Red Back Mining Inc.

Red Back Mining Inc.

October 25, 2005 09:08 ET

Red Back Mining Inc.: Deep Drilling Continues To Upgrade Chirano

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 25, 2005) - Red Back Mining Inc. (the "Company")(TSX:RBI) is pleased to announce that following on early success at the Akwaaba deposit (News Release - September 6, 2005), the Company has recently completed a short programme of exploratory diamond drill holes to test the potential for deeper gold mineralisation below the Tano and Obra open pits, the two largest orebodies within the Chirano reserve.

At Obra, which holds 41% of the Chirano reserve (8.3MT at 1.7g/t), drill hole CHRC676D intersected 92m grading 1.77g/t (table below) indicating that the gold bearing Chirano granite, the principal host rock, is widening significantly at depth in this area. This hole was drilled below the lower limit of the current resource and 140m below the currently designed pit calculated at a $US 375 gold price. The success of this drill hole demonstrates the potential for increasing the current resources and reserves at Obra to depth where limited drilling has been carried out in the past.

CHRC676D Obra 302.29 399.99 97.7 1.77
including 365 400 35 2.16
CHRC698D Tano 58.09 108.5 50.41 6.31
Including 72 79 7.0 10.48
and 85 90.3 5.3 11.51
CHRC678D Tano 273.5 274.7 1.2 6.9
367 371.9 4.9 1.4

At Tano (26% of Chirano reserve, 4.3Mt at 2.1g/t) two holes were drilled. The first hole (CHRC698D) was drilled within the high grade core of the deposit to confirm previous intersections of up to 48m @ 8.2 g/t gold. Hole CHRC698D reported 50.4m @ 6.31 g/t gold, including 7m @ 10.48 g/t and 5.3m @ 11.51 g/t. These very high grades form a well defined vertically plunging core to the deposit over a strike length of 50m.

Hole CHRC678D was drilled at depth to intersect this high grade shoot well below the base of the open pit and resource model. Unfortunately, this exploratory hole missed the zone, which appears to have been structurally displaced. A further series of drill holes are planned to more effectively trace the down plunge extent of the Tano high grade core which offers potential for underground mining.

These initial exploratory holes at Obra and Tano are the beginning of a comprehensive programme of drilling which will recommence in the early New Year. This programme will fully test the depth extension of the Obra and Tano ore bodies and upgrade inferred resources below the current pit bases with a view to further extending the reserve at depth. The programme will also preliminarily test the depth extension of the other known deposits (10) forming the current Chirano resource/reserves.

In the meantime, drilling at Akwaaba, the southern most of the Chirano pits, will recommence in November. Previous results at Akwaaba (News release September 6, 2005) include some of the highest grade intercepts ever seen at Chirano, demonstrating the potential for plunging high grade zones of mineralisation extending to depth and on strike.

Commenting on the drill results at Obra and Tano, Richard Clark, President and CEO of the Company stated:

"Historically, for financial reasons, development at Chirano has focused on defining near surface reserves and getting the mine built and commissioned. As a result, testing for mineralization at depth has not been a priority. Now, armed with a stronger balance sheet, a mine in production and a robust gold price the Company is positioned to aggressively pursue the full potential of Chirano. Recent results from very exploratory drilling clearly demonstrate that Chirano has the real potential for significant resource and reserve expansion."

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 Exploration Manager of the Company. Samples are prepared and analyzed by fire assay using a 50 gram charge at the Analabs facility in Bibiani, Ghana 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 Analabs laboratories worldwide.

On behalf of the Board of Directors

Richard P. Clark, President

Contact Information

  • Red Back Mining Inc.
    Sophia Shane
    (604) 689-7842
    Red Back Mining Inc.
    2101 - 885 West Georgia Street,
    Vancouver, BC Canada V6C 3E8
    (604) 806-3070
    (604) 689-5452 (FAX)