| Wed 30 Aug 2006, 17:48 | | TEAL - Gold release |
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TEAL - Gold release
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
FURTHER POSITIVE DRILLING RESULTS AT TEAL"S OTJIKOTO GOLD PROJECT
HIGHLIGHTS:
- Drilling results indicate further higher grade zones of gold mineralization
developed within the resource expansion area
- Positive drilling results support continued drilling to delineate the
resource potential of these higher grade zones of mineralization
- Geological modelling for a new Otjikoto resource estimation has been
completed
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL") today
announces results that indicate the continuation of higher grade zones of gold
mineralization at its Otjikoto Gold Project in Namibia. These results, together
with those reported in April 2006, have motivated additional drilling to define
the resource potential of this mineralization.
TEAL has a current inferred resource base of some 890,000 ounces of gold that
relates to 24.5 million tonnes at a grade of 1.13 g/t gold, which has been
modelled from near surface to a depth of approximately 150 metres, which
management believes is potentially open pitable.
Since October 2005, TEAL has completed 39 core boreholes totalling 9,300 metres
as part of its current Otjikoto resource expansion programme. Recent borehole
results, specifically holes OT64, OT98, OT104, OT105, and OT110, have returned
higher grade intersections over significant widths.
Rick Menell, TEAL"s President and CEO commented, "These intersections indicate
the development of further higher grade zones than previously reported in
boreholes OT88 and OT90. The integration and geological interpretation of these
results support a continuation of the resource expansion drilling".
Geological modelling for a new Otjikoto resource estimation has been completed
utilizing Datamine software and geostatisical evaluation of the gold grades is
currently in progress. The resource estimation will be completed within the next
six weeks.
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 current 890,000 ounce resource is
based on data from some 107 boreholes and relates to 24.5 million tonnes at a
grade of 1.13 g/t gold. The gold cut-off grade used for this resource
estimation was 0.5 g/t gold. This resource has been modelled from the base of
the hardpan calcrete (thickness: 10-15 metres) in the northeast to approximately
150 metres below surface in the southwest. The near-surface to 150 metres depth
extent of the resource suggests that the mineralization could potentially be
extracted by open pit mining methods.
TEAL is currently completing a resource expansion program that is evaluating the
southern and eastern extensions to the existing 24.5 million tonne resource. The
resource expansion boreholes are collared to evaluate a block of approximately
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 widths and gold grades of the intersections.
TABLE 1: Corrected width and gold grades for long and cross sections indicating
recent high grade zone intersections within the resource expansion area.
LOCATION BOREHOLE Depth Depth Corrected Gold
from to (m) width (m) g/t
(m)
4900E OT104 219 225 5.40 1.45
LONG
SECTION
A - B
Figures
1 and 2
OT104 235 253 16.20 1.82
OT64 179 197 17.10 0.89
OT64 220 242 19.80 1.81
OT90* 163 179 14.40 4.33
OT90 211 223 10.80 2.09
OT88* 149 166 15.30 9.55
OT88 209 212 2.70 2.05
OT73* 139 172 29.70 0.59
OT112 163 183 18.00 1.41
OT110 152 175 20.70 2.87
OT61 146 168 19.80 0.95
* Previously reported
6300N OT63 132 135 2.70 0.46
CROSS
SECTION
C - D
Figures
1 and 3
OT63 152 155 2.70 0.72
OT69 158 166 7.20 0.57
OT98 203 229 23.40 3.39
OT107 RESULTS PENDING
LINE OT105 184 205 18.90 1.80
6200N
Figure 1
These new results have confirmed the initial interpretation that further zones
of higher grade gold mineralization are developed within the resource expansion
area to the southwest of the current resource. Four recent boreholes, OT64,
OT98, OT104 and OT105 have returned significant gold intersections. These
intersections are thought to be related to the plunge of the gold mineralization
within the sheeted vein array. Currently two drill rigs are being utilised to
complete a further fourteen core boreholes that will total approximately 3,500
metres. This resource expansion definition drilling programme is planned to be
completed and announced during the last quarter of the calendar year 2006.
The current resource expansion project has the objective of providing an
increased inferred resource base to the known mineralization. Thirty nine core
boreholes that form the resource expansion project have now been completed.
Geological logging, interpretation and sampling of the 9,300 metres of core has
been undertaken and results compiled into the Otjikoto project database.
Rigorous quality control measures have been applied to the capture of geological
data, sampling protocols, and gold assay results. The sampling protocol includes
the use of duplicate, blank and certified reference material within the sampling
process.
A geological model of the Otjikoto mineralization has been constructed within
the Datamine modelling package. This model demonstrates the continuation of the
mineralized, sheeted vein array into the resource expansion area. Currently
geostatistical evaluation and resource estimation, which includes the expansion
drilling, is in progress.
In addition to the ongoing resource expansion and the resource definition
drilling, exploration drilling data from within the Greater Otjikoto Project
area is being compiled. This data relates to the completed initial drill testing
of ground geophysics and Spectrem airborne electro magnetic ("Spectrem AEM")
anomalies in the immediate hanging wall of the known Otjikoto resource. The
outcome of this compilation study will potentially motivate further testing of
this zone of mineralization in the immediate hanging wall of the know resource.
TEAL has also commenced the regional exploration core drilling of Spectrem AEM
targets within its Otavi Exploration Program licences. A number of prioritized
Spectrem AEM anomalies have been identified that are interpreted to possess
similar geophysical characteristics to that of the Otjikoto mineralization.
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 a mineral development and exploration company. TEAL is currently
focused on its properties located in Zambia, Namibia and the Democratic Republic
of Congo, and continues to seek other opportunities, mainly in southern and
central Africa. 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 development decisions.
Additional TEAL information can be found at: www.tealmining.com
For further details contact:
Julian Gwillim (VP: Investor Relations and Corporate Development) on
+1 416 828 1422 (Canada); or +27 (0) 82 4524 389 (SA); or julian@tealmining.com,
or
Rick Menell (President and CEO) on +27 82 450 2301; or rick@tealmining.com.
Date: 30/08/2006 05:48:13 PM Produced by the JSE SENS Department
