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24TH
Floor - 1111 W. Georgia St.
Vancouver, BC,
Canada V6E 4M3
Phone: 604.685.5492
Fax:
604.685.2536
www.buffalogold.ca
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Trading Symbol: TSXV – BUF.U
OTC\BB –
BYBUF
FWB – B4K
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BUFFALO GOLD RELEASES NEW RESOURCE
ESTIMATE FOR MT. KARE
Indicated Resources Now Represent 83% of Total
Vancouver,
B.C., June 21st, 2007 – Buffalo Gold Ltd. (TSX-V: BUF.U)(OTC-BB:
BYBUF)(FWB: B4K) is pleased to announce that it has
received an updated mineral resource estimate for the Mt. Kare gold project
which sees a 22% increase of the total property resources into the indicated
category compared to the previous estimate.
The new
resource estimate incorporates data from Buffalo’s
2006 infill drilling program. That program was designed to convert inferred
ounces to indicated ounces, as a requirement of the economic study for Buffalo to earn into the Mt.
Kare project from Madison Minerals Inc. (“Madison,” TSX-V: MMR). The
resource estimate has been successfully increased from 1.1 Million ounces of
gold (see Buffalo news release June 26th,
2006) to 1.4 Million ounces of gold in the indicated category, at a
gold equivalent cut-off of 1 g/t. The drilling also delineates a higher grade
core which runs most of the length of the Western Roscoelite
zone and contains the majority of the 743,000 oz gold or 4.59 million tonnes at 5.04 g/t gold with
a gold-equivalent cut-off of 3 g/t.
Table 1. Mt.
Kare Mineral Resource
Estimate reported at a several AuEq g/t Cut-offs
Mineral
Resource category
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Cut-off
Equivalent
(AuEq
g/t)
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Ktonnes
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Au
(g/t)
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Ag
(g/t)
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Contained
koz Au
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Indicated
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1.0
2.0
3.0
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18,830
8,559
4,587
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2.31
3.66
5.04
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17.31
22.51
25.37
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1,396
1,008
743
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Inferred
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1.0
2.0
3.0
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5,753
1,331
476
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1.56
2.77
3.85
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9.53
11.77
11.22
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288
119
59
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These estimates are based
on a block model where the gold-equivalent service variable is derived from the
sum of the gold and silver grades under the assumptions of a gold price of
US$550/oz and a silver price of US$10/oz (Aueq g/t = Au g/t + (10/550) x Ag
g/t).
While the 2006 work
increased the understanding and confidence in the mineralization at Mt. Kare, Buffalo believes that
there is potential for significant additional mineralization outside of the
known zones. Buffalo and Madison
therefore agreed in May of 2007 to award Buffalo
60% of the Joint Venture immediately and defer the Type 2 Preliminary Economic Feasibility
Study to instead complete detailed exploration work on the many targets throughout
the property (see Buffalo news release May 18th
2007). Based on the recent aeromag survey, geological mapping and
surface sampling, the Company has outlined 18 new targets on the Mt. Kare Joint
Venture license area and the adjacent 100% owned Buffalo license. Buffalo is currently in the process of
following-up on those targets. New geological team members have been hired and
fly-in camps have been established to aid in exploration. In addition, Buffalo has applied for a
new 100% owned license adjacent to the current holdings. The new license, if
awarded, will increase the total land package by approximately 30%, to
approximately 660 square kilometres. A map showing the new exploration
targets is posted on the company’s website www.buffalogold..ca/2006/MtKareProject.asp
..
Mineral
Resource estimation method
The resource model,
including the underlying database and QA/QC verification, were completed by Robert Sim of Longview Technical (www.longviewtechnical.com) and Dr. Bruce
Davis in accordance with accepted industry standards. The basic modeling
parameters and approach are summarized as follows:
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Total of 340 drill holes
(55,300m) composited to standard sample length of 2 metres.
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Nominal block size of
10x10x5mV.
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Probability shell
approach used to control domains of higher-grade gold and silver
mineralization.
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Top-cutting of outlier
grades by domain.
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Ordinary kriging used for
grade estimates for gold and silver in model.
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Inverse distance
weighting (IDW to the power of 2) used for bulk density in model.
The updated resource
estimate was verified by Lynn Olssen of Snowden Mining Industry Consultants
(“Snowden”) (www.snowdengroup.com).
Snowden validated the earlier estimate in its NI 43-101 technical report on the
Mt. Kare Project delivered to Buffalo
in May 2006. (see Buffalo News Release June 26th
2006). Snowden reviewed and validated the recent work, and will complete
a NI 43-101 technical report incorporating the resource estimate on behalf of Buffalo to be filed on
SEDAR within 45 days of this release. Snowden has reviewed the contents of
this release.
Mr. Brian McEwen, P.Geol., President and COO of Buffalo
is the qualified person for the Mt.
Kare project.
About
the Mt. Kare Project
Buffalo’s
flagship project is the Mt. Kare gold property in Papua New Guinea. The property is
contiguous to Barrick's Porgera Gold Mine property where the various styles of
mineralization identified are very similar in geological setting and structural
controls to those identified at Mt.
Kare. Buffalo
currently has a US$11.4 million exploration program underway at the Mt. Kare
project.
About Buffalo Gold
Buffalo's
management is dedicated to maximizing shareholder value through growth
strategies that emphasize careful opportunity assessment and vigilant project
management. The Company is actively acquiring and advancing gold resources to
create producing assets.
To find out more
about Buffalo Gold Ltd. (TSX-V: BUF.U), please visit the company website at www.buffalogold.ca.
On behalf of the
Board of Directors of
BUFFALO GOLD LTD.
“Damien Reynolds”
Damien Reynolds,
Chair of the Board
of Directors
and Chief Executive
Officer
For further information please contact:
Julie Hajduk, Investor Relations
E-mail: julie@buffalogold.ca
Phone: 604.685.5492 or T.F. 1.888.685.5492
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT
ACCEPT RESPONSIBILITY FOR THE ACCURACY OF THIS PRESS RELEASE
Cautionary
Note to U.S. Investors – The United States
Securities and Exchange Commission (“SEC”) permits mining companies
in filings with the SEC to disclose only those mineral deposits that a company
can economically and legally extract or produce. The Company MAY use certain
terms in this news release, such as “inferred resource”, that the
SEC guidelines strictly prohibit from including in filings with the SEC. U.S.
investors are urged to consider closely the disclosure contained in the
Company’s Form 20-F Registration Statement, File No. 000- 30150. The
Company’s filings are available on the SEC’s website at http://www.sec.gov/edgar.shtml.
This news
release may contain information about adjacent properties on which we have no
right to explore or mine. We advise U.S. investors that the S.E.C.'s mining
guidelines strictly prohibit information of this type in documents files with
the S.E.C. U.S. investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our properties.