RESERVES INCREASE BY 58% AT TASIAST
April 7,
2008 (RBI - TSX)… Red Back Mining Inc. (the
“Company” or “Red Back”) is pleased to report a material increase in Proven and Probable Reserves
at its 100% owned Tasiast Gold Mine (“Tasiast”) in Mauritania.
The Company
recently announced (News release: February 25, 2008) a revised Measured and
Indicated Mineral Resource for the Tasiast project of 26.5Mt grading 2.22g/t
for 1.89 Moz (Measured Resource: 10.8Mt @ 2.47g/t for 0.86Moz, Indicated
Resource 15.1Mt @ 2.05g/t for 1Moz) with a further 8.9 Mt grading 1.9g/t (0.55
Moz) of Inferred Resource.
On the basis
of the updated Mineral Resources, the Company’s consultants, AMC Consultants of Perth, Western Australia, have
re-estimated Ore Reserves for the Tasiast Mine. The new Ore Reserve
estimate, shown in the table below, is
reported as at 31 December 2007:
Category
|
Mt
|
Au g/t
|
Moz
|
Proven
Reserves
|
12.0
|
2.20
|
0.88
|
Probable
Reserves
|
12.0
|
1.90
|
0.73
|
Stockpiles
|
0.56
|
1.80
|
0.03
|
Total Proven, Probable and Stockpiles
|
25
|
2.0
|
1.64
|
1. Numbers
may not add correctly due to rounding.
2.
The Ore
Reserve Estimate was made using a gold price of US$700.
3.
Cut-off grades, gold g/t: 0.69g/t oxide and 0.81g/t fresh.
The updated
Ore Reserve Estimate detailed above relates only to the Piment Zone at Tasiast
and converts 92% of the current Measured and Indicated Mineral Resource in the
Zone. Drilling is ongoing to add and convert further
resources at Piment and to test the potential of the newly defined Piment
Footwall Zone.
In
addition, drilling has commenced at the West Branch Prospect, 2 km from the
Tasiast plant site, to expand and convert the current resource at that deposit
(Indicated Resource 2.07 Mt at 1.5 g/t for 98 Koz; Inferred Resource 2.6 Mt at
1.7 g/t for 130 Koz). A first Ore Reserve Estimate for the West Branch is
expected by mid-year.
The Company
has commenced dump and heap leach test work to update initial testing carried
out 10 years ago, which comprised a series of column tests. The Company is
currently constructing two 2,000 tonne dump leach pads and will shortly be
undertaking a further series of column tests on low grade samples. As the test
work results become available in approximately three months the Company will
evaluate the potential for dump and/or heap leaching at Tasiast
Commenting
on the new Ore Reserve Estimate, Richard Clark, President and CEO of the
Company, stated, “Since Red Back acquired ownership of the Tasiast Project
in August 2007 we have increased the Measured and Indicated Resource by 63%
(1.16Moz to 1.89Moz) and the Reserve by 58% (1.04 Moz to 1.64 Moz). We are very
pleased with this result, and are confident of continuing this success and
expect further and substantial increases in the Tasiast Resources and Reserves
in 2008."
About
Red Back
Red Back
Mining Inc. is an unhedged African focused gold producer. It owns and
operates the Chirano Gold Mine in Ghana
(90% interest) and the Tasiast Gold Mine in Mauritania (100% owned).
Major plant expansions at both Chirano and Tasiast have been commenced.
At Chirano, the Company is expanding its current operations through development
of the Akwaaba Deeps underground mine. Red Back is continuing an aggressive
exploration program to increase its resource and reserve base at both projects.
The
independent Resource estimate reported herein was undertaken by Nic Johnson
(Member of the Australian Institute of Geoscientists) of Hellman and Schofield
Pty. Ltd with more than five years experience in the use of geostatistics for
estimation of recoverable resources in gold deposits. For the purpose of
reporting under National Instrument 43-101 Mr. Johnson is regarded as a
Qualified Person.
The independent Ore Reserve estimate reported herein was undertaken under the supervision of Patrick Smith (Member of the Australasian Institute of Mining and Metallurgy), Principal Mining Engineer of AMC Consultants Pty Ltd with more than five years experience in Ore Reserve estimation. For the purpose of reporting under National Instrument 43-101 Patrick Smith is regarded as a Qualified Person.
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. Samples are prepared and
analyzed by fire assay using a 50 gram charge at the SGS facility at the
Tasiast mine site in compliance with industry standards. Field duplicate
samples are taken and blanks and standards are added to every batch submitted.
Selected samples from this lab are check assayed each month at other SGS
laboratories worldwide. 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
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 Red Back at
604 689 7842:
Simon Jackson,
VP – Corporate Development
Sophia Shane,
Investor Relations