Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

October 26, 2009 08:30 ET

Red Back Mining Inc.: Major Underground Resource Increase at Paboase South

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 26, 2009) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to provide a revised underground resource estimate for Paboase South at its Chirano Gold Mine in Ghana ("Chirano").

The Company's resource consultants, Hellman & Schofield (report dated October 20, 2009), have calculated an updated Indicated and Inferred resource for the Paboase South Project:

Resource CategoryTonnes (MT)Grade (g/t)Ounces
Indicated1.744.43248,000
Inferred3.205.9610,000

Underground Mineral Resources are reported above a 2.5g/t cut off and below the 2236m elevation, which is the base of current open pit design, and above the minimum elevation of 1564m. The Paboase South resources are contained within a strike length of approximately 450m. Gold grades for the reported underground resource model have been determined using Ordinary Kriging (OK) with grades interpolated into parent blocks with dimensions of 2m (east) by 25m (north) by 25m (elevation). Gold estimation and model blocks were constrained within geologically derived wireframes.

The large resource increase has been driven by the discovery of further high grades over significant widths below the previously released inferred resource of 2.3Mt at 3.5 g/t (News Release: March 30, 2009). A longitudinal section of the Paboase South deposit is attached.

The mineralized zone has only been partially drilled to date and remains open to depth and on strike. Four drill rigs will be on site by the end of October to accelerate infill and extension drilling of this discovery.

The Company expects to calculate an initial mineral reserve for Paboase South in the first quarter of 2010, whereupon a decision will be made to commence development.

Commenting, Richard Clark, President and CEO of the Company stated: "The recent drill program at Paboase South has confirmed the potential of this deposit to be a second underground mine at Chirano. We are now focused on infill drilling so that detailed mine planning can begin. The exploration success at Chirano continues to indicate the potential for multiple underground mining operations. We have identified numerous drill targets at depth and will prioritize these once the development drilling at Paboase South is complete. With the growing resource base of high grade ounces we are confident that Chirano's annual production rate will be significantly increased from current projections."

About Red Back

Red Back Mining Inc. is an unhedged African focused mid-tier 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. 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 43-101. 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 Analabs facility in Bibiani, 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 Analabs 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.

On behalf of the Board of Directors:

Richard P. Clark, President

Note: To view the map associated with this release, please click the following link: http://media3.marketwire.com/docs/rbi1026.pdf

Contact Information

  • Red Back Mining Inc.
    Simon Jackson
    VP-Corporate Development
    604-689-7842
    or
    Red Back Mining Inc.
    Sophia Shane
    Investor Relations
    604-689-7842
    www.redbackmining.com