SearchGold Resources Inc.

SearchGold Resources Inc.

January 04, 2005 12:41 ET

SearchGold Successfully Completes the Funding of the Ongoing Bakoudou Bankable Feasibility Study


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SEARCHGOLD RESOURCES INC.

TSX VENTURE SYMBOL: RSG

JANUARY 4, 2005 - 12:41 ET

SearchGold Successfully Completes the Funding of the
Ongoing Bakoudou Bankable Feasibility Study

MONTREAL, QUEBEC--(CCNMatthews - Jan. 4, 2005) - SearchGold (TSX
VENTURE:RSG) is pleased to report that it has finalized a US$ 1,100,000
financing. Mr. Michael Landau of Vango, SearchGold's new, New York based
IR company, explained that the New York based accredited investor group
sees this investment as an ideal opportunity to invest in a junior
mining company so advanced in its production objectives.

Mr. Maurice Giroux expressed his enthusiasm for this latest investment
in Searchgold. "It is not every day that we get approached by accredited
investors whom, unsolicited, wish to invest over a million dollars in
our company. It is a testament to the unrealized value of Searchgold as
well as to the strong management team that will allow the company to
bring to term the gold and diamond production objectives that we have
been promoting through the past few years".

The proceeds of the financing will be used mainly for the completion of
the Bankable Feasibility Study currently in progress on SearchGold's
90%-owned Bakoudou Gold Project in Gabon. According to Met-Chem's
Scoping Study, the gold resource, at the current gold price, could
generate in excess of US$25m in annual revenue.

As of now, data from a total of 800 samples are being compiled for
further announcements. The drilling program has reached the heart of
Zone A and wide quartz veins with visible gold have been reported from
many holes.

The following schedule is anticipated for the coming months:



- January 2005, diamond drilling resumption
- February 2005, bulk sample collection for metallurgical testing
- April 2005, gold reserve calculation and pit outlining


Bakoudou's Zone A consists of a typical greenstone belt-hosted gold
deposit. It is characterized by gold-bearing quartz veins adjacent to
the eastern margin of a mylonitic zone. Zone A is located at the
southern extremity of the 2-kilometer long Bakoudou gold bearing
structure that is controlled by a north-north-west trending major
structural lineament. Zone A represents SearchGold's most advanced
target on this thoroughly mineralized structure.

A positive scoping study by Met-Chem Canada Inc., outlining 170,000
ounces of gold exploitable by open pit, prompted the ongoing bankable
feasibility study, which includes an 82 diamond drill hole program
totaling 5000 meters. A total of 50 holes representing 3577 m of
drilling have been completed so far. The results of the first 29 holes
have been previously released and confirm the continuity and grade of
the mineralization (see September 8, 13, 22 and 29, 2004, press
releases). Additional fences of holes have been added to extend the
deposit towards the north and west of its initial outline.

It should be stated that during the course of 2005, extensive additional
diamond drilling of Zone A's northern extension has been scheduled in
order to add up substantial gold ounces to the zone's currently
estimated gold resource. The company is currently completing an
extensive soil geochemistry survey covering the entire Bakoudou 2 km
long structure at a 25-meter sample interval, in order to better target
additional drilling.

The Bankable Feasibility Study is carried out under the direct
supervision of Met-Chem Canada Inc., a world-renowned mining and
engineering firm.

SearchGold Resources is a Canadian-based mining exploration company
whose primary mission is to target, explore and develop diamond and gold
deposits in Africa and in Canada. SearchGold's project strategy
maximizes its experience and resources, and supports the company's
commitment to strengthen shareholder value. Find out more about
SearchGold Resources by visiting http://www.searchgold.ca

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    SearchGold Resources Inc.
    Maurice Giroux
    President
    (514) 866-4224
    info@searchgold.ca
    or
    Vango Holdings inc.
    Michael Landau
    (917) 866-3000
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.