Red Back Mining Inc.

Red Back Mining Inc.

March 01, 2010 08:00 ET

Red Back Mining Inc.: Tasiast Reserves Grow by 64% to 5.0 Million oz

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2010) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to announce a significant increase in Proven and Probable Reserves at its Tasiast Gold Mine ("Tasiast") in Mauritania.

The Company's consultants, AMC Consultants, have re-estimated Ore Reserves for the Tasiast mine as at December 31, 2009.

Classification Tonnes Au In situ Au
(Mt) (g/t) (Moz)
Total Proven 49.4 1.36 2.17
Total Probable 61.5 1.40 2.77
Total Stockpile 4.3 0.68 0.09
Total 115.2 1.36 5.03
  • Numbers may not add correctly due to rounding
  • The Ore Reserve estimate used a gold price of US$800
  • Cut-off grades: CIL: oxide 0.75 g/t, fresh 0.81 g/t.
  •  Cut-off grades: Dump leach oxide cut-off grade is variable depending on lithology with the lowest being 0.1 g/t.

This latest Reserve represents a 64% increase since the last Reserve estimate as at August 31, 2009 (News Release: September 17, 2009). Significantly, 92% of this increase is attributable to an expanding Mineral Resource (News Release: February 1, 2010). Only 8% of the new Reserve is a result of optimizing gold price from US$700 to US$800 per ounce.

Since December 31, 2009 an aggressive drill program has continued at Tasiast, particularly focused on extending the Greenschist Zone. Since year end 12 holes (5,550 metres) have been drilled, extending the Greenschist Zone to 1.2 km of strike length. None of these holes are part of this latest Reserve estimate. Drilling is ongoing, with 8 drills currently working at Tasiast. A further Reserve update is expected by mid-year.

Upon final completion of test work, the next Reserve update will include material to be processed by heap leaching. Development of heap leaching facilities at Tasiast is scheduled to commence by year-end.

The estimated split of the current Reserve by processing method (excluding heap leaching) is set out below:

Classification Tonnes Au In situ Au
(Mt) (g/t) (Moz)
CIL Circuit      
Proven 30.2 1.98 1.92
Probable 39.8 1.96 2.51
Stockpile 0.6 1.48 0.03
Total CIL Circuit 70.7 1.96 4.46
Dump Leach      
Proven 19.2 0.4 0.24
Probable 21.7 0.37 0.26
Stockpile 3.7 0.54 0.06
Total Dump Leach 44.5 0.40 0.57
  • Numbers may not add correctly due to rounding
  • Oxide ore between the cut-off grade, which is dependent on lithology and the lowest being 0.1 g/t and 0.9 g/t was allocated to the Dump Leach Process.

Commenting on the new Reserve, Rick Clark, President and CEO of the Company stated: "This impressive increase in Reserve confirms Tasiast as one of the largest new gold discoveries in West Africa. The new Reserve represents a strike length of 7.7 km and, importantly, only includes 600 metres of the Greenschist Zone which, since December 31, 2009, has been extended by drilling to 1.25 km and counting. Aggressive exploration continues as part of a $22 million budget at Tasiast for the first six months of 2010. Mineralisation is open both at depth and along strike to the north and south. We look forward to reporting further Reserve increases and other exploration results in the coming months."

About Red Back

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

The independent Ore Reserve estimate reported herein was undertaken under the supervision of Patrick Smith (Member of the Australasian Institute of Mining and Metallurgy), Principal Mining Engineer of AMC Consultants Pty Ltd with more than five years experience in Ore Reserve estimation. For the purpose of reporting under National Instrument 43-101 Patrick Smith 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 and at Kayes in Mali 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 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
    Red Back Mining Inc.
    Sophia Shane
    Investor Relations
    604-689-5452 (FAX)