GBS Gold International Inc.
TSX : GBS

GBS Gold International Inc.

September 14, 2007 12:16 ET

GBS Gold International Inc.: Open Pit Drilling Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 14, 2007) - GBS Gold International Inc. (TSX:GBS) ("GBS Gold" or the "Company") reports new drilling results from its Union Reefs Operations Centre in the Northern Territory of Australia:

- Follow-on resource definition and extensional drilling programs are being undertaken at the Fountain Head and Chinese South Extension deposits. The results of these programs are expected to lead to increases in the resource estimates for these deposits and to potentially larger mine designs. Open pit mining operations have commenced at Fountain Head and are planned to commence at Chinese South Extension in early 2008.

- At Fountain Head, drilling within and underneath the existing deposit boundaries has infilled the current resource model and importantly confirmed the strike continuity of depth extensions. The depth extensions will be further followed up to test the potential for higher grade zones which may be amenable to underground mining. New drilling results include the following:



--------------------------------------
Downhole Intercept Intercept
Depth (m) Width (m) Grade (g/t)
--------------------------------------
6 4 4.1
9 7 8.1
17 3 67.1
17 6 3.1
32 9 4.4
43 2 14.5
50 2 22.1
110 7 3.7
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115 13 2.5
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144 7 9.3
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- At Chinese South Extension, drilling has confirmed higher grade continuity along major structures and mineralization along the eastern limb of the deposit. The results are expected to have an immediate positive impact on the optimization and design of the open pit through extensions along strike and at depth. New drilling results include the following:



--------------------------------------
Downhole Intercept Intercept
Depth (m) Width (m) Grade (g/t)
--------------------------------------
18 12 2.4
26 5 3.0
36 15 3.8
46 5 4.2
65 3 10.6
65 16 4.0
87 9 6.5
98 8 2.0
--------------------------------------


- Follow-up drilling is occurring on both deposit areas, with additional results to be released in due course. Updated resource estimates from these results are expected in the fourth quarter.

Union Reefs Operations Centre

The drilling results presented in this news release relate to the Fountain Head and Chinese South Extension deposits within GBS Gold's Union Reefs Operations Centre in the Northern Territory of Australia:

NOTE: To view a diagram of the Union Reefs Gold Plant, please click the following link: http://www.ccnmatthews.com/docs/gbs0914a.pdf

Fountain Head

The Fountain Head open pit mine is located approximately 45km northwest of the Union Reefs processing plant. Mining commenced at Fountain Head in early 2007 on the anticlinal lodes and the adjacent lode system (known as the Tally Ho lodes). The mine is currently scheduled to produce until the middle of 2008. The current resource estimate for the Fountain Head deposit comprises indicated resources of 1,985,000 tonnes at 1.7g/t for 106,000oz of contained gold, plus inferred resources of 661,000 tonnes at 1.6g/t for 34,000oz of contained gold. The objective of the drilling program currently being undertaken at Fountain Head is to follow-up on previous intersections and to test the depth and potential strike extents of the Tally Ho lode structures.

The reverse circulation ("RC") drilling has confirmed the strike continuity of the deepest plunging Tally Ho mineralized lode that was identified earlier this year from diamond drillhole THRD069 which returned an intersection of 15 metres at 60g/t gold. Within the current program, drillhole THRC079 intersected 7 metres at 9.3g/t from 144 metres downhole, approximately 10 metres to the east of the intercept in drillhole THRD069. In addition, follow-up drilling investigating further mineralization down dip of the current deposit boundaries (drillhole THRC078) intercepted 4 metres at 4.9g/t and 7 metres at 3.7g/t, to the north of the THRD069 intercept. These intersections are shown on the following plan and cross section:

NOTE: To view the Fountain Head Deposits plan and cross section, please click the following link: http://www.ccnmatthews.com/docs/gbs0914b.pdf

The drilling has also confirmed the structural interpretation of the Tally Ho lode system with veining hosted between converging faults within favorable lithological units considered significant for future drilling. It is interpreted that the trend of higher grades seen in current drilling will continue as the faults converge underneath the Fountain Head anticline lodes.

This recent drilling at Fountain Head will be interpreted and modelled to determine the economic significance to the present Fountain Head open pits and may potentially push them deeper. Ongoing RC drilling is proposed to define the strike extensions both along the plunge and dip of the identified zones. The mineralized system is anticipated to continue at depth down plunge and potentially host a higher grade deposit which may be amenable to underground mining.

Chinese South Extension and the Chinese "Big Pit" Zone

The Chinese South Extension deposit is located within the Chinese "Big Pit" zone approximately 55km northwest of the Union Reefs plant, adjacent to the Cosmo Deeps project area. The Chinese South Extension deposit contains indicated resources of 1,632,000 tonnes at 1.8g/t for 96,000oz of contained gold, plus inferred resources of 975,000 tonnes at 1.9g/t for 59,000oz of contained gold. The deposit is planned to be mined as an open pit operation from early 2008 onwards.

GBS Gold is continuing various drilling programs within the Chinese "Big Pit" zone in order to increase the size of the existing resources with the objective of expanding the open pit mining operations through the area.

Recent RC drilling has been undertaken with the objective of delineating additional mineralization adjacent to the planned mine design of the Chinese South Extension open pit, as well as infilling the existing deposit boundaries. To date, encouraging intercepts have been returned confirming the continuity of higher grade mineralization along major structures within the fold hinge of the inner dolerite, such as achieved in drillholes CSRC114, CSRC108 and CSRC135 shown in the plan and cross section below. New intersections have also been returned along the eastern limb of the outer dolerite.

NOTE: To view a diagram of the Chinese "Big Pit" Zone, please click the following link: http://www.ccnmatthews.com/docs/gbs0914c.pdf

NOTE: To view a diagram of the Chinese South Extension Deposit, please click the following link: http://www.ccnmatthews.com/docs/gbs0914d.pdf

The latest drilling results, in particular drillhole CSRC114 shown above, are expected to have an immediate positive impact on the Chinese South Extension open pit optimization and mine design by expanding the overall size of the deposit to the east and north, as well as pushing it deeper below the current resource boundaries.

The RC drilling program is still continuing and a follow-up diamond drilling program is expected to commence early in the fourth quarter. Results from this program, and an updated resource estimate, are planned to be released in the fourth quarter.

Drilling Results

The tabulated drilling results presented in this news release may be located on the GBS Gold website at www.gbsgold.com.

About GBS Gold International Inc.

GBS Gold is an emerging gold producer with 2.6Moz 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. 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 3,500km2 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".

On behalf of the Board of Directors

Gilbert Playford, Chairman and CEO

The drilling results and technical disclosures in this news release regarding GBS Gold's properties were approved by John Vinar, an employee of GBS Gold and a qualified person under NI 43-101. The Company's mineral resources 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, www.sedar.com. 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.

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 Australia 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, www.sedar.com. 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

  • GBS Gold International Inc.
    Samuel Yik
    Vice President, Corporate Finance and Investor Relations
    (778) 328-9801
    Email: gbs@gbsgold.ca
    Website: www.gbsgold.com