GBS Gold International Inc.
TSX : GBS

GBS Gold International Inc.

November 14, 2008 05:07 ET

GBS Gold Update-Expected Late Filing of Q3 Financials

PERTH, AUSTRALIA--(Marketwire - Nov. 14, 2008) - GBS Gold International Inc. (TSX:GBS) ("GBS Gold" or the "Company") provides the following update.

Third Quarter Financials and MD&A

The Company advises that, as a result of the recent appointment of administrators to its Australian subsidiaries, it is unlikely to be able to meet the statutory deadline of November 14, 2008 for filing of its third quarter consolidated interim financial statements and MD&A. GBS Gold expects to file these documents no later than November 28, 2008, which is within the filing period prescribed for venture issuers.

Listing

The Company has submitted an application to list its shares for trading the NEX board of the TSX Venture Exchange but will not request a listing date until its third quarter financials and MD&A have been filed.

Administration Update

All mining and milling activities at the Union Reefs Operations Centre have been suspended and the sites have now been placed on care and maintenance pending the outcome of the administration process. Over 30 expressions of interest in the various businesses and assets of the Company's Australian subsidiaries have been received. Separate information memoranda and data DVDs have been prepared for the Union Reefs Operations Centre, Tom's Gully project and Nicolsons' project and are currently being circulated. The deadline for submission of indicative offers has been set for December 5, 2008 and the second meeting of creditors of the Australian subsidiaries to consider any forthcoming restructure, recapitalization or acquisition proposals is currently scheduled to take place on or before December 23, 2008.

About GBS Gold International Inc.

GBS Gold has 2.7 million ounces of Indicated Resources and 1.7 million ounces of Inferred Resources within 125 km radius of its 2.5Mtpa Union Reefs processing plant located in the Northern Territory of Australia, including the Cosmo Deeps project. The Company's Australian subsidiaries appointed Messrs Andrew Saker, Darren Weaver and Martin Jones of accounting firm Ferrier Hodgson as joint and several voluntary administrators on September 15, 2008. This appointment has placed control of the Australian subsidiaries, including their businesses and assets, with the administrators. Claims of creditors have been stayed with the principal aim of allowing the subsidiaries to be restructured, recapitalized or sold.

For more information about GBS Gold International Inc., please visit our website at www.gbsgold.com or email us at gbs@gbsgold.ca.

For further information regarding the Australian subsidiaries, the conduct of the Australian business or to discuss the administration process, the Administrators may be contacted at the following:



Administrator:
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Mr. Andrew Saker
Partner, Ferrier Hodgson
Joint and Several Administrator
Level 26, 108 St George's Terrace
Perth, Western Australia, 6000, AUSTRALIA
Tel: +61 (0)8 9214 1444
Fax: +61 (0)8 9214 1400
Website: www.ferrierhodgson.com
Email: fhperth@perth.fh.com.au


The Company's mineral resources comprise indicated resources of 26.8 million tonnes at 3.1g/t for 2.7 million ounces of contained gold and inferred resources of 21.5 million tonnes at 2.4g/t for 1.7 million ounces of contained gold as set out in its technical reports (refer below) and news releases dated May 13 and July 2, 2008. 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.

The Company has completed feasibility studies on its Tom's Gully and Cosmo Deeps projects, and a life-of-mine study on its operating Brocks Creek underground mine, all of which have declared mineral reserves in accordance with the above technical reports. Where the Company has not completed a feasibility or life of mine study on a particular project, there is no certainty that such 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, 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.

Contact Information

  • GBS Gold International Inc.
    Gil Playford
    Chairman and CEO
    (931) 358-2170
    Email: gbs@gbsgold.ca
    Website: www.gbsgold.com
    or
    GBS Australia Pty Ltd (administrator appointed)
    Peter Kerr
    Chief Financial Officer
    +61 (0)8 9492 2500