Guinor Gold Corporation

Guinor Gold Corporation

June 20, 2005 14:51 ET

Guinor Gold Corp.: Drilling Recommences as Surveys Confirm ...

Guinor Gold Corp.: Drilling Recommences as Surveys Confirm Potential Extensions and Repetition of Geological Structures; Exploration Drilling Commences With Arrival of the First of Two New Rigs; Attention: Business/Financial Editor LONDON--(CCNMatthews - June 20, 2005) - LONDON, June 20, 2005 (PRIMEZONE) -- Guinor Gold Corporation (Guinor) (TSX:GNR) (OSE:GNR) is pleased to announce that its ongoing exploration drilling program will recommence in early July in and around its 85% owned LEFA Corridor on the Dinguiraye Concession in Guinea, West Africa. An amount of US$5.03 million was budgeted for exploration in 2005, with US$3.3 million to be spent on reserve and resource definition at the LEFA Corridor and the remainder on an ongoing regional exploration program. The first of two KWL Drill rigs has arrived in Conakry and the second rig is due on site in three months. The new rigs are combination RC and core drilling rigs that have the capacity to drill 300 metres RC holes, 1600 m NQ diamond drill holes and 1200 m HQ diamond drill holes.

Trevor Schultz, President and CEO of Guinor comments: "The last six months of 2004 produced some excellent results with an aggressive drill program leading to significant increases in resources and reserves as announced on January 28th and February 7th, 2005, and perhaps more significantly the discovery of three new areas adjacent to the pits, all with grades significantly above the current reserve and resource grades. These areas, namely Bofeko, Camp De Base and Lero South remain open along strike and at depth, a fact that appears to have been confirmed by subsequent work in early 2005. Furthermore, Induced Polarisation (IP) and Resistivity surveys suggest a number of similar trending structures within close proximity to the high-grade structures discovered last year, plus a number of interesting regional trends.

"Given the economic importance of finding above average grade ounces in close proximity to the pits, we believe there is significant potential to add further ounces through the upcoming drill program planned for 2005. With the groundwork now in place we are well positioned to proceed swiftly with the timetable we have set ourselves a target of +320,000 oz of gold production in 2007. Furthermore, we now believe we are one step closer to creating one of the few gold companies that has a growing 2.3 million oz reserve; resource and production growth; positive exploration and all at an estimated cash cost of US$234/oz excluding royalties (reported March 14, 2005). By utilising the new, efficient rigs and drilling the new targets, we plan to work aggressively over the next six months to expand our reserve and resource base, improving the economics of the planned expansion."

Review of Exploration Programs: Detailed drill and survey plans, plus all recent drill results can be observed on our website:

Lero Karta Pit - Lero South

Approximately 25 further holes are planned to be drilled at Lero South, located just south of the main Lero Karta pit, a discovery which contributed 750,000 tonnes of indicated resources to the recently announced resources at a grade of 4.23 g/t, significantly above the overall current reserve grade of 1.9 g/t. The Lero South structure was discovered by drilling a previously unknown high grade structure sub-parallel to the Lero Karta mineralization. Follow up drilling proved it to be continuous both along the currently known 225-metre strike and to a depth of 100 metres. The structure is open to the west and at depth. A significant zone of mineralization has already been delineated at Lero South and intersections have included 26 metres at 13.20 g/t, 27 metres at 15.31 g/t and 30 metres at 6.86 g/t (reported February 7, 2005).

Lero Karta Pit - Camp de Base

Drilling at Camp de Base, located northwest of the main Lero Karta Pit also returned significant grades over a strike length of 600 metres, with intersections returning 29 metres at 3.28g/t and 36 metres at 2.45 g/t (reported February 7, 2005) The current resources do not include any of this high grade material from the Camp de Base area, something that should be rectified by future drilling and updated resource modeling. The IP survey over the north portion of Lero Karta identified Camp de Base and Pharmacie mineralisation and also identified a potential repetition of the Camp de Base area, 300 metres north. The survey has also given more weight to the theory that Camp de Base mineralisation may join the Pharmacie mineralization located 1 km to the northeast. This area also represents a key area for further drilling.

Fayalala Pit - Bofeko

Previous drilling at Fayalala targeted multiple ore bodies of this complex system of mineralisation in and around the current Fayalala pit. The near surface RC drilling undertaken late last year at Bofeko to the southwest of the Fayalala pit, identified a mineralised structure on the 310-degree orientation with a strike length of 225 metres. Bofeko has returned very encouraging grades at consistent widths with mineralisation continuing at depth. Mineralisation at Bofeko is completely open to the southeast with intersections including 14 metres at 4.91 g/t, 10 metres at 10.62 g/t and 23 metres at 4.37 g/t (reported February 7, 2005). In order to improve the tonnage and grade at Fayalala, over 45 holes have been proposed at Bofeko to test the depth and strike length of the ore body.

The initial results from an Induced Polarisation and Resistivity survey over the LEFA Corridor that began in April 2005 are near completion. The orientation surveys over the Lero Karta and Fayalala deposits have identified known mineralization and the importance of the 310-degree - 320-degree trend that controls mineralization, identifying many potential near mine targets worthy of drill testing. Towards the north east of Fayalala, an anomaly has been highlighted at both the Far East area and between the Fayalala pit and the Fayalala East area.

Furthermore, work has further added weight to the potential for a 330-degree structure joining the southern area of Fayalala pit with Tambico, 3 kilometres to the NNW. With this knowledge and its application to targets outside the LEFA Corridor, high tenure prospects can now be evaluated very effectively and in a relatively inexpensive manner with new theories developed to define mineralization that could impact significantly on future operations. Of the other areas close to current operations, the three prospects with the highest tenor after being IP and Resistivity surveyed are; Lero West (1.5 kilometres west of Lero pit); Solabe (4.4 kilometres south east of Fayalala; and Sikasso situated 7.5 kilometres east south east of the Fayalala pit and new plant site. At Solabe, there was a clear indication of a north east/south west trend of high resistivity/low chargeability coincident with insitu gold anomalies from previous broadly spaced air core drilling.

Regional Exploration

A budget of US$1.7 million was allocated for regional exploration outside the LEFA Corridor with work -- dominated by soil sampling -- concentrating on exploration permits to the east of the existing concession. Within the Samende area a survey began in January 2005 taking samples at 400m x 200m spacing. The samples were taken from a consistent horizon to allow for consistency of results. The results from the raw data has highlighted two anomalous areas, the 'Kobedara Trend' and the second, southern repetition is called the 'Dala Oulen Trend'. Both trend in a 310-degree - 320-degree orientation and coincide with magnetic and Landsat lineations. Known artisanal activity is also aligned on these trends. Given the combination of factors, this area can now be considered as a region of high interest leading into 2006.

Quality Assurance and Control and Qualified Person

Data, of a scientific or technical nature, regarding mineral reserves and mineral resources of Guinor Gold Corporation and its subsidiaries included in this document has been verified by Mr. Andrew Pardey, the Chief Geologist. Mr. Pardey is a "qualified person" within the meaning of Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects. Mr. Pardey is not "independent" of Guinor Gold Corporation within the meaning of NI 43-101 as he holds securities of the company. All exploration work of the company is conducted under the supervision of Mr. Pardey. All drilling is conducted using industry accepted equipment and procedures for drilling and sampling. All drill intercepts reported in this press release relate to either RC percussion (dry samples, 1m intervals, greater than 75% sample recovery) or NQ/HQ diamond drill core (half core samples, maximum 1m intervals, greater than 95% sample recovery) for Resource definition drilling, all first pass regional exploration drilling is conducted using AC drilling, with follow up using RC.

Historically, sampling and assaying of wet RC samples has occurred. This data is flagged in the resource database. A program of confirmatory diamond drilling is used to verify the reliability of this data. All assay results reported have been determined by 50 gram fire assay, aqua regia digest and atomic absorption spectrometer readings to a detection limit of 0.01 g/t gold by independent assay contractors SGS Siguiri. An ongoing check assay program with internationally recognized and certified umpire assay laboratories Genalysis (Perth, Australia) and ALS Chemex (Vancouver, Canada) is conducted to confirm reliability of assay data. The data is verified on an ongoing basis by Guinor's Qualified Person. The mineral resources referred to in this press release are not mineral reserves and have not demonstrated economic viability.

Safe Harbour Statement

Certain statements contained herein, as well as oral statements that may be made by the company or by officers, directors or employees of the company acting on the company's behalf, that are not statements of historical fact, may constitute "forward-looking statements" and are made pursuant to applicable and relevant national legislation (including the Safe-Harbour provisions of the United States Private Securities Litigation Reform Act of 1995) in countries where Guinor is conducting business and/or investor relations. Forward-looking statements, include, but are not limited to those with respect to the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future success of exploration activities, Guinor's hedging practices, currency fluctuations, requirements for additional capital, the prospects for exploration programs, government regulation of mining operations, environmental risk, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variation, including negative variation, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and ore densities or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes and other risks of the mining industry, delays in obtaining government approvals or financing or in completion of development or construction activities. Although Guinor has attempted to identify important factors that could cause actual actions, events or cause actions events or results not to be anticipated, estimated or intended, there can be no assurance that forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Except as may be required by applicable law or stock exchange regulation, the company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements. /For further information:

Marius Bretteville:
Investor Relations Officer - Europe
+47-22 00 70 50

Judy Webster:
Investor Relations Officer - N.America
1 888 771 1453 or +416-691 5996