Desert Sun Mining Corp.
TSX : DSM
AMEX : DEZ

Desert Sun Mining Corp.

June 23, 2005 05:00 ET

Desert Sun Intersects 23.68 g Au/t Over 12.9 m and 11.02 g Au/t Over 13.6 m at Canavieiras

TORONTO, ONTARIO--(CCNMatthews - June 23, 2005) - DESERT SUN MINING CORP. (TSX:DSM)(AMEX:DEZ): Desert Sun has received results of further drilling and exploration work at the Canavieiras Mine target in the Jacobina Mine area. Thus far in 2005, 37 diamond drill holes totaling 3,770 metres have been completed in this area. New drilling results are shown in Table 1.

Highlights at Canavieiras include:

- CAN-87 which intersected 23.68 g Au/t (14.66 cut) over a true width of 12.9 m and 11.02 g Au/t (7.93 cut) over a true width of 13.6 m in the reefs below the existing mine workings

- CAN-73 which intersected 16.52 g Au/t over 3.2 m true width in a reef above the mine workings and 3.64 g Au/t over a true width of 7.8 m in a reef below the mine workings

- CAN-70 which intersected 4.32 g Au/t over a true width of 10.6 m in reefs above the mine workings

Drilling at Canavieiras continues to focus on following up the potential high grade trend identified in Hole 79 (results released April 19, 2005), which intersected 14.57 g Au/t (13.50 g Au/t cut) over a true width of 8.0 m and 9.29 g Au/t (7.75 g Au/t cut) over a true width of 6.4 m. The former Canavieiras Mine is located 3 km north of the processing plant and is situated in a 1.2 km long by 400 metre wide block bounded by faults. CAN-87, collared 17 metres northwest of CAN-79 intersected 23.68 g Au/t (14.66 g Au/t with highs cut to 30 g/t) over a true width of 12.9m and 11.02 g Au/t (7.93 cut) over a true width of 13.6m in the Middle Unit (MU) and Lower Unit (LU) reefs about 50 metres and 100 metres, respectively below the 570-metre adit level access. This continues to confirm the existence of very high grade areas of gold mineralization at Canavieiras within the more extensive lower grade (3-4 g Au/t) mineralization.

Figure 1 is a plan map of grade (g Au/t) times thickness (true width in metres) of the MU reef located 50 metres to 100 metres below the existing mine workings. Also shown is the location of the new 80-metre long cross-cut which has been completed to provide drill access from the southern end of the old workings. Drilling is now in progress from this cross cut. The mineralized zones in all reefs both below and above the old workings are open to the southeast and to the south.

Four historical drill holes were previously completed about 230 metres south of the Canavieiras mine. Significant results from these holes are summarized in Table 2. Hole CAN-7 is reported to have intersected 10.42 g Au/t (7.57 cut) over a true width of 4.8 m. These historical holes confirm that the mineralization extends to the south but further drilling is required to fully evaluate the potential of this extensive target area that extends at least 600 metres along strike to the south from the existing old mine area. It is also important to note that in this target area, none of the major target reefs (Piritoso, Liberino, MU and LU) outcrop.

Holes CAN-73, which intersected 16.52 g Au/t over a 3.2 m true width and CAN-70, which intersected 4.32 g Au/t over a true width of 10.6m in reefs above the old mine workings, continue to confirm the potential in these targets.

"The results at Canavieiras indicate excellent potential to outline significant higher grade resources," commented Dr. Pearson, Vice President, Exploration. "The zone is completely open to the south with limited historical drilling indicating that the mineralized reefs extend to at least 230 metres south of the mine. In addition, our geological interpretation indicates that in general high grade areas within the reefs above the old workings appear to be mirrored by similar higher grade areas in the reefs below the old workings suggesting an overall structural control to the distribution of higher grade mineralization."

Assaying for the program 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 mining 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. Proven and Probable mineral reserves are 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". This news release also uses the terms "measured resources", 'indicated resources' and 'inferred resources'. Desert Sun Mining Corp. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

NOTE: To view Table 1, Table 2, and Figure 1 please go to the following link: http://www2.ccnmatthews.com/database/fax/2000/dsm0623.doc

Contact Information

  • Desert Sun Mining Corp.
    Naomi Nemeth
    Vice President, Investor Relations
    416-861-5901 or 1-866-477-0077
    www.desertsunmining.com