GBS Gold International Inc.

GBS Gold International Inc.

May 08, 2008 16:45 ET

GBS Gold Files Technical Report on Resources and Reserves

TORONTO, ONTARIO--(Marketwire - May 8, 2008) - GBS Gold International Inc. (TSX:GBS) ("GBS Gold" or the "Company") has today filed an updated independent technical report (the "Technical Report") on the previously reported mineral resource and reserve estimates for its Union Reefs Operations Centre in the Northern Territory of Australia. The Technical Report provides a comprehensive update on GBS Gold's mineral resource and reserve estimates, including the existing underground and open pit mining operations and the Company's Cosmo Deeps project. In addition to the mineral resources and reserves in this Technical Report, the Company has previously released separate technical reports relating to the mineral resource and reserve estimates of its nearby Tom's Gully underground mine project.

The combined mineral resource position of the Company comprises:

Deposit Indicated Resources Inferred Resources
Tonnes Grade Contained Tonnes Grade Contained
(million) (grams/ Gold (million) (grams/ Gold
tonne) ('000 tonne) ('000
ounces) ounces)
underground 0.14 18.1 82 0.07 8.3 19
Cosmo Deeps
project 4.24 4.9 670 4.50 3.9 570
Tom's Gully
project 1.28 8.4 346 0.59 7.4 140
Open pit
resources 7.87 1.7 416 14.05 1.8 804
Maud Creek
project 9.29 3.1 935 1.07 2.4 82
Total 22.81 3.3 2,449 20.28 2.5 1,615
Note: Totals may not add due to rounding differences.

The above resource estimates are inclusive of reserves and are reported at a range of cut-off grades as set out in the technical reports.

The Company's mineral reserves comprise the following:

Deposit Probable Reserves
Tonnes Grade Contained Estimated
(million) (grams/tonne) Gold Metallurgical
(ounces) Recovery
Brocks Creek underground 0.19 13.0 81,000 95%
Cosmo Deeps project 2.20 5.0 350,000 95%
Tom's Gully project 0.74 7.1 170,000 85%
Total 3.13 6.0 601,000

Further updates to the stated mineral resource and reserve position are expected during 2008 as GBS Gold's drilling programs and mine optimization studies progress through the year.

About GBS Gold International Inc.

GBS Gold is an emerging gold producer with 2.4Moz of Indicated Resources and 1.6Moz of Inferred Resources of gold at its Union Reefs Operations Centre and Tom's Gully project located in historically productive goldfields in the Northern Territory of Australia. GBS Gold produces gold through its modern dual-mill 2.5Mtpa Union Reefs processing plant. The Company expects to commence production at its Tom's Gully project in mid 2008 and at the Cosmo Deeps free-milling project in 2010 to increase production to an annualized rate of up to 250,000 ounces and to construct a GEOCOAT® circuit, a heaped bio-oxidation process, at the Union Reefs plant to treat refractory ores and further increase gold production from the Union Reefs Operations Centre to 300,000 ounces per year. The Union Reefs plant is adjacent to the main Stuart Highway and the trans-continental Adelaide-Darwin railway line, and is on the Northern Territory power grid. Within 125km trucking distance of the Union Reefs plant, GBS Gold has consolidated over 3,500km2 of prospective tenements and gold deposits and also holds gold exploration properties in Western Australia and Canada. GBS Gold trades on the Toronto Stock Exchange under the symbol "GBS".

The Company's mineral resources comprise indicated resources of 22.8 million tonnes at 3.3g/t for 2.4 million ounces of contained gold and inferred resources of 20.3 million tonnes at 2.5g/t for 1.6 million ounces of contained gold. The Company has filed on May 8, 2008 a technical report entitled "GBS Gold International: Burnside, Union Reefs, Maud Creek and Moline Projects, Northern Territory, Australia" dated February 2008 and authored by Jeames McKibben and Christine Standing of Snowden Mining Industry Consultants Pty Ltd and Heath Gerritsen of HG Mine Design Pty Ltd. The Company has also filed two technical reports on its Tom's Gully project being a technical report entitled "Form 43-101 Technical Report on the Tom's Gully Project" authored by Paul Payne of Resource Evaluations Pty Ltd dated and filed on January 14, 2008 and a technical report entitled "Technical Report on the Mineral Reserves of the Tom's Gully Gold Mine" authored by Heath Gerritsen of HG Mine Design Pty Ltd dated December 2007 and filed on January 31, 2008. Other than the feasibility studies completed on the Tom's Gully and Cosmo Deeps projects, and the life-of-mine study completed on the currently operating Brocks Creek underground mine, all of which have declared mineral reserves in accordance with the above technical reports, the Company has not completed a feasibility study and there is no certainty that its projects will be economically successful. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Any potential updates to GBS Gold's mineral resources discussed in this news release are conceptual in nature and subject to further drilling, analytical and test work and/or data verification. All estimates of updates to mineral resources are based on the drilling results and resource modeling described herein.

Certain disclosures in this release, including management's assessment of GBS Gold's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to GBS Gold's operation as a mineral development company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in gold prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full descriptions of these risks can be found in the Company's Annual Information Form available on the SEDAR website, Readers are cautioned not to place undue reliance on forward-looking statements. GBS Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

The TSX does not accept responsibility for the adequacy or accuracy of the information contained herein.

Contact Information

  • In Toronto, Canada:
    GBS Gold International Inc.
    Ted Mayers, Executive Vice President, Business Development
    (416) 777-1508
    In Perth, Australia:
    GBS Gold International Inc.
    Peter Kerr, Chief Financial Officer
    +61 8 9492 2500