SearchGold Resources Inc.
TSX VENTURE : RSG
FRANKFURT : S1O

SearchGold Resources Inc.

December 09, 2010 09:30 ET

SearchGold Provides Drilling and Bulk Sampling Update on Stellar Diamonds plc

MONTREAL, QUEBEC--(Marketwire - Dec. 9, 2010) - SearchGold Resources Inc. ("SearchGold") (TSX VENTURE:RSG)(FRANKFURT:S1O) is pleased to provide a progress on Stellar Diamonds plc ("Stellar") and its African diamond operations.

With the recent commencement of drilling at the Company's Droujba kimberlite pipe in Guinea and the ongoing bulk sampling at Tongo in Sierra Leone, Stellar is delivering on its strategy of developing its portfolio of kimberlite diamond projects.

Tongo Bulk Sampling Update, Sierra Leone

Highlights:

  • Tongo comprises four dykes each between 0.5km and 3km long in eastern Sierra Leone 
  • Previous mini-bulk sample of Dyke 1 returned 100 carats per hundred tonnes at $144 /carat
  • Over 500 tonnes collected to date from first 60m section of Dyke 1
  • Construction of processing facility nearing completion, first results expected in early 2011

A bulk sample of approximately 500 tonnes has been collected to date from a 60m section of the Tongo kimberlite Dyke 1, with drilling and blasting now being employed under the supervision of an experienced and qualified underground diamond miner. The kimberlite dyke varies in width from 50cm to over 100cm and although the side walls are stable, support levels are being incorporated to ensure a safe working environment. The objective of the bulk sampling programme is to yield between 1,000 to 2,000 carats for grade and valuation purposes.

Karl Smithson, Stellar's Chief Executive Officer, commented:

"I am pleased to report that good progress is being made at the Tongo kimberlite diamond project after some initial delays on importing the processing plant. The construction of the processing facility is almost complete and we anticipate the first results in early 2011. In the meantime we are stockpiling ore from Dyke 1 with the target of a total sample of approximately 1,500 tonnes that is representative of the kimberlite. Our previous mini bulk sampling results of Dyke 1 returned encouraging grades of 100 carats per hundred tonnes, with all the diamonds being of gem quality and valued at $144 per carat in June 2010. The same parcel was valued at up to $189 carat in late 2008."

Droujba Drilling Update, Guinea

Highlights:

  • 20 hole (3,000m) diamond drilling programme has commenced at Droujba pipe
  • Trial mining and drilling in 1960s to 20m depth with grades of up to 200cpht reported
  • Microdiamond analysis to be undertaken on selected kimberlite core
  • Geophysical surveys suggest the Droujba pipe is potentially larger than previously thought
  • Other unresolved geophysical anomalies to be drilled which may result in new kimberlite discoveries
  • A 270-carat stone was reportedly discovered in alluvial gravels near Droujba

The Droujba kimberlite pipe is located approximately 50km to the south east of Stellar's Mandala mine. The pipe was discovered in the early 1960's by the Russian Aid Mission, which mapped and drilled the pipe and determined it to be approximately 120m x 80m in size, or 1 hectare. The Russians mined the kimberlite down to a depth of 20m before the kimberlite became too hard to mine and process with the technology utilised at that point in time. In 1964 the Russian Aid Mission left Guinea and the pipe has remained undeveloped since. Diamond grades as high as 200cpth are reported by the Russians, though there is no information on diamond quality. However, a 270-carat stone is reported to have been discovered in the alluvial gravels near to the pipe. A series of ground magnetic, electro-magnetic and gravity surveys have previously been undertaken by Stellar and West African Diamonds plc. These surveys indicate that the size of the Droujba pipe could be twice as large as originally mapped by the Russian explorers, with the potential for a "blind" extension to the south west of the known pipe. Other geophysical anomalies suggestive of undiscovered kimberlite pipes will also be drilled as part of this programme.

Karl Smithson, Stellar's Chief Executive Officer, commented:

"We are very pleased to commence the drilling programme on the Droujba pipe. Over the next few months we will be defining the geological model of the pipe to a depth of 150m and collecting representative samples for microdiamond analysis by the Saskatchewan Research Council laboratory in Canada. The results of this work will enable us to model and forecast the macrodiamond (commercial) grade of the pipe which, if positive, will give us the incentive to undertake a larger-scale bulk sample of the kimberlite pipe in order to more accurately determine the diamond grade and value. In addition, we will also drill some unresolved geophysical anomalies with the objective of discovering new kimberlites in proximity to Droujba."

Photographs of on-going work by Stellar will be made available on SearchGold's web site.

About Stellar Diamonds plc

Stellar Diamonds plc is a London (AIM: STEL) listed diamond mining and exploration company that has a portfolio of projects in West Africa. Two projects in Guinea, Mandala and Bomboko, are in mining and trial mining respectively, which provide cash flow to the Company. Stellar also owns full rights over four high-grade kimberlites that are to be the focus of future development. In Sierra Leone at the Tongo project a bulk sampling programme is currently underway on one key kimberlite to assess the diamond grade and value, whereas at the Kono project underground trial mining has produced 4,200 carats as part of an economic evaluation exercise. In Guinea Stellar's Droujba kimberlite pipe and Bouro kimberlite dykes are located in proximity to Stellar's Mandala project and demonstrate high diamond grades. Droujba will be drilled in the near future.

About SearchGold Resources Inc.

SearchGold is a Canadian-based mining exploration company whose primary mission is to target, explore and develop gold deposits in Africa. The Company is currently involved in Burkina Faso, Gabon and Guinea; it has recently been evaluating mining projects in new African jurisdictions, which are geographically accretive with its current position. Through innovative corporate transactions, SearchGold has been able to retain an interest in all the important assets it has acquired and developed during its existence as a public company and intends on leveraging its long established presence in Africa to pursue its development. SearchGold holds two million shares of Stellar Diamonds plc. Please see: www.stellar-diamonds.com.

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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