GBS Gold International Inc.

GBS Gold International Inc.

December 03, 2007 09:26 ET

GBS Gold International Inc.: Open Pit Drilling Enhances Short Term Production Plans and Returns Significant Nickel Intercept

TORONTO, ONTARIO--(Marketwire - Dec. 3, 2007) - GBS Gold International Inc. (TSX:GBS) ("GBS Gold" or the "Company") reports further positive drilling results from its Union Reefs Operations Centre in the Northern Territory of Australia. The results are expected to enhance short term gold production and lead to an increase in the resource estimate for the Chinese "Big Pit" zone, located approximately 55km northwest of the Union Reefs plant.

Since the last drilling update on November 7, 2007, GBS Gold has received assay results from a further 5,500 metres of drilling within the Chinese Big Pit zone. The results also now indicate the presence of base metals mineralization, with a significant nickel intercept returned. Highlights of the recent drilling include:

- Significant zones of shallow gold mineralization intersected outside of the current resource boundaries of the existing Chinese South Extension and Mottrams deposits, including:

Downhole Intercept Intercept
Drillhole Depth (m) Width (1) (m) Grade (2) (g/t)
CSRC153 55 4 4.5
71 6 4.5
CSRC233 50 13 4.8
75 15 3.2
98 3 3.1
CSRC238 21 11 35.7
60 6 4.3
CSRC240 14 7 4.2
74 3 3.9
CSRC249 125 7 3.0
CSRC253 18 4 4.6
MTRC121 49 11 1.6
MTRC122 62 8 2.0
MTRC123 11 3 2.7
MTRC132 11 8 1.9
1. Downhole width - true width to be determined. 2. Uncut grades.

- The drilling has extended the strike continuity of the Mottrams deposit by a further 50 metres to the south and at Chinese South Extension has intersected new quartz veins extending the mineralization to the north. Updated resource estimates for both deposits incorporating this drilling are expected to be released in the first quarter of 2008.

- Drilling in the Chinese Big Pit area has also returned a significant base metals result with drillhole CSRC218 intersecting 2 metres at 5.4% nickel and 0.8% cobalt from 73 metres downhole. Previous drilling in the area has intersected base metal mineralization, with drillhole CSRC074 in 2006 intersecting 1 metre at 0.7% nickel and 0.4% cobalt. Samples from previous drillholes in the area are being re-submitted for multi-element analysis, and further drilling is underway.

Commenting on the latest results, Gil Playford, GBS Gold's Chairman and CEO, said: "The continued drilling success in the Chinese Big Pit area is expected to underpin enhanced short-term gold production in 2008 from longer-life open pit mines scheduled to commence in this area during the next two quarters. The gold mineralization intersected outside of the current resource boundaries confirms the potential to upgrade the existing resource base in this area. The significant nickel and cobalt drilling intersection is also indicative of the excellent exploration potential of the area."

Chinese "Big Pit" Zone

The Chinese "Big Pit" zone is located approximately 55km northwest of the Union Reefs plant. Within the zone, the Chinese South Extension and Mottrams deposits together currently contain indicated resources of 2,942,000 tonnes at 1.6g/t for 153,000oz of contained gold, and inferred resources of 1,658,000 tonnes at 1.6g/t for 83,000oz of contained gold.

Drilling continues to identify significant shallow high grade extensions in the northern target area and parallel zones to the known mineralization at the Chinese South Extension deposit. In particular, drillhole CSRC153 intersected significant mineralization 500 metres to the north of the current optimized pit boundary. Re-modeling of the existing resource and updated mine optimizations are underway and the Company expects to confirm a larger and longer life open pit mining operation through the Chinese Big Pit area.

The following plan view of the area shows the historical and planned open pits, along with the reported intersections which demonstrate the potential for a larger mining operation:

To view the area of the Chinese "Big Pit" Zone, please visit the following link:

Base Metal Mineralization

Previous drilling on the northern edge of the Chinese South Extension deposit has indicated the presence of base metal mineralization, including drillhole CSRC074 which in 2006 intersected 1 metre at 0.7% nickel and 0.4% cobalt from 32 metres downhole. Drilling approximately 20 metres from this intersection has returned a significant new intersection of 2 metres at 5.4% nickel and 0.8% cobalt from 73 metres downhole within drillhole CSRC218.

To follow up these intersections, samples from nearby drillholes have been re-submitted for nickel and cobalt multi-element analysis and follow up diamond drilling has already commenced. Further reverse circulation drillholes are also planned.

Full Drilling Results

The full drilling results presented in this news release are tabulated as an appendix to this news release on the GBS Gold website at

About GBS Gold International Inc.

GBS Gold is an emerging gold producer with 2.6Moz of 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. The Company expects to construct a flotation plant and bio-oxidation heap leach facility using the GEOCOAT ® technology at the Union Reefs Plant to process refractory ores and increase gold production from all sources to a targeted annualized rate of 300,000 ounces in 2009-2010. 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 3,500km 2 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".

Notice Regarding Drilling Results and Resource Estimates

The drilling results and technical disclosures in this news release regarding GBS Gold's properties were approved by Peter Harris, a consultant to GBS Gold and a qualified person under National Instrument 43-101. The Company's mineral esources comprise measured resources of 84,800 tonnes at 20.6g/t for 56,100 ounces of contained gold, indicated resources of 24.6 million tonnes at 3.2g/t for 2.6 million ounces of contained gold and inferred resources of 21.2 million tonnes at 2.4g/t for 1.6 million ounces of contained gold. 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, the technical report entitled "Form 43-101 Technical Report on the Tom's Gully Project" dated June 13, 2007 and filed on June 14, 2007 (collectively, the "Technical Reports"), and news releases filed on January 20, July 10, September 14, October 26, November 27 and December 13, 2006 and January 9 and May 10, 2007, 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. 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.

On behalf of the Board of Directors

Gilbert Playford, Chairman and CEO

GBS Gold manages its drilling and assaying activities in accordance with industry standard quality assurance/quality control (QA/QC) procedures. Samples are collected by GBS Gold personnel and prepared in accordance with specified procedures at the relevant assay laboratories. The primary assay laboratory is North Australian Laboratories in Pine Creek, Northern Territory. Laboratory site reviews are undertaken. Assay QA/QC involves the use of assay standards (sourced from reputable suppliers and cross-checked through umpire laboratories), field duplicates, blanks and barren quartz flushes. A third party "umpire" laboratory is used to cross-check and validate approximately 5% of the assay results. Sample coarse rejects are retained and approximately 5% of samples are re-submitted for further assay verification. All sample pulps, half-core and rock-chip samples are retained at site.

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