Roxgold Inc.
TSX VENTURE : ROG

Roxgold Inc.

May 25, 2011 08:00 ET

Roxgold to Drill Yaramoko Concession; Receives Additional Gold Assays from Bissa West Concession, Burkina Faso, West Africa

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 25, 2011) - Roxgold Inc. ("the Company") (TSX VENTURE:ROG) -

Mr. Robert Sibthorpe reports:

  • HIGHLIGHTS
    • 10 meters grading 2.84 gpt gold at Koala Area, Bissa West
    • 6 meters grading 1.95 gpt gold at Pelgtanga Area, Bissa West
    • 5,000 meters of core drilling underway at Yaramoko and Bissa West
    • Roxgold to assume operatorship of Burkina Faso Option Properties

Roxgold Inc. is pleased to announce that its partner Riverstone Resources Inc. ("Riverstone") has contracted Boart Longyear, a leading provider of mineral exploration drilling services worldwide, to perform 5,000 meters of core drilling on the Yaramoko and Bissa West Concessions. The initial target area will be Bagassi Central area where previously reported reverse circulation (RC) drilling returned gold intercepts of 28.6 gpt over 20 meters and 24.6 gpt over 6 meters and the Bagassi South area, which returned gold intercepts of 11.9 gpt over 6 meters and 14.8 gpt over 2 meters.

The Company has also received assays from the final 10 reverse circulation drill holes from its optioned Bissa West Gold Concession in Western Burkina Faso, West Africa. Assay results remain pending for 15 holes drilled during Phase 1 on the Solna Concessions.

"The availability and procurement of a diamond drill at this time coincides well with the closing of our recent 'bought deal' financing of 10 million units at $0.75 cents per unit," said Roxgold CEO Robert Sibthorpe. "The Company now has a current working capital position of $ $7.2 million dollars and has an exploration credit of $1.6 million dollars due to the advance recently paid to Riverstone. These funds are more than sufficient to allow us to aggressively explore and develop the gold potential of the properties and remain active throughout the year."

"We continue to be pleased with the drill assay results from Bissa West," commented Mr. Sibthorpe. "The six new holes reporting significant gold assays expanded the area of interest at Pelgtanda and all four holes drilled at Koala were successful. This program gives us four separate zones for follow up core drilling."

BISSA WEST CONCESSION RESULTS

At Bissa West, significant results from the 25 RC holes (2,488 meters) of reverse circulation holes drilled in February and March 2011 are presented in the Table below:

Hole #AzDipTD
(m)
Inter-
cept
(m)
Width
(m)
Au
Grade
(gpt)
Area
BBL-11-RC-003*3205510324-34101.10Pelgtanga
including30-3223.66
BBL-11-RC-0231405513054-64100.46Pelgtanga
BBL-11-RC-0243205519338-4461.95Pelgtanga
BBL-11-RC-005*1205510360-6441.87Bouboulou 2
BBL-11-RC-006***1206711570-90202.26Bouboulou 2
and100-110101.42
BBL-11-RC-012*12050120100-10881.21Rawema 1
BBL-11-RC-013**1095010974-86125.46Rawema 1
and86-109230.52
BBL-11-RC-0192405510968-78100.50Koala
and96-10040.53
BBL-11-RC-0202705510340-50102.84Koala
including42-44212.45
BBL-11-RC-021240551306-823.94Koala
BBL-11-RC-0221405513344-4841.63Koala
and80-8220.77
* Previously reported
** Previously reported. Hole bottomed in mineralization. All other holes returned either geochemically anomalous or no significant results. Hole BBL-11-RC-15 was lost at 30 meters before reaching the target due to drilling difficulties.
*** Note minor correction from previous report.

Bissa West comprises the Bouboulou permit which is located approximately 75 km northwest of the capital city of Ouagadougou and some 200 km northeast of the Yaramoko Concession. The permit covers an area of about 40 km². The Phase 1 RC drill program tested five widely spaced anomalous zones within the concession, four of which returned results worthy of follow up core drilling which will occur after the Yaramoko zones have been tested.

YARAMOKO PROGRAM

The Rotary Air Blast (RAB) percussion drill program (324 holes) has been completed on the Yaramoko Concession further defining the soil and rock anomalies for core drilling. The initial assays from this program are being received. RAB drilling tests the soil and saprolite above the bedrock and a short distance into the bedrock. The Yaramoko Concession is almost entirely covered by a thick (3-50 meters) mantle of this overburden with exposures of outcrop and veins relatively rare. RAB drilling helps determine the extent of lateral movement of gold within this medium relative to its bedrock source and assists in the positioning of follow up RC and core drill holes. The Phase 2 program, consisting of a planned 5,000 meters of core drilling will provide important structural and lithological information. This diamond drill program will commence at gold zones previously discovered by the RAB and RC drill programs. The Yaramoko Concession lies directly south of, and is contiguous to, the Semafo Inc. property hosting its flagship Mana Gold Mine.

SOLNA CONCESSIONS (SOLNA, YANTARA, and TEYANGO)

15 holes of reverse circulation drilling were completed on the Solna Concessions in Eastern Burkina Faso during April. This program targeted anomalous trench, rock and soil values from previous exploration programs. Assays are pending. The RAB drill will now be sent from Yaramoko to the Teyango and Yantera properties to conduct a 14,000 meter program. The Samira Hills Gold Mine operated by Semafo Inc. is located about 50 km from the eastern boundary of the Teyango Concession.

As set out in the Option Agreements with Riverstone, the Company will assume Operatorship of the program from Riverstone on July 5, 2011. Roxgold wishes to express its appreciation for the efficient and professional work Riverstone performed as Operator, which was a critical factor in the success of Phase 1. Roxgold is in the process of making the appropriate staffing and corporate additions to ensure a smooth transition.

Additional project information and maps may be viewed at www.roxgold.com.

All holes referenced in this press release were drilled at an angle of 50-67 degrees and mineralized structures appeared to be subvertical suggesting that true widths of mineralized zones approximate 75% of reported widths.

QUALITY ASSURANCE/QUALITY CONTROL

Riverstone is the operator of the current program and maintains a quality control program involving the use of repeat assays, inserted blanks and the use of certified standards from an accredited Canadian laboratory. All Yaramoko and Bissa West RC samples were assayed using standard fire assay with atomic absorption techniques, with samples grading over one gram gold per tonne re-assayed with a gravimetric finish, at the independent Abilab Burkina SARL laboratories in Ouagadougou, Burkina Faso, which is part of the ALS Chemex group. A high level of exploration and development activity in the gold sector in Burkina Faso has resulted in an increase in the turnaround time for receiving all gold assays.

Paul G. Anderson, P.Geo, is a qualified person for Riverstone and has reviewed and approved the contents of this release.

Robert Sibthorpe, President and CEO

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available. This news release contains forward-looking statements.

These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources and reserves, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

Neither TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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