (“NI 43-101”) Preliminary Economic Assessment of the Buckreef Gold Mine Re-Development Project in Tanzania prepared by Venmyn Independent Projects (Pty) Limited (the “ PEA”). While both the Company and Venmyn worked as expeditiously as possible to finalize the report, the report was filed on June 20, 2012, more than 45 days after the date of the press release. The economic analysis in the report was carried out on measured, indicated and inferred resources. The April 25, 2012 press release inadvertently neglected to include the following cautionary language: the preliminary economic assessment is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.
At the request of the British Columbia Securities Commission, the PEA was updated and a revised PEA was filed on August 24, 2012. The PEA was updated (i) to indicate that the Company entered into a joint venture agreement in October 2011 with the State Mining Corporation of Tanzania (Stamico) with regards to the Buckreef project and to clarify that a definitive agreement relating to the Busolwa Prospect has not yet been reached; (ii) to include a note to the Mineral Resources table in the Executive Summary section to indicate that the Mineral Resource estimate excludes historical production and to provide additional detail regarding Venmyn’s review of historical information and the work completed by Venmyn in respect of Busolwa; and (iii) to restate the economic analysis section of the PEA using a base case gold price of US $1500/oz, and to include additional gold price sensitivity disclosure in the economic analysis section, as follows: