GBS Gold International Inc.

GBS Gold International Inc.

November 07, 2007 12:56 ET

GBS Gold International Inc.: Drilling and Exploration Update

TORONTO, ONTARIO--(Marketwire - Nov. 7, 2007) - GBS Gold International Inc. (TSX:GBS) ("GBS Gold" or the "Company") reports further encouraging drilling results from its Union Reefs Operations Centre in the Northern Territory of Australia and from its Nicolsons gold project in Western Australia.

Since the last drilling update on September 14, 2007, GBS Gold has completed some 5,000 metres of additional resource definition drilling focusing primarily on extending the Fountain Head open pit, defining the Chinese "Big Pit" zone and exploring the Nicolsons project.

Highlights from the first 2,000 meters of drilling are as follows:

- Fountain Head: Drilling successfully intersected gold mineralization including 4 metres at 14.5 grams/tonne from 19m downhole and 5m at 8.5g/t from 77m downhole (all within drillhole THRC102).

- Chinese "Big Pit" zone: Drilling continues to intersect significant mineralization outside of the current resource boundaries including 2m at 7.5g/t from 36m downhole, 3m at 115.8g/t from 41m downhole and 11m at 2.9g/t from 49m downhole (all within drillhole CSRC219).

- Nicolsons Project: Drilling targeting near-surface mineable deposits has achieved numerous high grade intersections including 3m at 18.9g/t from 12m downhole (drillhole WNRC07006), 3m at 22.9g/t from 9m downhole (drillhole WNRC07009) and 2m at 25.6g/t from 15m downhole (drillhole WNRC07013).

Assay results are awaited for the remainder of the drilling completed, and initial geological interpretation work has commenced.

Fountain Head

Mining operations continue at the Fountain Head open pit, into both the anticline and Tally Ho lode structures. The (undepleted) resource estimate for the Fountain Head deposit comprises indicated resources of 1,985,000 tonnes at 1.7g/t for 106,000oz of contained gold, plus inferred resources of 661,000 tonnes at 1.6g/t for 34,000oz of contained gold. Drilling has intersected down-dip extensions to the Tally-Ho lodes with grades exceeding those seen in the open pit resource boundaries. Follow-up drilling is currently being planned, with further extensions targeted. Geological interpretation of the results continues and the resource model will shortly be updated to re-optimize the operating open pit mine on the upper levels of the Tally Ho lode structures.

Results received since mid-September from drilling into the Fountain Head Tally Ho lodes include the following significant intersections:

Drillhole Downhole Depth (m) Intercept Width(i)(m) Intercept Grade (g/t)
THRC091 From surface 2 7.7
THRC093 10 4 7.1
72 2 5.7
THRC094 15 4 3.1
THRC102 19 4 14.5
77 5 8.5
(i) Downhole width. True width to be determined.

Chinese "Big Pit" Zone

The Chinese "Big Pit" zone is located approximately 55km northwest of the Union Reefs plant. Within the zone, the Chinese South Extension and Mottrams deposits together contain indicated resources of 2,942,000 tonnes at 1.6g/t for 153,000oz of contained gold, and inferred resources of 1,658,000 tonnes at 1.6g/t for 83,000oz of contained gold.

The drilling has identified significant high-grade extensions in the northern target area and parallel zones to the known mineralization that are expected to expand the scale and life of the planned operations in the area. The results continue to confirm the potential for a larger open pit mine through the historic Chinese mining area. Re-modeling of the existing resource and mine optimizations is scheduled in the current quarter.

A continuous zone of 8-10g/t ore has been defined in the northern zone of the big pit project area in a similar structural position to the mineralization within the nearby Cosmo Deeps mine. The thickness and grade of the intercepts are considered highly encouraging for an underground mining operation, and further drilling will be planned to target this area. Drilling within the Chinese Big Pit zone returned the following significant intersections:

Deposit Drillhole Downhole Intercept Intercept
Depth (m) Width(i)(m) Grade (g/t)
Chinese South CSRC080A 73 5 2.6
Extension: CSRC149 13 2 11.7
CSRC160 8 5 4.3
81 7 2.1
106 4 3.2
CSRC194 24 12 12.0
CSRC197 44 5 2.1
CSRC201 63 5 2.0
CSRC205 82 11 2.8
CSRC206 44 18 2.2
CSRC219 36 2 7.5
41 3 115.8
49 11 2.9
CSRC224 76 13 8.8
Mottrams: MTRC076A 80 15 1.3
MTRC081 57 9 2.1
MTRC082 13 7 1.7
121 4 2.8
MTRC083 From surface 7 2.1
MTRC084 41 8 3.5
MTRC091 3 23 1.4
MTRC093 63 8 1.8
MTRC101 38 5 2.3
MTRC104 From surface 4 7.9
23 8 1.5
MTST002 4 4 3.7
Big Howley: BHRC007 137 4 3.6
BHRC010 102 9 2.1
(i) Downhole width. True width to be determined.

The following plan view of the Chinese Big Pit area shows the historical and planned open pits, along with a selection of intersections which demonstrate the potential for a larger mining operation in the area:

To view the accompanying map, please visit the following link:

Nicolsons Project in Western Australia

The Nicolsons Project is wholly-owned by GBS Gold (subject to commitments to the vendors) and comprises 45km2 of granted mining and exploration tenements and a 0.25Mtpa processing plant (currently on care and maintenance) in the historic mining area of Halls Creek in the northeast of Western Australia. The project was last mined in 2003 from several deposits along the approximate 2km strike length of the Nicolsons vein.

A drilling program was conducted by GBS Gold in August to identify sufficient near-surface resources to warrant restarting the Nicolsons operation. Drilling within the "Rowdy" and "Wagtail North" zones achieved a number of high-grade intersections which indicate the potential of the area. These results are currently being interpreted with follow-up drilling and initial resource modeling planned for 2008.

Significant intersections include:

Deposit Drillhole Downhole Intercept Intercept
Depth (m) Width(i)(m) Grade (g/t)
Rowdies: RORC07002 62 6 5.4
RORC07003 44 6 5.8
RORC07004 51 5 2.0
RORC07008 25 8 3.8
Wagtail North: WNRC07006 12 3 18.9
WNRC07008 32 10 5.5
WNRC07009 9 3 22.9
30 2 2.9
WNRC07010 20 3 3.3
37 8 2.2
WNRC07011 27 8 6.9
WNRC07013 15 2 25.6
WNRC07015 40 3 14.3
63 29 13.2
(i) Downhole width. True width to be determined.

Full Drilling Results

The full drilling results presented in this news release are tabulated as an appendix to this news release on the GBS Gold website at

About GBS Gold International Inc.

GBS Gold is an emerging gold producer with 2.6Moz of Indicated Resources and 1.6Moz of Inferred Resources of gold at its Union Reefs Operations Centre located in historically productive goldfields in the Northern Territory of Australia. GBS Gold produces gold through its modern dual-mill 2.5Mtpa Union Reefs processing plant. The Company expects to construct a flotation plant and bio-oxidation heap leach facility using the GEOCOAT® technology at the Union Reefs Plant to process refractory ores and increase gold production from all sources to a targeted annualized rate of 300,000 ounces in 2009-2010. The Union Reefs plant is adjacent to the main Stuart Highway and the trans-continental Adelaide-Darwin railway line, and is on the Northern Territory power grid. Within 125km trucking distance of the Union Reefs plant, GBS Gold has consolidated over 3,500km2 of prospective tenements and gold deposits and also holds gold exploration properties in Western Australia and Canada. GBS Gold trades on the Toronto Stock Exchange under the symbol "GBS".

Notice Regarding Drilling Results and Resource Estimates

The drilling results and technical disclosures in this news release regarding GBS Gold's properties were approved by Peter Harris, a consultant to GBS Gold and a qualified person under National Instrument 43-101. The Company's mineral resources comprise measured resources of 84,800 tonnes at 20.6g/t for 56,100 ounces of contained gold, indicated resources of 24.6 million tonnes at 3.2g/t for 2.6 million ounces of contained gold and inferred resources of 21.2 million tonnes at 2.4g/t for 1.6 million ounces of contained gold. The resource estimates are reported at a range of cut-off grades as set out in the technical report entitled "Independent Technical Review of the Burnside, Union Reefs, Pine Creek and Maud Creek Gold Projects, Northern Territory, Australia", dated effective October, 2005 and filed on January 5, 2006, an addendum technical report entitled "Addendum to the Technical Review of the Burnside Gold Project, Union Reefs Gold Project, Pine Creek Gold Project and Maud Creek Gold Project, Northern Territory, Australia -Resource Update, Maud Creek Gold Project" dated February 2006 and filed on February 8, 2006, the technical report entitled "Form 43-101 Technical Report on the Tom's Gully Project" dated June 13, 2007 and filed on June 14, 2007 (collectively, the "Technical Reports"), and news releases filed on January 20, July 10, September 14, October 26, November 27 and December 13, 2006 and January 9 and May 10, 2007, all of which may be viewed on the SEDAR website, The Company has not completed a feasibility study and there is no certainty that the project will be economically successful. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Any potential updates to GBS Gold's mineral resources discussed in this news release are conceptual in nature and subject to further drilling, analytical and test work and/or data verification. All estimates of updates to mineral resources are based on the drilling results and resource modeling described herein.

On behalf of the Board of Directors

Gilbert Playford, Chairman and CEO

For more information about GBS Gold, please visit our website at

GBS Gold manages its drilling and assaying activities in accordance with industry standard quality assurance/quality control (QA/QC) procedures. Samples are collected by GBS Gold personnel and prepared in accordance with specified procedures at the relevant assay laboratories. The primary assay laboratory is North Australia Laboratories in Pine Creek, Northern Territory. Laboratory site reviews are undertaken. Assay QA/QC involves the use of assay standards (sourced from reputable suppliers and cross-checked through umpire laboratories), field duplicates, blanks and barren quartz flushes. A third party "umpire" laboratory is used to cross-check and validate approximately 5% of the assay results. Sample coarse rejects are retained and approximately 5% of samples are re-submitted for further assay verification. All sample pulps, half-core and rock-chip samples are retained at site.

Certain disclosures in this release, including management's assessment of GBS Gold's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to GBS Gold's operation as a mineral development company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in gold prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full descriptions of these risks can be found in the Company's Annual Information Form available on the SEDAR website, Readers are cautioned not to place undue reliance on forward-looking statements. GBS Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The TSX does not accept responsibility for the adequacy or accuracy of the information contained herein.

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