Tan Range Exploration Corporation
Luhala Project Delivers More Encouraging Results for Tan Range
Vancouver, Canada (ots/PRNewswire)
The Company is pleased to announce that it has received final assay results from the Reverse Circulation (RC) drilling program on its Luhala Gold Project in Tanzania.
Due to year-end overload at the SGS lab in Mwanza, Tanzania, results for the last 15 holes only became available in early 2006 and are presented in this news release. Initial results from the Luhala drill program were announced in a corporate news release on December 8, 2005.
According to James E. Sinclair, Chairman and CEO, "The latest results confirmed our expectations and serve to increase our confidence level in the project's potential as we proceed to complete a 43-101 compliant resource calculation over the next few months."
The Luhala drill program included 29 RC holes, representing some 2,140 metres of drilling, and was concluded in November of 2005. The 14 remaining holes at Kisunge Hill were drilled from the Kisunge Central and West Zones which now appear to join up. The next phase of drilling will attempt to fill in the gap between these two bodies which are approximately 150 metres apart.
Most of the holes drilled in the program were concentrated on the main mineralized zone at Kisunge Hill along drill fence lines ranging from 20 to 40 metres apart, with drill hole spacing averaging 25 metres. One of the holes was drilled at the new Kiginga target.
The mineralization at Kisunge Hill occurs as a series of thrusts, with gentle dips to the southeast. Alteration is typically in the form of iron and silica and the main host rocks are felsic to intermediate volcanics and argillite.
The drill program was designed to extend the main mineralized zone at Kisunge Hill, determine the morphology or distribution of the higher grade gold mineralization, produce a 3-D model of the mineralization for follow-up drilling and provide data for a mineral resource estimate.
"We remain highly optimistic about the long term potential at Luhala and have several other projects in the Lake Victoria Greenstone Belt that are beginning to mature and will hopefully produce tangible results in the coming year," Sinclair said.
Significant results for Kisunge Central, Kisunge West and Kiginga are summarized in the tables below:
Kisunge Central:
Hole No. From To Intercept Gold
(metres) (metres) (metres) g/t Including
LRC-47 13 18 5 1.87 3m (at) 2.83g/t
LRC-48 12 20 8 2.08 3m (at) 4.52g/t
LRC-49 5 9 4 1.21
LRC-51 6 18 12 2.17 3m (at) 4.30g/t
25 28 3 1.59
LRC-52 1 13 12 1.12 3m (at) 3.02 and
4m (at) 3.49
LRC-53 2 12 10 1.80
LRC-54 14 18 4 0.98
LRC-55 6 10 4 2.21
Kisunge West:
Hole No. From To Intercept Gold
(m) (metres) (metres) g/t Including
LRC-56 22 35 13 1.79 6m (at) 2.03g/t
LRC-57 21 36 15 1.38 2m (at) 2.59g/t
LRC-58 11 20 9 1.43 2m (at) 2.24g/t
LRC-59 26 31 5 1.53 2m (at) 2.28g/t
59 63 4 3.78 1m (at) 6.31g/t
(end of hole)
LRC-60 34 40 6 2.56 3m (at) 3.40g/t
52 55 3 2.29Kiginga Discovery
The mineralization at Kiginga was discovered during a Rotary Air Blast (RAB) program in late 2005 and forms a series of flat lying (-20 degrees), stacked shears within an intermediate volcanic tuff. Thin quartz veins and hematite alteration are common occurrences within the shear zones. The one RC hole drilled at Kiginga returned the following results:
Kiginga Anomaly:
Hole No. From To Intercept Gold
(m) (metres) (metres) g/t Including
LRC-61 26 29 3 1.14
32 35 3 1.96See Attached Maps: http://files.newswire.ca/77/tanrangemaps.doc
Summary
In the interest of shareholders who are not conversant in the terminology of the minerals industry, Mr. Sinclair emphasizes that "the materiality of this release lies in the business plan of Tan Range which is to deal properties in exchange for pre-royalty rental income, the return of property- specific expenses, and the receipt of royalty income at production. As such, the generation of potential mineral resources on our holdings is a key factor in the maturing of the exploration process."
"Our business plan directs us to pursue exploration work on a property to a point where a qualified company would consider it attractive to develop the property under a royalty agreement," he added.
"Strict regulations governing resource company press releases require that they be focused on the language of the minerals industry which is often beyond the scope of the average investor. The materiality of this news release lies in the positive drill results returned from Luhala which the company considers to be quite encouraging.
The materiality of this news release is further supported by the fact that our exploration professionals employ state-of-the-art exploration protocols including a refined in-house application of biogeochemistry. We own our drilling equipment and have in-house drill crews. In fact, we are looking into expanding our RC/RAB drilling capacity and acquiring one or more diamond drill rigs as well.
It is my feeling that the price of gold will impact the value of our assets in Tanzania, leading to increased interest in our mineral property portfolio.
Tanzania is recognized internationally as a politically stable democracy (Source: The World Bank, IMF, UNESCO) and was recently recognized as such by President George W. Bush.
Tan Range has the largest portfolio of mineral licenses in the Lake Victoria Goldfields and Kagera/Kabanga Nickel belts and holds strategically- located licenses in the Mwadui diamond corridor."
Qualified Person
The Company's Qualified Person is Mr. John Deane, the President of Tan Range. He has an M.Sc. from the University of Cape Town (1993) and is a registered scientist with SACNASP (Reg. No.400005/05). He was personally on site during the majority of the RC drilling and supervised both logging and sampling.
Analysis
Fire assay with flame AAS finish was conducted by SGS Laboratories in Mwanza, Tanzania. Duplicates, Standards and Blanks were inserted in the sample stream sent to SGS. The duplicates have a positive correlation coefficient of 93.4%. In addition, 95% of the standards fall within the acceptable (5%) margins of error. The blanks are generally within acceptable limits, but 6 samples returned unacceptable levels between 0.01g/t and 0.25g/t. The blank is a local in-house granite blank, and these pulps will be re-analyzed to account for the errors.
Respectfully submitted,
"James Sinclair"
James E. Sinclair
Chairman and Chief Executive Officer
The Toronto Stock Exchange nor American Stock Exchange have not
reviewed and does not accept responsibility for the adequacy or
accuracy of this release
Cautionary Note to U.S. Investors - The United States Securities and
Exchange Commission permits U.S. mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms on this
news release, such as "measured", "indicated", and "inferred" "resources"
that the SEC guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC. U.S. Investors are urged to
consider closely the disclosure in our Form 20-F, File No. 0-50634, which
may be secured from us, or from the SEC's website at
http://www.sec.gov/edgar.shtml.Visit the Tan Range website: www.tanrange.com; To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on Tools for Investors
(TSX: TNX , AMEX: TRE)
Contact:
For further information: please contact Investor Relations at
1-800-811-3855; Visit the Tan Range website: www.tanrange.com; To
request a free copy of this organization's annual report, please go
to http://www.newswire.ca and click on Tools for Investors