GBS Gold International Inc.

GBS Gold International Inc.

November 09, 2006 18:58 ET

GBS Gold International Inc.: Official Opening of Union Reefs Operations Centre

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2006) - GBS Gold International Inc. (TSX:GBS) ("GBS Gold" or the "Company") is pleased to announce that the Chief Minister of the Northern Territory of Australia, the Honourable Clare Martin MLA, officially opened the Company's Union Reefs Operations Centre at a formal ceremony held earlier today at the Union Reefs gold plant. Approximately 50 invitees attended the opening which represents another important milestone for GBS Gold and a major benefit for the supportive local economy. The day included gold pours of approximately 13.3 kilograms (427 ounces) of gold.

Mining activities have increased and ore is now being mined and hauled from the Brocks Creek underground mine and the Rising Tide open pit, with ore expected from the Fountain Head open pit later in the current quarter. The Union Reefs plant is now operating at its targeted throughput on one of its two mills with the Rising Tide and Brocks Creek mined ore to replace the low grade stock piles currently being treated over the next couple of months.

About GBS Gold International Inc.

GBS Gold is an emerging gold producer with 1.9Moz of Measured and Indicated Resources and 1.6Moz of Inferred Resources of gold at its Union Reefs Operations Centre 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 and plans to ramp up production from free milling ores to a targeted rate of 150,000 ounces per annum during 2007. The Company expects to construct a flotation plant and bio-oxidation heap leach facility using the GEOCOAT® process at Union Reefs to treat refractory ores and produce gold at a targeted rate of 250,000 ounces per annum from both ore types at a targeted cash cost of approximately US$300 per ounce in 2008. Management has extensive experience in bringing mineral projects into production, operating open pit and underground gold mines and has assembled a team with valuable mining experience in the Northern Territory of Australia. 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 2,500km2 of prospective tenements and gold deposits and also holds gold exploration properties in Western Australia and Canada. GBS Gold has no hedging commitments, no existing bank debt and sufficient cash to meet its short term production objectives. GBS Gold trades on the Toronto Stock Exchange under the symbol "GBS".

Gilbert Playford, Chairman and CEO

This news release has been approved by GBS Gold's in house geologist, Peter Harris, a qualified person under NI43-101. The resource estimates are reported at a range of cut-off grades as set out in the technical report entitled "Independent Technical Review of the Burnside, Union Reefs, Pine Creek and Maud Creek Gold Projects, Northern Territory, Australia", dated effective October, 2005 and filed on January 5, 2006, an addendum technical report entitled "Addendum to the Technical Review of the Burnside Gold Project, Union Reefs Gold Project, Pine Creek Gold Project and Maud Creek Gold Project, Northern Territory, Australia - Resource Update, Maud Creek Gold Project" dated February 2006 and filed on February 8, 2006, and news releases filed on January 20, 2006 and July 10, 2006, all of which may be viewed on the SEDAR website, The Company has not completed a feasibility study and there is no certainty that the project will be economically successful. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

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.

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Contact Information

  • GBS Gold International Inc.
    Samuel Yik
    Vice President, Corporate Finance and Investor Relations
    (778) 328-9801