Moto Goldmines Limited
TSX : MGL
ASX : MOE
AIM : MOE

Moto Goldmines Limited

April 07, 2006 09:00 ET

Moto Goldmines Announces Significant Increase in Gold Resource Estimate

PERTH, WESTERN AUSTRALIA--(CCNMatthews - April 7, 2006) - Moto Goldmines Limited (TSX:MGL)(ASX:MOE)(AIM:MOE) is pleased to report that an updated independent resource estimate, completed by Cube Consulting Pty Ltd ("Cube"), has resulted in a significant increase in resources on the Moto Gold Project in the north east of the Democratic Republic of Congo. The Moto Gold Project is a joint venture between L'Office des Mines d'Or de Kilo-Moto ("OKIMO"), Orgaman sprl and Moto Goldmines Limited.

Estimated resources at the Moto gold project are now:

- Indicated resources - 43.44 million tonnes at 2.7 g/t Au for 3.756 million ounces of gold; and

- Inferred resources - 100.86 million tonnes at 3.8 g/t Au for 12.353 million ounces of gold.

Highlights of the resource estimate include:

- increase of 34% in indicated resources to 3.756 million ounces of gold.

- increase of 51% in inferred resources to 12.353 million ounces of gold

- increase in grade of indicated resources from 2.5 g/t Au to 2.7 g/t Au and increase in grade of inferred resources from 2.7 g/t Au to 3.8 g/t Au.

A further resource review is planned for the third quarter of 2006 based upon analysis of further infill drilling results from Gorumbwa and Karagba-Chauffeur-Durba. These programmes were designed to upgrade the existing resources from inferred to the indicated category.

Cube visited the Moto Gold Project in late March 2006. Drilling equipment and techniques, onsite sample preparation facilities, quality assurance and quality control ("QAQC") procedures and database administration were reviewed and found to be of a high industry standard. This work included Cube supervising the drilling of a twinned hole and associated sampling, packing and transport of representative core.



Resource Estimate for Moto Gold Project Deposits

Cube has estimated the following resources at a nominal 1 g/t
Au lower cutoff:

------------------------------------------------------------------
Deposit Indicated Inferred Moto's
---------------------------------------------- Earn-in
Tonnes Au Au Tonnes Au Au Interest
Mt g/t '000Oz Mt g/t '000Oz (%)
------------------------------------------------------------------
Pakaka 16.13 2.7 1,414 60.0
Gorumbwa 8.55 6.4 1,750 60.0
Kibali 22.60 2.0 1,417 68.5
Mengu Hill 6.26 3.5 699 0.15 2.5 12 68.5
Mengu
Village 1.28 1.8 76 68.5
Karagba 6.06 2.7 523 15.87 2.7 1,397 60.0
Chauffeur 39.02 5.5 6,848 60.0
Durba 2.30 2.2 162 60.0
Megi 5.21 1.9 312 60.0
Marakeke 1.66 1.4 74 60.0
Kombokolo 1.79 2.9 166 68.5
Sessenge 6.68 2.5 540 0.74 2.4 58 68.5
Ndala 0.49 4.0 62 60.0
Pamao 5.23 2.0 337 4.26 1.9 260 60.0
------------------------------------------------------------------
TOTAL 43.44 2.7 3,756 100.85 3.8 12,353
------------------------------------------------------------------


Notes:

- All the mineral resource estimates undertaken by Cube have been classified and reported in accordance with The 2004 Australasian Code for Reporting of Mineral Resources and Ore Reserves (2004 JORC Code). The 2004 JORC reporting guidelines are equivalent to the guidelines adopted for the Canadian National Instrument 43-101.

- The mineral resource estimate includes the results of an additional 12,613m of RC drilling and 6,360m of Diamond drilling compared to the previous resource estimate in November 2005. All additional Diamond drilling has been located in the Karagba, Chauffeur and Durba Project area, this drilling has allowed the identification of the three separate Resource Domains which where previously incorporated under the name Karagba.

- The infill drilling has facilitated an increase in grade confidence that combined with a comprehensive geological review and interpretation has allowed the movement of significant tonnages from a number of project areas from the Inferred to the Indicated category.

- The increase in grade of the Inferred Resources is largely attributable to the identification of the higher grade Chauffeur mineralization identified since the November 2005 Release.

- A recoverable resource estimation methodology (Uniform Conditioning with a 5x5x2.5m SMU) has been used in place of Ordinary Kriging (on a 20x20x5m Panel).

Cube's Principal Consultants, Ted Coupland and Terje Hansen visited the Moto Project in late March 2006. The purpose of the trip was to review the current controls on mineralization and geological interpretation in light of recent developments in the Karagba, Chauffeur and Durba Project Area.

Cube seconded a Diamond Drill Rig and independently twinned hole DDD077 and undertook a second hole to test geological continuity approximately 40 metres down dip of DDD077. Cube supervised the drilling, sampling, packing and transport of representative core to Genalysis in Perth Western Australia. Both holes intersected mineralization as expected and assay results are pending.

Drilling equipment and techniques, onsite sample preparation facilities, QAQC procedures and database administration were reviewed and found to be of a high industry standard.

Compared to the previous resource estimate in November 2005:



- Indicated resources have increased:
- from 34.33 million tonnes at 2.5 g/t Au for 2.809 million
ounces of gold;
- to 43.44 million tonnes at 2.7 g/t Au for 3.756 million ounces
of gold.

- Inferred resources have increased:
- from 92.87 million tonnes at 2.7 g/t Au for 8.159 million
ounces of gold;
- to 100.85 million tonnes at 3.8 g/t Au for 12.353 million
ounces of gold.


An independent external audit by an internationally recognized geological consulting firm is planned for the 2006 calendar year that will involve verifying the resources work being undertaken by the Company and Cube Consulting.

Earn-in Rights

Moto Goldmines Limited ("the Company"), in conjunction with the privately owned company Orgaman sprl ("Orgaman") and through a number of local operating companies, has entered into seven leasing agreements and one contract of technical and financial assistance with OKIMO, the state-owned company that is the registered holder of the mineral rights to the Moto Gold Project. The Company is the operator in respect of all activities at the Moto Gold Project.

In respect of the seven leasing agreements, the Company is effectively earning a 60 per cent interest to the mineral rights in certain areas (Orgaman retains a 10 per cent interest and OKIMO has a 30 per cent non-dilutable interest) and a 68.5 per cent interest to the mineral rights in other areas (Orgaman retains an 11.5 per cent interest and OKIMO has a 20 per cent non-dilutable interest). In respect of the contract of technical and financial assistance the Company is effectively earning the right to a 60 per cent share of mineral interests.

Under the terms of the agreements, the Company is required to fund exploration through to completion of a bankable feasibility study. Details of the Company's net attributable share of the indicated and inferred resources, assuming completion of its earn-in obligations, are at appendix 1.

Cube Consulting

Cube Consulting Pty Ltd is an independent consulting firm specialising in the provision of geological modelling, resource estimation, mine planning and information technology services. Cube has been appointed to manage the geological resource modelling and mine planning aspects of the feasibility process.

Cube was established in 1999 by a group of Australian mining industry professionals and continues to provide consulting services to a diverse group of Australian and international mining companies.

Prefeasibility Work

Activities in relation to project feasibility and development are ongoing and the Company is continuing to work towards completion of pre-feasibility work by mid 2006 and completion of a bankable feasibility study in 2007.

The Information in this report that relates to Mineral Resources is based on a resource estimate compiled by Ted Coupland who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM), Mineral Industry Consultants Association (MICA) and is a Chartered Professional (Geology), and a qualified person under National Instrument 43-101. Ted Coupland is a director of Cube Consulting Pty Ltd. Ted Coupland has sufficient experience which is relevant to gold mineralisation and resource estimation to qualify as a Competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Ted Coupland consents to the inclusion in this news release of the Information, in the form and context in which it appears.

Caution Regarding Forward Looking Statements: Statements regarding the Company's plans with respect to developing the Moto Gold Project are forward-looking. There can be no assurance that any mineralisation will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified with the project or that future required regulatory approvals will be obtained.

Appendix 1

Resource Estimate for Moto Gold Project Deposits - Net Attributable (in accordance with AIM rules)

The Company's net attributable share of indicated and inferred resources based on the estimate by Cube Consulting (at a nominal 1 g/t Au lower cutoff) is as follows:



--------------------------------------------------------
Gross
--------------------------------------------------------
Deposit Indicated Inferred
---------------------------------------------
Tonnes Au Au Tonnes Au Au
Mt g/t '000Oz Mt g/t '000Oz
--------------------------------------------------------
Pakaka 16.13 2.7 1,414
Gorumbwa 8.55 6.4 1,750
Kibali 22.60 2.0 1,417
Mengu Hill 6.26 3.5 699 0.15 2.5 12
Mengu
Village 1.28 1.8 76
Karagba 6.06 2.7 523 15.87 2.7 1,397
Chauffeur 39.02 5.5 6,848
Durba 2.30 2.2 162
Megi 5.21 1.9 312
Marakeke 1.66 1.4 74
Kombokolo 1.79 2.9 166
Sessenge 6.68 2.5 540 0.74 2.4 58
Ndala 0.49 4.0 62
Pamao 5.23 2.0 337 4.26 1.9 260
--------------------------------------------------------
TOTAL 43.44 2.7 3,756 100.85 3.8 12,353
--------------------------------------------------------
--------------------------------------------------------

--------------------------------------------------------
Net Attributable (note 1)
--------------------------------------------------------
Deposit Indicated Inferred
---------------------------------------------
Tonnes Au Au Tonnes Au Au
Mt g/t '000Oz Mt g/t '000Oz
--------------------------------------------------------
Pakaka 9.68 2.7 848
Gorumbwa 5.13 6.4 1,050
Kibali 15.48 2.0 971
Mengu Hill 4.29 3.5 479 0.10 2.5 8
Mengu
Village 0.88 1.8 52
Karagba 3.64 2.7 314 9.52 2.7 838
Chauffeur 23.41 5.5 4,109
Durba 1.38 2.2 97
Megi 3.13 1.9 187
Marakeke 1.00 1.4 44
Kombokolo 1.23 2.9 114
Sessenge 4.58 2.5 370 0.51 2.4 40
Ndala 0.29 4.0 37
Pamao 3.14 2.0 231 2.56 1.9 156
--------------------------------------------------------
TOTAL 27.44 2.7 2,408 62.51 3.7 7,537
--------------------------------------------------------
--------------------------------------------------------
Note 1 - refer above for details of the Company's interests
in the various deposits and discussion of earn-in rights.



Appendix 2

Glossary of Terms

"Diamond drilling"

This technique involves a pipe encrusted in industrial diamonds being used to drill through rock layers, with a "core" of rock being left in the centre of the pipe. The "core" of rock can be retrieved for logging and sampling.

"Indicated"

That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence as determined under the JORC Code.

"Inferred"

That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence as determined under the JORC Code.

"JORC Code"

The Australasian Code for Reporting of Mineral Resources and Ore Reserves, prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

"Mineral Resource" or "Resource"

A concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction.

"Ordinary Kriging"

A mathematical method that uses linear weighted combinations of the available data to estimate unbiased block grades with the aim of minimizing the variance of the error.

"RC drilling"

This technique employs a dual walled string of drill rods, with a compressed air driven percussion hammer at the end of the drill string. The type of hammer used at Moto is known as a "Center Sample Hammer" with a hollow center that allows the sample to pass into the dual wall drill pipe right at the face of the drill bit. The rock fragments will be taken up and will pass through hollow tubing, until the chippings and fluids reach a "cyclone." The cyclone separates out the rock fragments from the drill medium and presents them to a sampling device.

"Resource Domains"

Individual concentrations of mineralization separated geographically or statistically from each other.

"Uniform Conditioning"

A mathematical method that allows the discrimination of ore and waste at a selective mining unit size within an estimated panel of significantly larger size. In theory, this provides a more accurate prediction of estimated resource grade above a cut off.

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