Randsburg International Gold Corp.

March 18, 2010 10:00 ET

Randsburg Reports Inferred Resource of 259 Million Lbs of Vanadium at Titan Deposit in Ontario

TORONTO, ONTARIO--(Marketwire - March 18, 2010) - Randsburg International Gold Corp. (TSX VENTURE:RGZ) announced today (the "Company" or "Randsburg") has received an updated Technical Report on its 20% owned Titan-Vanadium-Iron-Titanium Property (the "Property") located at Flett and Angus Townships, 120 kilometres northeast of Sudbury, Ontario. The property is jointly owned with Prophecy Resource Corp. (TSX VENTURE:PCY).

The Property is estimated to contain an inferred resource of 49.0 million tonnes at 0.24% vanadium (0.43% vanadium pentoxide), 14.82% titanium dioxide, and 48.09% iron oxide. The estimate uses a 40% Fe2O3 cutoff grade. The results of the independent resource estimate are summarized in the following Table:

Mineral Resource Estimate for Titan (at a cut-off of 40% Fe2O3)
Resource Category Inferred Tonnes (millions) V Grade(%) TiO2 Grade (%) V Contained Lbs* TiO2 Contained Tonnes*
49.0 0.24 14.82 259,174,729 7,259,310
  • Metal recoveries were assumed to be 100% for both vanadium and titanium oxide.

The updated report was authored by Neil Prenn, P.Eng. a Qualified Person as that term is defined under NI 43-101, of Mine Development Associates ("MDA") of Reno, Nevada, on February 26, 2010, was prepared in accordance with National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects and provides an update as to ownership of a report completed by MDA for Randsburg in 2006 and revised in February, 2007. The resource estimate at Titan is based on 38 drill holes completed between 2004 and 2006, totaling 10,307 metres, that were drilled to depths between 170 metres and 604 metres on a 50 metre grid. The estimate used the following methodologies and key assumptions: Grades for Fe2O3, TiO2, and V were interpolated by ordinary kriging into 5 x 5 x 10 metre blocks from 10 metre composites from mineralized zones. These kriged block grades were compared to grades estimated by inverse distance methods and were essentially the same globally. A minimum of one composite and a maximum of nine composites were used to interpolate grades. Since the economics and recoveries of the different materials contained in the mineralized zone have not been defined all of the material estimated within the high-grade mineralization boundary (approximately a 40% Fe2O3 cutoff grade) and within the variogram range of 108 metres from a composite has been defined as an inferred resource. This report is available at www.sedar.com.

The Titan-Vanadium-Iron-Titanium Property comprises 2,150 hectares and is located within 2.5 kilometres of a high-voltage transmission line and within 8 kilometres of a railroad. It is amenable to open pit mining and has an overburden cover between zero and approximately 1.5 metres.

Mineral resources which are not mineral reserves have not demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

Dr. Ken Germundson, PhD, P. Geo., is the Company's Qualified Person under the meaning of National Instrument 43-101 for the Titan Project. Dr. Germundson has reviewed this news release and approved its contents.

Randsburg also announced today that it has closed a $205,000 3 year term loan with interest calculated at 10% per annum secured by a collateral mortgage registered on its "Titan" project located in Flett and Angus Townships, Ontario, together with 1,640,000 non-transferable share purchase warrants. Each warrant is exercisable for 1 common share of Randsburg at a price of $0.10 for 2 years from closing. Randsburg may repay the Loan from the 6th month to the 24th month, subject to a 3 month interest bonus. During the final year of the Loan, Randsburg may prepay the Loan without any interest bonus.

The agent for the Loan received $18,500 in fees and 82,000, 2 year term brokers' warrants, each for 1 share, exercisable at $ 0.10. The Trustee for the Loan and the Mortgage is an affiliate of the Agent.

Randsburg intends to use the proceeds of the Loan to maintain and advance its mineral properties and the balance for general working capital. It has reserved sufficient funds from the Loan to pay interest during the first year of the Loan. Randsburg's Joint Venture partner on the Titan Project, Prophecy Resource Corp., is responsible for paying 80% of the interest on the loan.

All securities issued in respect of the Loan or warrants are subject to a hold period of 4 months and 1 day from the date of closing. The Loan is subject to regulatory approval.

On behalf of the Board of Directors of Randsburg International Gold Corp.

Michael Opara, President and Chief Executive Officer

Copyright, 2010 Randsburg International Gold Corporation. This news release can be reproduced and retransmitted in whole, with no changes permitted of any kind, including headlines, or the addition of any headlines or other material, and providing it is supplied and made available without charge to the end reader.

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

Contact Information