Desert Sun Mining Corp.
TSX : DSM
AMEX : DEZ

Desert Sun Mining Corp.

September 15, 2005 05:00 ET

Desert Sun Mining Updates Exploration-Further High Grade Intersections at Canavieiras

TORONTO, ONTARIO--(CCNMatthews - Sept. 15, 2005) - DESERT SUN MINING CORP. (TSX:DSM)(AMEX:DEZ) reports that it has now completed 93 holes totaling 18,981 metres of diamond drilling to test targets in three major areas: the Canavieiras and Morro do Vento Extension targets in the Jacobina Mine area as well as the northern Bahia Gold Belt target area, 50 km north of Jacobina. This update reports the new drill results received for each of these target areas.

Canavieiras

To date, 44 holes totaling 5,005 metres have been completed at Canavieiras located 3 km north of the processing plant. Table 1 summarizes results of twelve (12) new drill holes at Canavieiras. Highlights are as follows:

Extensions of Reefs Previously Mined

- 21.62g Au/t (19.49 highs cut to 30g/t) over 2.6m true width in 9.9m (true width section) grading 7.04g Au/t (6.49 cut) in CAN-84

- 15.28g Au/t over 4.0m true width in 17.8m (true width) grading 4.67g Au/t in CAN-95

- 18.12g Au/t over a true width of 2.0m in CAN-89

- 17.57g Au/t (11.77 cut) over a true width of 1.4m in CAN-94

- 4.06g Au/t over a true width of 8.4m in CAN-88

Reefs Below Old Workings

- 3.97 g Au/t (3.31 cut) over 15.4m true width in 31.5m grading 2.28 g Au/t (1.96 cut) in CAN-94

- 2.49 g Au/t over a true width of 20.9m in CAN-84

- 4.26 g Au/t over a true width of 5.8m in CAN-93

- 5.23 g Au/t over a true width of 4.4m in CAN-91

- 3.28 g Au/t over a true width of 6.4m in CAN-85

"The grades and widths that we see here continue to confirm and expand upon the excellent results obtained at Canavieiras earlier this year," commented Dr. Bill Pearson, P.Geo., Vice President, Exploration. "The area in which we have defined higher grade mineralization now extends for 400 metres along strike and at least 200 metres across strike with the zones open to the east and south. We are now focusing on completing sufficient drilling to outline indicated mineral resources upon which we could base a pre-feasibility study as well as exploring the 600 metres of potential strike extension to the south."

Currently there are two underground drill rigs and one surface rig working at Canavieiras. Drilling continues to follow-up high grade gold values (see press releases July 14, 2005 and June 23, 2005) intersected in conglomerate reefs below the old workings and in extensions of reefs previously mined. A surface rig has just started drilling near the portal of an old adit about 230 metres south of the former Canavieiras Mine. The adit is being rehabilitated and serviced in preparation for underground drilling.

As previously reported (see press release July 14, 2005) wide spaced historical holes returned significant results in the southern extension area 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 extensive target area that extends at least 600 metres along strike to the south from the existing old mine area. Drilling is also continuing from the new cross-cut at the southern end of the mine workings. The first two holes from this cross cut (CAN-95 and CAN-97) intersected east-west striking faults which significantly disrupted the mineralization. Drilling is now being done from the eastern end of the cross cut to avoid problems with these faults.

Hole CAN-88 which intersected 4.06g Au/t over 8.4 metres in the Piritoso and Liberino reefs is about 8 metres north of CAN-21 drilled in the 2004 program which intersected 8.0g Au/t over a core length of 13.0 metres in the Hollandez reef which is about 20 metres above the Liberino reef in the northern part of the old mine area. The mineralization in these holes displays a classic hydrothermal silica texture with disseminated pyrite and very fine native gold. These results combined with previous high grade holes (CAN-79 and CAN-87 see press releases July 14, 2005 and June 25, 2005) strongly suggest that there is a hydrothermal feeder system responsible for the high grade gold mineralization. This structure is likely steeply dipping with a southeasterly strike. Wherever this structure cuts the conglomerate stratigraphy, high grade gold mineralization is very likely to occur.

Morro do Vento Extension

At the Morro do Vento Extension area located immediately north of the processing plant, 19 drill holes totaling 7,985 metres have been completed of which new results are available for four holes as summarized in Table 2. Recent drilling has focused on exploring the southern continuation of the Basal and Main reefs into the Morro do Vento area. 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 and is the northern extension of the same reef in the Morro do Vento area that was previously mined.

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

- 3.84g Au/t over a true width of 7.1m in 14.4m (true width) grading 2.54g Au/t in Basal Reef in Hole MCZ-92

- 5.94g Au/t over 3.8m true width in Main Reef in Hole MCZ-91

- 3.51g Au/t over 4.9m true width in Main Reef in Hole MCZ-93

An underground drilling program has commenced at the Morro do Vento Extension area from the 630-metre level to test the potential for the Main Reef at shallower levels. Surface drilling is continuing to complete drilling needed to outline additional indicated mineral resources and to continue to test the 600 metre long target area between the Morro do Vento Extension and the north end of Morro do Vento.

Northern Area (Pindobacu - Fumaca)

To date, 30 holes totaling 5,991 metres have been completed in the northern area to test the Pindobacu, Entry Point and Fumaca targets. The drilling program in progress at Pindobacu where the majority of drilling has been completed (21 holes totaling 3710 metres) consists of several fill-in holes near hole PB-02 (5.46g Au/t over 21.9 metres) and a series of 100-metre spaced holes to provide a first drill test of the full strike length which based on geological mapping is approximately 1500 metres. Induced Polarization (IP) surveys have been completed to better characterize the distribution of the mineralization which responds well to this geophysical survey technique. This data is currently being analyzed by John Buckle, P.Geo., consulting geophysicist.

New results from drilling received to date are shown in Table 3. Hole PB-11, collared 40 metres south of PB-02 returned 1.95g Au/t over 9.3 metres true width including 4.92g Au/t over a 3.1 metre true width. Holes PB-13 to PB-16 inclusive tested the southern extension of the target zone and although these holes intersected zones with strong silicification, only narrow sections with gold values were obtained from two of the holes (PB-15-16).

"Based on drilling results to date as well as geological and geophysical interpretation, the most prospective area at Pindobacu appears to extend for approximately 700 metres along strike," commented Dr. Pearson. "Drilling is now being focused in this area to better define the centres of hydrothermal gold mineralization within this extensive altered system. Dr. Paul Karpeta, an expert on Precambrian conglomerate-hosted gold deposits has returned to Jacobina to review results of the Entry Point drilling (see press release July 14, 2005) and recommend additional drill holes to test the areas most likely to be channels with the thickest sections of coarser conglomerates."

At Fumaca, located 15 km north of Pindobacu, drill hole FN-06 that tested an area of strong silicification related to the northern extension of the Pindobacu Fault intersected 5.38g Au/t over a true width of 1.4 metres.

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 in the Jacobina Mine area are 17,620,000 tonnes at 2.11 g Au/t containing 1,200,000 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, contact Naomi Nemeth, Vice President, Investor Relations at 416-861-5901 (info@desertsunmining.com) or visit 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.



Table 1: New Drilling Results for Canavieiras

Depth
Below
570
True Adit
Gold Interval Width Level
Hole No.(1) From (m) To (m) (g/t) (m) (m) Reef (m)(2)

CANAVIEIRAS

CAN-83 N8758254 E335161 El 547
Dip -87/az 89 17.20 17.72 2.35 0.52 0.5 Piritoso 40

CAN-84 N8758025 E335181 El 548
Dip -40/az 268 0.00 10.11 7.04 10.11 9.9 Lib+Pir 26
highs cut to 30g/t 6.49
incl. 0.00 2.69 4.60 2.69 2.6 Liberino 25
incl. 7.47 10.11 21.62 2.64 2.6 Piritoso 30
highs cut to 30g/t 19.49
54.75 78.83 2.49 24.08 20.9 MU 68

CAN-85 N8758091 E335064 El 607
Dip -65/az 92 146.33 172.20 1.55 25.87 21.0 MU+LU 110
incl. 146.33 154.19 3.28 7.86 6.4 MU 100
incl. 166.83 168.77 2.21 1.94 1.6 LU 115

CAN-86 N8758003 E335178 El 548
Dip-70/az 270 1.23 2.14 1.99 0.91 0.9 Piritoso 20
48.82 53.38 2.44 4.56 4.4 MU 72
incl. 48.82 50.86 5.17 2.04 2.0 MU 70

CAN-88 N8758309 E335117 El 548
Dip +49/az 88 21.37 29.81 4.06 8.44 8.4 Pir+Lib 2
incl. 21.37 22.41 1.66 1.04 1.0 Piritoso 5
incl. 26.34 29.81 7.31 3.47 3.4 Liberino 1

CAN-89 N8758309 E335116 El 551
Dip +60/az 271 11.58 13.89 18.12 2.31 2.0 Piritoso 10

CAN-90 N8758175 E335050 El 597
Dip -64/az 90 MU not intersected - faulted
127.62 130.55 1.67 2.93 1.6 LU 83

CAN-91 N8758253 E335159 El 546
Dip -53/az 270 32.40 52.84 1.48 20.44 19.8 MU 57
incl. 28.90 36.90 3.16 8.00 7.8 MU 50
incl. 32.40 36.90 5.23 4.50 4.4 MU 52

CAN-93 N8758179 E335193 El 550
Dip -4/az 268 48.20 67.56 1.86 19.36 17.6 MU 76
incl. 61.20 67.56 4.26 6.36 5.8 MU 70
90.75 94.20 4.95 3.45 3.1 LU 90

CAN-94 N8758138 E335199 El 548
Dip -16/az 270
5.60 7.99 17.57 2.39 1.4 Piritoso 25
highs cut to 30g/t 11.77
63.67 117.10 2.28 53.43 31.5 MU 45
highs cut to 30g/t 1.96
incl. 91.06 117.10 3.97 26.04 15.4 MU 50
highs cut to 30g/t 3.31

CAN-95 N8758007 E335217 El 578
Dip -63/az 236 30.99 51.00 4.67 20.01 17.8 Lib+Pir 30
incl. 30.99 35.85 4.62 4.86 4.3 Liberino 22
incl. 46.55 51.00 15.28 4.45 4.0 Piritoso 40
MU/LU cut off by faults

CAN-97 N8758009 E335220 El 578
Dip -80/az 72 67.87 69.33 4.25 1.46 0.7 Liberino 60
156.32 168.50 1.43 12.18 6.1 MU 160
disrupted by faults and dykes

(1) all holes are LTK48 diamond drill core size - dip and azimuth
measured in degrees
(2) depth calculated based on midpoint of intersection


Table 2: New Drilling Results for Morro do Vento Extension

Depth
Below
630
True Adit
Gold Interval Width Level
Hole No.(1) From (m) To (m) (g/t) (m) (m) Reef (m)(2)

MORRO DO VENTO EXTENSION
MCZ-91 N8755110 E334850 El 639
Dip -55/az 268 426.27 430.45 5.94 4.18 3.8 Main 330

MCZ-92 N8755412 E334879 El 690
Dip -56/az 265 397.45 403.55 1.00 6.10 5.5 FW 259
418.25 434.25 2.54 16.00 14.4 Basal 285
incl. 426.35 434.25 3.84 7.90 7.1 Basal 280

MCZ-93 N8755057 E334789 El 636
Dip -50/az 269 299.96 316.74 1.55 16.78 15.8 Main+FW 120
incl. 299.96 305.15 3.51 5.19 4.9 Main 115
incl. 303.03 305.15 5.21 2.12 2.0 Main 115
365.20 372.60 2.19 7.40 7.0 Basal 154
incl. 369.34 372.60 4.56 3.26 3.1 Basal 155

MVT-372 N8754884 E334897 El 653
Dip -52/az 254 417.30 430.77 1.19 13.47 12.7 Main+FW 298
incl. 417.30 418.50 2.84 1.2 1.1 Main 298
incl. 426.70 430.77 2.37 4.07 3.8 FW 306
497.05 501.80 1.69 4.75 4.5 Basal 360
incl. 499.70 501.80 2.96 2.1 2.0 Basal 360

(1) all holes are NQ diamond drill core size - dip and azimuth
measured in degrees
(2) depth calculated based on midpoint of intersection


Table 3: New Drilling Results for Pindobacu and Fumaca

Depth
True Below
Gold Interval Width Surface
Hole No.(1) From (m) To (m) (g/t) (m) (m) (m)(2)

PINDOBACU

PB-11 N8811900 E348913 El 633
Dip -51/az 269 52.85 63.83 1.95 10.98 9.3 55
incl. 57.24 60.85 4.92 3.61 3.1 55

PB-12 N8811749 E348926 El 650
Dip -51/az 269 57.93 60.75 1.41 2.82 2.7 55
84.37 86.00 1.62 1.63 1.6 78

PB-13 N8811552 E348915 El 657
Dip -55/az 270 no significant values

PB-14 N8811451 E348876 El 658
Dip -48/az 271 no significant values

PB-15 N8811450 E348922 El 639
Dip -48/az 271 31.54 32.90 0.58 1.36 1.1 24
47.36 48.48 1.28 1.12 0.9 40
125.20 125.73 20.12 0.53 0.4 147

PB-16 N8811350 E348927 El 625
Dip -51/az 270 32.15 32.74 1.58 0.59 0.5 31
37.60 38.76 1.61 1.16 0.9 35
FUMACA
FN-06 N8823700 E350996 El 727
Dip -50/az 270 116.98 117.27 1.07 0.29 0.2 136
125.20 127.26 5.38 2.06 1.4 147
incl. 125.20 125.73 20.12 0.53 0.4 147

FN-07 N8823700 E351396 El 664
Dip -60/az 270 68.05 69.50 1.53 1.45 1.4 68

FN-08 N8823881 E351268 El 634
Dip -50/az 270 no significant values

FN-09 N8823013 E351299 El 636
Dip -50/az 270 no significant values

(1) all holes are NQ diamond drill core size - dip and azimuth
measured in degrees
(2) depth calculated based on midpoint of intersection


Contact Information

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