======================================================================
Re: News Release - Monday, June 04, 2007
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.
Analysis
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
For further information, please contact Investor Relations at
1-800-811-3855
Visit our website: www.TanzanianRoyaltyExploration.com
The Toronto Stock Exchange and American Stock Exchange have not
reviewed and do 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.
Certain information presented in this release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are based on numerous assumptions, and involve known and
unknown risks, uncertainties and other factors, including risks
inherent in mineral exploration and development, which may cause the
actual results, performance, or achievements of the Company to be
materially different from any projected future results, performance, or
achievements expressed or implied by such forward-looking statements.
Investors are referred to our description of the risk factors affecting
the Company, as contained in our Form 20-F, File No. 0-50634, for a
more information concerning these risks, uncertainties, and other
factors.
We have no wish to send you unwanted messages. If you would like to
stop receiving our email broadcasts, please click Reply and type
UNSUBSCRIBE in the subject line.
======================================================================
Copyright (c) 2007 TANZANIAN ROYALTY EXPLORATION CORPORATION (TNX) All
rights reserved. For more information visit our website at
http://www.tanzanianroyaltyexploration.com/ or send
mailto:info@tanzanianroyaltyexploration.com
Message sent on Mon Jun 4, 2007 at 12:29:24 PM Pacific Time
======================================================================
.