Model Price: US$ 281 to US$ 792 Per Carat
Model Grade: 4 to 8 cpht
TORONTO, ON / ACCESSWIRE / January 23, 2019 / Tsodilo Resources Limited (TSX Venture Exchange: TSD) ("Tsodilo"
or the "Company") is pleased to announce the results of a second independent Size Frequency Distribution ("SFD") modelled grade and
diamond value for the BK16 Large Diameter Drilling ("LDD") aggregate 77.94 carat parcel of 502 commercial size (+1mm)
diamonds initially reported on November 7, 2018.
In early December 2018, Dr Paddy Lawless of PJL and Associates discovered that the size frequency model he utilized resulted in
an overly optimistic projection of grade values. These results were presented in the Company's press release on November
7, 2018. Given the potential significance of this error, the Company immediately retained the services of Mr. Stephen Coward of
Interlaced to review and develop new model grade and valuation figures based on the same raw BK16 data. The approach included
in-depth SFD modelling and simulation, and provides direct comparisons with comparable projects, the results of which are reported
herein. The results of the prior press release are thus superseded with those contained in this press release. Given Mr. Cowards
specific experience in the SFD modelling discipline the Company has accepted the results of Mr. Coward as definitive for the grade
and value modelling of the BK16 deposit.
Mr. Coward has over 30 years' experience in the diamond industry, including over 20 years with De Beers, this experience has
included work in project estimation, evaluation and value chain modeling across several commodities. Ranging from statistical and
geostatistical modeling of diamond content, SFD and diamond value to project risk modelling. Mr. Coward's specific grade and
diamond value modelling using SFD data includes work used in the writing up of De Beers assets for privatization and several
subsequent empowerment transactions. More recently he has contributed to studies on both fissure and pipe bodies located in
southern Africa and Australia. Mr. Coward is an expert in SFD modelling of grade and diamond value and is a "qualified person" as
such term is defined in National Instrument 43-101.
As previously reported by Tsodilo, modelling of drill hole data to 450m indicates a kimberlite tonnage of 18.2 to 20.1 million
metric tonnes (Mt), this exploration target is described below. The LDD program produced 2,077 dry metric tonnes of sample from the
VK2, VK3, VKxxx and CB lithological domains, which were treated to recover 502 diamonds (stones) weighing 77.94 carats (cts).
The SFD modelling results (Table 1) and other BK16 diamond characteristics can be summarized as follows:
- Using a combination of simulation and extrapolation, the SDF grade (cpht) and value (UD$ per carat "$/ct") have been
re-modelled to give the following likely in-situ or "run of mine" grade and value (#1 DTC bottom-cut off size):
- The diamond value ranges from $/ct 281 to $/ct 792;
- The grade ranges from 4 cpht to 8 cpht (carats per hundred tonne);
- The Size Frequency Distribution ("SFD") study demonstrates the potential presence of large stones, indicating that ~2% to 5 %
of the total carats may be greater than 10.8 carats (specials). This compares favorably to Lucara's Karowe Mine on AK06 of which
some ~5 % of the total carats produced are greater than 10.8 carats;
- BK16 contains high quality diamonds dominated by highly marketable shapes (makeable and sawable), and no boart has been
recovered to date;
- 3.8% of the diamonds tested were identified as high-quality Type IIa diamonds consisting predominantly of D color
stones;
- Due to the small size of the LDD sample, stones above 2 carats have not yet been recovered but can be expected based on the
SFD analysis;
- Diamonds were individually assessed for damage by Mr. Ray Ferraris and Dr. Paddy Lawless. Mr. Ferraris and Dr. Lawless are
"qualified persons" as such term is defined in National Instrument 43-101. Mr. Coward used these data sets to model the diamond
breakage and reconstitution of the diamonds and concluded:
- Approximately 60% of the stones did not display any signs of fresh damage;
- Around 20% showed minor chipping and the remainder had mixed degrees of severity;
- These results are regarded as a low degree of damage and indicate that the LDD and sample treatment used latest best
practice methods to avoid undue breakage;
- Diamond reconstruction shows that the majority of the movement of stones after reconstitution occurs between classes -1
to +3 sieve sizes resulting in limited and immaterial changes in the SFD;
- The SFD model suggests that BK16 has the potential to host a coarse size distribution;
- The company believes that the combination of grade, diamond value, and kimberlite value presented in this press release
defined by Mr. Coward suggests that BK16 has significant potential to become a minable asset: and
- To improve the confidence on both the grade and value a further phase of bulk sampling of BK16 would be required.
Table 1. Summary comparison of Sampled, Published and Current Study Ranges for the BK16
deposit.
|
Variable
|
Unit of Measure
|
BK16 Sample
|
BK16 Published (Lawless 2018)
|
Current BK16 SFD Study
|
Min
|
P20
|
P80
|
Max
|
Grade
|
Cpht
|
3.8
|
8 to 10
|
4
|
5
|
7
|
8
|
Diamond Value
|
US$/carat
|
177
|
386 to 710
|
281
|
290
|
600
|
792
|
Kimberlite Value
|
US$/tonne
|
6.6
|
30 to 78
|
11
|
15
|
38
|
67
|
Mr. Coward, stated: "Based on my analysis of the SFD of the diamonds recovered from the LDD samples, it appears that the size
distribution of BK16 could be coarser than several producers in southern Africa. There are indications that BK16 could have a
broadly similarly coarse shaped size distribution to that of the Lucara's Karowe Mine (Botswana), Petra Diamonds' Premier Mine
(South Africa), and Lucapa Diamond's Mothae Mine (Lesotho). However, there is a clear under sampling of coarse stones thus far at
BK16 which adds significant uncertainty to the grade and value modelled. This uncertainty is explained by the fact that the current
2,077 dry metric tonne LDD sample represents a distinct under sampling of the true SFD of the BK16 kimberlite (~0.01% of the total
kimberlite body). This under sampling explains why the sample grade and diamond value are well below the modelled grade and value,
and thus why the value and grade modeling reported by this study are so important and should be considered a more accurate
reflection of a likely BK16 run of mine production. It is also important to note that whilst the reported modelled grade and
diamond value are given as ranges these have been derived from simulations of the sample parcel, the grade and more importantly
diamond value could increase as more sample is taken and potentially larger more valuable stones are recovered beyond that
indicated by the model. Examples of upward trends in value include the observed increase in very high value large Type IIa diamond
population recovered by Lucara's AK6 mine production vs. the values achieved during exploration LDD sampling. To this end I am very
much of the opinion that further work on BK16 is justified, including the execution of an optimized bulk sample campaign to confirm
its potential."
Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects, Form 43-101F1 and Companion Policy 43-101CP
requires that the following disclosure be made: All references contained herein with respect to the potential quantity and grade
derived by any method is at this stage of development is conceptual in nature. At the present time, there has been insufficient
exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a
mineral resource. Further to this modeling of commercial grades is progressively more uncertain with smaller parcels of diamonds.
It is important to note that the data presented here are global ranges of grade, diamond value, kimberlite value, and tonnage, and
do not constitute a mineral resource estimate as the data have not been spatially modelled in any way. The objective is to derive
global deposit scale (as opposed to per lithology or estimation domain) indications of potential value ranges for variables that
can be used to inform additional sampling that will be required to evaluate this deposit. These values should be considered as
aspirational projections, or targets for future exploration.
BK16 Diamond Valuation by Mr. Ray Ferraris (QTS Kristal Dinamika)
502 diamonds (weighing 77.94 carats) recovered from 3 parcels of commercial size diamonds (+1 mm) were analyzed by Mr. Ferraris
at the Diamond Technology Park ("DTP") in Gaborone after deep-cleaning by acid boiling and sized to the +1 DTC sieve classes. Mr.
Ferraris determined current market values for the three LDD parcels as set forth in Table 2, utilizing the QTS proprietary
Price-Book.
Table 2. Details of the 3 parcels valued by Mr. Ferraris.
|
Parcel
|
# of Diamonds
|
Total Carats
|
US$ / Carat
|
1
|
94
|
17.045
|
$195.45
|
2
|
130
|
17.700
|
$196.37
|
3
|
278
|
43.195
|
$161.03
|
All
|
502
|
77.940
|
$176.44
|
The five highest individual diamonds constituting more than 4% of the value of the overall parcel ranged in size from 1.935
carats to 0.965 carats, weighed 7.220 carats in total and had an average market value of US$ 612.85 per carat, see Table 3.
Table 3. The five highest individual diamonds constituting more than 4% of the value of the
overall parcel.
|
Parcel
|
Hole ID
|
Size
|
Stones
|
Carats
|
$ Per Carat
|
Total $
|
2
|
LDD_020V
|
6 Grainer
|
1
|
1.535
|
$ 755.00
|
$ 1,158.93
|
3
|
LDD_032V
|
6 Grainer
|
1
|
1.410
|
$ 748.00
|
$ 1,054.68
|
1
|
LDD_033V
|
5 Grainer
|
1
|
1.375
|
$ 705.00
|
$ 969.38
|
3
|
LDD_024V
|
8 Grainer
|
1
|
1.935
|
$ 350.00
|
$ 677.25
|
2
|
LDD_021V
|
4 Grainer
|
1
|
0.965
|
$ 585.00
|
$ 564.53
|
|
|
Totals
|
5
|
7.220
|
$ 612.85
|
$ 4,424.76
|
The chain of custody has been maintained to industry standards (see previous press releases describing the systems employed to
ensure that industry standards were achieved).
The diamonds were classified using the Diamond Trading Company ("DTC") mass carater/grainer system for the 6, 5, 4 and 3 grainer
size classes and the DTC Diamond Sieves ("DS") for the -3gr+11, -11+09, -09+07, -07+05, -05+03, -03+01 and - 1DS size classes. The
masses of all recovered stones were recorded and valued in their respective size classes.
The valuation of these LDD diamonds is considerably higher than to those of the historical diamonds recovered in 1999 and 2000
from BK16, which were valued in 2016 at $138 per carat.
More than half of the LDD diamonds were tested using a Yehunda Z-50 colorimeter and 3.8% of these were positively identified as
Type IIa stones. Most of these are D color with one DE, one E and one F+ colors.
Type II diamonds are rare diamonds which have no measurable nitrogen levels. Type IIa diamonds are generally devoid of
impurities and tend to have a colorless and low to no ultraviolet light fluorescence.
Mr. Ferraris stated that, "The overall parcel is dominated by white, gem-quality diamonds, many of which are G-color or higher.
The proportion of low-quality diamonds is very low compared to other Botswana kimberlites. There is a general prevalence towards
resorbed dodecahedron shaped diamonds, no boart quality diamonds were seen, and the presence of the high-quality Type IIa diamonds
was confirmed."
Diamond Breakage Studies
Diamond breakage occurs both naturally during diamond emplacement or eruption of a kimberlite, and un-naturally during various
processes of extraction, drilling and recovery of the diamond, which create "fresh" breakages. Natural breakages of diamond are
subject to chemical attack from the molten kimberlite which would have etched or produced resorbed broken surfaces, making them
recognizable as "old" or "natural" breakage. As such only "fresh" or un-natural breakage is contemplated during diamond breakage
studies of this type.
The diamond breakage data by Mr. Ferraris and Dr. Lawless are show in Table 5.
Table 5. Breakage classification data for both Mr. Ferraris and Dr. Lawless for the BK16 LDD
diamonds.
|
Mr. Ferraris Breakage Categories
|
Dr. Lawless Breakage Categories
|
Description
|
Number
|
%
|
Description
|
Number
|
%
|
Unbroken
|
350
|
69.7
|
Unbroken - 0
|
344
|
68.5
|
Chipped
|
88
|
17.5
|
Chipped - Ch
|
101
|
20.1
|
Lightly Broken
|
39
|
7.8
|
Significant - 1
|
22
|
4.4
|
Heavily Broken
|
16
|
3.2
|
Serious - 2
|
23
|
4.6
|
Fragment
|
9
|
1.8
|
Severe - 3
|
5
|
1.0
|
Total
|
502
|
|
Very Severe - 4
|
7
|
1.4
|
|
|
|
Total
|
502
|
|
The diamond breakage studies while not directly equivalent are similar enough to draw the following conclusions about the
diamond breakage at BK16. They indicate a low level of un-natural or 'fresh' diamond breakages for the BK16 LDD diamonds. Most
diamonds (68.5 to 69.7 %) were unbroken (zero breakage), and only 17.5 to 20.1 % were chipped. Breakage beyond this was limited to
11.4 to 12.7 %. This low level of fresh breakages illustrates the well managed LDD and dense media separation ("DMS") plant
treatment programs.
BK16 SFD Modelling of In-Situ "Run of Mine" Grade and Value by Mr. Coward and comparison to Karowe mine
(AK6)
The BK16 24-inch large diameter reverse flood air assist drilling (simplified to LDD) campaign is considered to be best practice
and an industry standard for diamond project evaluation. The LDD tonnage estimate of 2,077 dry metric tonnes is based on the
product of average domain density and the calipered volume of the drill holes from which the samples were extracted. Domain
densities are derived from density measurements, made on cores from pilot holes that are twinned with the LDD holes.
Processing diamonds obtained from LDD samples is complex and cannot be considered an 'assay' as would be the case for many types
of metal mineral sampling. Material differences are thus common between the raw diluted recovered grade or 'sample grade' from a
set of samples and the true in-situ or 'global' grade of the target kimberlite body. The basis for this difference arises from:
- Low diamond concentration and high dispersion of diamonds in kimberlites;
- Variable degrees of dilution within the kimberlite;
- Wide distribution of diamonds resulting in under representation of coarse diamonds especially in small sample sizes;
- Diamond breakage during sample recovery such a drilling and sample treatment processes;
- Loss of diamonds due to lock up; and
- Loss of diamonds to undersize
Diamond sample size is critical when assessing a kimberlite body as under sampling can give a dramatically skewed representation
of the diamond distribution in a kimberlite.
The objective of the present studies was to establish the plausible ranges for the recoverable in-situ diamonds size frequency
and the resultant average target grade and target diamond value. The belief that diamond SFD of the BK16 kimberlite is predictable
is based on previous studies by Davy (1989) and Ferreira (2013). Methods used to assess the potential target values include the
following process steps:
Sample analysis:
- Assess the range of possible stone concentration in the 243 LDD samples (representing ~3.4m3 on average), through
modelling and simulating the stone concentration, using the raw data acquired from treatment of the LDD samples;
- Assessment of diamond loss potential attributed to breakage, quantification of the impact this may have had on the diamond
size distribution observed and hence the resulting SFD model;
- Review the recovered size distribution and simulate samples of 502 stones from this distribution to determine a plausible
range for sample grades; and
- Review of sample $/ct to assess relationships between size and value.
Global Modelling:
- Use of the model size frequency with the recovered size grade distribution to develop plausible ranges for the in-situ
grade-size model;
- Comparison with producing operations to verify the reliability of the derived rages of the grade size model and $/ct value
models; and
- Obtain some indication of the plausible global range of recoverable in-situ kimberlite value in $/tonne from the diamond $/ct
ranges and grade size distribution models.
The diamonds have been individually valued and classified by assortment. The samples contain several high-quality Type IIa
diamonds and the parcels have a substantial proportion of highly marketable shapes in the assortment. This information was used to
develop estimates for the revenue that might be achieved for larger diamonds assuming the assortment in larger sizes reflects the
quality of the assortment observed in the smaller size fractions. These models were applied to the size distribution models to
produce a range of average $/ct values.
Forward modelling of diamond reconstitution for breakage analysis by Mr. Coward using the diamond breakage data supplied by Mr.
Ferraris and Dr. Lawless suggests that at most, reconstitution modelling may add ~6% by value to the recovered parcel, but when
using a conventional reconstitution method, the difference is less than 2%. The impact of reconstitution was immaterial on the
modelling of the SFD.
Analysis of the values for stone concentration suggest good continuity and the associated grade uncertainty is considered low.
Analysis of the size distribution of the diamonds recovered at BK16 indicates there may well be a coarse component to the
distribution. Figure 1 shows the SFD modelling curves for the BK16 kimberlite (course = blue, and fine = purple). Included in
Figure 1 is a direct comparison to the AK6 north lobe LDD (green) and production (gold) SFD curves, this was done as it became
apparent that there was a similarity between BK16 and the AK6 north lobe SFD.
Figure 1. A plot of grade vs size for BK16 samples (Red) and AK6 samples at grade of 5 cpht (Green), as well as
the BK16 coarse model (Blue), and the BK16 fine model (Purple), and AK6 North production (Orange).
Modelling of the BK16 diamond value in $/ct using the modelled SFD distribution would normally require the fitting of
the distribution for diamond value within each size class. In this case however, there are too few stones to do this with any
reliability. As such, an extrapolation model of the average within class $/ct was the approach used to derive a range of plausible
values for stones that are greater in size than those observed in the sample. It must be noted that this is an aspirational method
of arriving at a potential valuation and will have to be treated with due caution until enough stones have been recovered to
validate or invalidate any of the projections made.
Figure 2 displays three modelled lines (orange, grey and yellow) that represent three methods for extrapolation diamond value
into the larger categories. These diamond values can then be applied to BK16 modelled SFD to determine the average overall diamond
value in $/ct that might be possible should these values be observed.
- Model 1 (orange line) - Represents a traditional conservative extrapolation of maximum observed values into upper classes in
which the value of the highest observed $/ct is kept constant into the higher size fractions. This model returned an average
diamond value of 298 $/ct (~70% of the value coming from extrapolation). It should be noted that this conservative method can
represent an under extrapolation given that larger diamonds value in $/ct would often increase into larger size categories.
- Model 2 (grey line) - Represents an incremental increase in diamond value based on the increment of value across the last few
populated size classes, this proportional increment is then extended into the higher classes. This model returned an average
diamond value of 453 $/ct (~80% of the value coming from extrapolation).
- Model 3 (yellow line) - Represents an optimistic model based on the assortment remaining the same into the upper size
classes, this assumes that the relationship between value and size is unaffected in the larger categories. This model returned an
average diamond value of 792 $/ct (~84% of the value coming from extrapolation).
Figure 2. Plot of average $/ct per sieve class overlain with the three extrapolated models for value in
classes that have no diamonds.
The BK16 modelled grade size distributions, can be used with the modelled diamond value $/ct to compare $/ct diamond value
curves with those of AK6 (using production values), see Figure 3. The values from BK16 appear to be higher than those for Karowe in
the fine size ranges. Above one carat however the $/ ct increases in slope for Karowe and has a large jump in the value of stones
above 10 cts. No exceptionally large high values stones of this size have been recovered from BK16. At this stage, it is not
possible to predict the shape of the value curve beyond the application of extrapolations already presented, although given the
presence of Type IIa diamonds seen within the BK16 kimberlite there is the potential for a similar upside trend when larger samples
are taken.
Figure 3. A plot of diamond value in $/ct per sieve class vs stone size, comparing the models developed for
BK16 vs the production $/ct/sieve class data for AK6.
These approaches and BK16 SFD models were used to generate a plausible envelope for the BK16 diamond size distribution. These
models were used to forward model accurate run of mine production (in-situ/global) grades and diamond value in $/ct. These
extrapolated size distribution outcomes of grade and value were combined to calculate the range of potential kimberlite value in
$/tonne for BK16. The results have produced feasible ranges for the variables that are required to design and optimize the ongoing
evaluation strategy (Table 4).
Table 4. Summary comparison of Sampled, Published and Current Study Ranges for the BK16
deposit.
|
Variable
|
Unit of Measure
|
Current BK16 SFD Study
|
*Karowe (AK6)
|
Min
|
P20
|
P80
|
Max
|
North
|
Centre
|
South
|
Grade
|
Cpht
|
4
|
5
|
7
|
8
|
13
|
14
|
12
|
Diamond Value
|
US$/carat
|
281
|
290
|
600
|
792
|
222
|
367
|
716
|
Kimberlite Value
|
US$/tonne
|
11
|
15
|
38
|
67
|
29.68
|
53.46
|
91.22
|
*The values for Karowe (AK6) are based on the Open pit Mineral Reserve Estimate as at May 2018, Nowicki, 2018. Note - the
grade of AK6 has gone down over time, but the $/ct and $/tonne have steadily increased over time as evidence and thus confidence
has increased in the large high-quality component of their diamond population.
These modelled values have been derived from a combination of real data and extrapolation and should be considered as
aspirational targets. Given the demonstrated spatial continuity in grade, future sampling should focus on acquisition of larger
samples to demonstrate both the coarse size distribution and to produce a large enough parcel of diamonds to demonstrate that the
diamond quality observed in smaller size fractions continues into the large diamond sizes.
Links to the reports and presentations prepared by Mr. Coward pertaining to this SFD modelling study of BK16 can be found on the
following link http://www.tsodiloresources.com/s/Diamond.asp?ReportID=844024.
Exploration Target Tonnage Update
The quoted Exploration Target tonnage range of 18.2 to 20.1million tonnes is an update and an increase on the tonnages quoted in
the Exploration Target Tonnage press release of July 15, 2015. The increase in volume of all the kimberlite units is due to new
drill-hole information from the 14-pilot drill-holes (NQ drill core, totaling 3,220 meters) of drilled as pilot holes for the LDD
program, of which 2,801 meters were drilled in kimberlite, see press release of June 26, 2017. This resulted in a BK16 model update
produced in Gocad 3D modelling software, see: http://www.tsodiloresources.com/i/pdf/BK16.pdf
The tonnages produced for the BK16 kimberlite units are based on the volumes from updated modelling and an updated set of
density core measurements of these two units down to a level of 450 meters below surface. The lower Exploration Target tonnage of
18.2 Mt presented is based on the modelled volume and converted to tonnage using the lower average weathered kimberlite density of
2.29 g/cm3. The upper Exploration Target tonnage of 20.1 Mt presented here is based on the modelled volume and converted
to tonnage using the higher average fresher kimberlite density of 2.53 g/cm3.
This exploration target and the references made to tonnage of the BK16 deposit are conceptual in nature, and at present time
there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the
target being delineated as a mineral resource.
Ongoing work
Crushing and X-ray treatment through the Bourevestnik Polus-M X-ray unit of the +3 mm concentrate fractions in order to liberate
any locked-up diamonds is ongoing and auditing of the BV tailings through a simple grease recovering unit has recently
commenced.
Future work
A second phase of bulk sampling to increase the sample caratage from BK16 is being investigated. This is necessary to improve
the confidence limit of the US$ per carat modeled values for feasibility purposes. Several different scenarios are being
investigated to recover a minimum of 500 carats either by extending the existing shaft and tunnels or using 24-inch LDD work either
as cluster holes or individual holes on a grid system.
Due to the costs associated with bulk sampling, the Company has entered into confidentiality agreements with several firms and
entities which have indicated an interest in entering into a transaction via a purchase of an interest in BK16; a joint venture; or
a marketing agreement for BK16 diamonds. Discussions are still at a preliminary stage and there is no certainty a transaction will
be concluded.
References
Davy, A.T., 1989. The Size Distributions of Diamonds in Kimberlites and Lamproites. PhD Thesis, Imperial College London.
Ferreira, J.J., 2013. Sampling and estimation of diamond content in kimberlite based on microdiamonds. PhD Thésis, Ecole De
Mines Paris p.207.
Nowicki, T. E., Armstrong, J., Fourie, L. J. H., and Garlick, G. 2018. 2018 Technical Report for the Karowe Mine: Updated
Mineral Resource Estimate. By Mineral Services on behalf of Lucara Diamond Corp.
Zimnisky, P., 2018. Replenishing Economic Diamond Resources, A Daunting task for Miners. Published by the Northern Miner on
August 20, 2018.
About Tsodilo Resources Limited
Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond
and metal deposits at its Bosoto (Pty) Limited ("Bosoto") and Gcwihaba Resources (Pty) Limited ("Gcwihaba") projects in Botswana
and its Idada 361 (Pty) Limited ("Idada") project in Barberton, South Africa. The Company has a 100% stake in Bosoto (Pty) Ltd.
which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana and the PL216/2017 diamond prospection
license also in the OKF. The Company has a 100% stake in its Gcwihaba project area consisting of seven metal (base, precious,
platinum group, and rare earth) prospecting licenses all located in the North-West district of Botswana. Additionally, Tsodilo has
a 70% stake in Idada Trading 361 (Pty) Limited which holds the gold and silver exploration license in the Barberton area of South
Africa. Tsodilo manages the exploration of the Gcwihaba, Bosoto and Idada projects. Overall supervision of the Company's
exploration program is the responsibility of Dr. Mike de Wit, President and COO of the Company and a "qualified person" as such
term is defined in National Instrument 43-101.
This press release may contain forward-looking statements. All statements, other than statements of historical fact, that
address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future
(including, without limitation, statements pertaining to the use of proceeds, the impact of strategic partnerships and statements
that describe the Company's future plans, objectives or goals) are forward-looking statements. These forward-looking statements
reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking
statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially
from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized,
there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause
actual results or events to differ materially from current expectations include, among other things, changes in equity markets,
changes in general economic conditions, market volatility, political developments in Botswana and surrounding countries, changes to
regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the
future, exploration and development risks, the uncertainties involved in interpreting exploration results and the other risks
involved in the mineral exploration business. Any forward-looking statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company
believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not a
guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty
therein.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the
Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized
or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.
Factors that could cause actual results or events to differ materially from current expectations include, among other things,
uncertainties relating to availability and cost of funds, timing and content of work programs, results of exploration activities,
interpretation of drilling results and other geological data, risks relating to variations in the diamond grade and kimberlite
lithologies; variations in rates of recovery and breakage; estimates of grade and quality of diamonds, variations in diamond
valuations and future diamond prices; the state of world diamond markets, reliability of mineral property titles, changes to
regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, operational
and infrastructure risk and other risks involved in the diamond exploration and development business. Any forward-looking statement
speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results
or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable,
forward-looking statements are not a guarantee of future performance and accordingly undue reliance should not be put on such
statements due to their inherent uncertainty.
Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of
the TSXV) accepts responsibility for the adequacy or accuracy of this news release. This news release may contain assumptions,
estimates, and other forward-looking statements regarding future events. Such forward-looking statements involve inherent risks and
uncertainties and are subject to factors, many of which are beyond the Company's control, which may cause actual results or
performance to differ materially from those currently anticipated in such statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
SOURCE: Tsodilo Resources Limited