Initiates Studies FOR the Preliminary Economic Assessment FOR the High-Grade Xaudum Iron Project IN Botswana
TSODILO RESOURCES LIMITED
INITIATES STUDIES FOR THE PRELIMINARY ECONOMIC
ASSESSMENT FOR THE HIGH-GRADE XAUDUM IRON PROJECT IN
BOTSWANA
FOR IMMEDIATE RELEASE May 11, 2021
TORONTO, ONTARIO - Tsodilo Resources Limited ("Tsodilo" or the "Company") (TSX-
V: TSD) (OTCQB: TSDRF) (FSE: TZO) is pleased to provide an update on its wholly owned
Xaudum Iron Project. The Company has initiated geochemical analysis for grade determination
and geotechnical test-work for Rock Mass Rating (“RMR”) evaluation for the Preliminary
Economic Assessment (“PEA”) of its Xaudum Iron Formation (“XIF”) project.
The following analysis and test works will be conducted:
➢ 755 samples from 10 drill holes within the XIF Block 2 area have been sent to ALS
Chemex for analysis by:
• Element analysis by X-ray fluorescence (“XRF”) using borate fusion beads; and
• LOI by muffle furnace (Table 1);
➢ 34 samples from 7 drill holes representing the main XIF geological domains (Table 2)
have been sent for geotechnical laboratory test -work assessment to the Department of
Mining and Geological Engineering at the Botswana International University of
Science and Technology (BIUST), where:
• 18 samples will undergo Unconfined Compressive Strength (“UCS”) testing;
• 8 samples will undergo Brazilian Tensile Strength (Brazilian Test) testing; and
• 8 samples will undergo Direct Shear Strength tests on a sele ction of common
discontinuities.
Overview
Metallurgical results show that the XIF magnetite product is expected to be a premium product
containing 67% Fe which is preferable over lower grade iron ores (See, Press Release of
12/17/2013 on the Company’s website). These high -grade ores and products currently
command larger price premiums over standard ores (62% Fe) resulting in higher margins for
suppliers of high-grade products. Further to this, “cleaner” iron ores with a Fe content equal
to or greater than 65% use less coal per unit of steel and as such produce lower emissions. The
current global drive for lower emission steel production results in steel producers dramatically
increasing their demand for these high-grade green ores. As this shift towards green steel and
emission reduction continues the high grade XIF is uniquely place d to meet this emerging
market.
Preliminary work on the Xaudum Iron project has defined a CIM compliant Inferred Mineral
Resource Estimate of 441 million tonnes (Mt) with an average grade of 29.4% Fe, 41.0% SiO2,
6.1% Al2O3 and 0.3% P for the Block 1 mag netite XIF. Block 1 is a fraction of the potential
XIF magnetite resource. An extrapolated exploration target has defined the XIF to be in the
order of 5 to 7 billion tonnes at 15-40% Fe. This exploration target was generated by inversion
modelling of grou nd magnetic geophysical data which was compared and moderated to
volumes from drilling data within Block 1 and its potential quantity and grade is conceptual in
nature. To date, there has been insufficient exploration to define a mineral resource other than
in Block 1 and it is uncertain if further exploration will result in the target being delineated as
a mineral resource.
Tsodilo's Chairman and CEO, James M. Bruchs, commented “These results will be important
to the technical evaluation and economic understanding of the project and will be included in
the PEA. The iron ore market is entering a new “Super Cycle” based on improving
fundamentals and a healthy market and has recently recorded the highest price on record. This
encouraging market outlook coupled with the gathering pace of the green steel revolution
means that we are confident that the PEA will bring strong added value to the Company as we
develop this project towards mining.”
Iron Analysis
755 samples have been consigned for XRF ch emical assay to the ALS Chemex Minerals
Division Geochemistry laboratory ( ALS) in Johannesburg, South Africa for Fe analysis by
industry standard XRF borate fusion beads and LOI by muffle furnace . These samples
represent 1,230 meters of high grade XIF mineralization within the Block 2a area, see Table 1
for the details of these samples sent for assay.
Table 1. Table showing the drill holes and total meters of XIF mineralization
contained in the samples sent for assay. Also shown is the average density
and magnetic susceptibility for the Fe mineralization in these holes.
Hole ID From
(m)
To
(m)
Number of
Samples
XIF
Mineralization
(m)
Density
(g/cm3)
Magnetic
Susceptibility
(x10-3)
XIF0013V 18.0 150.0 78 108.0 3.18 642.7
XIF0015V 47.7 200.7 88 150.7 3.22 479.7
XIF0014V 48.0 201.0 92 166.0 3.23 578.0
XIF0017V 44.0 200.6 91 150.7 3.18 650.1
XIF0016V 35.6 185.2 90 147.2 3.19 406.1
XIF0010E_2 21.0 75.0 32 43.0 3.20 205.0
XIF0010W_1 9.3 201.0 113 208.7 3.26 609.6
XIF0011E_1 18.5 132.0 68 81.5 3.26 456.2
L9650_8 36.7 128.6 55 91.9 NA 513.5
L9630_15 77.7 160.2 48 82.3 NA NA
Totals /Average 755 1,230.0 m 3.22 536.6
Geotechnical Test-Works
34 samples from the main XIF geological domains that will comprise the majority of the
envisioned pit walls have been sent for geotechnical test-work to the Department of Mining
and Geological Engineering at BIUST.
Laboratory tests to be conducted:
• 18 samples will undergo Unconfined Compressive Strength (“UCS”) testing. UCS tests
the maximum axial compressive stress that a specimen can bear under zero confining
stress. USC testing is a common test to understand the rock strength of a sample, and
is widely used in geotechnical design for establishing an overall RMR for pit design;
• 8 samples will undergo Brazilian Tensile Strength testing. The Brazilian Test is a
common laboratory test to indirectly determine a rock's tensi le strength and is an
important parameter in establishing a robust RMR for pit design. The Brazilian Test is
the most widely used tensile strength test as the sample preparation and the testing
procedure are efficient compared to other tensile strength tests;
• 8 samples will undergo Direct Shear Strength tests on a selection of common
discontinuities to aid in the establishment of a robust RMR for pit design.
Table 2. Shows the breakdown of the geotechnical samples by Geodomain
and the test works to be performed
Geodomain UCS Brazilian Tensile
Strength
Direct Shear
Strength
Kalahari Overburden (KAS) 4
Diamictite schist (DIA) 5 4 4
Weathered Diamictite schist (DIA) 4
Banded magnetite (MBA) 4 4 4
Weathered Banded magnetite MBW) 1
Weathered magnetic diamictite schist (DMW)
Sub-Total 18 8 8
Total 34
Density and Magnetic Susceptibility
The samples sent for iron assay have been measured for density using the Archimedean method
of weighing dry and then weighing submerged in water. The average density for the Fe
mineralization in these holes can be seen in Table 1.
Magnetic susceptibility readings (Table 1) have been recorded on these samples providing an
instant first-order understanding of the mineralogy of the iron bearing rocks being drilled. Any
magnetic susceptibility readings over 100 (x10 -3) are considered high and indicate a high
proportion of magnetite where magnetite is the dominant magnetitic and iron bearing
component within the XIF.
About Botswana International University of Science and Technology
The Botswana International University of Science and Technology is a Government of
Botswana supported institution established as a research-intensive University that specializes
in Engineering, Science and Technology at both undergraduate and graduate (Mas ter’s and
Doctoral) levels.
The University is a national strategic initiative that is intended to serve as one of the key
platforms for transforming Botswana’s economy. Because of its research emphasis, BIUST
works with the private sector to meet emerging skills needs of the industry, as well as identifies
challenges that can be solved through applied research.
About ALS Chemex, South Africa
ALS is a global leader in providing laboratory testing, inspection, certification and verification
solutions with a reputation for providing quality analytical services to the global mining
industry in the fields of analytical chemistry, mineralogy and metallurgical testing, commodity
analysis and certification.
About the XIF Project
◊ the project is located in the North -West District of Botswana and is proximate to the
Namibian boarder and lies thirty (30) miles from the town of Divundu in Namibia. The
Trans Caprivi Railway (TCR) line linking Zambia and Namibia is planned to pass
through Divundu providing access to Walvis Bay, Namibia’s deep-sea port. The project
is also located within forty-three (43) miles of the proposed Mucusso line to Angola’s
Namibe Port;
◊ preliminary work on the Xaudum Iron project has defined a CIM compliant Inferred
Mineral Resource Estimate of 441 million tonnes (Mt) with an average grade of 29.4%
Fe, 41.0% SiO2, 6.1% Al2O3 and 0.3% P for the Block 1 magnetite XIF;
◊ Block 1 is a fra ction of the potential XIF magnetite resource. An extrapolated
exploration target has defined the XIF to be in the order of 5 to 7 billion tonnes at 15 -
40% Fe. This exploration target was generated by inversion modelling of ground
magnetic geophysical dat a which was compared and moderated to volumes from
drilling data within Block 1 and its potential quantity and grade is conceptual in nature.
To date, there has been insufficient exploration to define a mineral resource other than
in Block 1 and it is uncertain if further exploration will result in the target being
delineated as a mineral resource. See , Press Release of 9/14/2014 on the Company’s
website for further details;
◊ metallurgical magnetic separation results (Davis Tube Recovery) show an averag e
concentrate of 67.2% Fe, 4.2% SiO2, 0.5% Al2O3, 0.07% P is obtained at P80 grind
size of 80 microns, although higher grades are possible at finer P80’s . S ee, Press
Release of 12/17/2013 on the Company’s website;
◊ further exploration will be focused on Block 2 where the Company expects an increase
in the resource;
◊ the XIF Project is a potential large and long-life Tier 1 mining project;
◊ the PEA will evaluate a number of options for development of the project at a variety
of scales including:
➢ non-traditional but potentially profitable small-scale startup mining production
options such as Ferrosilicon (FeSi) production from a magnetite concentrate,
➢ mid-size scenarios, whereby magnetite concentrate would be processed through
a concentrator and transported to railhead and onto port facilities;
➢ large-scale mining options where full-scale mining would produce a magnetite
concentrate processed by a concentrator plant with further potential
modification to a pellet which would then be transported to port facilities;
◊ Botswana has significant coal reserves which can be a major advantage for the Xaudum
Iron project, allowing for coal to be used in the beneficiation process to generate iron
products such as iron pellets, sponge iron, pig iron, and also steel; and,
◊ the project would represent the first iron deposit to be considered for development in
Botswana. Gcwihaba has identified the project as having the potential to positively
impact the future economy of Botswana as the country looks to diversify its economy,
and help Botswana to reach its goal of moving away from a dependence on diamond
revenues.
For more information, refer to the technical report prepared by SRK Consulting (UK) Ltd. for
Gcwihaba Resources (Pty) Ltd. titled “Mineral Resource Estimate for the Xaudum Iron Project
(Block 1), Republic of Botswana” with an effective date of August 29, 2014 and filed on
SEDAR under the Company’s profile at www.sedar.com .
An informational presentation of the project can be found on the Company’s website at
www.tsodiloresources.com/i/pdf/3)-Tsodilo-Iron-Project-Overview_March-2021.pdf.
About Tsodilo Resources Limited
Tsodilo Resources Limited is an international diamond and metals exploration company
engaged in the search for economic diamond, metal deposits and industrial stone at its Bosoto
(Pty) Limited ("Bosoto"), Gcwihaba Resources (Pty) Limited ("Gcwihaba") and Newdico (Pty)
Ltd. ("Newdico) 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 ea rth)
prospecting licenses all located in the North -West district of Botswana. The Company has a
100% interest in its Newdico industrial stone project located in Botswana’s Central District.
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 Newdico, Gcwihaba, Bosoto and Idada projects. Overall supervision of the
Company's exploration program is the responsibility of Dr. Alistair Jeffcoate, Project Manager
and Chief Geologist 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 strateg ic 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 availab le 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 availa bility 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 o therwise. 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 variation s 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 mine ral 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 bus iness. 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 adequac y 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, man y 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:
James M. Bruchs Chairman and Chief Executive Officer [email protected]
Dr. Alistair Jeffcoate Project Manager and Chief Geologist [email protected]
Head Office Telephone +1 416 572 2033 Facsimile + 1 416 987 4369
Website http://www.TsodiloResources.com