| Fri 9 Nov 2007, 16:49 | | TEL - TEAL Exploration & Mining Inc. - Upgrade Fro |
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TEL
TEL
TEL - TEAL Exploration & Mining Inc. - Upgrade From The Inferred To Indicated
Mineral Resource Category And Pre-Feasibility Study Progress At Teal`s
Otjikoto Gold Project
TEAL Exploration & Mining Inc.
Corporate Access Number: 31403
ISIN: CA8781511099
(Incorporated in Yukon, Canada on 1 June 2005)
SA Company Registration Number: 2006/003229/10
JSE share code: TEL
JSE short name: TEAL
Friday, November 9, 2007
UPGRADE FROM THE INFERRED TO INDICATED MINERAL RESOURCE CATEGORY AND PRE-
FEASIBILITY STUDY PROGRESS AT TEAL`s OTJIKOTO GOLD PROJECT
* Independent Qualified Person supports expanded resource at the Otjikoto
Gold Project and verifies the conversion of 460,000 ounces of gold,
contained in 11.82 million tonnes at 1.21g/t, into the indicated mineral
resource category
* Total contained gold increased from 1.76 million ounces to 1.78 million
ounces
* Drilling is ongoing to define high grade gold zones and to further expand
the indicated mineral resource base
* Third gold bearing zone - the Bottom Vein zone - extended and further
defined by recent drilling results
* Good progress being made on a pre-feasibility study
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL") has filed
an Independent Technical Report ("the report") on the gold resources at the
Otjikoto Gold Project in Namibia.
The report, by SRK Consulting (South Africa) (Pty) Limited ("SRK") to the
National Instrument 43-101 ("NI 43-101") standard, supports the conversion of a
portion of the deposit into the indicated mineral resource category. SRK was
requested to review the mineral resource estimate for the Otjikoto Gold Project
("Otjikoto") and to compile an Independent Technical Report, which conforms to
NI 43-101. TEAL completed and updated the mineral resource estimate for Otjikoto
in August 2007 for review by SRK during September 2007.
The Otjikoto Gold Project is situated within TEAL`s Otavi Exploration Area in
north-central Namibia, where TEAL has discovered, vein-hosted, gold
mineralization. The gold occurs as `free` and often coarse gold within
predominantly pyrrhotite-magnetite-pyrite-carbonate veins. The project is
located close to well developed infrastructure of road, rail, electrical power,
and communications.
The report, including the review findings by SRK as well as the mineral resource
and reserve classification, was prepared according to the guidelines of the CIM
Standing Committee on Reserve Definitions as adopted by the CIM Council in
November 2004 (the CIM Definition Standards).
Grade estimation
Following the recent geological modelling of the gold mineralization at
Otjikoto, three mineralized zones are defined: the Upper Zone, the Lower Zone
and the Bottom Vein Zone. The assay data are composited to one metre lengths and
the data indicated a log normal distribution. Values exceeding 15g/t gold were
reduced to 15g/t for the resource estimation grade calculation.
Resource increase and upgrade to higher confidence category
* The increased drill density in the up-dip, shallow portions of the resource
has upgraded this section of the resource into the indicated mineral resource
category, amounting to 460,000 ounces of gold, at 11.8 million tonnes,
grading 1.21g/t;
* The additional drilling has resulted in an increase of total contained gold
from 1.76 million ounces to 1.78 million ounces of gold; and
* The inferred mineral resources, excluding the indicated portion, now contain
1.32 million ounces of gold, or 32.1 million tonnes, grading 1.28g/t.
Table 1 below indicates the new indicated and inferred resource estimate:
TABLE 1
Weathering Classification Mt Aug/t koz Au
Oxide Indicated 2.1 1.32 88
Inferred 0.6 1.33 25
Fresh Indicated 9.7 1.19 372
Inferred 31.5 1.28 1,295
TOTAL Indicated 11.8 1.21 460
Inferred 32.1 1.28 1,320
Drilling work recently completed
* A total of 2,200 metres of drilling was completed to further target
the high grade zones;
* A total of 5,600 metres of drilling was completed as part of the
further resource infill drilling program; and
* A total of 34 large diameter diamond drill boreholes were completed to
provide ten tonnes of ore material for applied metallurgical test
work.
Pre-feasibility Study Progress
The pre-feasibility team is advancing the Otjikoto study and a number of
Namibian and international consultancies have been engaged for the project.
Current status of the study can be summarized as follows:
Environment Studies: A Namibian based consultant, Alex Speiser Environmental
Consultants, is currently undertaking the Environmental Impact Assessment. Work
has advanced well and base line monitoring is ongoing.
Social Studies: Work has progressed satisfactorily.
Metallurgical Studies: The first phase of the metallurgical test work on about 1
tonne of representative material, has been completed. The test work comprised
jigging tests, dense media separation, X-ray sorting, gravity sorting, magnetic
separation, flotation and cyanidation leach tests. The purpose of the tests was
to determine a suitable pre-concentration method before feeding the concentrate
into a conventional gold plant. Detailed metallurgical test work on a 10 tonne
sample material will commence shortly.
Geotechnical: SRK is finalizing an assessment of the geotechnical aspects of the
geological formation hosting the gold deposit.
Geohydrological: A consulting company, AGES, has been engaged to carry out
ground water investigations and modelling. Boreholes specifically for water test
work, including monitoring holes have been drilled and work is in progress.
Mining and Engineering Assessment: Consultants have been appointed to carry out
mining cost estimates, open pit design, pit optimization, production scheduling
and related engineering and infrastructure studies. Work is advancing
satisfactorily.
TEAL anticipates the completion of the pre-feasibility study in the first half
of the 2008 calendar year and, following a positive conclusion, this will be
followed with the immediate initiation of a bankable feasibility study with the
goal of fast tracking Otjikoto to a mine development decision.
The Independent Qualified Persons for the Independent Technical Report are Mr
Mark Wanless, Ms Carmen Winzar and Mr Andre van der Merwe (SRK Consulting (South
Africa) (Pty) Limited).
Mr. Claus Schlegel, Pr. Sci. Nat., TEAL`s Vice President: Exploration and
Business Development, is the "qualified person" for the content of this press
release in terms of National Instrument 43-101.
ends
NOTE:
TEAL is incorporated under the laws of the Yukon, Canada and its common shares
are listed on the Toronto Stock Exchange ("TSX") and the JSE Limited ("JSE").
The common shares of the Company trade under the symbol "TL" on the TSX and
"TEL" on the JSE.
TEAL is a mineral development and exploration company with development projects
and exploration areas in Namibia, Zambia and the Democratic Republic of Congo
("DRC"). TEAL has a portfolio of base and precious metal development projects
and complementary exploration areas, and the Company continues to seek other
opportunities, mainly in southern and central Africa.
TEAL has targeted specific projects: the Konkola North Copper Project in Zambia;
the Otjikoto Gold Project in Namibia; and the Kalumines Copper-Cobalt Project in
the DRC. TEAL also has interests in various other mineral licence areas in
Zambia and in Namibia on which the Company continues drilling and other
exploration activities.
ADDITIONAL TEAL INFORMATION CAN BE FOUND AT: www.tealmining.com
For further details contact:
Julian Gwillim (VP: Investor Relations and Corporate Development) on +27 82 4524
389 (SA); or julian@tealmining.com,
or
Rick Menell (President and CEO) on +27 82 450 2301; or rick@tealmining.com.
Date: 09/11/2007 16:49:45 Produced by the JSE SENS Department.
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