Garrison International Ltd.
TSX VENTURE : GAU

Garrison International Ltd.

February 11, 2011 10:14 ET

Construction Work Progresses at Garrison's Tovshiir Property

TORONTO, ONTARIO--(Marketwire - Feb. 11, 2011) - Garrison International Ltd. (TSX VENTURE:GAU) ("Garrison") is please to provide the following update on developments at its Tovshiir project.

President Blair Krueger commented: "Work continues at satisfactory pace at the Tovshiir site and advances have been made in the continued test work of the ore in preparation for production startup mid-year in 2011."

Construction continues at the Tovshiir site, with installation of a 2.4 m x 3.6 m ball mill being complete. The ball mill is capable of processing between 22 - 24 tonnes per hour of ore, with expectations of a minimum of 500 tonnes per day of ore milled.  Twin Cummins generators of 1200kw capacity each are being transported from Canada to the mine site. The operations are designed to run on a single generator unit, with the second unit on standby as backup.

Construction of the steel framework for the 12 x SF400 floatation cells has commenced, with 48 m3 of floatation cells expected to arrive in Mongolia late February. Once these are delivered to and installed at the Tovshiir site, this will allow completion of the floatation circuits and enable production of concentrates for the intensive leach circuit.

Test work on bulk sampling of selected ore from the project continues, with 1,380 tonnes of rock to be batch tested by floatation. This rock was taken from an area of the project referred to as the Chinese Pit, and the batch testing that has been conducted was undertaken with a view to defining the right methodology to produce high grade concentrates.

To date, 120 tonnes of ore material have been tested, producing 5.5 tonnes of gold concentrates. The rock for this test work came from the Chinese Pit and was sampled by five samples, each sample being approximately 50 kg in weight. Testing was completed to obtain a guide as to the head grade of the material. Analysis of these five samples using FA50 (fire assay 50 gms on splits) at Alex Steward Laboratories showed the following results:

Sample Number Au g/t Average Cut Grade
Bulk 001 9.32 9.5 9.5
Duplicate 9.66    
Bulk 002 29.62 29.1 29.1
Duplicate 28.58    
Bulk 003 4.25 4.34 4.34
Duplicate 4.43    
Bulk 004 97.72 99.1 30
  100.54    
Bulk 005 7.98 8.2 8.2
  8.49    
UNCUT GRADE g/t 30.1  
CUT GRADE g/t
(30 g/t upper grade cut imposed)
  16.2

These samples are 50 kg grab samples across 5 equal lines across the stockpile. The stockpile comes from outcropping low angle dipping vein in the Chinese Pit with a width range from 2-2.5m and is exposed over 20m in the open cut.

It should be noted that no resources of international standard have been outlined at Tovshiir, although management of Garrison feels that exploration potential exists based on extensive previous workings by local miners that has produced significant gold from this region. Previous press releases have provided all the results of 73 shallow diamond holes drilled and 852 vertical channel samples collected across the outcropping veins. The large variation in grade due to coarse nugget effects makes the estimation of grade on this deposit difficult, and it was deemed important that this bulk sample work be done to help determine accurately grade at the minesite.

These results, with an average cut grade of 16.2 g/t gold, demonstrate the existence of high grade material at the Tovshiir site. This is in line with previous bulk test work completed (11.5 g/t gold), and management of Garrison considers that it is very encouraging for future production. The material taken for this test work comes from low angle vein structures up to 2.5m in width that are of orogenic gold origin and occur along a regional thrust plane.

The floatation bulk test work was conducted to substantiate the Amtech Australia Metallurgical Test Work completed last year, which showed that the floatation concentrates produced gold recoveries in excess of 88% using conventional floatation circuits. The test work also showed that when used in conjunction with a Knelson Concentrator circuit capturing the coarse free gold, an overall gold recovery in excess of 90% was achieved.

Samples from the 6.5 tonnes of concentrate produced this month have been submitted to the laboratory for assay, and display visual gold grains indicating the test work is on track.

Garrison also reports that it has signed an interim contract with Bondu LLC to obtain additional management support. The contract is open ended and is based around Bondu LLC providing Country Management and Site Management support for Garrison's Tovshiir project. Their extensive construction experience will assist to keep development work on schedule. It is expected that mid-year in 2011, the JPCM mining contract previously signed by Garrison will become effective, and that operations will begin to stockpile ore from the Quartz Blow and Ninja Pit areas of the Tovshiir project for use in future production. Ore feed for the 500 tpd mill will come from three separate pits (Chinese, Quartz Blow, Ninja) that will be developed simultaneously and will allow the flexibility of the feed to maintain the head grade at the expected 4.7 g/t gold levels during 2011.

Garrison also reports that an operational agreement was signed with the local and provincial governments in Mongolia to obtain community support during 2011. The agreement allows for development of local skills and trades by increasing local employment at the mine.

Current costs of completion of the mine at Tovshiir are on budget and on time, with the remaining US$1.6m of expenditure expected to be finished by early in the third quarter of 2011, in advance of the planned commencement of production late in the that quarter.

As the deposits on the Tovshiir site have not been categorized as an "inferred mineral resource", an "indicated mineral resource", a "measured mineral resource", a "probable mineral reserve", or a "proven mineral reserve" under National Instrument 43-101, the disclosure in this press release regarding the potential quantity and grade of deposits is conceptual in nature, there has been insufficient exploration to define a "mineral resource" and it is uncertain if further exploration will result in the deposits at the Tovshiir site being delineated as a "mineral resource".

Tony Bainbridge, the Chief Operating Officer and a director of Garrison, and a "qualified person" under National Instrument 43-101, has supervised and executed the geological work program to date on the Tovshiir Property. Mr. Bainbridge has verified and approved all scientific and technical disclosure contained in this press release with respect to Garrison and the Tovshiir Project. 

About Garrison

Garrison is a junior mineral exploration company focused on acquiring and developing advanced stage gold properties in Mongolia. For complete details on Garrison International Ltd. and its partners, management encourages investors and interested parties to view its public documents filed on SEDAR at www.sedar.com.

CAUTIONARY STATEMENT

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements in this news release, other than statements of historical fact, are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding the future plans and objectives of Garrison International Ltd. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Garrison International Ltd. assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

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