Desert Sun Mining Corp.

Desert Sun Mining Corp.

November 03, 2005 05:00 ET

Desert Sun Mining's 2005 Exploration Program Nears Completion-Results Confirm Major Extension at Canavieiras in Jacobina Mine Area, Bahia, Brazil

TORONTO, ONTARIO--(CCNMatthews - Nov. 3, 2005) -

- Additional results pending on the three major target areas -

DESERT SUN MINING CORP. (TSX:DSM)(AMEX:DEZ) reports that it has now completed 127 holes totaling 24,462 metres of diamond drilling to test targets in three major areas: the Canavieiras and Morro do Vento Extension targets in the Jacobina Mine area and the northern Bahia Gold Belt target area, 50 km north of the town of Jacobina. Planned drilling for the 2005 program is nearing completion and work has commenced on estimating an updated mineral resource, which is expected to be completed by the end of this year when all assay results have been received. This update reports the new drill results for each of the three target areas outlined above.


To date, 54 holes totaling 7,095 metres have been completed at Canavieiras, which is located 3 km north of the processing plant. Table 1 summarizes results of nine new drill holes and Table 2 summarizes the results of re-sampling of core from two historic drill holes at Canavieiras. Highlights are as follows:

Step-out Hole, 230m south of old mine workings:

- 3.94g Au/t over a true width of 9.6m in a wider section grading 2.36g Au/t over a true width of 31.4m (Middle Unit or "MU" reef) in CAN-106 and 3.20g Au/t over a true width of 5.9m (Liberino reef)

Reefs Below Old Workings (MU and Lower Unit or "LU" Reefs):

- 11.72g Au/t (9.68 highs cut to 30g/t) over a true width of 3.9m in CAN-100 (top of MU only - results for balance of zone and LU reef pending)

- 3.93g Au/t over a true width of 11.1m in 30.0m grading 1.75 g Au/t in CAN-92

- 4.44g Au/t over a true width of 6.2m including 3.14g Au/t over a true width of 9.5m in CAN-99

- 4.26g Au/t over a true width of 5.8m in MU reef and 4.95g Au/t over a true width of 3.1m in LU reef in CAN-93

"The step-out hole, CAN-106, contains three major gold mineralized reefs which are the southern continuation of the same mineralized stratigraphy in the old Canavieiras Mine area," commented Dr. Bill Pearson, P.Geo., Vice President, Exploration. "This step-out hold extends the known strike length of the mineralized zone to 700 metres from the previously reported 400 metres. The potential to outline substantial additional resources in the new area to the south is excellent. We have re-habilitated the No. 6 adit, located 230 metres south of the old workings, to enable further drilling from underground in this highly prospective area. This hole intersected complete mineralized stratigraphy which had not been previously tested by historic drilling."

The grades and widths in the new holes at Canavieiras continue to confirm and expand upon the excellent results obtained at Canavieiras earlier this year (see press releases September 14, 2005, July 14, 2005 and June 23, 2005). With the exception of the step-out hole to the south, these new holes tested primarily the southeastern extension of the mineralized reef package near and below the old mine workings. This zone is open along strike to the south and to the east. Re-sampling of old core suggests that historic grades may have underestimated grades in some areas. Re-interpretation of all of the available drilling and geological data for Canavieiras is continuing to develop an accurate 3-D model which will facilitate further exploration and form the basis for future resource estimation.

Currently there are two underground drill rigs and one surface rig working at Canavieiras. The underground rigs are drilling from the 545 level and from the new cross cut in the southeast end, respectively. The surface drill will complete two additional holes and then will be moved into the No. 6 adit to further test the southern extension of the conglomerate stratigraphy.

Morro do Vento Extension

At the Morro do Vento Extension area, located immediately north of the processing plant, 24 drill holes totaling 8,511 metres have been completed and results are available for four holes as summarized in Table 3. Drilling continues to focus 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 previously mined in the Morro do Vento area.

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

Surface Drilling

- 2.26g Au/t over a true width of 7.6m in Basal Reef in MCZ-96

- 3.23g Au/t over a true width of 3.5m in Basal Reef in MVT-373

Underground Drilling

- 3.66g Au/t over a true width of 4.8m in 14.5m true width grading 1.99g Au/t in Basal Reef in MCZ-95

An underground drilling program has commenced at the Morro do Vento Extension area from the 645-metre level to test the potential for the Main Reef at higher elevations. The surface drilling program has now been completed on the 600-metre long target area between the Morro do Vento Extension and the north end of Morro do Vento; results from these eight holes are pending.

Northern Area (Pindobacu)

To date, 36 holes totaling 5,943 metres have been completed in the northern area to test the Pindobacu target area, located 50 km north of Jacobina. The more recent drill holes at Pindobacu have tested the core area that extends at least 700 metres along strike at a deeper level (100m to 150m below surface) than the original series of 100-metre spaced holes (50m to 80m below surface). In addition to geological information from detailed mapping and drilling, locations of holes are also being optimized using results of the recently completed induced polarization geophysical survey that has been analyzed by John Buckle, P.Geo., consulting geophysicist.

Highlights from new holes at the Pindobacu target include:

- 4.40g Au/t over a true width of 3.4m in PB-21

- 2.61g Au/t over a true width of 1.8m in PB-23

New results from drilling received to date are shown in Table 4. Results for 14 holes are still pending. Assay results for chip sampling in a shaft located at the Pindobacu "garimpo working" returned 3.27g Au/t over a true width of 14.1m in a vertical section including 6.85g Au/t over a true width of 5.0m.

"We are continuing to develop a much better understanding of the structure and controls on gold mineralization in the Pindobacu area," commented Dr. Pearson. "The deeper series of holes has confirmed that the strong alteration zone extends downdip to at least 150 metres, however, assay results on these holes are pending. It is likely that there could be a series of hydrothermal centres with significant gold mineralization along this extensive structure."

Based on drilling and detailed mapping at the Pindobacu, Entry Point and Fumaca targets, which cover 15 km of strike length, Desert Sun's exploration team has advanced the thinking on the structural evolution and deposition of gold mineralization and has developed a new model accordingly. Deformation is much stronger than was recognized prior to recent drilling. Gold mineralization occurs within fractured, faulted and brecciated quartzites in the hinge area of a major east-dipping fold structure. The exploration team anticipates utilizing this new model in the planning of the 2006 exploration program.

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 2.11g 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 2.53g Au/t containing 2,050,000 ounces of gold, and Inferred Resources total 22,200,000 tonnes at 2.61g 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 ( or visit Desert Sun's website at

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: Significant New Drilling Results for Canavieiras

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

CAN-92 N8758124 E335202 El 548
Dip -30
265 3.50 7.66 2.77 4.16 2.7 Piritoso 20
50.30 96.47 1.75 46.17 30.0 MU 56
incl. 79.37 96.47 3.93 17.10 11.1 MU 60
132.57 138.25 2.54 5.68 3.7 LU 90

CAN-93 N8758179 E335193 El 550
Dip -45
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-96 N8758197 E335191 El 547
Dip -72
268 No significant values

CAN-98 N8758227 E335179 El 547
Dip -71
267 No significant values

CAN-99 N8758147 E335.198 El 547
Dip -71
266 5.67 6.44 21.45 0.77 0.4 Piritoso 28
52.51 69.42 3.14 16.91 9.5 MU 80
incl. 58.39 69.42 4.44 11.03 6.2 MU 82

CAN-100 N8758021 E335179 El 548
Dip -54
268 0.00 1.40 1.49 1.40 1.1 Piritoso 20
46.00 50.91 11.72 4.91 3.9 MU top 60
Highs cut to 30g Au/t 9.68
incl. 48.55 50.91 22.56 2.36 1.9 MU top 63
Highs cut to 30g Au/t 18.32
Partial results - assay results pending

CAN 101 N8758010 E335218 El 578
Dip -68
330 7.91 8.90 1.21 0.99 0.4 Holandez 5
40.72 41.62 10.29 0.90 0.4 Liberino 35

CAN-102 N8758240 E335187 El 547
Dip -65
10 No significant values

CAN-106 N8757730 E335172 El 645
Dip -79
89 82.90 91.30 2.60 8.40 5.3 Holandez 9
132.26 132.70 37.45 0.44 0.3 Holandez 55
285.13 306.57 1.86 21.44 13.5 Lib+Pir 215
incl. 285.13 294.47 3.20 9.34 5.9 Liberino 210
incl. 304.50 306.57 2.52 2.07 1.3 Piritoso 225
350.50 400.35 2.36 49.85 31.4 MU total 320
incl. 350.50 358.90 5.00 8.40 5.3 MU top 278
incl. 350.50 368.50 2.92 18.00 11.3 MU top 280
incl. 385.10 400.35 3.94 15.25 9.6 MU base 311
incl. 395.50 400.35 7.02 4.85 3.1 MU base 317

(1) all holes are LTK48 diamond drill core size except CAN-106
which is NQ core size
(2) depth calculated based on midpoint of intersection

Table 2: Results for Re-sampling of core from old drill holes
at Canavieiras

Depth Below
Gold Gold Inte- True 570 Adit
Hole No. (g/t) (g/t) rval Width Level (m)
(1) From (m) To (m) New Old (m) (m) (2)

CANAVIEIRAS - Resampling of Old Drill Core
CAN-5 N 8757853 E335262 El 640
Dip -90
0 0.19 4.31 1.68 1.31 4.12 2.8 70
110.52 131.90 1.24 0.89 21.38 14.8 50
incl. 110.52 114.10 4.49 2.38 3.58 2.5 40
incl. 128.94 131.90 2.75 2.83 2.96 2.0 60
279.34 285.18 1.29 2.50 5.84 4.0 213
309.57 324.47 3.44 1.91 14.90 10.3 245
incl. 309.57 314.41 5.46 4.37 4.84 3.3 236
incl. 320.65 324.47 5.65 2.69 3.82 2.6 255

CAN-8 N8757787 E335165 El 640
Dip -60
0 285.46 290.81 3.09 2.25 5.35 2.7 180
310.44 311.27 4.12 0.99 0.83 0.4 200
325.55 327.89 2.97 4.02 2.34 1.2 215
Note only partial core available from this hole

(1) all holes are AQ diamond drill core size
(2) depth calculated based on midpoint of intersection

Table 3: Significant New Drilling Results for Morro do Vento
Depth Below
True 630 Adit
Hole No. From (m) To (m) Gold Interval Width Reef Level (m)
(1) (g/t) (m) (m) (2)

Surface Drill Holes

MVT-373 N8754938 E334897 El 649
Dip -61
267 504.44 506.35 2.13 1.91 1.6 Main 420
519.90 524.00 3.23 4.10 3.5 Basal 435

MCZ-96 N8755261 E334874 El 661
Dip -51
262 433.02 444.75 1.76 11.73 10.9 Basal 295
incl. 436.62 444.75 2.26 8.13 7.6 Basal 297
Partial results
Underground Drill Holes

MCZ-95 N8755343 E334508 El 630
Dip -58/
271 68.52 85.15 1.99 16.63 14.5 Basal 68
incl. 79.60 85.15 3.66 5.55 4.8 Basal 70

(1) all surface holes are NQ diamond drill core size; underground
holes are LTK48 diamond drill core size
(2) depth calculated based on midpoint of intersection

Table 4: Significant New Drilling Results for Pindobacu

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

PB-17 N8811246 E348847 El 611
Dip -49
268 103.87 107.99 0.85 4.12 2.3 104

PB-18 N8811249 E348928 El 599
Dip -47
272 8.80 17.50 0.89 8.70 8.4 9.5
incl. 12.70 16.89 1.49 4.19 4.1 11

PB-19 N8811150 E348849 El 624
Dip -50
270 136.17 138.55 1.81 2.38 1.0 122

PB-20A N8811049 E348784 El 602
Dip -50
270 34.31 37.14 1.09 2.83 1.4 45

PB-21 N8812149 E348945 El 587
Dip -50
270 61.70 65.35 4.04 3.65 3.4 55

(1) all holes are NQ diamond drill core size
(2) depth calculated based on midpoint of intersection

Contact Information

  • Desert Sun Mining Corp.
    Naomi Nemeth
    Vice President, Investor Relations
    416-861-5901 or 1-866-477-0077
    416-861-8165 (FAX)