Desert Sun Mining Corp.
TSX : DSM
AMEX : DEZ

Desert Sun Mining Corp.

July 14, 2005 05:00 ET

Desert Sun Mining Provides Update on Exploration Programs in the Bahia Gold Belt, Brazil

TORONTO, ONTARIO--(CCNMatthews - July 14, 2005) -

Update includes results from main exploration targets - Canavieiras, Morro do Vento Extension and the Northern Bahia Gold Belt area

DESERT SUN MINING CORP. (TSX:DSM)(AMEX:DEZ) continues to make solid progress on its US$5million exploration program within the Bahia Gold Belt. In 2005, Desert Sun has completed 71 holes totaling 13,363 metres of diamond drilling to test targets in the Jacobina Mine area: the Canavieiras and Morro do Vento Extension targets, and the Pindobacu/Entry Point target area, located in the northern Bahia Gold Belt, approximately 50 km north of the town of Jacobina. Currently, there are two underground drills at Canavieiras; one surface drill and one underground drill at Morro do Vento Extension, and two surface drills in the northern area. The following is an update on work in each of these target areas with new drill results.

I. Canavieiras

To date, 38 holes totaling 3,920 metres have been completed at Canavieiras, located 3 km north of the processing plant. Currently there are two underground drill rigs working at Canavieiras with a surface drill rig to be added shortly. As previously reported (Desert Sun Press Release June 23, 2005), high grade results were returned from target conglomerate reefs below the old workings from holes CAN-87, which intersected 23.68g Au/t (14.66g Au/t with highs cut to 30g/t) over a true width of 12.9 metres and 11.02g Au/t (7.93g Au/t cut) over a true width of 13.6 metres and CAN-79, which returned 8.40g Au/t (7.84g Au/t cut) over 15.2 metres and 9.29g Au/t (7.75g Au/t cut) over 6.4 metres.

Table 1 summarizes results of five new drill holes at Canavieiras. Highlights are as follows:

Extensions of Reefs Previously Mined

- 16.52g Au/t over a true width of 3.2m within a 10.3m (true width) section grading 3.90g Au/t in CAN-73

- 11.94g Au/t over a true width of 2.4m within a 9.9m (true width) section grading 4.07g Au/t in CAN-77

- 4.82g Au/t over a true width of 4.0m in CAN-80

- 6.61g Au/t over a true width of 2.2m in CAN-81

Reefs Below Old Workings

- 4.47g Au/t over a true width of 10.1m within a 32.9m (true width) section grading 2.05g Au/t in CAN-80

- 4.83g Au/t over 6.1m true width in CAN-81

- 3.52g Au/t over a true width of 7.4m in CAN-74

Drilling at Canavieiras continues to focus on following up the potential extension of this high grade zone and the potential strike extension to the south. As previously reported (see Desert Sun Press Release June 23, 2005), four historical drill holes completed about 230 metres south of the Canavieiras mine returned significant results including CAN-7, which intersected 10.42g Au/t (7.57g Au/t cut) over a true width of 4.8 metres. These historical holes confirm that the mineralization extends to the south, but further drilling is required to fully evaluate the potential of this large target area that extends at least 600 metres along strike to the south from the existing old mine area.

"We have just begun drilling from the new 80-metre long crosscut in the southeast portion of the old Canavieiras Mine," stated Dr. Bill Pearson, P.Geo., Vice President Exploration. "The recent drilling results at Canavieiras continue to confirm that we can outline a significant higher grade mineral reserve in both our major target reefs."

II. Morro do Vento Extension

At the Morro do Vento Extension area located immediately north of the processing plant, 12 drill holes totaling 5,371 metres have been completed of which results are available for eight holes as summarized in Table 2. Initially, this drilling was focused on exploring the downdip extension of the two conglomerate reefs known as the Basal and Main Reefs, but has now been expanded to test the southern continuation of these reefs into the Morro do Vento area. Figure 1 is a vertical longitudinal section of the Morro do Vento Extension/Morro do Vento area showing the grade times thickness contours for the Basal Reef which was previously mined. The Main Reef, which is stratigraphically about 50 metres above the Basal Reef, is a major target that was intersected in the new drill holes. The Main Reef is the northern extension of the previously mined reef in the Morro do Vento area.

Significant results from new holes in the Morro do Vento Extension target include:

- 3.25g Au/t over 17.8m true width in Main Reef in Hole MCZ-88

- 3.71g Au/t over 5.3m true width in Main Reef in Hole MCZ-85

- 3.21g Au/t over 7.4m true width in Main Reef and 2.88g Au/t over 8.8m true width in Basal Reef in Hole MCZ-89

The first hole (MVT-371) in the Morro do Vento portion of the target zone returned 5.81g Au/t over 2.3 metres true width in the Main Reef and 4.47g Au/t over 1.8 metres true width in the Basal Reef.

"These results continue to confirm that there is very good potential to significantly expand known mineral resources in both the Basal and Main Reefs over a target area that extends at least 600 metres along strike," commented Dr. Pearson. "Drilling from surface is currently focused on testing the area between the two major target areas. An underground drill has now been moved on site with drilling planned to commence shortly to test the potential of the Main Reef near the old mine workings on the Morro do Vento Extension area."

III. Northern Area

Work completed in the northern area, approximately 50 km north of the town of Jacobina, includes completion of four diamond drill holes totaling 1,285 metres in the Entry Point target area and four holes totaling 807 metres in the Fumaca target area. In addition, geological and structural mapping of the Pindobacu target area is in progress to better determine the controls on distribution of gold mineralization to guide further drilling which will commence shortly. An extensive induced polarization (IP) geophysical survey has been initiated to outline additional drill targets in major target areas.

The Entry Point Target is located 5.5 km north of the town of Pindobacu, midway between the Pindobacu (5 km south) and Fumaca (6 km north) targets. Three reconnaissance drill holes, as shown in the cross section of Figure 2, were completed to test the stratigraphy of the area and to test for the potential to host gold mineralization. Hole EP-01 drilled to a length of 440 metres intersected a package of interbedded pebbly quartzite and quartzite with several beds of conglomerates with small to medium-sized pebbles of quartz.

Widespread hydrothermal alteration including fuchsite and silicification was present in this hole with local disseminated pyrite. Anomalous gold values typically ranging from 100 to 300 ppb to a high of 576 ppb were returned in Hole EP-01. Hole EP-2 tested the area beneath a garimpos (local miner working area) and intersected a mafic dyke cut by quartz veins with geochemically anomalous (100-200 ppb) Au values. Hole EP-03 intersected primarily quartzite with local fuchsite and pyrite.

Hole FN-05 in the Fumaca target area (Table 3) tested the downdip extension of the intersection previously obtained in Hole FN-2A (0.7g Au/t over a true width of 10.0 metres). This hole returned 1.37g Au/t over 3.6 metres including a 1m interval grading 3.37g Au/t. Hole FN-04, which tested a coincident soil and induced polarization anomaly, returned 0.86g Au/t over 1.0 metre.

Dr. Bill Pearson, Vice President, Exploration commented "The drill holes in the Entry Point area have confirmed the presence of quartz pebble conglomerates with hydrothermal alteration, however we are clearly on the edge of the system and will be doing further work to locate the channels with the coarsest conglomerates that are the prime target for gold mineralization. Dr. Paul Karpeta, an expert on Precambrian conglomerate-hosted gold deposits, will be returning to the site in August to assist in locating the most likely areas with channels. Results of the IP survey will also assist us in this work."

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 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.

To view Table 1 on Significant Drilling Results, Canavieiras please go to the following link: http://www2.ccnmatthews.com/database/fax/2000/Table1desert.pdf

To view Table 2 on Significant Drilling Results, Morro do Vento Extension (Main/Basal Reef), please go to the following link: http://www2.ccnmatthews.com/database/fax/2000/Table2desert.pdf

To view Table 3 on Significant Drilling Results, Northern Area please go to the following link: http://www2.ccnmatthews.com/database/fax/2000/Table3desert.pdf

To view Figure 1 - Morro do Vento Extension Vertical Longitudinal Section please go to the following link: http://www2.ccnmatthews.com/database/fax/2000/Section1%20desert.pdf

To view Figure 2 - Cross Section Entry Point Area Northern Bahia Gold Belt please go to the following link: http://www2.ccnmatthews.com/database/fax/2000/Section2%20desert.pdf

Contact Information

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