Sargold Resource Corporation

Sargold Resource Corporation

April 30, 2007 20:00 ET

Sargold Appoints New COO-Raises Up to $1 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 30, 2007) - Sargold Resource Corporation (TSX VENTURE:SRG)(FRANKFURT:DU4) ("Sargold" or the "Company") is pleased to announce the appointment of Monty Reed to the position of Chairman, Sardinia Gold Mining S.p.A ("SGM"), a 90-percent owned subsidiary of the Company, and Senior Vice-President & Chief Operating Officer of Sargold. Mr. Reed will be relocating to Sardinia in June to lead the team at the Furtei mine in developing the long-term production strategy.

Monty Reed has worked in mining for more than 29 years, most recently managing IAMGold's Rosebel Gold Mine in Suriname, South America. As Mine Superintendent, he led his team to surpass the feasibility-study production rate after completing construction and pre-stripping on time and on budget. Mr. Reed has spent the last decade in senior leadership roles at a number of significant gold projects around the world, including six years with Placer Dome in similar roles at the La Coipa mine in Chile; on project start-up and the Staged Development Feasibility Study for the Las Cristinas gold project in Venezuela; and leading the Production, Mine Maintenance and Engineering departments at the Golden Sunlight mine in the United States. His background comprises many aspects of the mining industry, including exploration, mine development, mine start-up, engineering, sales, production and maintenance supervision.

Sargold also reports that George Paspalas has decided to step down from his role as President, Chief Operating Officer and Director of Sargold. To ensure a smooth transition, Mr. Paspalas will continue in his current capacity for a period of time, after which he will remain as an advisor to the Company. With the addition of Monty Reed in Sardinia, Chairman and CEO Richard Warke will be taking over the role of President of the Company.

Mr. Paspalas has worked for Sargold for the past year overseeing the process of refurbishing the process plant and conducting technical evaluations for implementing a feasible re-start at Furtei. Mr. Paspalas says, "I really enjoyed my time working with the people of Sardinia to refurbish the Furtei mine plant and move this property forward. It is unfortunate that my personal circumstances have changed to the point where this long distance work arrangement no longer works for me. I look forward to continuing on as an advisor with the Company as we attempt to solidify the longer term plans for production at Furtei."

Private Placement

Sargold has arranged a non-brokered private placement of up to 5,000,000 units at C$0.20 per unit. Each unit is comprised of one common share and one common share purchase warrant, which entitles the holder to acquire one common share at a price of C$0.25 for a period of two years. This equity issue will replace the previously announced private placement on March 28, 2007.

Proceeds from the private placement will be used to conduct a trial for leaching sulphide ore from the Sa Perrima open pit as the next step in the re-start of the Furtei facility, in addition to general working capital. The above is subject to regulatory approval.

As reported last month, some breakthroughs have been achieved in the testwork program at Furtei, and the Company is now completing an assessment to determine the optimal long term processing strategy. If successful, the removal of the refractory constraint will open up the Furtei area to a new generation of exploration and development. It is expected that these testwork programs will be completed in the second quarter 2007. Please note that a feasibility study has not been completed and there is no certainty that the Company's proposed operations will be economically viable.

The Company has now filed its year-end financial statements for 2006 on SEDAR.

ABOUT SARGOLD RESOURCE CORPORATION. Sargold controls the largest precious metals exploration and exploitation land area in Sardinia, Italy. These assets include a 90% ownership interest in the fully permitted Furtei mine and processing plant, in addition to the large Monte Ollasteddu mineralized system in the Eastern Paleozoics. Furthermore, the Company holds the same interest in an advanced exploration property at Osilo, the site of several existing discoveries located in northwestern Sardinia. The island of Sardinia, located approximately 150 kilometers west of Rome, is the second largest in the Mediterranean Sea covering over 24,000 square kilometers.


Richard Warke, Chairman & CEO

FORWARD-LOOKING STATEMENTS - The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described from time to time in the Company's latest annual report and management discussion and analysis. The Company assumes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.

Contact Information

  • Sargold Resource Corporation
    Marlo Hamer-Jackson
    Investor Relations Manager
    (604) 687-1717
    (604) 687-1715 (FAX)