Good afternoon!
Please
find enclosed a news release issued this afternoon. If you have any
questions or require further information, please do not hesitate to call.
Best
regards,
Sophia Shane
Ph.
604-689-7842
RED BACK CLOSES
PURCHASE OF TASIAST GOLD MINE
August 2, 2007... (RBI – TSX)
– Red Back Mining Inc. (the “Company” or
“Red Back”) reports
that it has exercised its option to acquire a 100% interest in the Tasiast gold
mine and significant exploration acreage located in Mauritania,
West Africa, from Lundin Mining Corporation
(“Lundin”).
The Company has paid the purchase price (US$225
Million) to Lundin, paid out the Tasiast debt facility with Macquarie Bank
Limited (US$42.5 million plus US$0.3 million interest) and retired the gold
hedging structure (US$10.1 million).The result is that the Company is now the
100% owner of Tasiast, which is debt free and unhedged.
The Tasiast gold mine was officially
opened by the President of Mauritania, His Excellency Sidi Mohamed Ould Cheikh
Abdallahi, on July 18, 2007 with representatives of the Company in attendance. Tasiast
is in the commissioning process with commercial production expected early in the
fourth quarter of 2007. Initial annual production rates are scheduled at 108,000
ounces of gold at an average grade of 3.25 g/t.
The Tasiast deposit is within an extensive gold system
that is largely under-explored. The deposit is open along strike and at
depth. Tasiast is the first mine in the highly prospective 70 kilometre
long by 15 kilometre wide north-south trending Archaen age Aoueouat greenstone
belt, which is geologically similar to other Archaen greenstone belts in the
world that host major gold deposits. The Tasiast property covers a 60 kilometre
strike length of the Aoueouat greenstone belt, virtually encompassing an entire
mining district in the country.
Mineral reserves at Tasiast are
currently 11,984,000 tonnes @ 2.7 g/t Au for 1,040,000 contained ounces (News
Release July 17, 2007). An extensive exploration program is underway at Tasiast
and will be expanded by the Company towards converting Inferred resources
(18,633,000 tonnes @ 1.94 g/t Au containing 1,165,000 ounces gold) into mineral
reserves. A new resource/reserve estimate for Tasiast is expected in the first
quarter of 2008. Concurrently, the Company will conduct an engineering review
at Tasiast towards a near term expansion of processing capacity.
Richard Clark, President and CEO of Red Back,
commented, “We are very pleased with the acquisition of Tasiast. This
represents the first step in an aggressive growth strategy by the Company. The
next steps are the development of the first underground operation at the Chirano
gold mine in Ghana,
the expansion of the Chirano processing facility, increasing resources and
reserves at Tasiast, and the expansion of the Tasiast plant. The successful
realization of these programs over the next 12-24 months will establish the
Company as a significant mid-tier gold producer, well positioned for even further
growth.”
The Company is well funded to continue its growth
objectives. After the Tasiast purchase the Company has approximately US$75 million
in cash and only US$19 million in debt.
The technical contents of this
release have been reviewed 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.
FORWARD-LOOKING
INFORMATION
This press release contains
“forward-looking information” that is based on Red Back’s
current expectations, estimates, forecasts and projections. This
forward-looking information includes, among other things, statements with
respect to Red Back’s plans, outlook and business strategy. The
words “may”, “would’, “could”,
“should”, “will”, “likely”,
“expect’, “anticipate”, “intend”,
“estimate”, “intend”, “plan”,
“forecast”, “project”, “estimate” and
“believe” or other similar words and phrases are intended to
identify forward-looking information.
Forward-looking information is
subject to known and unknown risks, uncertainties and other factors that may
cause Red Back’s actual results, level of activity, performance or achievements
to be materially different from those expressed or implied by such
forward-looking information. Such factors include, but are not limited
to: uncertainties related to drilling results; the ability to raise
sufficient capital to fund exploration; changes in economic conditions or
financial markets; changes in prices for Red Back’s mineral products or
increases in input costs; litigation, legislative, environmental and other
judicial, regulatory, political and competitive developments; technological or
operational difficulties or inability to obtain permits encountered in
connection with exploration activities; and labour relations matters.
This list is not exhaustive of
the factors that may affect our forward-looking information. These and
other factors should be considered carefully and readers should not place undue
reliance on such forward-looking information. Red Back disclaims any
intention or obligation to update or revise forward-looking information,
whether as a result of new information, future events or otherwise.
ON
BEHALF OF THE BOARD
(signed)
“Richard P. Clark,”
President
For further
information, please call Sophia Shane
at (604) 689-7842.