Tanzanian Royalty Reports High Grade Assays from Kigosi Project And Laboratory Results From its Kimberlite Exploration Program

Tanzanian Royalty is pleased to announce that a Phase 2 Reverse Circulation (RC) drilling program has confirmed the presence of two previously interpreted reef (vein) systems along with high grade gold values at its Kigosi Project in the Lake Victoria Goldfields of Tanzania.

The two shear zones that host the reefs have been traced along a strike length of at least one kilometre and are still open in both directions along strike and down dip.

The Phase 2 drill program consisted of 109 holes aggregating 4,057 metres. It focused on an area immediately adjacent to artisanal workings within the Luhwaika prospect area. Drilling was conducted along five control lines with a central baseline having a strike length of 2.8 kilometres. The lines varied in length from 300 metres near artisanal mine workings to approximately 1,100 metres on line 3250N where regional drilling was conducted to test coincident IP and soil anomalies.

The objective of this second phase of drilling was to test the strike continuity of the Luhwaika reef system which had never been drilled before. The program also provided the Company with an opportunity to evaluate surrounding gold-in-soil and geophysical anomalies. This particular phase of exploration was a continuation of the Phase 1 program that was prematurely abandoned towards the end of 2006 due to heavy rains. A third phase of drilling is presently under way at Kigosi.

The results presented below include the most significant gold mineralization intersected by drilling on all five lines. According to Tanzanian Royalty President, John Deane, “We can now confirm the existence of the two reef systems reported last year, namely the Luhwaika Main and Luhwaika West Reefs, and that they can be confidently traced out over a strike length of at least one kilometre.”

The fifth line, line 3250N, intersected a quartz vein that hosted gold mineralization approximately 800 metres north of the last line drilled. Infill drilling will be required to establish if the gold mineralization in this quartz vein connects with the two known reefs.

Deane also said that because several zones of high-grade gold mineralization occur within the reef systems, the next phase of drilling will utilize 100 metres line spacing in order to identify the controls and trends for these high grade zones. “The reefs tend to flatten near surface, producing a gravel zone that may also hold potential to host goldbearing mineralization that can be extracted at very low cost,” he added.

A summary of the drill highlights is given below:

Water hole (105m south of line 1450N
Hole No. From To Intercept Gold Including Comments
(m) (m) (m) g/t
KG20RC-W1 2 4 2 10.45 Gravels
Line 1450N
KG20RC-083 2 4 2 10.40 Gravels
KG20RC-085 6 7 1 4.01 Luhwaika Main
KG20RC-087 20 21 1 1.62 Luhwaika Main
KG20RC-088 0 3 3 2.48 Gravels
KG20RC-088 31 33 2 3.02 1m @ 4.89 Luhwaika Main
KG20RC-091 2 4 2 3.28 Gravels
KG20RC-093 1 3 2 1.62 Gravels
KG20RC-094 4 5 1 1.02 Gravels
Line 1650N
KG20RC-123 80 82 2 10.71 1m @ 20.30 Luhwaika West
Line 2050N
KG20RC-104 2 4 2 3.03 Gravels
KG20RC-107 4 9 5 2.39 1m @ 6.71 Luhwaika Main
KG20RC-109 15 16 1 7.21 Luhwaika Main
KG20RC-110 25 27 2 3.50 1m @ 6.39 Luhwaika Main
KG20RC-111 38 39 1 0.94 Luhwaika Main
KG20RC-116 2 4 2 4.79 Gravels
KG20RC-117 8 9 1 0.91 Luhwaika West
KG20RC-120 43 44 1 1.01 Luhwaika West
Line 2450N
KG20RC-033 3 5 2 0.99 Gravels
KG20RC-038 6 8 2 1.10 Luhwaika Main
KG20RC-039 14 16 2 8.83 1m @ 14.10 Luhwaika Main
KG20RC-040 24 27 3 0.94 1m @ 2.59 Luhwaika Main
KG20RC-041 31 33 2 6.33 1m @ 9.40 Luhwaika Main
KG20RC-042 39 41 2 0.78 Luhwaika Main
KG20RC-043 51 53 2 12.55 1m @ 23.00 Luhwaika Main
KG20RC-045 1 3 2 38.15 Gravels
KG20RC-045 74 75 1 1.13 Luhwaika Main
Line 3250N
KG20RC-076 23 24 1 2.66 Quartz vein

The above 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).

Drilling within the Luhwaika Main Reef indicates a dip of -22 degrees towards the southwest and a true thickness of 1-2 meters. Mineralization is hosted by a sheared, highly silicified and sericitized granite with gold values ranging up to 23.0 g/t (0.67 oz/t).

The Luhwaika West Reef, which sub-outcrops approximately 200 meters to the southwest of the Luhwaika Main Reef, is essentially a mineralized quartz vein, dipping 30 degrees to the southwest with a true thickness of 2-3 meters and with gold values ranging up to 11.63 g/t (0.34 oz/t)

Diamond Analytical Results

The Company has received results from eight 50 kilogram kimberlite samples that were sent in for micro-diamond analysis in the latter part of 2006. These samples were collected from RC drilling over eight separate kimberlites that were discovered on two of the Company’s diamond licenses. Receipt of the analytical results took much longer than expected because of the heavy backlog of work in diamond laboratories worldwide. Two of the eight sample composites returned very low quantity (one from each sample) micro diamonds while the remaining six were non-diamondiferous. These results indicate that none of these pipes will be of economic interest and no further work will be conducted on them. Nonetheless, the Company intends to evaluate other licenses in its portfolio that are prospective for diamonds.


Fire assay with flame AAS finish was conducted by Humac Laboratories in Mwanza, Tanzania, and SGS Laboratories in Mwanza. Duplicates and Standards were inserted in the sample stream sent to both Humac and SGS , and subsequent analysis shows that 95% of the standards fall within analytically acceptable (5% standard deviation) limits. Duplicates have a correlation coefficient of 87%, which is accounted for by the large nugget effect within the sampling. The figures used in this press release are the average grades taken for between one and three duplicates run by the labs on each analysis. Micro-diamond analysis was conducted at the SGS Lakefield Research laboratory in Lakefield, Ontario.

Qualified Person

The technical information contained in this document has been reviewed and approved by John Deane, President, Tanzanian Royalty Exploration Corporation Limited, a qualified person as defined by NI 43-101. He has an M.Sc. from the University of Cape Town (1993) and is a registered scientist with SACNASP (Reg. No.400005/05).

Respectfully Submitted,
“James E. Sinclair”
James E. Sinclair
Chairman and Chief Executive Officer