| Mon 16 Oct 2006, 7:57 | | TEAL - Resource base increased to 1.3 Million Ounc |
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TEAL - Resource base increased to 1.3 Million Ounces 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, October 13, 2006
Resource base increased to 1.3 Million Ounces at Teal"s Otjikoto gold
project
HIGHLIGHTS:
- The Otjikoto Gold Project inferred resource increases by 46% to
32.2 million tonnes at 1.26g/t for 1.3 million ounces of gold
- Revised geological modelling and recent drilling results increase
the resource grade by 11%
- Otjikoto"s resource expansion drilling project is continuing and
targeting areas adjacent to higher grade drill intersections
- An infill drilling program has commenced to generate measured and
indicated resources
TEAL Exploration & Mining Incorporated (TSX-"TL") (JSE-"TEL") ("TEAL")
announces the results of the first phase of its resource expansion
project at the Otjikoto Gold Project in Namibia.
The current inferred resource estimation is based on 126 boreholes, 27
of which were completed as part of the first phase of the resource
expansion project. Three mineralized zones were identified and have
been geologically modelled based on vein intensity, vein mineralogy
and using a 0.4g/t gold cut-off grade.
Rick Menell, TEAL"s President and CEO stated, "The result of our
drilling program up to May 2006 has been to increase our inferred gold
resource at Otjikoto by 46% from 0.89 million ounces contained gold to
1.30 million ounces. We are continuing drilling to expand the total
resource further, guided by higher grade drill intersections at the
southern and eastern fringes of the resource identified to date. These
encouraging results have also led us to begin an intensive infill
drilling program with the aim of re-classifying portions of the
inferred resource to higher-confidence `measured" and `indicated"
categories".
The Otjikoto Gold Project is situated within TEAL"s 100% owned Otavi
Exploration Area, which totals 3,084km2 in northern-central Namibia,
where TEAL discovered previously unknown sheeted, vein-hosted, gold
mineralization.
Completion of the first phase of resource expansion drilling
represents an additional 27 core boreholes that are contained within
the current resource estimation geological model. The geological model
was constructed from compiling a series of cross and long sections
through the mineralization which were wire-framed into three
dimensional envelopes in DATAMINETM modelling software. Quality
control measures have been applied to the capture of geological data,
sampling protocols, and gold assay results.
Geostatistical evaluation and variography of the gold grade
distributions within the mineralized envelopes has been completed. The
high grade samples within the mineralized zones were reduced to 15g/t
gold to minimize the effect of outliers from the log-normal
distributions. A gold grade block model was constructed based on
ordinary kriging.
The table below indicates the revised inferred gold resources
estimated, as at the completion of the first phase of the resource
expansion project.
MINERALIZED ZONES Tonnes Au Ounces
g/t
OXIDE MINERALIZATION
Upper Block 621,167 1.24 20,000
Lower Block 2,217,456 1.36 100,000
Total 2,838,623 1.33 120,000
SULPHIDE
MINERALIZATION
Upper Block 5,904,293 1.37 260,000
Lower Block 19,732,000 1.17 740,000
Bottom Veins 3,728,464 1.50 180,000
Total 29,364,757 1.25 1,180,000
Total Oxide and 32,203,380 1.26 1,300,000
Sulphide
This expanded resource estimation has confirmed the geological
continuation of the two previously identified, sheeted vein zones
("Upper Block" and "Lower Block") into the resource expansion area and
has provided an additional 230,000 ounces of gold to the total
inferred resource.
In addition, the recently identified third vein array, developed in
two lenses, close to the OTB marble contact at the base of the OTC
Zone has been modelled and is now recognized as the "Bottom Veins".
This vein array has contributed approximately 3.7 million tonnes at
1.5g/t for 180,000 ounces of gold to the total inferred resource.
Overall, this phase of drilling and associated resource estimation has
added a total of 410,000 ounces of gold to the Otjikoto inferred
resource.
The revised geological modelling of the vein array geometries, their
continuation into the resource expansion area, and increased drilling
data has resulted in an 11% increase in the gold grade of the inferred
resource. The resource grade has increased from 1.13g/t to 1.26g/t
gold. This resource has been modelled from the base of the hardpan
calcrete (thickness: 10-15m) to approximately 275 metres below
surface. The near-surface to 275 metres depth extent of the resource
suggests that the mineralization could potentially be extracted by
open pit mining methods.
Results previously reported have indicated the development of higher
grade mineralized zones within the phase 1 resource expansion area.
These results have motivated the continuation of the resource
expansion drilling program along the anticipated plunge of the
mineralization to the southwest into the phase 2 area. This drilling
has the objective of further expanding the inferred resource base and
to test the potential development of higher grade gold mineralization
in this area.
The results of this resource estimation have motivated the immediate
commencement of an infill drilling program, which will focus on the
shallow portions of the current resource with the intention of re-
classifying these areas into higher confidence resource categories.
A project appraisal study has commenced to further scope the critical
mining, metallurgical and financial aspects of the Otjikoto Gold
Project based on the current inferred resource. The conclusions of
this study will dictate the detailed design and the nature of the
subsequent feasibility work, with the objective of converting portions
of the inferred resources into mineable reserves.
TEAL has commissioned SRK Consulting, Johannesburg, South Africa to
conduct an independent audit of the Otjikoto resources and the
documentation of this audit is expected by the end of October, 2006.
Mr. Paul van der Merwe, Pr. Sci. Nat., Mineral Resource Leader with
African Rainbow Minerals Limited 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.
ends
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.
Further TEAL"s information is available at www.tealmining.com
Forward-Looking Information: Statements contained in this news release
that are not historical facts are forward-looking statements that
involve risks, uncertainties and other factors that could cause actual
results, performance, prospects and opportunities to differ materially
from those expressed or implied by such forward-looking statements.
Although TEAL believes that the assumptions inherent in the forward-
looking statements are reasonable, undue reliance should not be placed
on these statements, which only apply as of the date of this press
release. TEAL disclaims any intention or obligation to update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy the
common shares of TEAL. The common shares of TEAL have not been, and
will not be registered under the U.S. Securities Act of 1933, as
amended, and may not be offered, sold or delivered in the United
States absent registration or an application for exemption from the
registration requirements of U.S. securities laws.
Date: 16/10/2006 07:57:13 AM Produced by the JSE SENS Department
