RED BACK ANNOUNCES MAJOR
EXPANSION PLANS FOR TASIAST GOLD MINE IN MAURITANIA
December 3, 2007 (RBI - TSX)
… Red Back Mining Inc. (the “Company” or
“Red Back”) is pleased to provide an
update on its 100% owned Tasiast Gold Mine in Mauritania.
Red Back successfully completed the
purchase of Tasiast on August 2, 2007. Commissioning of the Tasiast plant
is continuing with commercial production on track for January, 2008. The
plant is currently operating on a batch basis awaiting the installation of new
crushers. The new crushers have been ordered, are on route to site, and
will be installed in December, 2007.
Since the Company took ownership of
Tasiast, 148,000 tonnes of ore have been batch treated at a head grade of
4.44g/t and 96% recovery, resulting in production of 20,138 ounces of
gold. It is anticipated that approximately 23,000 ounces will be produced
by year end. Going forward, budgeted production at Tasiast for 2008 is
100,000 to 110,000 ounces.
Based on positive results from the
ongoing resource conversion drill program, the Board of Directors of Red Back
recently approved an expansion of the Tasiast plant from 1 million tonnes per
annum (mtpa) to approximately 1.8 mtpa. Orders have now been placed for
long lead time items, including a second ball mill and related equipment. This
equipment is scheduled to arrive at site in the third quarter of 2008.
Upon completion, expanded operations at Tasiast are expected to produce
+180,000 ounces per annum. Combined with the approved expansion at the
Chirano Mine in Ghana
(news release dated November 21, 2007), Red Back’s production will grow
to +400,000 ounces of gold per annum in 2010.
Exploration at Tasiast is currently
focussed on an 18,000m RC drill program aimed at infill and extension of the
main Piment Zone. This program will be complete in February, 2008 and a new
resource estimate will be reported. The Company expects to release the
updated resource estimate by the end of the first quarter, 2008.
Red Back Mining Inc. is an unhedged African
focused gold producer. It owns and operates the Chirano Gold Mine in Ghana and the Tasiast Gold Mine in Mauritania.
At Chirano, the Company is expanding its current operations through development
of newly discovered high grade underground resources. At Tasiast, gold
production has commenced with commercial production anticipated in the first
quarter of 2008. In addition, Red Back is continuing an aggressive exploration
program to increase its resource and reserve base at both projects.
The technical contents of this release have
been reviewed and verified by Hugh Stuart,
BSc., MSc, a Qualified Person pursuant to NI-43101. Mr. Stuart is the VP -
Exploration of the Company and a Member of the Australasian Institute of Mining
and Metallurgy.
This News Release contains forward looking
statements which are subject to a variety of risks and uncertainties which
could cause actual events or results to differ materially from those reflected
in the forward looking statements. The Company does not intend to update this
information and disclaims any legal liability to the contrary.
On Behalf of the Board of Directors:
Richard P. Clark, President
For further information, please contact Sophia Shane at 604-689-7842