Vancouver, Canada (ots/PRNewswire)
- The Company is pleased to
report that it has submitted a patent application under international
intellectual property laws pertaining to an internally-developed
biogeochemical protocol for mineral exploration.
The patent application covers species selection, field sampling
techniques, the training of samplers, data recording and a number of
This geochemical protocol has successfully confirmed the presence
of gold values beneath overburden in the Lake Victoria Greenstone
Belt ("LVGB") of Tanzania.
According to Tan Range Chairman and CEO, Jim Sinclair, "We have
proved that the technique works in areas with known gold potential
and are now busy applying this effective protocol elsewhere in the
"Tan Range has a huge 121 mineral licenses, approximately 8000
square kilometer, land position in this world-class greenstone belt.
The Company's evaluation of its mineral potential, as all companies
in the LVGB, has been hindered somewhat by the presence of extensive
overburden. We have good reason to believe that this protocol will -
in conjunction with other exploration techniques - allow us to
quickly and at significantly lower cost establish mineral potential
and develop drill targets on our holdings under surface cover. Under
deep mbuga soil common in Tanzania where no other technique at a
rational costs applies, this protocol functions effectively, quickly
and cheaply," he said.
Six studies have been conducted over known gold deposits in the
Lake Victoria region and the Company is confident that
biogeochemistry will also be effective in identifying elements that
commonly occur in diamondiferous kimberlites.
Sinclair noted that the Company's improved target selection
capability has been further enhanced with the purchase of a
combination RAB/RC (Rotary Air blast/Reverse Circulation) drill which
should be fully operational in the LVGB in February of 2005.
"I am confident that biogeochemistry will enable the Company's
technical staff to increase their confidence level in established
targets and identify new ones that will be further evaluated with
conventional exploration techniques prior to drilling. It has been
the company's business plan to deal on a royalty basis a significant
amount of mineral licenses, acquire a quite large package of
prospective mineral properties based on established exploration
protocol then with our own custom designed drill equipment, drillers
and unique application of biogeochemistry cover fully this land mass.
I feel that with the success of this strategy the protocol itself and
sample preparation laboratory in Mwanza will have meaningful value as
a profit centre."
Sinclair emphasized that the patent application development is
part of a broader strategy for the creation of a gold and diamond
royalty company that will be uniquely positioned to capitalize on
rising commodity prices. "We intend to become a financial company
that will see payments under its various royalty agreements escalate
with rising commodity."
"Rather than purchase production royalties on the open market I
firmly believe we can discover economic mineral deposits more cheaply
on our own and with the assistance of well-heeled industry partners.
Our most recent corporate initiatives in the field of biogeochemistry
and the purchase of a new drill rig will facilitate and hasten this
process," he said.
Sinclair added that the primary thrust of management "has been to
optimize the Company's assets in the LVGB to facilitate the discovery
of economically viable mineral deposits." In order to accomplish
this, the Company has negotiated option agreements with qualified
industry partners that will generate work commitment payments in the
early stages of exploration, escalating annual rental payments, plus
advanced royalty payments and sliding scale royalty income at full
production, he noted.
In selecting this particular strategy, Sinclair emphasized that
the Company will avoid excessive dilution of shareholders' equity
that is typically associated with meeting the capital obligations of
mine development as a fully participating partner.
As a royalty holder, however, the Company also has a flexible
revenue stream (cash or gold), immediate payment upon production, low
overhead costs (because it is not involved in mining or mineral
processing), royalty payments that are not affected by higher
operating costs and inflation, and a direct interest in any
exploration upside free of capital obligations.
"It's a wonderful, yet uncommon, recipe for success. I know of no
other company having taken this route nor on such a scale," he said,
adding: "We've pulled out all the stops to ensure the realization of
our strategy unfolds in a manner that will allow all shareholders to
benefit in a period of rising commodity prices. I envision, assuming
continued success, a financial company with an income stream based on
escalating scale royalties agreements developed out of exploration
using standard and unique exploration protocols being considered in
the market place as a proxy for commodity price inflation that
results from major reserve currency depreciation as has occurred in
general commodity prices and US dollar recently.
On Behalf of the Board of Directors
"James E. Sinclair" Chairman and Chief Executive Officer
The Toronto Stock Exchange has not reviewed and does 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
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ots Originaltext: Tan Range Exploration Corporation
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