PEAK GOLD
ANNOUNCES AMAPARI RESOURCE AND EXPLORATION UPDATE
Vancouver, British Columbia, October 19, 2007 � Peak Gold Ltd. (PIK:TSX-V)
(�Peak Gold�) is pleased to announce a resource and exploration update for its
Minera��o Pedra Branca do Amapari gold mine (the �Amapari Mine�) in Brazil.
Mineral
Resource Update
Peak Gold is pleased to
announce an updated mineral resource estimate for the Amapari Mine as of
September 30, 2007. The updated estimate was completed in connection with the
preparation of a National Instrument 43-101 (�NI 43-101�) compliant technical
report for the Amapari Mine, expected to be filed with the Canadian securities
regulatory authorities and be available on SEDAR at www.sedar.com shortly.
The Measured and Indicated Mineral Resources estimated as of September 30, 2007
were 1.047 million contained ounces of gold compared to 1.156 million contained
ounces of gold estimated as of December 31, 2006. In addition,
Inferred Mineral Resources have increased to 1.351 million contained ounces of
gold estimated as of September 30, 2007 compared to 0.152 million contained
ounces of gold estimated as of December 31, 2006. The increase of approximately
1.2 million contained ounces of gold in the Inferred Mineral Resource category
is largely attributable to the Urucum and Tapereba
AB deposits. The following table
sets forth the estimated mineral resources for the Amapari Mine as of September
30, 2007:
Measured, Indicated and Inferred Mineral Resources as of September 30, 2007 (1)(2)(3)(4)
(1) The
mineral resources are classified as measured, indicated and inferred, and are
based on the current (2004) version of the Australasian Code for Reporting of
Mineral Resources and Ore Reserves (the �JORC Code�). The JORC Code has been
accepted for current disclosure rules in Canada under NI 43-101.
(2) Based on a gold price of US$600 per ounce.
(3) Based on a cut-off grade of 0.5 grams per tonne for the open pit and 2.1 grams per tonne for
the underground.
(4) Mineral resources that are not mineral reserves do not have demonstrated
economic viability.
The Resource statement includes all drilling results in the immediate mining
areas up to March 31, 2007. A
total of 38 drill holes were completed since the previous estimate of December
31, 2006. The method of estimation used was ordinary kriging. Resource
depletion from production at the Amapari Mine from January 1, 2007 to September
30, 2007 was 1.915 million tonnes at 2.00 grams of gold per tonne for a total of 123,997 ounces of
gold.
The geological model was prepared under the supervision of Mr. Jones, MAIG at
Amapari Mine. The updated mineral resource estimate was prepared under the
supervision of Mr. Henry, CP AusIMM from AMEC International (Chile) S.A., who is an independent
qualified person as defined by NI 43-101. Mr. Henry has reviewed and approved
the contents of the above resource statement.
Exploration Update
Peak Gold has been focusing its
exploration efforts at the Amapari Mine around existing open pits and the Vila do
Meio deposit near the mine. A total of 2,700 metres of
diamond drilling was completed in 18 holes in the Vila do Meio deposit to infill and extend the
high grade zone that was discovered in 2006. Infill holes have been drilled at
approximately 20 metre
spacing along 100 metres
of strike length. The Vila
do Meio deposit represents a good open pit opportunity
for the mine. The information below highlights some of the significant results
of the new drill holes and major target areas (all true width):
Peak Gold is continuing efforts in its cost reduction program at the Amapari
Mine which is expected to improve the overall financial performance of the mine.
�There is tremendous growth opportunity at Amapari and management is confident
that we will deliver on key strategies to reduce cash cost, extend the mine
life, and create greater shareholder value,� said President and Chief Executive
Officer of Peak Gold, Julio Carvalho.
Peak Gold is a new intermediate gold producer with a strong foundation for
growth. With a solid approach to acquisition and a commitment to value, Peak
Gold�s goal is to significantly increase production by 2008. To learn more
about us, please visit our website at www.peakgold.com.
The TSX
Venture Exchange does not accept responsibility for the adequacy or accuracy of
this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This News Release contains �forward looking statements�,
within the meaning of applicable Canadian Securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to the
future price of gold and copper, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and amount
of estimated future production, costs of production, capital expenditures,
costs and timing of the development of new deposits, success of exploration
activities, permitting time lines, currency exchange rate fluctuations,
requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. Generally, these
forward looking statements can be identified by the use of forward-looking
terminology such as �plans�, �expects�, or �does not expect�, �is expected�,
�budget�, �scheduled�, �estimates�, �forecasts�, �intends�, �anticipates�, or
�does not anticipate�, or �believes�, or variations of such words and phrases
or state that certain actions, events or results �may�, �could�, �would�,
�might� or �will� or �will be taken�, �occur� or �be achieved�. Forward-looking
statements are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or
achievements of Peak Gold to be materially different from those expressed or
implied by such forward-looking statements, including but not limited to: risks
related to the integration of acquisitions; risks related to international
operations; actual results of current exploration activities; actual results of
current reclamation activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices of gold and
copper; possible variations in ore reserves, grade or recovery rates; failure
of plant; equipment or processes to operate as anticipated; accidents; labor disputes and other risks of the mining industry;
delays in obtaining governmental approvals or financing or in the completion of
development or construction activities, as well as those factors discussed in
the section entitled �Risk Factors� in Peak Gold�s Filing Statement dated April
2, 2007, available at www.sedar.com. Although Peak Gold has attempted to
identify important factors that would cause actual results to differ materially
from those contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated, or intended. There can
be no assurance that such statements will prove to be accurate. As actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking that are incorporated by reference
herein, except in accordance with applicable securities laws.
For further information, please contact:
Investor Relations, Vanguard Shareholder Solutions
Toll Free: 1-866-398-1088
Email: ir@vanguardsolutions.ca
website: www.peakgold.com
Peak
Gold
Vanguard Shareholder Solutions
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client(s). The information contained in this email is based on existing disclosure
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purchase or sale of securities.
