International Gold Mining Limited

International Gold Mining Limited

June 12, 2007 09:30 ET

International Gold Joint Ventures Into Yandal Greenstone Belt

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 12, 2007) - INTERNATIONAL GOLD MINING LIMITED (TSX VENTURE:IGL) (the "Company") is pleased to announce that it has entered into a formal joint venture agreement covering five contiguous prospecting licences, totalling approximately 10km2, at Kenden Well located some 70km East of Wiluna, Western Australia.

The project tenements are located to the South and along strike from the multi-million ounce gold (Au) Nimary-Jundee deposit which is located within a highly prospective major structural corridor (see Fig.1). The geology trends Northwest-Southeast and also occurs within the Kenden Well Project area which is located within the Yandal Greenstone belt of Western Australia.

After a century of virtual neglect, exploration in the Yandal greenstone belt of the Yilgarn Craton of Western Australia has yielded resources in excess of 13 M oz of gold since the 1990s. Success has come from a combination of conceptual geological models, surface prospecting, understanding the weathering environment, and systematic drilling. Gold resources and past production at major deposits include Bronzewing (4 M oz), Jundee (5 M oz), Mt. McClure (1 M oz) and Darlot (3 M oz), some of which was produced before 1990. All major deposits are hosted by Fe-rich mafic rocks, and mineralization displays a combination of different orientations and morphologies.

Exploration Potential - Red Lake Target Area

Although some areas require some further follow up, shallow geochemical definition, the target area "Red Lake" has sufficient information to outline a very exciting target in which deeper drilling is required.

These gold values outlined at Red Lake by previous limited shallow drilling show a classic leach profile signature, and the depth projection remains untested; however remnant mineralisation has been intersected and the following results have been recorded.

- 2 metres @ 7.6 g/t;

- 8 metres @ 3.9 g/t;

- 2 metres @ 8.5 g/t;

- 8 metres @ 2.4 g/t;

- 8 metres @ 4.3 g/t; and

- 10 metres @ 4.2 g/t.

The Red Lake target area has an indicated width of 50 metres and a strike length in excess of one kilometre, the company has budgeted six 200m holes to test the down dip extension, the programme will be reviewed after the results have been received.

JV Agreement

Under the terms of the JV agreement, International Gold Mining Limited will acquire the exclusive right to earn an aggregate of 51% Participating Interest, including a 51% interest in the tenements by:

- Paying the owner AUS$25,000 by way of reimbursement of past expenditure on the Tenements.

- Contributing the sum of AUS$150,000 on exploration expenditure during the Earning Period.

International Gold Mining Limited will have the right to earn a further aggregate of 24% Participating Interest by the expenditure of a further AUS$300,000 to take it to 75% ownership.

Following the earning of 75% ownership, International Gold Mining Limited will have the right to acquire the remaining 25% for the sum of AUS$1,000,000 leaving the initial owner with a net smelter royalty of 2%.

At all stages of the Earning Period, International Gold Mining Limited will hold the management rights to all exploration.

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"), in charge of the exploration on the Kenden Well project.

On behalf of the Board of Directors


Nick Revell, Director

To view Fig.1 please click on:

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