Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

January 20, 2010 08:30 ET

Red Back Mining Inc.: Greenschist Zone Continues to Expand

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2010) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to report on ongoing exploration success at the Tasiast Gold Mine ("Tasiast") in Mauritania.

Since the last reported increase in Measured and Indicated Mineral Resources (News Release: 16 November 2009) drilling has continued to expand the Greenschist Zone at West Branch. Recent results confirm the significant potential of this zone with the mineralized width of the Greenschist thickening to an average of over 80 metres. The table below lists intercepts received since the release of the November 2009 Resource for Tasiast to December 31, 2009. The holes indicated with a "(i)" lie outside the November 2009 Resource:

Section Hole From To Metres Au g/t
71611 2268 218 310 92 3.49
  2269(i) 243(i) 331(i) 88(i) 3.14(i)
  2270(i) 271(i) 367(i) 96(i) 2.43(i)
71486 2255 193 284 91 1.87
71461 2246 198 285 87 1.79
  2245 216 314 98 1.87
71436 2248 196 284 88 1.63
  2247 216 296 80 1.88
  2271 261 361 100 2.46
71411 2249 200 280 80 2.00
  2250 231 322 91 2.25
71386 2251 227 329 93 1.60
  2252(i) 251(i) 353(i) 102(i) 2.57(i)
  2325(i) 277(i) 375(i) 98(i) 2.58(i)
71361 2253 205 295 90 1.60
  2254(i) 237(i) 332(i) 95(i) 2.08(i)
  2328 267 360 93 2.20
71336 2262(i) 218(i) 311(i) 93(i) 2.48(i)
  2261(i) 238(i) 333(i) 95(i) 2.54(i)
  2329(i) 267(i) 366(i) 99(i) 2.30(i)
71311 2256 200 283 83 2.69
  2260(i) 231(i) 325(i) 94(i) 2.79(i)
  2330(i) 253(i) 344(i) 91(i) 2.27(i)
71286 2257(i) 222(i) 309(i) 87(i) 3.07(i)
  2259(i) 255(i) 339(i) 84(i) 2.47(i)
  2331(i) 275(i) 369(i) 94(i) 2.74(i)
71261 2258(i) 229(i) 317(i) 88(i) 2.94(i)
  2263(i) 267(i) 351(i) 84(i) 2.77(i)
71236 2335 214 284 70 2.99
  2336 244 326 82 2.46
  2339(i) 275(i) 353(i) 78(i) 3.53(i)
71186 2334 192 276 84 1.92
  2333 231 316 85 2.42
  2332(i) 248(i) 341(i) 94(i) 2.78(i)
71161 2306 157 216 59 0.94
  2340(i) 266(i) 346(i) 80(i) 2.83(i)
71136 2341(i) 209(i) 266(i) 57(i) 1.38(i)
  2342(i) 228(i) 303(i) 75(i) 1.78(i)
  2343(i) 259(i) 346(i) 87(i) 2.16(i)
71111 2307 161 225 64 1.04

Note: True width is estimated to be on average approximately 95% of drilled intercepts.
*Intervals contain between 19m and 27m of barren mafic dyke.

A new Resource and Reserve is currently being estimated which will include all drill results to December 31, 2009. It is anticipated that this new Resource and Reserve will be released in March 2010.

Drilling to December 31, 2009 focused on a strike length of 500 metres. Recent step out holes to the north have now intersected the Greenschist zone over an additional 400m of strike. These step out intercepts are listed in the table below.

Section Hole From To Metres Au g/t
71661 2233(i) 212 234 22 2.74
71711 2234(i) 222 309 87 2.04
71761 2235(i) 224 286 62 3.67
  Inc 242 250 8 14.89
71811 2323 239 288 49 1.94
71861 2324 250 295 45 3.11
71911 2326 259 303 44 1.89
 (i) Denotes hole previously released

The Company is accelerating exploration at Tasiast with Board approval received for an exploration budget of $22 million for the first half of 2010, comprising over 175,000m of drilling. There are now 7 drill rigs (5 RC rigs and 2 core rigs) at Tasiast with 2 further RC rigs due on site by the end of February. The objective of this aggressive exploration programme is to continue to expand the potential of the Greenschist zone along strike and down dip.

Commenting on the resource growth at Tasiast, Richard P. Clark, President and CEO stated, "The discovery of the Greenschist Zone has made a significant impact on the Tasiast project. Drilling continues to show the Mine's potential with results improving with every program. With a total of 9 drill rigs soon on site, supported by an aggressive exploration budget, we are confident that Tasiast will continue to grow at a rapid rate, leading to significant Reserve upgrades during 2010".

About Red Back

Red Back is an unhedged African focused gold producer. It owns and operates the Chirano Gold Mine in Ghana and the Tasiast Gold Mine in Mauritania. 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 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.

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