Desert Sun Mining Corp.

Desert Sun Mining Corp.

March 03, 2005 05:30 ET

Desert Sun Increases Jacobina Gold Mine Reserves To Nearly 1 Million Ounces


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DESERT SUN MINING CORP.

TSX SYMBOL: DSM
AMEX SYMBOL: DEZ

MARCH 3, 2005 - 05:30 ET

Desert Sun Increases Jacobina Gold Mine Reserves To
Nearly 1 Million Ounces

TORONTO, ONTARIO--(CCNMatthews - March 3, 2005) - DESERT SUN MINING
CORP. (TSX:DSM)(AMEX:DEZ) has completed a mineral reserve estimate for
its Jacobina Mine - Joao Belo Zone - based on the latest Measured and
Indicated mineral resource estimates released on December 15, 2004.
Mineral reserves in the Joao Belo zone as estimated in the SNC
Feasibility study of September 2003 were 7,471,000 tonnes at 2.10 g Au/t
containing 504,000 ounces of gold.

Proven and probable mineral reserves in the Joao Belo zone are now
11,102,000 tonnes grading 2.04 g Au/t containing 727,000 ounces, an
increase of 44% in contained ounces. Total Proven and Probable mineral
reserves in all zones at Jacobina, which previously were 10,746,000
tonnes at 2.20 g Au/t containing 758,000 ounces of gold, are now
14,378,000 tonnes at 2.12 g Au/t containing 980,000 ounces of gold as
summarized in Table 1 below. The conversion rate of the new indicated
resource to mineral reserve is about 75% which is comparable to the
historical experience at the mine and to the conversion rate of the SNC
Lavalin feasibility study.

This new reserve is now being used in the Jacobina Mine development plan
and increases mine life by over two years. The other major zones - Morro
do Vento, Morro do Vento Extension (Basal/Main Reef), Canavieiras and
Serra do Corrego - will have updated and/or new mineral reserves
estimated as mine planning/feasibility studies for each area are
completed. The total Measured and Indicated mineral resource at Jacobina
for all zones is 24,800,000 tonnes grading 2.53 g Au/t containing
2,050,000 ounces of gold (see press release December 15, 2004).

"The 44% increase to 727,000 ounces from the original estimate of
504,000 ounces in Proven and Probable reserves for the Jacobina Mine -
Joao Belo Zone - allows us to extend the mine life of our primary ore
zone," commented Peter Tagliamonte, Vice President, Operations and Chief
Operating Officer. "Our expectations are that, as the Mine Project Team
works through the other zones included in the Measured and Indicated
resources, we will see further significant increases in reserves."

The Measured and Indicated resource estimate upon which these new
reserve estimates are based was reviewed and confirmed by Terry
Hennessey, P.Geo. of Micon International. Mr. Hennessey, who is an
independent qualified person as defined under National Instrument 43-101
as reported in the press release dated December 15, 2004. The resource
estimation methodology and classification used is the same as outlined
in the August 2003 report by Mr. Hennessey filed on SEDAR. The mineral
reserve estimate was completed by the Desert Sun Mining group at
Jacobina under the direction of Mr. Tagliamonte, P.Eng. who is a
Qualified Person, as defined by National Instrument 43-101.

Key parameters for the mineral reserve estimate as set out in Table 1
below are as follows:

- Mineral resources and reserves were estimated using the polygonal
method on vertical longitudinal sections

- Dilution is 1 metre on the hanging wall and 1 metre on the footwall at
grades indicated by diamond drilling

- Mining recovery rate is 80%

- High assay cutting factor is 30 grams gold per tonne

- Specific gravity is 2.6 based on tests completed for the SNC Lavalin
feasibility study

- Block cut-off grade is 1.33 grams gold per tonne

- Gold price is US$350 per ounce

- Desert Sun has all operating permits in place for production



---------------------------------------------------------------------
Table 1: Estimated mineral reserves as of March 1, 2005 +
---------------------------------------------------------------------
Area Proven Probable Proven & Probable
---------------------------------------------------------------------
Ounces
Gold
g g g Con-
Tonnes Au/t Tonnes Au/t Tonnes Au/t tained
---------------------------------------------------------------------
Joao
Belo(a) 1,955,000 2.02 9,147,000 2.04 11,102,000 2.04 727,000
---------------------------------------------------------------------
Basal
Reef(b) Nil Nil 2,304,000 2.51 2,304,000 2.51 186,000
---------------------------------------------------------------------
Serra do
Corrego(b) Nil Nil 972,000 2.14 972,000 2.14 67,000
---------------------------------------------------------------------
Total 1,955,000 2.02 12,423,000 2.14 14,378,000 2.12 980,000
---------------------------------------------------------------------
+ Mineral reserves have been classified in accordance with CIM
standards under NI 43-101
(a) Desert Sun Mining internal reserve estimation March 1, 2005
following procedures outlined in SNC Lavalin feasibility study.
(b) As per original Dynatec mineral reserve estimation September 2003
in the SNC Lavalin feasibility study


Assaying for the drilling program, which defined the new Indicated
mineral resources, was carried out by Lakefield Geosol, an ISO 9001,
2000 laboratory based in Brazil, using fire assay on 50 gram pulps.
Check assaying is routinely carried out, by ALS Chemex in Vancouver, on
10% of sample pulps and 5% of sample rejects. Independent standard
reference samples are also inserted at regular intervals into each batch
of analyses. Security is maintained at the core logging and sampling
facility. Dr. Bill Pearson, P.Geo. is the Qualified Person as defined
under National Instrument 43-101 responsible for the scientific and
technical work on the exploration program.

Desert Sun Mining is a Canadian gold exploration and development company
listed on the Toronto Stock Exchange and the American Stock Exchange
with 100% ownership of the Jacobina Mine and the 155 km long Bahia Gold
Belt in the state of Bahia, in northeastern Brazil. The mine is
scheduled to re-start operations in April of 2005 with proven and
probable mineral reserves of 14,378,000 tonnes at 2.12 g Au/t containing
980,000 ounces of gold. As a result of the Desert Sun's exploration
programs to date, Measured and Indicated resources total 24,800,000
tonnes at 2.53 g Au/t containing 2,050,000 ounces of gold, and Inferred
Resources total 22,200,000 tonnes at 2.61 g Au/t containing 1,900,000
ounces of gold. The mineral reserves are included within the Measured
and Indicated mineral resources. For additional information, please see
Desert Sun's website at www.desertsunmining.com.

Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned that any
such statements are not guarantees of future performance and that actual
developments or results may vary materially from those in these
"forward-looking statements".

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    DESERT SUN MINING CORP.
    Naomi Nemeth
    (416) 861-5901 OR 1-866-477-0077
    (416) 861-8165 (FAX)
    www.desertsunmining.com