Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

April 12, 2010 17:04 ET

Red Back Mining Inc.: First Quarter Exploration Update

VANCOUVER, BRITISH COLUMBIA—(Marketwire – April 12, 2010) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to provide an update on first quarter exploration activities at its Tasiast Gold Mine ("Tasiast") in Mauritania and Chirano Gold Mine ("Chirano") in Ghana.

Tasiast

Since the last reported increase in Measured and Indicated Mineral Resources (News Release: 1 February 2010) drilling at Tasiast has focused on the extension of the Greenschist Zone, outside the current resources. Drilling continues to show the remarkable continuity of the Zone, confirming that both resources and reserves have the potential for significant expansion. The table below lists results from the Greenschist Zone since the February 2010 resource update. All intercepts lie outside the current reserve of 5 million ounces (News Release: March 1, 2010):

Section Hole From To Metres Au g/t
71911 2326 259 303 82 1.36
  2278 328 380 52 1.65
71861 2324 247 295 45 3.02
  2285 301 362 61 1.77
  2286 370 425 55 1.41
71811 2323 239 288 49 1.94
  2351 296 364 68 2.15
71761 2235 224 320 96 2.65
  2283 283 344 61 3.10
  2284 356 440 84 1.63
71711 2234 222 316 94 1.95
  2277 272 368 96 2.13
71661 2276 289 389 100 1.80
  2281 351 446 95 3.03
71611 2290 385 483 98 2.59
71511 2279 379 472 93 2.59
71311 2359 389 477 88 3.15
71061 2350 282 347 65 0.71
70811 2280 342 375 33 0.82
70711 5001 364 380 16 1.68
Note: True width is estimated to be on average approximately 95% of drilled intercept.

The success of this latest drilling is highlighted by the attached cross sections (section 71311mN and section 71611mN) which show the strong continuity of the Greenschist Zone mineralization well below the current 5 million ounce pit shell.

Nine drill rigs are at Tasiast with two more expected to reach site by month end. Drilling is now focused on infilling over a 10km strike length to further define measured and indicated resources towards the calculation of a new reserve estimate in the third quarter.

Chirano

At Chirano, exploration continues to be focused on an update of resources at the Paboase underground discovery and the calculation of a preliminary reserve estimate.

The table below lists results received since the October 2009 resource estimate (Indicated resource 1.74Mt grading 4.43g/t for 248koz, Inferred resource 3.2Mt at 5.9g/t for 610koz, News Release: October 26 2009):

Hole ID From To Meters Au g/t
CHDD1527 782.0 797.0 15.0 5.76
CHDD1527W1 606.0 619.0 13.0 5.12
CHDD1553 441.0 467.0 26.0 7.07
Including 462.0 467.0 5.0 19.56
CHDD1565 540.0 557.0 17.0 2.22
CHDD1565W1 490.0 511.2 21.2 7.12
Including 501.0 511.2 10.2 12.21
CHDD1578 320.7 354.3 33.6 2.13
CHDD1579 682.7 687.3 4.6 2.85
CHDD1579W1 648.5 661.0 12.5 3.32
CHDD1580 366.0 408.0 42.0 2.75
CHDD1527W2 632.0 647.0 15.0 7.70
Including 637.0 645.3 8.3 11.14
CHDD1540 429.0 450.0 21.0 5.36
CHDD1540W1 417.5 434.0 16.5 5.21
CHDD1540W2 387.0 417.0 30.0 4.16
CHDD1581 333.0 352.0 19.0 3.15
CHDD1588 688.0 733.0 45.0 4.39
CHDD1550 602.0 633.2 31.2 4.82
Including 609.0 617.0 8.0 10.32
CHDD1572 694.0 735.9 41.9 7.48
Including 707.0 725.1 18.1 10.73
CHDD1572W1 640.0 666.7 26.7 7.34
Including 645.0 657.0 12.0 11.24
CHDD1572W2 612.5 637.4 24.9 5.12
CHDD1587 470.8 516.8 46.0 5.49
CHDD1587W1 412.0 458.0 46.0 9.62
Including 440.0 458.0 18.0 12.23
CHDD1587W1 470.0 488.0 18.0 2.26
CHRC1519DW1 597.8 625.0 27.2 5.31
CHRC1519DW2 640.0 664.0 24.0 7.45
CHRC1519DW3 718.0 772.0 54.0 7.53
Including 738.0 756.0 18.0 11.52
CHRC1583D 462.0 509.1 47.1 8.46
Including 476.0 499.0 23.0 13.21
CHDD1585 516.4 532.0 15.6 7.42
CHDD1585 552.3 575.0 22.7 3.04
CHDD1585W1 456.0 511.0 55.0 4.88
Including 496.0 503.0 7.0 16.81
Note: True width is estimated to be on average approximately 50% of drilled intercept.

Paboase continues to develop as a high grade mineralized structure with a true width averaging over 12m. Drilling since the end of 2009 is demonstrating further lateral expansion of the high grade mineralization and is confirming that the orebody remains open at depth.

The program at Paboase is on schedule to deliver a new resource update and an initial reserve estimate by the end of the second quarter. Development at Paboase commenced in March 2010.

Commenting on recent exploration activity, Richard Clark, President and CEO, stated, "Our aggressive exploration programs at Chirano and Tasiast continue to deliver exceptional results demonstrating the expansion potential at both these mines."

To view the images accompanying this press release, please click on the following link: http://media3.marketwire.com/docs/0412rbi.pdf

About Red Back

Red Back is an unhedged West African focused gold producer. It owns and operates the Chirano Gold Mine in Ghana and the Tasiast Gold Mine in Mauritania and continues to expand the potential of those operations. In addition to its two mines, the Company holds an extensive exploration portfolio in West Africa.

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 from Tasiast are prepared and analyzed by fire assay using a 50 gram charge at the SGS facilities at the Tasiast mine site in Mauritania and at Kayes in Mali in compliance with industry standards. Those from Chirano at the SGS facility in Bibiani, Ghana and at the ALS Chemex facility in Kumasi, Ghana 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.

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