Red Back Mining Inc.

Red Back Mining Inc.

February 25, 2008 08:00 ET

Red Back Mining Inc.: 63% Increase in Measured and Indicated Resources at Tasiast

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2008) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to report a major increase in measured and indicated resources at its 100% owned Tasiast Gold Mine ("Tasiast") in Mauritania.

Since acquiring Tasiast in August 2007, the Company has completed an infill drill program (23,000m) towards a restatement of the mine's resources and reserves.

The new mineral resource estimates for Tasiast, shown in the table below, are reported as at 31 December 2007 above a 1g/t cut off:

Category Mt Au g/t Moz
Measured Resource 10.83 2.47 0.86
Indicated Resource 15.08 2.05 1.00
Stockpiles 0.56 1.80 0.03
Total Measured, Indicated and Stockpiles 26.47 2.22 1.89
Inferred Resource 8.9 1.9 0.55
Numbers may not add correctly due to rounding.

1. The resources are estimates of recoverable tonnes and grades using
Multiple Indicator Kriging with block support correction into 15
metres (East) by 25 metre (North) by 5 metre (Elevation) model
blocks and assuming smallest mining unit for ore selection in mine
grade control of 3 metres (East) by 5 metres (North) by 2.5 metres
2. Measured resources lie in areas where drilling is available at a
nominal 25 x 25 metre spacing, Indicated resources occur in areas
drilled at approximately 25 x 50 metre spacing and Inferred
resources exist in areas of broader spaced drilling.
3. All available assaying as at 12th February 2008.
4. Gold estimation and model blocks were constrained within
geologically derived wireframes.

There is excellent scope for the continued conversion of the remaining inferred resources at Tasiast, much of which lies at shallow depths associated with the newly defined Piment Footwall Zone and in the West Branch Zone. Drilling is ongoing, infilling and further extending resources. A second drill rig will be added to the program in the next 60 days.

Based upon the new resource estimates, the Company is currently revising reserves at Tasiast with results expected by the end of March.

Previous mineral resources defined by the former owner of Tasiast, Rio Narcea Gold Mines, Ltd. are shown in the table below:

Category Mt Au g/t Moz
Measured Resource 0.73 3.57 0.08
Indicated Resource 11.40 2.94 1.08
Total Measured and Indicated 12.14 2.98 1.16
Inferred Resource 14.7 2.2 1.05

The Company's new resource figures at Tasiast, to this point, represent a 63% increase in measured and indicated resource over previous estimates.

Tasiast Operations Update

Tasiast is now in commercial production and 13,768 oz have been produced this year to 19 February 2008. Tasiast remains on schedule to meet its production target of 110,000 oz for the year (News release: 8 January 2008).

The Tasiast plant is being expanded to a throughput of approximately 2.5 million tones per annum (News releases: 3 December 2007 and 8 January 2008). The expansion is expected to be completed in the fourth quarter of 2008. SENET, the EPCM contractor for the original construction of the Tasiast plant, has been awarded an EPCM contract for the plant expansion. The new contract covers all major work items for the expansion, including crushing circuit conveyors, an additional ball mill, installation of a gravity circuit and trash screen and the addition of an elution column.

Following the installation of a new primary crusher in December 2007, new secondary and tertiary crushers have now arrived on site and the upgrade of the crushing circuit is expected to be complete by the end of February. The new ball mill is under construction and delivery to site is anticipated in the third quarter of 2008. The gravity circuit is now on site at Tasiast and studies have been commenced towards installation of the circuit in advance of the CIL expansion. The new Heavy Fuel Oil power plant is complete and commissioning is underway and is scheduled for full operation by the end of this quarter.

About Red Back

Red Back Mining Inc. is an unhedged African focused gold producer. It owns and operates the Chirano Gold Mine in Ghana (90% interest) and the Tasiast Gold Mine in Mauritania (100% owned). Major plant expansions at both Chirano and Tasiast have been commenced. At Chirano, the Company is expanding its current operations through development of the Akwaaba Deeps underground mine. Red Back is continuing an aggressive exploration program to increase its resource and reserve base at both projects.

The independent Resource estimate reported herein was undertaken by Nic Johnson (Member of the Australian Institute of Geoscientists) of Hellman and Schofield Pty. Ltd with more than five years experience in the use of geostatistics for estimation of recoverable resources in gold deposits. For the purpose of reporting under National Instrument 43-101 Mr Johnson is regarded as a Qualified Person.

The technical contents of this release have been reviewed by Hugh Stuart, BSc., MSc, a Qualified Person pursuant to NI-43101. Mr. Stuart is the VP - Exploration of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Samples are prepared and analyzed by fire assay using a 50 gram charge at the SGS facility at the Tasiast mine site in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted. Selected samples from this lab are check assayed each month at other SGS laboratories worldwide. This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and disclaims any legal liability to the contrary.

On Behalf of the Board of Directors:

Richard P. Clark, President

Contact Information

  • Red Back Mining Inc.
    Simon Jackson
    VP - Corporate Development
    (604) 689-7842
    Red Back Mining Inc.
    Sophia Shane
    Investor Relations
    (604) 689-7842
    (604) 689-5452 (FAX)