TORONTO, ONTARIO - Tsodilo Resources Limited (“Tsodilo” or the “Company”) (TSX - Venture Exchange: (TSD)) is pleased to announce that it has completed its pilot hole drill program on its wholly owned BK16 kimberlite project . The purpose of this drilling program was to drill pilot holes on the sites
TSODILO RESOURCES LIMITED
BK16 UPDATE
FOR IMMEDIATE RELEASE June 26, 2017
TORONTO, ONTARIO - Tsodilo Resources Limited (“Tsodilo” or the “Company”) (TSX - Venture Exchange:
(TSD)) is pleased to announce that it has completed its pilot hole drill program on its wholly owned BK16
kimberlite project . The purpose of this drilling program was to drill pilot holes on the sites which have b een
earmarked for the Large Diameter Drill (LDD) drilling program.
BK16
The BK16 kimberlite project is located within the Orapa Kimberlite Fie ld (“OKF”) in Botswana. The diamond
mines in Botswana have produced an average of 27 million carats annually in the last 10 years and Botswana is the
world’s largest producer of diamonds by value. In 201 6, the OKF area produced 8.85 million carats. Of the 83
known kimberlite bodies, eleven have been or are currently being mined. These are AK01, AK02 and AK07 (Orapa,
Debswana), AK06 (Karowe, Lucara Diamond Corporation), BK01, BK09, BK12 and BK15 (Damtshaa, Debswana),
DK01 and DK02 (Letlhakane, Debswana) and BK11 (Firestone Diamonds). The Karowe mine has produced such
notable diamonds as the 1,109 carat `Lesedi La Rona` and the 813 carat `Constellation`.
The diamondiferous BK16 kimberlite pipe is approximately 6 hectares in size at surface, and is known to contain
rare and valuable Type I Ia diamonds (see press release dated May 31, 2016 ). The following phases of kimberlite
were identified during the 2015 drilling program: Red volcaniclastic kimberlite VK1, Black VK2, Grey VK3 and
VKxxx also referred to as the basalt breccia, country rock breccia (CB) and coherent kimberlite (CK1). A geological
model based on the 3,050 meters of core recover in 2015 was completed in 2016.
Pilot Hole Drill (‘PHD’) Program
Kimberlite phases VK2 and VK3 are volumetrically the most important and will be the focus of the Large Diameter
Drilling (“LDD”) program. The positioning of the initial 14 LDD holes was designed to provide grade estimates for
the main kimberlite phases as well as initial grade distribution across the kimberlite. Z Star Mineral Resource
Consultants (Cape Town, South Africa) were retained to optimize these objectives. The hole diameter of the LDD
holes will be 24-inch and the planned 14 holes will provide some 2,000 tons of kimberlite.
In order to correlate the diamond recoveries directly to the geological model and to ensure that the intersection of the
LDD holes are maximized it was necessary to probe all LDD sites with NQ size diamond core holes. The PHD
program as well as the earlier delineation drilling was conducted utilizing the Company’s Atlas Copco CT14
diamond core drill rigs. All bits used were of a Wuxi -Tsodilo design and contained only synthetic industrial
diamond. All pilot and delineati on core holes were logged in the field in detail according to a standard operating
procedure, describing each kimberlitic unit, measuring contacts between various units as well as kimberlite/country
rock contacts and brief descriptions of country rock. Mag netic susceptibility measurements were taken every 20
centimeters and the country rock dilution content was logged using the line point count method along the entire
kimberlite intersection. Core recovery and depth data were recorded as per standard operat ing procedure. Core
recovered from the pilot hole drilling is stored at the Company’s Letlhakane exploration camp. The core has been
labelled, photographed and the information captured in the Company’s database. Density (specific gravity)
measurements were done on the delineation core samples by taking a 20 to 30-centimeter length of core every 2
meters. The core was then coated in a thin film of varnish and the density was established using the Archimedes
method of weighing in air and in water. Additional samples for density measurements will be taken from the PHD
cores where the delineation drilling had not sufficient coverage.
The PHD program has now been completed and in total 3,220 meters were drilled and intersections were as follows:
PHD Program Meters Drilled Meters planned for
LDD drilling
Approximate kimberlite tonnage
recovered from LDD sampling
Kalahari Overburden 354 354 -
Kimberlite Phase
VK2 915 965 705
VK3 1,654 1,654 1,224
VKxxx 76 76 56
Country Rock Breccia 156 50 34
Country Rock 65 - -
Totals 3,220 3,099 2,019
Two holes in the center of the pipe will be extended by 25 m eters each to increase the sample size for VK2. A small
section of the country rock breccia will also be sampled to test its grade. The LDD contractor commenced operations
in May. In itial work consisted of collaring the 14 LDD holes immediately adjacent to the PHD holes to a depth of
22 meters using 30-inch casing. It is expected that this program will be completed in the second w eek of July after
which the contractor’s LDD Elephant rig will be deployed to drill and recover the kimberlite below the Kalahari
overburden using 24-inch holes.
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 Botswa na 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 in Botswana. The Company has a 100% stake in its Gcwiha ba
project area consisting of twenty-one (21) metal (base, precious, platinum group, and rare earth) prospecting licenses
and eight (8) radioactive mineral licenses all located in the North -West district of Botswana. Additionally, Tsodilo
has a 70% stake i n 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 progra m 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.
The Company has offices in Toronto, Canada and Gaborone and Maun, Botswana. Please visit the Compan y's
website, www.TsodiloResources.com, for additional information and background on our projects.
This press release may contain forward -looking statements. All statements, other than statements of historical fact,
that address activities, events or develo pments 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 pl ans, 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 numbe r 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 c onditions, 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, t he 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 securi ties 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 guarantees of future
performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty
therein.
Neither the TSX Venture Exchange (“TSXV”) nor i ts 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 regar ding 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 currentl y
anticipated in such statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
James M. Bruchs Chairman and Chief Executive Officer [email protected]
Dr. Mike de Wit President and Chief Operating Officer [email protected]
Head Office Telephone +1 416 572 2033 Facsimile + 1 416 987 4369
Website http://www.TsodiloResources.com