Pre-feasibility study initiated at the Otjikoto gold project, and more high grade zones delineated by drilling



    
    -  Pre-feasibility study started for a new gold mining operation at
       Otjikoto in Namibia
    -  Drilling continues to delineate high grade zones of mineralization in
       the resource expansion area
    -  Infill drilling program of 6,400m of core and RC drilling completed,
       assay results are being received
    -  Additional 15,000m infill drilling to commence in May 2007
    

    TORONTO, April 26 /CNW/ - TEAL Exploration & Mining Incorporated
(TSX-"TL") (JSE-"TEL") ("TEAL") has announced the commencement of a
pre-feasibility study at its wholly owned Otjikoto Gold Project in Namibia,
following the identification of a 1.3 million ounce gold resource, and recent
encouraging drilling results.
    Rick Menell, TEAL's President and Chief Executive Officer, commented:
"TEAL has completed an assessment study related to the viability of a mining
operation at Otjikoto. The positive conclusion of this study has motivated us
to start immediately with a pre-feasibility study of the mineral resource".
    Approximately 6,400 metres of infill drilling has been completed as part
of the initial phase of the pre-feasibility resource upgrade estimation, which
is being finalized. Core drilling is on-going and a 15,000 metre, reverse
circulation ("RC"), drilling program will commence during May 2007 and will
result in a second phase of resource estimation upgrade. The results of these
phases of drilling will be geologically and geo-statistically modelled and are
designed to determine indicated and measured resources. Figure 1 overleaf
illustrates the area where infill drilling has been completed and where the
second phase of drilling will be undertaken.
    An Environmental Assessment Study, being done by a Namibian company, A.
Speiser Environmental Consultants cc, is underway and this study will include:
flora and fauna, water resource management, meteorological data collection and
social impact assessments. A baseline study was also completed by TEAL prior
to the first resource estimation drilling.
    TEAL has drilled large diameter borehole cores for metallurgical
test-work, which is underway at Mintek in South Africa. Additional drilling,
to obtain more samples for test-work, is also in progress. The test-work
program has been designed to enhance and further confirm previous results.
This phase of metallurgical study will optimise the process options,
specifically related to the pre-milling concentration of the mineralization.
Current results from test-work on the pre-milling concentration of the
mineralization indicate potential economic benefits to the project by the
reduction of capital and working costs.
    Menell commented: "A positive result from the pre-feasibility study would
initiate, in the third quarter of 2007, the commencement of a bankable
feasibility study".

    High Grade Delineation Drilling

    Eight core boreholes for 1,800 metres have been completed to further
delineate higher grade zones of gold mineralization intersected in the
resource expansion drilling area.
    Table 1 shows the results of the boreholes in context with previously
reported adjacent boreholes. The intercepts returned from this area confirms
the presence of the high grade zones of gold mineralization. When the
completed set of results is received, these high grade zones of gold
mineralization will be modeled and included within an expanded Otjikoto
resource.

    
    -------------------------------------------------------------------------
                                   TABLE 1
    -------------------------------------------------------------------------
    LOCATION     BOREHOLE    Depth from    Depth to    Corrected    Gold g/t
                                 (m)          (m)      width (m)
    -------------------------------------------------------------------------
    6500N/4850E    OT145         136          191        49.50        2.22
    -------------------------------------------------------------------------
                              Including
    -------------------------------------------------------------------------
                   OT145         136          140         3.60        6.38
    -------------------------------------------------------------------------
                   OT145         156          175        31.50        2.56
    -------------------------------------------------------------------------
                   OT145         175          191        14.40        3.76
    -------------------------------------------------------------------------
    6500N/4900E    OT88(*)       149          166        15.30        9.55
    -------------------------------------------------------------------------
                   OT88          209          212         2.70        2.05
    -------------------------------------------------------------------------
    6500/4950E     OT118         168          170         1.80        4.81
    -------------------------------------------------------------------------
                   OT118         205          210         4.50        0.84
    -------------------------------------------------------------------------
    6500N/5000E    OT87          213          220         6.30        0.55
    -------------------------------------------------------------------------
    6100N/4850E    OT141         209          213         3.60        1.41
    -------------------------------------------------------------------------
                   OT141         221          223         1.80        0.88
    -------------------------------------------------------------------------
                   OT141         266          232         5.40        0.88
    -------------------------------------------------------------------------
    6100N/4900E    OT126(*)      229          232         2.70       45.84
    -------------------------------------------------------------------------
                   OT126         245          265        18.00-       4.77-
    -------------------------------------------------------------------------
                              Including
    -------------------------------------------------------------------------
                   OT126         256          265         8.10        8.78
    -------------------------------------------------------------------------
    (*) Previously reported
    -------------------------------------------------------------------------
     -  Re-modeled
    -------------------------------------------------------------------------
    

    Positive Results from the Greater Otjikoto Exploration Area

    A high resolution SPECTREM(TM) airborne electro-magnetic ("SPECTREM(TM)
AEM") survey returned a number of geophysical targets in close proximity to
the current Otjikoto resource. TEAL completed a phase of nine shallow RC
boreholes to test these anomalies and encouraging results have been obtained,
which are considered significant in terms of the overall exploration
potential.
    The conclusion of the geological and geophysical interpretation, together
with the shallow percussion drilling and results already obtained, will
generate additional borehole targets aimed at identifying potential high tenor
zones of gold mineralization within the sheeted vein array.
    Menell added: "The current Greater Otjikoto area exploration results to
date have provided an early indication of the scale of the Otjikoto
mineralizing system and the potential for further discovery of value adding
resources".

    Regional Exploration Targets Recognized

    Four SPECTREM(TM) AEM targets have been identified from the phase 1
regional airborne geophysical survey that was conducted over a portion of
TEAL's extensive Otavi Exploration Area. The targets have been generated by a
specific geophysical response associated with favourable structural and
stratigraphic settings. Three of the four targets will be tested by direct
core drilling to commence during this current quarter. The fourth target is
related to a number of discrete geophysical conductors and will therefore be
explored initially by mapping and soil geochemistry with resultant anomalies
to be tested by drilling.

    Mr. Claus Schlegel, Pr. Sci. Nat. (No. 400149/90), TEAL's Vice President:
Exploration and Business Development, is the "qualified person" for the
content of this press release in terms of National Instrument 43-101.

    More information about TEAL is available at www.tealmining.com





For further information:

For further information: Julian Gwillim (VP: Investor Relations and
Corporate Development) on +27 (0) 82 4524 389, or julian@tealmining.com; or
Rick Menell (President and CEO) on +27 82 450 2301, or rick@tealmining.com

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