Bema Gold Corporation

Bema Gold Corporation

March 22, 2005 20:00 ET

CORRECTION: Bema Gold Corporation; 2004 Fourth Quarter and Year End Results/Updated Kupol Mineral Resource Estimate


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BEMA GOLD CORPORATION

TSX, AMEX SYMBOL: BGO
AIM SYMBOL: BAU

MARCH 22, 2005 - 20:00 ET

CORRECTION: Bema Gold Corporation; 2004 Fourth Quarter
and Year End Results/Updated Kupol Mineral Resource
Estimate

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2005) - Bema Gold
Corporation (TSX:BGO)(AMEX:BGO)(AIM:BAU)

Correction: Please note that in the previously announced "Updated Kupol
Resource Estimate" the tables had incorrect titles. The following is a
reprint of the Kupol Section of the news release with the correct tables:

Kupol Deposit, Russia (Bema 75%)

The following is the updated mineral resource estimate for the Kupol
gold and silver property in Chukotka, north-eastern Russia. The infill
drilling in 2004 has resulted in a 230% increase in contained gold
ounces and a 273% increase in contained silver ounces in the Indicated
category over the 2003 resource estimate (published in February 2004).
The resource estimate also confirms the large, high grade nature of the
Kupol project. The deposit remains open to the north, at depth in the
north and to the south. In addition several parallel structures remain
untested. The new indicated and inferred resource estimates are
tabulated below.



Indicated Resource: Undiluted Risk-Adjusted, Vein,
Above 6 g/t Gold Cutoff
--------------------------------------------------------------------
Tonnes Gold Silver Contained Contained
(000's) Grade Grade Metal Metal
(g/t) (g/t) Gold Troy Silver Troy
Ounces (000's) Ounces (000's)
(ii)
--------------------------------------------------------------------
Big Bend Zone 2,208 29.1 358.6 2,064 25,454
--------------------------------------------------------------------
All Kupol
Vein(i) 6,403 20.3 257.0 4,184 52,911
--------------------------------------------------------------------


Inferred Resource: Undiluted Risk-Adjusted, Vein,
Above 6 g/t Gold Cutoff
--------------------------------------------------------------------
Tonnes Gold Silver Contained Contained
(000's) Grade Grade Metal Metal
(g/t) (g/t) Gold Troy Silver Troy
Ounces (000's) Ounces (000's)
(ii)
--------------------------------------------------------------------
Big Bend Zone 532 12.4 188.6 212 3,226
--------------------------------------------------------------------
All Kupol
Vein(i) 4,090 12.4 171.4 1,637 22,539
--------------------------------------------------------------------
(i) Including Big Bend
(ii) Subject to mine planning, metallurgical recovery studies and
infill drilling to be converted to reserves. Subject to mining
dilution and recovery losses.


The details of the resource estimation techniques and cutting can be
found at the end of the news release. The major difference between the
2004 and the 2003 resource calculation is the large increase in the
Indicated category with a corresponding decrease in the Inferred
category as a result of the infill drilling. The specific gravity with
more sampling has decreased to 2.48 from 2.55. In addition, further
drilling has removed 50 metres from the bottom of the Big Bend zone
which was included in last years Inferred resource. The resources lost
in these two situations were gained back due to several previously
unknown parallel veins in the North Zone, the increase in grade of the
Big Bend Inferred resource when converted to an Indicated resource by
infill drilling and a lower metal at risk factor. In addition, the
mineralization has been extended a further 350 metres north and 150
metres deep in the north based on 2004 drilling. The metal at risk
adjusted factors were used as a result of guidance from Bema's
consultant Dr. Harry Parker of AMEC E&C Services and the final review of
this resource will be completed by Dr. Parker for the feasibility study.
The following table shows the uncut 2004 resource that can be compared
with the uncut resource calculation derived from the 2003 drill program
(published in February 2004).



Indicated Resource: Undiluted Not Cut, Vein,
Above 6 g/t Gold Cutoff
--------------------------------------------------------------------
Tonnes Gold Silver Contained Contained
(000's) Grade Grade Metal Metal
(g/t) (g/t) Gold Troy Silver Troy
Ounces (000's) Ounces (000's)
(ii)
--------------------------------------------------------------------
Big Bend Zone 2,209 31.0 382.6 2,201 27,165
--------------------------------------------------------------------
All Kupol
Vein(i) 6,417 21.7 275.7 4,486 56,874
--------------------------------------------------------------------

Inferred Resource: Undiluted Not Cut, Vein,
Above 6 g/t Gold Cutoff
--------------------------------------------------------------------
Tonnes Gold Silver Contained Contained
(000's) Grade Grade Metal Metal
(g/t) (g/t) Gold Troy Silver Troy
Ounces (000's) Ounces (000's)
(ii)
--------------------------------------------------------------------
Big Bend Zone 532 13.1 198.8 223 3,400
--------------------------------------------------------------------
All Kupol
Vein(i) 4,102 13.1 179.4 1,723 23,659
--------------------------------------------------------------------
(i) Including Big Bend
(ii) Subject to mine planning, metallurgical recovery studies and
infill drilling to be converted to reserves. Subject to mining
dilution and recovery losses.


The feasibility study work is underway and is scheduled to be completed
in May 2005. Drilling at Kupol is expected to recommence this May and
will consist of approximately 45,000 metres to test the deposit to the
north and to depth in the north, to test the offset of the structure
southwards and to test parallel veins. Approximately 1/3 to 1/2 of the
drilling will also be used for further infill, condemnation and mine
planning.

Kupol Mineral Resource

QA/QC on Assay and Logged Database

The Kupol QA/QC program used to monitor the accuracy of the assay
database was managed by Bema's Qualified Person Tom Garagan and was
audited by Smee and Associates, who found it to be compliant with 43-101
regulations. The lithology database was verified by redundant checks
against original and quick log information.

Methodology Used to Estimate the Kupol Resource

The construction of the Resource Model was performed using Datamine
software by Bema personnel and several contractors. The process of
building the resource model was overseen by Susan Meister (Resource
Modeling consultant) and Ken Brisebois (AMEC, Principle Geostatistician).

The resource was estimated from a three-dimensional block model, which
was created by interpreting the vein, stockwork zone, dyke and faults on
east-west trending vertical cross sections and reconciling the
interpretations on levels. Three-dimensional solids (wireframe) models
were built from the interpretations and were the basis for coding the
block model. Within the vein and stockwork interpretation, 1.5-metre
composites were created from the assay intervals. To best represent the
high and lower grade portions of the vein, an indicator variable was
created using the intensity of sulfosalts and Au grade. Variograms were
run on composites for the indicator variable in addition to Au and Ag
within the high-grade portion and Au and Ag within the lower grade
portion of the vein.

The indicator (high-sulfosalt) variable, high-grade Au, low-grade Au,
high-grade Ag and low-grade Ag were estimated with four passes of
ordinary kriging, using 15 search orientations from south-to-north that
match the local strike and dip of the vein. Each of the passes was used
to control the amount of data mixing with consideration given to the
drill hole spacing.

The whole block grade for vein was calculated using the kriged indicator
to weight the high and low grade kriged estimates. The formula used in
this calculation was determined by visual inspection of the block grades
relative to the drill hole and trench data, comparison of the average
grade at a zero cutoff to the average of the declustered composites and
comparison of profiles of kriged versus nearest neighbor results by
northing and elevation.

An in-situ dry density of 2.48 tonnes per cubic metre was used for
tonnage calculations. This is based on 543 vein samples collected from
throughout the deposit. These were tested at site using the wax-coated
density technique as specified in ASTM standard C914-95 (reapproved
1999).

Checks made on the model include a comparison of the kriged estimate to
the nearest neighbor (block polygon) models and to the declustered
composites. The effect of edge (contact) dilution and ore loss will be
assessed in a mining study that is in progress. Visual checks of the
block grades relative to the drill hole and trench data were completed
in detail on cross sections and levels on the computer screen.

Resource Classification

Mineral Resources have been categorized using the classification of the
Canadian Institute of Mining, Metallurgy and Petroleum (2000), relevant
definitions being quoted below. This classification is the basis for
Technical Reports by Qualified Persons in Canada, and the classification
is virtually the same as that of the JORC code (Australia), SME
guidelines (USA), SAMREC (South Africa) and that of the European Union.

The CIM Mineral Resource Definitions state that an Indicated Mineral
Resource is that part of a Mineral Resource for which quantity, grade or
quality, densities, shapes and physical characteristics can be estimated
with a level of confidence sufficient to allow appropriate application
of technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate is
based on detailed and reliable exploration information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced close-enough for geological and
grade continuity to be assumed. Mineral resources under NI 43-101 must
show a reasonable chance of economic viability however are not mineral
reserves and do not have demonstrated economic viability.

An Inferred Mineral Resource can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified
geological and grade continuity. The estimate is based on limited
information from locations such as outcrops, trenches, pits, workings
and drill holes.

Due to the uncertainty which may attach to Inferred Mineral Resources,
it cannot be assumed that all or part of an Inferred Mineral Resource
will be upgraded to an Indicated or Measured Mineral Resource as a
result of continued exploration.

At Kupol, Indicated and Inferred Resources were defined by reviewing
grade and mineralized vein width on east/west trending cross sections
and on a vertical longitudinal projection. Indicated Mineral Resources
are estimated where drill holes or trenches intersect the vein(s) at an
approximate 50-metre spacing. Eighty-three percent of the Indicated
Resource is supported by approximately 25x50-metre drill hole spacing.
Projection of Indicated Resources is limited to 25 metres down-dip in
the vein and 12.5 to 25 metres along strike. Within Indicated Resources,
the vein structure is continuous, although the vein thickness may be
affected locally by faulting and dikes. The grade appears continuous
from hole to hole; this continuity has been confirmed by 141 trenches
spaced at 4- to 5-metre intervals and 27 trenches at 10-metre intervals
across the outcrop of the vein. Additionally, 63 close spaced drill
holes were completed in Big Bend and South Zones, which confirm the
grade and vein continuity. The average spacing of the detailed drilling
is 10-metres along strike and 5 to 10-metres down dip.

Inferred Mineral Resources are estimated down dip and along strike from
Indicated Resources in areas that have been drilled on an approximate
100-metre spacing. Projection distances have been limited to within 100
m of a drill hole.

Metal-at-Risk (Capping Levels)

The Mineral Resource is risk-adjusted with an average 5.8% metal
reduction in the 25x50-metre spaced drill area (within Indicated
Resource), 11.3% metal reduction in the 50x50-metre spaced drill area
(within Indicated Resource) and 3.7% metal reduction in Inferred
Resource. These approximately correspond to reductions of 5.8, 12.2 and
5% targets developed by Dr. Parker and Mr. Brisebois. The
risk-adjustment accounts for a large portion of the gold being
represented by a relatively small proportion of samples having very high
grades. Blocks in the three-dimensional block model with gold grades
greater than 8 g/t were adjusted downward by factoring the indicator to
attain the metal reduction suggested by the metal-at-risk analysis.

Risk Adjustment (Description of Methodology)

Precious metals deposits have skewed grade distributions. Skewed grade
distributions have the property that a small proportion of samples can
represent a disproportionately large amount of metal. The limited number
of these samples can introduce significant uncertainty into a resource
estimate. It is a common practice to cut the grades of very high-grade
samples, restrict their projection distance or to adjust resource models
to mitigate risk.

In many precious metals deposits, Kupol included, the highest grade
samples are scattered and discontinuous at the exploration drill-hole
spacing. The number of high-grade samples intersected can vary according
to the positioning of the drill holes, and it is impossible to know in
advance which positions would give the most accurate estimate of the
amount of high-grade metal actually present. The uncertainty related to
the amount of high-grade metal can be evaluated using a Monte Carlo
simulation technique developed by Mineral Resources Development/AMEC
that has been applied over a 14-year period. This method simulates
re-drilling the deposit 1000 times and notes the variation in the amount
of high-grade metal present in annual or global production increments.
The 20th percentile of the simulated metal contents is added to the
metal content represented by the remaining samples to give a
risk-adjusted metal content. The difference between total metal content
and risk-adjusted metal content is termed metal at risk. Theoretically,
in four periods out of five, the mine should do better than the
estimate; however there is additional and largely unquantifiable
uncertainty related to how representative the assay distribution input
is to the simulation.

The appropriate time-period for Indicated Resources is annual, as
Indicated Resources will be used to prepare annual production schedules
as part of scoping and feasibility studies. For Inferred Resources,
there is inadequate information to support annual planning; therefore a
global time-period is used.

The method has advantages over other top-cutting methods in that it
takes into account 1) the data density, and 2) the volumes used for
production scheduling. As the data density is increased, the amount of
metal at risk declines; longer production increments will have less risk
than shorter ones.

Some of the statements contained in this release are "forward-looking
statements" within the meaning of Section 21E of the Securities Exchange
Act of 1934. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause our actual
results, performance or achievements to differ materially from the
anticipated results, performance or achievements expressed or implied by
such forward-looking statements. Forward-looking statements in this
release include statements regarding: the Company's projections
regarding gold production, costs of production, drilling and development
programs, financings and the proposed bid for Arizona Star. Factors that
could cause actual results to differ materially from anticipated results
include risks and uncertainties such as: risks relating to estimates of
reserves, mineral deposits and production costs; mining and development
risks; the risk of commodity price fluctuations; political and
regulatory risks; and other risks and uncertainties detailed in the
Company's Form 40-F Annual Report for the year ended December 31, 2003,
which has been filed with the Securities and Exchange Commission, and
the Company's Renewal Annual Information Form for the year ended
December 31, 2003, which is an exhibit to the Company's Form 40-F and is
available at the Canadian Depository for Securities Web site. The
Company disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Bema Gold Corporation
    Ian MacLean
    Manager, Investor Relations
    (604) 681-8371
    or
    Bema Gold Corporation
    Derek Iwanaka
    Investor Relations
    (604) 681-8371
    investor@bemagold.com
    www.bema.com
    The Toronto Stock Exchange neither approves nor disapproves the
    information contained in this News Release.