SearchGold Resources Inc.
TSX VENTURE : RSG

SearchGold Resources Inc.

October 05, 2005 10:53 ET

SearchGold Announces the Resumption of Work in Gabon Following the Signature of a CDN $ 4,200,000 Deal with Managem

MONTREAL, QUEBEC--(CCNMatthews - Oct. 5, 2005) - SearchGold Resources Inc. (TSX VENTURE:RSG) is pleased to announce the resumption of the work program on its Bakoudou Gold Project located in Gabon, Africa.

In July 2005, SearchGold signed a strategic $4,200,000 joint venture agreement on the Bakoudou Gold Project with Managem, a successful, established African-based mining company (www.managem-ona.com). Through its subsidiaries, Managem, the mining branch of the powerfull ONA (Omnium Nord Africain) operates 6 mines in Morocco and was also involved in the development of two gold mines in West Africa, the Kiniero mine in Guinea and the recently commissioned Samira Hill mine in Niger. These two mines are operated by SEMAFO (SMF:TSX), a Canadian gold mining company operating in West Africa.

Managem, looking to expand its international activities as well as its gold reserves in West Africa, was attracted to the Bakoudou Project by the solidity of the on-going feasibility study results as well as of the potential to significantly increase Bakoudou's resource base. While insuring proper funding to advance the project without significant shareholder dilution and guaranteeing financing capacity for mine construction, this partnership allows SearchGold to concentrate on the acquisition of additional solid projects and the development of its other existing properties.

The Bakoudou Gold Project encompasses the 2,300 km2 Magnima prospecting licence and the 24 km2 Bakoudou exploitation permit. Zone A, SearchGold's first advanced target, sits at the southern extremity of a 3 km northwest trending gold bearing corridor and contains an oxide-sulfide measured and indicated resource totaling 277,380 ounces of gold (2,100,000 metric tons at a grade of 2.45 g/t gold in oxide and 570,000 metric tons at a grade of 6.11 g/t gold in sulphide - Met-Chem scoping study).

Managem will be the project operator and exploration and development programs will be determined jointly by both SearchGold and Managem through a 4-member management committee composed of two members of each party.

In line with SearchGold's corporate objectives to achieve producer status while maximizing the blue sky potential of its properties, the current program is designed to fast track a production decision on an optimized resource estimate while immediately testing Zone A's proximal targets. The CDN $3.0 million in exploration and development funds to be provided by Managem over 2 years will therefore be allocated towards three objectives :



- Resource optimization and engineering studies to finalize a
bankable feasibility study.

- Detailed exploration of proximal targets to expand the resource
base.

- Regional exploration of the Magnima permit.


Meanwhile, SearchGold is actively reviewing potential acquisitions in Africa. Furthermore, a work program has been established for the Lac Fortune and Lac Chevrier gold exploration projects in Quebec and is due to start shortly. Further details on these developments will be provided in upcoming press releases.

SearchGold Resources is a Canadian based mining exploration company whose primary mission is to target, explore and develop gold and diamond deposits in Africa and in Canada. SearchGold's project strategy maximizes its experience and resources, and supports the company's commitment to strengthen shareholder value.

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

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