Tanzanian Royalty Identifies High Grade Gold Shoots In RC drilling Program at Kigosi Project



    Trade Symbol:
    TSX: TNX
    AMEX:   TRE

    VANCOUVER, Sept. 24 /CNW/ - Tanzanian Royalty is pleased to announce that
a Phase 3 Reverse Circulation (RC) drill program has confirmed the presence of
several high grade gold shoots within two previously established shear zones
at the Company's Kigosi Project in the Lake Victoria Goldfields of Tanzania.
    According to Tanzanian Royalty President, John Deane, "We can now confirm
the existence of up to six high grade shoots within the two reef systems
reported last year, namely the Luhwaika Main and Luhwaika West Reefs."
    "These are the highest grade drill results reported so far from the
Kigosi Project which the Company is advancing at a very rapid pace," noted
Tanzanian Royalty's Chairman and CEO, Jim Sinclair,
    Among the higher grade gold intercepts was 2.0 metres grading 34.25 g/t
(1.0 oz/ton) in hole KG20RC-244; 2.0 metres at 7.25 g/t (0.21 oz/ton) in hole
KG20RC-237; 2.0 metres averaging 6.65 g/t (0.2 oz/ton) in hole KG20RC-164;
1.0 metre averaging 13.15 g/t (0.38 oz/ton) in hole KG20RC-204; and 1.0 metre
grading 7.31 g/t (0.21 oz/ton) in hole KG20RC-217.
    Sinclair said the Company was "highly encouraged by the widespread
distribution of gold values within the two shear zones" and he pointed out
that "drilling was continuing in an effort to identify additional shoots along
the established mineralized trend."
    Kigosi remains a standalone project within the Company's large portfolio
of mineral properties in Tanzania and is being developed exclusively in-house.
    The objective of the Phase 3 program was to test the strike continuity of
the Luhwaika reef system to the southeast, to infill drill the mineralization
previously identified towards the northwest, and finally to establish the
controls and trends for gold mineralization that extends along a strike length
of 900 metres.
    The Phase 3 drill program consisted of 126 holes aggregating
5,362 metres, bringing the total drilled metres at Kigosi to 10,015 in
249 holes. Drilling was conducted along eight control lines with a central
baseline having a strike length of 2.8 kilometres. The two shear zones hosting
the high grade shoots have been traced along a strike length of
1.2 kilometres. Both shear zones remain open towards the northwest where an
Induced Polarization (IP) survey indicates they could extend for at least
4.0 kilometres along strike.
    The near surface shoots, which have been drilled to vertical depths of
less than 70 metres, exhibit a shallow westerly plunge (approx 5 degrees) and
a strike of between 300 and 310 degrees. Below is a summary of the shoot
statistics followed by a table of drill results.
    The results presented below include the most significant gold
mineralization intersected by drilling on eight lines ranging from
300-600 metres in length.

    
    -------------------------------------------------------------------------
                       No. of                  Thick-
    Shear       Shoot    RC    Length   Width  ness    Grade       Comments
    System       Name   holes  (m)(1)  (m)(2) (m)(3)   (g/t)
    -------------------------------------------------------------------------
    Luhwaika    Falcon    4   greater   10-20   1-2   2.59-8.83  Open to west
     Main                    than 550
    -------------------------------------------------------------------------
    Luhwaika   Bateleur  15   greater   10-20   1-3  1.99-34.25  Open to west
     Main                    than 1100
    -------------------------------------------------------------------------
    Luhwaika    Eagle     7     450     10-20   1-2   2.10-6.65     closed
     Main
    -------------------------------------------------------------------------
    Luhwaika   Flamingo   2   greater     10     1    3.96-4.46  Open to west
     West                    than 400
    -------------------------------------------------------------------------
    Luhwaika   Pelican    7     500     10-30   1-2  2.77-16.46     closed
     West
    -------------------------------------------------------------------------
    Luhwaika  Albatross   1   greater     ?      1      20.30    Open to west
     West                    than 100
    -------------------------------------------------------------------------
      (1) Horizontal length of shoot projected to surface
      (2) True width of shoot within the shear zone
      (3) Range of thicknesses carrying gold in shoot
    

    The shoots are separated by lower grade (less than 2g/t) envelopes that
are between 10 and 30 metres wide along the plane of the shear zones.
    A Phase 4 drill program is currently focused on drilling out the two main
reefs and their gold bearing shoots towards the northwest. At least
4,000 metres of drilling is planned for this next phase of drilling. The
Company is also completing additional IP gradient surveys at Kigosi where a
further three parallel chargeable zones have been discovered to date within
the vicinity of the Luhwaika workings.
    A summary of the Phase 3 drill highlights is given below:

    
    -------------------------------------------------------------------------
    Hole No.     From    To  Intercept  Gold    Including      Comments
                  (m)    (m)    (m)      g/t
    -------------------------------------------------------------------------
    Line 1250N
    -------------------------------------------------------------------------
    KG20RC-164     3      5      2      6.65                    Gravels
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Hole No.     From    To  Intercept  Gold    Including      Comments
                  (m)    (m)    (m)      g/t
    -------------------------------------------------------------------------
    Line 1350N
    -------------------------------------------------------------------------
    KG20RC-132     4      6      2      1.77                   Main Zone
    -------------------------------------------------------------------------
    KG20RC-136    21     22      1      2.01                   Main Zone
    -------------------------------------------------------------------------
    KG20RC-137    35     37      2      1.71                   Main Zone
    -------------------------------------------------------------------------
    KG20RC-138    47     48      1      1.81                   Main Zone
    -------------------------------------------------------------------------
    KG20RC-139     2      5      3      1.15                   Main Zone
    -------------------------------------------------------------------------
    KG20RC-139    36     38      2      1.15                   West Zone
    -------------------------------------------------------------------------
    KG20RC-139    62     63      1      3.93              Main Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-140     1      5      4      0.75                   West Zone
    -------------------------------------------------------------------------
    KG20RC-140    78     84      6      0.77                   West Zone
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Hole No.     From    To  Intercept  Gold    Including      Comments
                  (m)    (m)    (m)      g/t
    -------------------------------------------------------------------------
    Line 1510N
    -------------------------------------------------------------------------
    KG20RC-143     1      3      2      1.67                    Gravels
    -------------------------------------------------------------------------
    KG20RC-144     0      3      3      1.61                    Gravels
    -------------------------------------------------------------------------
    KG20RC-145     2      5      3      1.80                    Gravels
    -------------------------------------------------------------------------
    KG20RC-146    11     13      2      7.47              Main Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-148    32     35      3      1.28                   Main Zone
    -------------------------------------------------------------------------
    KG20RC-150    66     68      2      1.43                   Main Zone
    -------------------------------------------------------------------------
    KG20RC-151    79     81      2      1.92                   Main Zone
    -------------------------------------------------------------------------
    KG20RC-153     1      7      6      0.92  1m@3.22   West Zone in shoot
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Hole No.     From    To  Intercept  Gold    Including      Comments
                  (m)    (m)    (m)      g/t
    -------------------------------------------------------------------------
    Line 1750N
    -------------------------------------------------------------------------
    KG20RC-188     0      2      2      3.54                    Gravels
    -------------------------------------------------------------------------
    KG20RC-189     0      2      2      2.29                    Gravels
    -------------------------------------------------------------------------
    KG20RC-190     0      1      2      1.52                    Gravels
    -------------------------------------------------------------------------
    KG20RC-195    27     29      2      3.59              Main Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-196    36     37      1      2.00              Main Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-197     0      5      5      0.74                    Gravels
    -------------------------------------------------------------------------
    KG20RC-201    11     13      2      2.41              West Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-202    22     25      3      1.07                   West Zone
    -------------------------------------------------------------------------
    KG20RC-204    44     47      3      4.66  1m@13.15  West Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-205    59     61      2      0.94                   West Zone
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Hole No.     From    To  Intercept  Gold   Including       Comments
                  (m)    (m)    (m)      g/t
    -------------------------------------------------------------------------
    Line 1850N
    -------------------------------------------------------------------------
    KG20RC-171     0      3      3      2.10                   Gravels
    -------------------------------------------------------------------------
    KG20RC-176     0      2      2      1.45                   Gravels
    -------------------------------------------------------------------------
    KG20RC-176     5      6      1      6.09             Main Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-177    14     16      2      1.62                  Main Zone
    -------------------------------------------------------------------------
    KG20RC-178    26     28      2      2.60  1m@4.47   Main Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-184    18     22      4      0.94                  West Zone
    -------------------------------------------------------------------------
    KG20RC-185    33     34      1      1.20                  West Zone
    -------------------------------------------------------------------------
    KG20RC-186    43     46      3      2.73             West Zone in shoot
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Hole No.     From    To  Intercept  Gold   Including       Comments
                  (m)    (m)    (m)      g/t
    -------------------------------------------------------------------------
    Line 1950N
    -------------------------------------------------------------------------
    KG20RC-217    19     28      9      1.71  1m@7.31   Main Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-218    40     42      2      1.26                  Main Zone
    -------------------------------------------------------------------------
    KG20RC-226    37     38      1      1.46                  West Zone
    -------------------------------------------------------------------------
    KG20RC-227    45     52      7      1.15  2m@2.27     West Zone
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Hole No.     From    To  Intercept  Gold   Including      Comments
                  (m)    (m)    (m)      g/t
    -------------------------------------------------------------------------
    Line 2150N
    -------------------------------------------------------------------------
    KG20RC-237     2      6      4      4.13  2m@7.25   Main Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-238     3      5      2      1.37                   Gravel
    -------------------------------------------------------------------------
    KG20RC-239     3      6      3     14.21                   Gravel
    -------------------------------------------------------------------------
    KG20RC-244    44     50      6     12.80  2m@34.25  Main Zone in shoot
    -------------------------------------------------------------------------
    KG20RC-245    55     58      3      1.12                  Main Zone
    -------------------------------------------------------------------------
    KG20RC-249     0      3      3      1.50                   Gravel
    -------------------------------------------------------------------------
    

    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).

    Analysis

    Fire assay with flame AAS finish was conducted by SGS Laboratories in
Mwanza. Duplicates and Standards were inserted in the sample stream
approximately every 20 samples. The duplicates have a correlation coefficient
of 91%, which is accounted for by the large nugget effect within the sampling.
17% of the standards from SGS fall outside the acceptable 3rd standard
deviation. Due to this, to validate the assay results 80% of the high gold
values were sent to Humac Laboratories as a check. The Humac fire assay
results gave a 87% correlation with the SGS results and the Humac aqua regia
gave a 92% correlation with the SGS results. This is considered acceptable.
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.

    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 Sinclair"

    James E. Sinclair
    Chairman and Chief Executive Officer

    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.





For further information:

For further information: Investor Relations at 1-800-811-3855; Visit our
website: www.TanzanianRoyaltyExploration.com

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