Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

November 16, 2009 08:30 ET

Red Back Mining Inc.: 20% Increase in Tasiast M&I Resources to 5.37 Moz

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 16, 2009) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to report another significant increase in Mineral Resources at its 100% owned Tasiast Gold Mine ("Tasiast") in Mauritania.

The Measured and Indicated Resource at Tasiast has increased by approximately 890,000 ounces to 5.37 million ounces (at cut off grades of 0.2g/t for oxide and 0.5g/t for fresh material) since the previous estimate announced on Sept 14, 2009. This is an increase of 20% in only 2 months.

This large increase in resources has been calculated based upon 30,000 metres of drilling since early September 2009, substantially in the new Greenschist Zone at the West Branch Deposit (News Release: October 27, 2009).



Tasiast Resources (Nov 2009)

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Measured +
Measured Indicated Indicated Inferred
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Cut- Au Au Au Au
Zone Off Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz
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Oxide 0.2 20.68 0.75 0.64 19.03 0.73 0.45 39.71 0.83 1.06 6.7 0.6 0.13
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Fresh 0.5 36.08 1.48 1.71 56.81 1.42 2.60 92.89 1.44 4.31 27.3 1.4 1.24
--------------------------------------------------------------------------

Total 56.76 1.27 2.32 75.84 1.25 3.05 132.60 1.26 5.37 34.0 1.3 1.37

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All ore
types 1.0 24.08 2.16 1.67 31.90 2.09 2.15 55.98 2.12 3.82 14.3 2.1 0.97
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- The Company reports resources on the basis of mining cut-off grades to be applied to the various ore types and, for comparison purposes, at a 1.0 g/t cut-off grade

- Minerals Resources are reported below the August 31, 2009 mined surface.

- Figures may not add correctly due to rounding.

- Oxide is referred to as material amenable to Dump Leaching and CIL. Fresh is referred to as material amenable to Heap Leaching and CIL.

- The resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction into 15 metres (East) by 25 metre (North) by 5 metre (Elevation) model blocks and assuming smallest mining unit for ore selection in mine grade control of 3 metres (East) by 5 metres (North) by 2.5 metres (Elevation).

- Measured resources lie in areas where drilling is available at a nominal 25 x 25 metre spacing, Indicated resources occur in areas drilled at approximately 25 x 50 metre spacing and Inferred resources exist in areas of broader spaced drilling.

- Gold estimation and model blocks were constrained within geologically derived wireframes.

Drilling is ongoing with six rigs on site and plans are in place to further accelerate the exploration programme into 2010. As at today, over 20,000 samples are in process. Results from these samples plus ongoing drilling are expected to generate significant further additions to the rapidly increasing Tasiast resource base.

Commenting on the rapid resource growth at Tasiast, Richard P. Clark, President and CEO stated, "Exploration drilling at Tasiast continues to drive exciting Resource and Reserve growth. With these latest results from the West Branch Deposit, Tasiast is developing into one of the largest new gold mines in Africa. We look forward to continuing to update our shareholders on the success at Tasiast".

About Red Back

Red Back 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% interest). Major plant expansions at both Chirano and Tasiast are complete, and both projects are operating at nameplate capacity. Aggressive exploration programs aimed at increasing the Company's resource and reserve base at both Chirano and Tasiast are ongoing.

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 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

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", "plan", "forecast", "project", 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 of Directors,

Richard P. Clark, President

Contact Information

  • Red Back Mining Inc.
    Simon Jackson
    Vice President, Corporate Development
    604-689-7842
    or
    Red Back Mining Inc.
    Sophia Shane
    Investor Relations
    604-689-7842
    604-689-5452 (FAX)
    www.redbackmining.com