| Thu 20 Apr 2006, 8:00 | | Teal Announces Positive Drilling Results At Its Na |
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TEL
Teal Announces Positive Drilling Results At Its Namibian Gold Project
TEAL EXPLORATION & MINING INCORPORATED
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
("TEAL" or "the Company")
HIGHLIGHTS:
- Geological logging indicates the continuation of the sheeted vein system
along strike to the southwest
- Available results suggest that a high grade zone of gold mineralization
may be developed within the resource expansion area
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") has today
announced a revision of the previously disclosed Otjikoto Gold Project
resource estimation, as well as progress with its on-going resource
expansion drilling program, and the identification of coincident Spectrem
airborne electro-magnetic ("Spectrem AEM") and gold-in-soil anomalies, 2km
to the southwest of the Otjikoto resource.
Rick Menell, TEAL"s President and CEO, said: "Since October 2005, TEAL has
completed 29 additional core boreholes totaling 7,000 metres, out of a
planned 38 boreholes totaling 9,000 metres at Otjikoto. Geological logging
indicates the continuation of the sheeted vein system along strike to the
southwest. The veins are of similar mineralogy and visible gold
mineralization has been noted in some intersections. In addition, a
potential high-grade zone is developing towards the south, intersected by
boreholes OT 88 and OT 90. These results have given us the confidence to
continue with this exploration program, targeting these higher grade
zones."
TEAL had previously disclosed an inferred mineral resource with 873,000
ounces of gold having been defined to date at the Otjikoto Gold Project.
TEAL has also previously conducted airborne geophysics, using the Spectrem
AEM survey technology, together with geological compilation over the
project, and has identified targets, several of which are high priority and
in proximity to the known resource. TEAL completed a first phase resource
drilling (12,740 metres) in 2005, with metallurgical test work and
conceptual mine design studies.
The Otjikoto Gold Project is situated within TEAL"s 100% owned Otavi
Exploration Area, which totals 3,084km2 in north-central Namibia, where the
company discovered sheeted, vein-hosted, gold mineralization. The gold
occurs as `free" and often coarse gold within predominantly pyrrhotite-
magnetite-pyrite veins. The project is located close to well developed
infrastructure of road, rail, electrical power, and communications.
The revision of the resource estimation relates to a change from the
previous `soft grade boundary" approach to a conventional `hard grade
boundary" approach, which is normally used to report such inferred
resources. The gold cut-off grade used was 0.5 g/t. The previous `soft
grade boundary" method requires the extension of the resource envelope wire
frame by 1 metre into both the hanging- and footwall. The `soft grade
boundary" inferred mineral resource was estimated at 25.6 million tonnes at
1.06 g/t gold for 873,000 ounces of gold. The `hard grade boundary"
inferred resource is estimated and revised to 24.5 million tonnes at 1.13
g/t gold for 890,000 ounces of gold, representing a 7% increase in grade.
The resource expansion boreholes are collared to evaluate a block of 1,000
metres x 400 metres to the southwest of the known resource with a collar
spacing of 100 metres x 100 metres along strike and dip. TABLE 1
summarizes the corrected width and gold grade for these two section lines.
TABLE 1: Summary: Corrected width and gold grades for two sections
indicating a potential high-grade zone developing towards the south
LINE BOREHOLE DEPTH (m) TO CORRECTED WIDTH GOLD
FROM (m) (g/t)
6500N CROSS SECTION OT84 25 32 6.30 1.08
OT84 129 142 11.70 0.75
OT85 145 188 38.70 0.83
INCLUDES 145 160 13.50 1.15
181 188 6.30 1.14
OT88 149 166 15.30 9.55
OT88 209 212 2.70 2.05
OT87 RESULTS PENDING
4900E LONG SECTION OT70 122 131 8.10 2.51
OT70 139 168 26.10 0.52
INCLUDES 162 168 5.40 1.06
OT73 139 172 29.70 0.59
OT76 156 164 7.20 3.53
OT79 128 140 10.80 1.94
OT79 171 188 15.30 1.05
OT90 163 179 14.40 4.33
OT90 211 223 10.80 2.09
OT64 RESULTS PENDING
OT104 RESULTS PENDING
The available results suggest that a high grade zone of gold mineralization
may be developed within the resource expansion area. This zone is related
to the interpreted plunge of the mineralization within the sheeted vein
system. Further drilling is being planned to confirm and define the
geometry of this zone.
Visual observations of the core indicate that another vein array is
developed, within the OTC Zone, close to the OTB Marble contact. This vein
system has not been included in the Otjikoto Gold Project"s resource
estimation to date. A geological and grade model will be constructed for
this zone of gold mineralization, which will be included in the resource
estimation update, which is scheduled for finalization during July 2006.
Within the Greater Otjikoto Exploration area, the results of the high
resolution Spectrem AEM survey, infill ground magnetic survey and soil
geochemistry survey (grid: 1,200 metres x 2,000 metres) to the southwest of
the resource expansion area returned coincident geophysical anomalies with
high grade gold-in-soil anomalies (>70 ppb). TEAL will complete an infill
soil sampling program in certain areas to further define these anomalies,
followed by drilling.
The soil samples were analyzed by Genalysis Laboratory Services (Pty)
Limited in Perth, Australia. Evaluation borehole samples from the resource
expansion drilling were done by SGS Lakefield Research Africa (Pty)
Limited, in South Africa. Both laboratories are internationally accredited.
TEAL uses standard procedures for the core and soil sampling, including the
appropriate use of Certified Reference Material, field duplicates and blank
samples.
Menell concluded: "The results of the resource expansion drilling will be
combined with the current resource and the updated resource estimation is
expected to be completed by the end of July 2006. These results will be
used to conduct a project appraisal study of the Otjikoto Gold Project.
This study will take into consideration the expanded resource, and further
assess the metallurgical results from the previous study, pit design
parameters and options, and a financial appraisal. The conclusions of this
study will dictate the design and the nature of the subsequent feasibility
work, with the objective of converting the inferred resources into mineable
reserves".
Drilling to obtain more material for specific metallurgical testwork will
also be undertaken.
Exploration work, comprising geological mapping, soil geochemistry and
ground geophysics, will continue on the Otavi Exploration Area on two
priority anomalies defined by the Spectrem AEM survey results. Pending
positive results, these defined anomalies will be evaluated by drilling.
Mr. Paul van der Merwe, Pr. Sci. Nat., Mineral Resource Manager with
African Rainbow Minerals Limited ("ARM") is the "qualified person", as
defined by the Canadian National Instrument 43-101, responsible for this
resource estimation.
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.
TEAL is a mineral development and exploration company that is currently
focused on its properties located in Zambia, Namibia and the Democratic
Republic of Congo. Management has targeted four specific projects, the
Konkola North, Mwambashi and Kalumines copper projects, as well as the
Otjikoto gold project, each of which is being progressed towards
feasibility and development decisions.
Ends
Sponsor
Investec Bank Limited
Date: 20/04/2006 08:00:38 AM Produced by the JSE SENS Department
