News ReleaseAttention Business Editors:
Luhala Project Delivers More Encouraging Results for Tan Range
Trade Symbol:
TSX: TNX
AMEX: TRE
VANCOUVER, Jan. 19 /CNW/ - 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:
<<
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Kisunge Central:
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Hole No. From To Intercept Gold
(metres) (metres) (metres) g/t Including
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LRC-47 13 18 5 1.87 3m @ 2.83g/t
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LRC-48 12 20 8 2.08 3m @ 4.52g/t
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LRC-49 5 9 4 1.21
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LRC-51 6 18 12 2.17 3m @ 4.30g/t
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25 28 3 1.59
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LRC-52 1 13 12 1.12 3m @ 3.02 and
4m @ 3.49
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LRC-53 2 12 10 1.80
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LRC-54 14 18 4 0.98
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LRC-55 6 10 4 2.21
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Kisunge West:
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Hole No. From To Intercept Gold
(m) (metres) (metres) g/t Including
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LRC-56 22 35 13 1.79 6m @ 2.03g/t
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LRC-57 21 36 15 1.38 2m @ 2.59g/t
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LRC-58 11 20 9 1.43 2m @ 2.24g/t
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LRC-59 26 31 5 1.53 2m @ 2.28g/t
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59 63 4 3.78 1m @ 6.31g/t
(end of hole)
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LRC-60 34 40 6 2.56 3m @ 3.40g/t
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52 55 3 2.29
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Kiginga 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:
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Kiginga Anomaly:
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Hole No. From To Intercept Gold
(m) (metres) (metres) g/t Including
-------------------------------------------------------------------------
LRC-61 26 29 3 1.14
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32 35 3 1.96
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See Attached Maps: https://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
https://www.sec.gov/edgar.shtml.
>>
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
https://www.newswire.ca and click on Tools for Investors.