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Tanzanian Royalty Announces High Grade Gold Results From 1.2 Mile Long Quartz Rubble Bed on Lunguya Mining Licenses

19.11.2010  |  Business Wire


Tanzanian Royalty Exploration Corporation is pleased to announce that
extremely positive results have been received from laboratory test work
on surface gravels collected from its recently acquired Lunguya
Primary  Mining  Licenses (PMLs) in northern Tanzania.


The laboratory test work was intended to establish the mineralogical
(physical) characteristics of gold contained within an extensive
auriferous (gold bearing) quartz rubble bed identified at Lunguya, along
with suitable gravity-based recovery methods to extract gold from the
gravels which are essentially broken and fractured surface rock.


The newly acquired licenses are associated with the Company's Lunguya
Gold Project which is situated within the Kahama District of the United
Republic of Tanzania.


In July 2010, the Company acquired two active PMLs that now form the
core of its Lunguya Gold Prospect. Preliminary fieldwork on these PMLs
has thus far established the presence of a substantial gold-mineralized
surface quartz rubble bed along a strike length of 2,000 metres (1.2
miles) with an average width of 200 metres. These type beds are often
associated with major gold deposits in the Lake Victoria Greenstone Belt
of Tanzania.


The objectives for the laboratory test work were threefold: Conduct a
grade analysis based on the size of the gravel particles in order to
establish the average gold grade and distribution of gold values
relative to the particle sizes of the gravels; the second was to
understand the mineralogical associations of the gold mineralization
(i.e. physical attributes of the gold-bearing minerals); while the third
objective was to understand the nature and mode of occurrence (including
the size fractions in which most of the gold occurs) of the
gravity-recoverable gold in the sample material. Results from this work
will assist with the preliminary establishment of cost effective methods
to recover gold from this potentially economic rubble deposit.


The Company′s immediate plans are to conduct further detailed evaluation
of this quartz rubble zone through close-spaced pitting and trenching
(bulk sampling) and Reverse Circulation (RC) drilling for reef and
resource definition purposes.


Highlights from the metallurgical test work on the bulk sample include:

1. Chemical analysisof sample materialreturned
values of 3.58g/t, 5.75g/t, 2.33g/t and 3.31g/t, giving an average  'head
grade? for gold  of  3.74g/t.  (The 'head grade?
refers to the average grade of the material submitted for processing and
analysis).

2. Gold grading analysis  for sample material with a head grade
of  3.38g/t  indicated the presence of substantial gold in all size
fractions (particle sizes). Significantly 26% of the gold  was confined
to the 25 micron  fraction (a micron is one-millionth of a metre or
approximately .00004 inch),  20%  reported to the  +25 to + 53
micron  fraction,  12%reported to the  +75
micron  fraction,  28%  reported to the  +106micron  fraction
and  14%to the  + 212 micron  fraction. This is considered
significant because free gold can lie in the finer size fractions and is
amenable to concentration using enhanced gravity separation techniques.


As a matter of explanation, the distribution of gold based on particle
size is of major importance in mineral processing. The behavior of
particles in crushing and grinding circuits, concentration operations,
and solid-liquid separations is strongly dependent on size. Determining
the distribution of gold particles in their respective particle sizes
facilitates the gold recovery process.

3. Heavy Liquid Separation (HLS) analysis,a laboratory
technique for separating gold particles by allowing them to settle
through, or float above, a fluid of intermediate density, indicated that
the gold is significantly amenable to gravity upgrading with  55% of the
gold  and only 3% of the sample mass reporting to HLS sinks (i.e.
settling through the intermediate density fluid).

4. Gravity separation analysis  indicated that a significant
proportion of the gold is extractable using a Falcon Gravity Separator
(an enhanced gravity separation device) with  54% of the gold  and only
1.4% of the sample mass reporting to gravity concentrate.

5. Mineralogical composition of the gold ore  is 76% quartz, 13%
kaolinite and minor amounts of feldspars, chlorite, muscovite and
zircon. Sulphide mineralization associated with the gold includes trace
amounts of pyrite, galena, bismuthinite, chalcopyrite/bornite and
chalcocite. No refractory issues with respect to the ore grade
mineralization have been identified.

6. Analytical workon the gravity concentrate  shows
that up to 98% of the gold is native with variable amounts of
silver-sulphide, silver-copper-sulphide and silver-telluride phases.

7. Testing indicated that 97% of the gold in the gravity
concentrate  is well exposed and it is expected that intensive
cyanidation of the gravity concentrate will lead to gold recoveries
(from the concentrate) of up to 100%.


'The high grade nature of these loose rubble beds together with the
relatively high degree of liberation and availability of the gold
indicated by these results is highly encouraging to say the least,' said
Joseph Kahama, Tanzanian Royalty′s President.


'While the results of this early work cannot be considered definitive at
this point, these tests have demonstrated that the Lunguya surface
rubble zone assessed to date is amenable to producing economic gold
recoveries using standard and basic gravity-based ore dressing processes
that can then be further enhanced with other relevant chemical-based
extractive technologies on the gravity concentrate.'

Analysis


The preliminary, diagnostic metallurgical test work (SGS Mineralogical
Report No: MIN0810/136) was completed on a composite bulk sample of
surface rubble approximately 45kg in weight. The sample was
stage-crushed to achieve 100% passing 1.7mm. 10kg of the crushed
material of each sample was subsequently milled to 50% passing -75micron
mesh. Grading analysis was conducted on a 500g split (of 50% -75microns)
of which six size fractions (+212micron, -212/+106micron,
-106/+75micron, -75/+53micron, -53/+25micron & -25micron) were
individually produced and assayed independently. Concentrates and
tailings from 2 x 4kg of each sample generated by gravity separation
using a Falcon Gravity Separator were assayed in order to calculate the
overall gold distribution.

Qualified Person(s)


The preliminary metallurgical test work program was conducted by
Mineralogist L. L. Coetzee of SGS Laboratory in South Africa under the
supervision of Senior Mineralogist Solly J. Theron. The planning,
execution and monitoring of quality control programs at the Lunguya Gold
project are under the supervision of Mr. Peter T. Zizhou, P.Geo. and
Riaan Van der Weisterhuizen, Tanzanian Royalty′s Senior Vice President.
Mr. Zizhou is a qualified person with SACNASP (Reg. No.400028/08)  as
defined by National Instrument 43-101. Tanzanian Royalty Exploration
Corporation utilizes an industry standard  protocol with respect to
sampling procedures. Blanks and certified reference standards are
inserted into the sample stream to monitor laboratory performance and
duplicates of pulps and bulk rejects are also used to monitor laboratory
performance.


Additional information and public documents about Tanzanian Royalty
Exploration Corporation, including drill hole intercepts, drill collar
maps, and images of 2007-2009 exploration activities, can be viewed at
the Company's website  www.TanzanianRoyaltyExploration.com.


Respectfully Submitted,

Joseph Kahama


Joseph Kahama


President


For further information, please contact Investor Relations at
1-800-811-3855


Visit our website: www.TanzanianRoyaltyExploration.com


The Toronto Stock Exchange and NYSE Amex Equities 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 limits disclosure for U.S. reporting purposes to
mineral deposits that a company can economically and legally extract or
produce. We use certain terms on this news release, such as 'reserves?,
'resources?, 'geologic resources?, 'proven?, 'probable?, 'measured',
'indicated', or 'inferred' which may not be consistent with the reserve
definitions established by the SEC.
U.S. Investors are urged to
consider closely the disclosure in our Form 20-F, File No. 001-32500.
You can review and obtain copies of these filings 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. 001-32500, for more information concerning these
risks, uncertainties, and other factors.

Tanzanian Royalty Exploration Corporation

Connecticut
Office:


Tel: 860-364-1830

Fax: 860-364-0673

or

South
Surrey Office:

Toll Free: 1-800-811-3855

Tel: 604-536-7873

Fax:
604-536-2529

Email: investors@TanzanianRoyaltyExploration.com

Website:
www.TanzanianRoyaltyExploration.com



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