Tanzanian Royalty (TNX - TSX, TRX - NYSE Amex) is pleased to announce that it has received extremely positive results from the recently completed Phase 2 Reverse Circulation (RC) drilling program on its Nyamakwenge Prospect, part of the Company’s Lunguya Gold Project in the Lake Victoria Goldfields of Tanzania. The drill program commenced in June 2011 and was completed at the end September. Company Chairman and Chief Operating Officer, Joseph K. Kahama, describes the results as “among the best and most consistent we have received to date at Lunguya,” noting that “the bar has been set high for a follow-up drilling program that is planned to commence in February or March 2012 at the end of the current rainy season.” “This certainly has the potential to become a significant new gold discovery, with grade tenors and intercept thicknesses comparable to our flagship Buckreef Project,” he adds. The Phase 2 drill program consisted of 39 RC holes aggregating 4,145 metres. A total 0f 4,469 RC samples were collected during the program. The objective of the program was to establish the strike and down-dip continuity of mineralization identified in a wide-spaced 2002 preliminary drill program on the Nyamakwenge reef system on 50m spaced lines. For comparative purposes, the following tables show the significant intersections from both the recent and the previous (2002) drilling programs conducted at the Nyamakwenge Prospect. The results in the tables are segregated on the basis of drilling method (RC or Diamond Drill), and by zone (Reef 01, Reef 02, Rubble, HW splay). The intersections are estimated to be very close to true thicknesses with all the drill inclinations being -60 degrees and the dip of the reef being -22 degrees. All holes are drilled perpendicular to the assumed strike of the reef(s).
|LUNGUYA DD/RC ASSAY HIGHLIGHTS - RECENT PROGRAM|
|Hole ID||Sample Depth (m)||Width (m)||Assay||Zone|
|LUNGUYA DD/RC ASSAY HIGHLIGHTS - 2002 PROGRAM|
|Hole ID||Sample Depth (m)||Width (m)||Assay||Zone|
|From||To||Grade (g/t)||Reef 01|
Reef 01 is relatively homogeneous in terms of grade distribution and shows consistency along strike and down dip. The reef has a shallow dip to the WNW and an average dip angle of 40°. The average width is 4.33m with an average grade of 1.69g/t over a strike length of approximately 460m. The reef has been drilled to an average depth of 154m and the zone is still open-ended to the NNE. Sectional interpretation indicates possible depth continuity that will definitely warrant further deep drilling.Reef 02 is located in the hanging wall and dips steeply over 50 degrees near surface but flattens out to approximately 25 degrees at depth. The reef has an average width of 3.25m, an average grade of 1.77g/t, and extends over a strike length of approximate 365m. The reef has been drilled to an average depth of 120m. The zone is still open-ended to the NNE and sectional interpretation indicates possible depth continuity that still warrants further deep drilling. Both zones are displaced by late WNW-ESE trending regional faulting in the southwestern sector of the prospect. The drilling has also identified two narrow minor reefs that occur as “splays” in the hanging wall. Approximately 500m away from the last drill-hole section, inactive but extensive artisanal workings have been mapped, suggesting the mineralized zones could widen in this area. Other Targets at Lunguya Apart from the Nyamakwenge prospect, two more targets, the Kahanda North soil anomaly and the Kalole area remain to be evaluated. The Kahanda North prospect reveals a consistent 1.3km long gold-in-soil anomaly within a favorable NW-SE trend. This trend is similar to that of Barrick’s nearby Bulyanhulu gold mine and adjacent Bulyanhulu south mineralization, the former being one of the largest gold producers in Tanzania. The north-northeast extension of the known mineralization at Nyamakwenge prospect has also been flagged for follow-up work.
Future PlansFollowing a detailed evaluation of the Lunguya drill results, the Company’s geological staff are preparing plans for a Phase 3 exploration program at Lunguya subject to the availability of drilling equipment which is at a premium in the Lake Victoria region at the present time. According to James E. Sinclair, President and CEO, “We are looking at every available option to secure equipment at competitive rates, recognizing that building resources in the ground will ultimately secure the Company’s future.” Analysis Fire assay with flame AAS finish was conducted by SGS Laboratories in Mwanza. Duplicates and Standards were inserted in the sample stream approximately every 20 samples. The planning, execution and monitoring of quality control programs at the Lunguya Gold project are under the supervision of Mr. Charles Mnguto (P.Geo.) who is the Head of Geology for TRX. Qualified Person The Company's Qualified Person, Mr. Peter Zizhou, has reviewed and approved the contents of this news release. Mr. Zizhou is the General Manager (Exploration & Administration) of Tanzanian Royalty Exploration Corporation Limited. He has a Master of Science (Exploration Geology) degree from the University of Zimbabwe (2000) and is a registered scientist with SACNASP (Reg. No.400028/08). Respectfully Submitted, Joseph KahamaChairman and Chief Operating Officer (Tanzania) For further information, please contact Investor Relations at 1-800-811-3855Visit our website: www.TanzanianRoyalty.com The Toronto Stock Exchange and NYSE Amex Equities have not reviewed and do not accept responsibility for the adequacy or accuracy of this release Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically and legally extract or produce. We use certain terms on this news release, such as “reserves”, “resources”, “geologic resources”, “proven”, “probable”, "measured", "indicated", or "inferred" which may not be consistent with the reserve definitions established by the SEC. U.S. Investors are urged to consider closely the disclosure in our SEC filings. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml This news release contains certain forward-looking statements and forward-looking information. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time-to-time with the British Columbia, Alberta and Ontario provincial securities regulatory authorities.
Certain information presented in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on numerous assumptions, and involve known and unknown risks, uncertainties and other factors, including risks inherent in mineral exploration and development, which may cause the actual results, performance, or achievements of the Company to be materially different from any projected future results, performance, or achievements expressed or implied by such forward-looking statements. Investors are referred to our description of the risk factors affecting the Company, as contained in our SEC filings, including our annual report on Form 20-F and Registration Statement on Form F-10, as amended, for more information concerning these risks, uncertainties, and other factors.