SearchGold Resources Inc.
TSX VENTURE : RSG

SearchGold Resources Inc.

October 16, 2007 09:15 ET

SearchGold Resources Inc.: Encouraging Diamond Results From Tongo Project in Sierra Leone

MONTREAL, QUEBEC--(Marketwire - Oct. 16, 2007) - SearchGold Resources Inc. (TSX VENTURE:RSG) (FRANKFURT:S1O) is pleased to announce encouraging initial diamond recoveries from the Tongo kimberlite project in eastern Sierra Leone.

The Tongo project is a Joint Venture between Stellar Diamonds Limited ("Stellar") and BHP Billiton. Following a re-organization of its diamond assets along with its AIM (MANA) and TSX-V (MNO) listed partner, Mano River Resources ("Mano"), SearchGold owns a 9.5% minority interest in Stellar. BHP Billiton can earn up to a 51% interest in the Tongo project under the current spending plan of $3.4million, with a further option to earn up to 70%.

Highlights of the initial recoveries are:

- 1,894 diamonds, totalling 2.05 carats, recovered from six 200 kg (dry weight) samples, including

- 49 diamonds over 0.85mm recovered, totalling 1.43 carats

- 72 diamonds, totalling 2.85 carats, recovered from 23 surface grab samples

Stellar's CEO, Karl Smithson, commented:

"We are extremely pleased with these results and consider the significant number of diamonds recovered to be a promising indicator of potential grade. Additionally, the presence of diamonds in the plus 0.85mm size fraction from these small samples is particularly encouraging. With our partners, BHP Billiton, we are now undertaking a 1,200m drilling programme aimed at locating any potential kimberlite pipes or blows associated with the dykes and look forward to providing an update in due course."

Four kimberlite dykes have been mapped and trenched at various points along strike by Stellar on the 33km2 Tongo project, which is a retained area from the original 9,700km2 Reconnaissance Exclusive Prospecting Licence. The dykes in the licence area currently range in strike length from 0.5km to 2km and range in width from a few centimetres up to 1m. Tongo is located 35km south of the Kono Joint Venture between Stellar and Petra Diamonds where underground test diamond mining is underway.

Six 200kg (dry weight) samples were collected from the Tongo trenches and consigned to the SGS Lakefield Research Africa laboratory ("SGS") (non ISO compliant) in Johannesburg, South Africa for total diamond liberation by caustic dissolution.

Some 1,894 diamonds weighing a total of 2.05 carats were recovered. The full results are shown in Table 1. All six samples yielded a significant number of diamonds, many in excess of 0.85mm (i.e. 'DTC sieve size 1'). The highest number of diamonds recovered from a single sample was 756 diamonds (totalling 0.317-carats) from Dyke 3 (sample JV-2527). However, the most carats from a single sample (0.534-carats) were recovered from Dyke 1 (sample JV-2525). The largest diamond recovered was a white octahedral stone weighing 0.31-carats (Dyke 1 sample JV-2525). The SGS laboratory described the majority of the diamonds as white, transparent or translucent, dodecahedrons, octahedrons or fragments. A number of these diamonds show perfect or near perfect preservation and exhibit octahedral form.

In addition to the six samples submitted for caustic dissolution, Stellar also collected 23 surface grab samples from the four dykes. These samples ranged in wet weight from 20 kg to 1,200 kg, and were processed in-field by washing and manual concentrating to produce a greater than 0.3 mm mesh sized concentrate. Diamonds were recovered from the concentrates using a binocular microscope in the kimberlite indicator mineral laboratory established by Stellar in Monrovia, Liberia. Some 72 diamonds, weighing 2.85-carats, were recovered from 22 of the 23 samples collected and processed. The full results are shown in Table 2.



Table 1

Summary of the Caustic Dissolution Results for the Stellar Diamonds Limited
- BHP Billiton Joint Venture, Tongo Project, Sierra Leone. Each represents
a 200kg (dry weight) sample.

---------------------------------------------------------------
JV- 2447 Tongo Dyke 1

---------------------------------------------------------------
Sieve Size Number Weight of
(mm square mesh) of diamonds Diamonds (carats)
---------------------------------------------------------------
greater than 9.50 0 0
---------------------------------------------------------------
6.70 to 9.50 0 0
---------------------------------------------------------------
4.75 to 6.7 0 0
---------------------------------------------------------------
3.35 to 4.75 0 0
---------------------------------------------------------------
2.36 to 3.35 0 0
---------------------------------------------------------------
1.70 to 2.36 0 0
---------------------------------------------------------------
1.18 to 1.70 2 0.0984465
---------------------------------------------------------------
0.85 to 1.18 3 0.0297690
---------------------------------------------------------------
0.600 to 0.850 8 0.0336491
---------------------------------------------------------------
0.425 to 0.600 21 0.0343500
---------------------------------------------------------------
0.300 to 0.425 44 0.0229640
---------------------------------------------------------------
0.212 to 0.300 35 0.0070445
---------------------------------------------------------------
0.150 to 0.212 73 0.0071115
---------------------------------------------------------------
0.106 to 0.150 53 0.0013330
---------------------------------------------------------------
0.075 to 0.106 28 0.0002525
---------------------------------------------------------------
---------------------------------------------------------------
Total 267 0.2349201
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
Total greater than 0.85 5 0.1282155
---------------------------------------------------------------
---------------------------------------------------------------



---------------------------------------------------------------
JV- 2525 Tongo Dyke 1

---------------------------------------------------------------
Sieve Size Number Weight of
(mm square mesh) of diamonds Diamonds (carats)
---------------------------------------------------------------
greater than 9.50 0 0
---------------------------------------------------------------
6.70 to 9.50 0 0
---------------------------------------------------------------
4.75 to 6.7 0 0
---------------------------------------------------------------
3.35 to 4.75 0 0
---------------------------------------------------------------
2.36 to 3.35 1 0.3102525
---------------------------------------------------------------
1.70 to 2.36 0 0
---------------------------------------------------------------
1.18 to 1.70 5 0.1263540
---------------------------------------------------------------
0.85 to 1.18 2 0.0192740
---------------------------------------------------------------
0.600 to 0.850 9 0.0326575
---------------------------------------------------------------
0.425 to 0.600 11 0.0173515
---------------------------------------------------------------
0.300 to 0.425 26 0.0130395
---------------------------------------------------------------
0.212 to 0.300 41 0.0082375
---------------------------------------------------------------
0.150 to 0.212 55 0.0038245
---------------------------------------------------------------
0.106 to 0.150 62 0.0018360
---------------------------------------------------------------
0.075 to 0.106 36 0.0006450
---------------------------------------------------------------
---------------------------------------------------------------
Total 248 0.5334720
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
Total greater than 0.85 8 0.4558805
---------------------------------------------------------------
---------------------------------------------------------------



---------------------------------------------------------------
JV- 2448 Tongo Dyke 2

---------------------------------------------------------------
Sieve Size Number Weight of
(mm square mesh) of diamonds Diamonds (carats)
---------------------------------------------------------------
greater than 9.50 0 0
---------------------------------------------------------------
6.70 to 9.50 0 0
---------------------------------------------------------------
4.75 to 6.7 0 0
---------------------------------------------------------------
3.35 to 4.75 0 0
---------------------------------------------------------------
2.36 to 3.35 0 0
---------------------------------------------------------------
1.70 to 2.36 1 0.0712690
---------------------------------------------------------------
1.18 to 1.70 3 0.1160940
---------------------------------------------------------------
0.85 to 1.18 2 0.0233875
---------------------------------------------------------------
0.600 to 0.850 12 0.0531935
---------------------------------------------------------------
0.425 to 0.600 19 0.0279135
---------------------------------------------------------------
0.300 to 0.425 30 0.0148490
---------------------------------------------------------------
0.212 to 0.300 59 0.0106520
---------------------------------------------------------------
0.150 to 0.212 118 0.0066650
---------------------------------------------------------------
0.106 to 0.150 60 0.0014350
---------------------------------------------------------------
0.075 to 0.106 41 0.0005950
---------------------------------------------------------------
---------------------------------------------------------------
Total 345 0.3260535
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
Total greater than 0.85 6 0.2107505
---------------------------------------------------------------
---------------------------------------------------------------



---------------------------------------------------------------
JV- 2527 Tongo Dyke 3

---------------------------------------------------------------
Sieve Size Number Weight of
(mm square mesh) of diamonds Diamonds (carats)
---------------------------------------------------------------
greater than 9.50 0 0
---------------------------------------------------------------
6.70 to 9.50 0 0
---------------------------------------------------------------
4.75 to 6.7 0 0
---------------------------------------------------------------
3.35 to 4.75 0 0
---------------------------------------------------------------
2.36 to 3.35 0 0
---------------------------------------------------------------
1.70 to 2.36 1 0.0790750
---------------------------------------------------------------
1.18 to 1.70 5 0.1674805
---------------------------------------------------------------
0.85 to 1.18 7 0.0704790
---------------------------------------------------------------
0.600 to 0.850 22 0.0864705
---------------------------------------------------------------
0.425 to 0.600 58 0.0817730
---------------------------------------------------------------
0.300 to 0.425 82 0.0354835
---------------------------------------------------------------
0.212 to 0.300 119 0.0203180
---------------------------------------------------------------
0.150 to 0.212 190 0.0134695
---------------------------------------------------------------
0.106 to 0.150 204 0.0052150
---------------------------------------------------------------
0.075 to 0.106 68 0.0007225
---------------------------------------------------------------
---------------------------------------------------------------
Total 756 0.5604865
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
Total greater than 0.85 13 0.3170345
---------------------------------------------------------------
---------------------------------------------------------------



---------------------------------------------------------------
JV- 2446 Tongo Dyke 4

---------------------------------------------------------------
Sieve Size Number Weight of
(mm square mesh) of diamonds Diamonds (carats)
---------------------------------------------------------------
greater than 9.50 0 0
---------------------------------------------------------------
6.70 to 9.50 0 0
---------------------------------------------------------------
4.75 to 6.7 0 0
---------------------------------------------------------------
3.35 to 4.75 0 0
---------------------------------------------------------------
2.36 to 3.35 0 0
---------------------------------------------------------------
1.70 to 2.36 0 0
---------------------------------------------------------------
1.18 to 1.70 1 0.0384845
---------------------------------------------------------------
0.85 to 1.18 3 0.0417240
---------------------------------------------------------------
0.600 to 0.850 1 0.0037535
---------------------------------------------------------------
0.425 to 0.600 2 0.0013575
---------------------------------------------------------------
0.300 to 0.425 10 0.0054435
---------------------------------------------------------------
0.212 to 0.300 21 0.0047045
---------------------------------------------------------------
0.150 to 0.212 19 0.0016500
---------------------------------------------------------------
0.106 to 0.150 18 0.0005950
---------------------------------------------------------------
0.075 to 0.106 6 0.0000800
---------------------------------------------------------------
---------------------------------------------------------------
Total 81 0.0977925
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
Total greater than 0.85 4 0.0802085
---------------------------------------------------------------
---------------------------------------------------------------



---------------------------------------------------------------
JV- 2505 Tongo Dyke 4

---------------------------------------------------------------
Sieve Size Number Weight of
(mm square mesh) of diamonds Diamonds (carats)
---------------------------------------------------------------
greater than 9.50 0 0
---------------------------------------------------------------
6.70 to 9.50 0 0
---------------------------------------------------------------
4.75 to 6.7 0 0
---------------------------------------------------------------
3.35 to 4.75 0 0
---------------------------------------------------------------
2.36 to 3.35 0 0
---------------------------------------------------------------
1.70 to 2.36 2 0.1107165
---------------------------------------------------------------
1.18 to 1.70 1 0.0222685
---------------------------------------------------------------
0.85 to 1.18 10 0.1094660
---------------------------------------------------------------
0.600 to 0.850 3 0.0131115
---------------------------------------------------------------
0.425 to 0.600 16 0.0220770
---------------------------------------------------------------
0.300 to 0.425 19 0.0109820
---------------------------------------------------------------
0.212 to 0.300 36 0.0067005
---------------------------------------------------------------
0.150 to 0.212 40 0.0030150
---------------------------------------------------------------
0.106 to 0.150 52 0.0017950
---------------------------------------------------------------
0.075 to 0.106 18 0.0002665
---------------------------------------------------------------
---------------------------------------------------------------
Total 197 0.3003985
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
Total greater than 0.85 13 0.2424510
---------------------------------------------------------------
---------------------------------------------------------------



Table 2

---------------------------------------------------------------
Summary of Tongo Diamond Results
Taken from Field Grab Samples
---------------------------------------------------------------
---------------------------------------------------------------
Sample Dyke Wet weight Diamonds Carats
Number (kg) (+0.3mm)
---------------------------------------------------------------
---------------------------------------------------------------
2446 Dyke 4 120 2 0.250
---------------------------------------------------------------
2446 Dyke 4 1,200 5 0.320
---------------------------------------------------------------
2505 Dyke 4 430 15 1.655
---------------------------------------------------------------
2528 Dyke 4 90 12 0.120
---------------------------------------------------------------
2529 Dyke 4 210 0 0.000
---------------------------------------------------------------
2530 Dyke 4 360 14 0.820
---------------------------------------------------------------
2531 Dyke 4 450 1 0.010
---------------------------------------------------------------
2532 Dyke 4 840 5 0.020
---------------------------------------------------------------
---------------------------------------------------------------
Total 3,700 54 3.195
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
2526 Dyke 3 60 0 0.000
---------------------------------------------------------------
2527 Dyke 3 400 2 0.150
---------------------------------------------------------------
---------------------------------------------------------------
Total 460 2 0.150
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
2448 Dyke 2 320 1 0.030
---------------------------------------------------------------
2504 Dyke 2 250 4 0.005
---------------------------------------------------------------
2536 Dyke 2 600 16 1.240
---------------------------------------------------------------
---------------------------------------------------------------
Total 1,170 21 1.275
---------------------------------------------------------------
---------------------------------------------------------------

---------------------------------------------------------------
2506 Dyke 1 250 9 0.210
---------------------------------------------------------------
2525 Dyke 1 1,000 15 0.850
---------------------------------------------------------------
2449 Dyke 1 20 1 not weighed
---------------------------------------------------------------
2447 Dyke 1 500 3 0.030
---------------------------------------------------------------
2506 Dyke 1 250 9 0.050
---------------------------------------------------------------
2533 Dyke 1 430 10 0.440
---------------------------------------------------------------
2534 Dyke 1 500 5 0.020
---------------------------------------------------------------
2535 Dyke 1 160 4 0.150
---------------------------------------------------------------
2537 Dyke 1 1,000 15 1.080
---------------------------------------------------------------
2538 Dyke 1 90 1 0.020
---------------------------------------------------------------
---------------------------------------------------------------
Total 4,200 72 2.850
---------------------------------------------------------------
---------------------------------------------------------------


About the laboratory procedure

At the SGS laboratory in Johannesburg, South Africa, the samples were dried and 200kg (dry weight) of each sample was subjected to total diamond liberation through caustic dissolution (4kg sample aliquots boiled at 550-deg Celsius in caustic soda for 14 hours). The fusion residues were then passed through a 90 micron sieve and the +90 micron fractions were then dried and passed to the MSA Geoservices laboratory for diamond picking. Diamonds that reported to the +0.075mm square mesh sieve size were recovered, measured (X,Y,Z axes), described and weighed. Diamonds reporting to the +0.212mm sieve size were weighed individually, whereas diamonds reporting to the -0.212mm sieve size were weighed together in their respective sieve class size.

Philippe Giaro, P.Geol., President and CEO of SearchGold Resources Inc. and Qualified Person for SearchGold, has reviewed and approved the content of this release.

About SearchGold Resources Inc.

SearchGold Resources is a Canadian-based mining exploration company whose primary mission is to target, explore and develop gold deposits in Africa and in Canada. The expansion strategy executed in 2006 set the stage for the Company's development in 2007 that involves increasing activity on the new blue-sky properties and the advanced projects as well as some potential acquisitions.

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