International Gold Mining Limited

International Gold Mining Limited

December 20, 2007 09:15 ET

International Gold Announces Mining Contract & Option Agreement to Operate British King Gold Mine in Western Australia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 20, 2007) - INTERNATIONAL GOLD MINING LIMITED (TSX VENTURE:IGL) (the "Company") has entered into a formal Mining Contract and Option Agreement with Roxbury Mining Consultants Pty Ltd ("Roxbury") covering the historical British King Mine ("the Agreement"). The current extreme shortage of a skilled work force due to the high level of mining activity in the area was a factor in the Company's decision to enter into Agreement with Roxbury.

IGL has recently completed a re-commissioning of the mine, camp and infrastructure needed to support small scale mining operations. Upon the signing of the Agreement, Roxbury will commence the final stage in the above ground and underground development of the British King Tenement being:

- Installation and certification of the lift, skip and mining cage;

- Dewatering the mine;

- Re-timbering the skip skids; and

- Other underground development needed to ensure the safe operations of the mine.

Upon completion and mine inspection certification, production can commence as early as First Quarter 2008.

The project area comprises one granted mining lease and one miscellaneous lease application. The table below identifies the measured and inferred resources calculated for the British King Mine in 2004.

Measured: 45 m level to 135 m level West 15,400 ounces Au
Inferred: based on measured and mined resource 79,100 ounces Au
to Tenement boundary.
(Reference the Company's NI 43-101 Technical Report, filed on SEDAR May 31,

Option Agreement Terms

Under the terms of the Agreement, Roxbury has the option to acquire 100% ownership of the British King Tenement upon the satisfaction of each of the following conditions:

1. Completion of the Mine re-commissioning and approval process;

2. Roxbury remits to IGL $3,000,000 in royalties over the term of the Agreement; and

3. IGL has obtained all approvals of the Minister required pursuant to the Mining Act to the sale and transfer of the Tenement under this Agreement.

4. Term of Agreement 24 months.

British King Tenement - Historical Exploration Data

The British King Mine is located 5 km West of Barrick Gold Corporation's Darlot Mine, some 320 km North of Kalgoorlie in Western Australia (to view the attached location map please click on:

Historically, the British King Mine was mined by way of a series of shafts and underground working and currently the ore is accessed via two main shafts. The project has an extensive database of drilling and underground development sampling on which the original 2004 resource estimates have been based.

Historical records indicate past production to be as follows:

1900 to 1909 12,250 tons at 17.6 grams per ton
1943 to 1947 Approximately 4000 tons with the grade unknown
1976 to 1984 1,606 tons at 25.5 grams per ton
(Reference the Company's NI 43-101 Technical Report, filed on SEDAR May 31,

The main shaft has production down to the present production level of 75 metres, while the West shaft is developed to the 45 metre level.

Qualified Person

Mr. Nick Revell BSc, a member of AusIMM, and a Company director, is a Qualified Person as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), and is in charge of the Company's exploration projects. Technical aspects of this news release were prepared and verified by Mr. Nick Revell, who is the technical person responsible for this news release.

On behalf of the Board of Directors


Nick Revell, Director

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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