Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

September 14, 2009 08:30 ET

Red Back Mining Inc.: Tasiast Reserves Grow to 3 Million Oz

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2009) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to announce a significant increase in both Proven and Probable Reserves and Measured and Indicated Resources at its 100% owned Tasiast Gold Mine ("Tasiast") in Mauritania.

Tasiast Reserves

The Company's consultants, AMC Consultants, have re-estimated Ore Reserves for the Tasiast mine. The new Ore Reserve estimate, shown in the table below, is reported as at 31 August 2009.



-----------------------------------------------------
Classification Tonnes Au In situ Au
(Mt) (g/t) (Moz)
-----------------------------------------------------
Total Proven 33.8 1.43 1.56
Total Probable 30.0 1.45 1.40
Total Stockpile 3.7 0.76 0.09
-----------------------------------------------------
Total 67.5 1.40 3.05
-----------------------------------------------------

- Numbers may not add correctly due to rounding
- The Ore Reserve estimate used a gold price of US$700, no change from
previous Ore Reserve estimate
- Cut-off grades: CIL: oxide 0.79g/t, fresh 0.86g/t, Dump leach oxide:
Piment 0.12g/t, West Branch FW 0.17g/t, West Branch Contact 0.13g/t.


The reserve represents a 33% increase over the previously reported reserve (News Release: March 23, 2009). Red Back has now increased reserves at Tasiast by 193% since it acquired the project in August 2007.

The current Ore Reserves include the CIL and Dump Leach components for both Piment and West Branch (refer to attached Map for location of deposits, available at the following link: http://media3.marketwire.com/docs/0914rbi.pdf).

The estimated split of reserves by processing method is set out below:



-----------------------------------------------------
Classification Tonnes Au In situ Au
(Mt) (g/t) (Moz)
-----------------------------------------------------
CIL Circuit
-----------------------------------------------------
Proven 20.8 2.05 1.37
Probable 19.6 1.99 1.25
Stockpile 0.3 1.28 0.01
-----------------------------------------------------
Total CIL Circuit 40.7 2.02 2.64
-----------------------------------------------------

-----------------------------------------------------
Dump Leach
-----------------------------------------------------
Proven 13.0 0.44 0.18
Probable 10.4 0.44 0.15
Stockpile 3.4 0.72 0.08
-----------------------------------------------------
Total Dump Leach 26.8 0.47 0.41
-----------------------------------------------------

- Numbers may not add correctly due to rounding
- Piment zone oxide ore between 0.12g/t and 0.90g/t was allocated to the
Dump leach Process.


The optimized pit now results in one large pit encompassing the Piment, West Branch and Felsite Zone ore bodies (see attached map). Many drill results are still outstanding and further reserve revisions are planned.

Commenting, Rick Clark, President and CEO of the Company stated: "The new reserves and pit optimization support our belief that Tasiast is becoming a significant African gold mine. The current detailed drilling which supports the new resources and reserves only covers 8km of a belt which has been identified over 70 km. The existing orebody is open both at depth and along strike to the north and south. Drilling is ongoing and we look forward to continuing to regularly report further reserve and resource updates from Tasiast."

Tasiast Resources

Measured and Indicated Resources, using a cut off grade of 1 g/t, have increased by 22% over the previously reported Mineral Resource estimate (News Release: March 23, 2009). 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.



---------------------------------------------------------------------------
Measured Indicated
Zone Cut-Off ------------------------------------------------
Mt Au g/t Moz Mt Au g/t Moz
---------------------------------------------------------------------------
Oxide 0.2 19.5 0.91 0.57 18.0 0.74 0.43
---------------------------------------------------------------------------
Fresh 0.5 31.4 1.46 1.47 46.6 1.34 2.01
---------------------------------------------------------------------------
Total 50.9 1.25 2.04 64.7 1.17 2.44
---------------------------------------------------------------------------

---------------------------------------------------------------------------
All ore types 1.0 21.2 2.13 1.45 25.2 2.02 1.63
---------------------------------------------------------------------------


---------------------------------------------------------------------------
Measured + Indicated Inferred
Zone Cut-Off ------------------------------------------------
Mt Au g/t Moz Mt Au g/t Moz
---------------------------------------------------------------------------
Oxide 0.2 37.5 0.83 1.00 7.9 0.6 0.14
---------------------------------------------------------------------------
Fresh 0.5 78.0 1.39 3.48 22.1 1.3 0.89
---------------------------------------------------------------------------
Total 115.5 1.21 4.48 30.0 1.1 1.03
---------------------------------------------------------------------------

---------------------------------------------------------------------------
All ore types 1.0 46.3 2.07 3.08 10.2 2.0 0.65
---------------------------------------------------------------------------

- 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.
- 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.
- Resources are inclusive of reserves.


Future Reserve/Resource growth

The current Measured and Indicated Resources are contained over an eight kilometer strike length of the sub-parallel Piment and West Branch structures. These structures have been traced by the Company over 20 km on surface and well over 70km via airborne geophysics. An aggressive US$13 Million exploration program is continuing, with 6 rigs on site further expanding the resource and increasing reserves and testing numerous reconnaissance targets which have been identified by our exploration team.

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 substantially complete. Aggressive exploration programs aimed at increasing the Company's resource and reserve base at both Chirano and Tasiast are on going.

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 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 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
    www.redbackmining.com