SearchGold Resources Inc.
TSX VENTURE : RSG
FRANKFURT : S10

SearchGold Resources Inc.

March 03, 2008 10:27 ET

SearchGold Provides Update on Zone A Feasibility Study on Bakoudou in Gabon

MONTREAL, QUEBEC--(Marketwire - March 3, 2008) - SearchGold Resources Inc. (TSX VENTURE:RSG)(FRANKFURT:S1O) is pleased to provide an update on the feasibility study in progress on its Bakoudou-Magnima Gold Project located in Gabon, Africa.

The feasibility study performed by Managem on Bakoudou's Zone A is executed by Reminex, a Moroccan engineering consulting group specialized in mining projects that has appointed an internal team to oversee the completion of the project. Certain aspects of the study, such as the resource calculation, are validated by independent consultants. Certain particular tasks requiring specific expertise are also subcontracted. Finally, tests are executed directly with equipment suppliers to determine certain operating parameters as well as validate some of the results obtained by Reminex.

The study is almost completed and the final conclusions should be available shortly. The objective of the study is the design of an open-pit mine on Zone A and comprises :

- Resource calculation,

- Metallurgical studies,

- Mine planning,

- Basic engineering for the treatment plant,

- Engineering of required infrastructures,

- Environmental impact study,

- Hydrogeological study,

- Geotechnical study,

- Production planning,

- Evaluation of capital expenditures and operating costs,

- Economic project evaluation,

- Project planning,

- Assessment of human resources, raw materials and subcontracting requirements necessary for the exploitation of the project.

Definition drilling - resource calculation

The resource calculation is based on a total of 133 HQ diameter core holes (ending with an NQ diameter in some cases) for a total of 8,925m and covering a rectangle with an approximate surface area of 350x500m over the southern part of the Bakoudou soil anomaly. Collar elevations range between 514m and 579m for a maximum difference in height of 65m. All drill holes can be classified according to two categories :

- 80 core holes executed during the 2004-2005 campaign supervised by SearchGold for a total of 4,094m drilled. These holes are drilled to depths varying between 14m and 99m, mostly at 25m intervals on lines oriented at 227 degrees and established with a 25m line spacing.

- 53 core holes executed during the 2006-2007 campaign supervised by Managem for a total of 4,831m drilled. These holes complete the 2004-2005 drilling towards the east, north and south and were drilled to depths varying between 30m and 250m.

All the 2004-2005 holes have a 70 degrees dip and an azimuth of N227 degrees. Most of the 2006-2007 holes also have the same technical parameters but with dips reaching 85 degrees. Hole BA06-18 is vertical. Hole BA06-31 has a 70 degrees dip and an azimuth of N47 degrees. Finally, holes BA06-36 and BA06-37 have a 75 degrees dip and an azimuth of N137 degrees.

Reminex uses the Datamine modelization software. The final resource calculation is in progress and will include the results of the recent drilling and notably of hole BA06-36 which returned an intersection of 16.39 g/t Au over 49.50 m. The consulting group Systemes Geostat International Inc. based in Montreal, Canada is responsible for the validation of the final resource calculation to be utilized for the finalization of the feasibility study.

Metallurgy - test work

Initial tests had been realized on samples collected from several areas of the mineralized body and showed that gravity was the optimal treatment method. Following these preliminary tests, a 20 ton sample of mineralized material from the oxide zone was shipped to Managem's research center in Marrakech, Morocco, and underwent pilot testing to validate the processing method. The pilot consisted in crushing followed by grinding at 250 micronsm. The grinded product was then run through Falcon concentrators followed by Gemini tables to obtain a concentrate on which refining test work was executed.

The conclusions of these tests are :

- The confirmation that the material can be treated through a gravity circuit,

- The use of Falcon concentrators allows optimal recovery,

- The improvement in the quality of the concentrates with the use of Gemini tables,

- The confirmation that the concentrate can be refined and gold bullion obtained.

A series of additional tests were recently completed following the observation that the mineralization was extending well into the fresh rock beyond the saprolite of the oxide zone. These tests showed that the recovery on the grinded products treated with Falcon concentrators is similar to the one obtained on the saprolitic mineralization and vary from 90% to 93%. Tests for work index and abrasion index determination have been performed by Metso Minerals York and samples of products grinded at 250 micronsm have been shipped to Falcon in Canada in order to validate the results obtained by Managem.

Mining

Following the analysis of the geological data base with the exploration team, Reminex proceeded with the construction of mine bloc model using the Vulcan software with the objective to optimize mining and design a pit to maximize the exploitation of the geological resources. An update of the bloc model is in progress to incorporate the most recent drill holes as well as the conclusions of the geotechnical study performed by Scott Wilson.

A tender has been executed to evaluate the option of sub-contracting mining activities. In parallel, the dimensioning of the mining fleet has been executed to evaluate the possibility to carry out the mining in-house. The evaluation of both mining scenarios will allow the determination of the optimal exploitation method for the project.

Treatment plant

Metallurgical test work confirmed that gravity allows a recovery of 88.25% and a flow sheet as well as matter and metal mass balance were executed on the basis of the test work. The dimensioning of the principal equipments has been executed on the basis of a 500,000 t/year capacity and operation of 330 d/year. Budgetary offers have been received and preliminary layout as well as drawings of the sub-units have also been executed. The final financial evaluation (equipments, civil works, steel structures, steel works...) is in progress with several alternatives being considered. Specific areas have been reserved in the plant design to accommodate an eventual increase in capacity, notably at the level of an additional line of crushing, as well as potential adaptations of the treatment circuit.

In the light of delays for the supply of certain equipment (crusher : 18 to 24 months), second hand equipment tenders have been placed and offers have been received (crushers, mills, ...). Once the offers have been reviewed, targeted equipment will undergo inspection visits in order to undergo potential acquisitions to respect the project milestones.

Infrastructures and external studies

The following various aspects of the project have been completed :

- Power plant conception,

- Electrical distribution flow sheet,

- Budgetary tendering for the purchase of power plant,

- Tenders for electrical supply of cabinets, cubicles and electrical erection,

- Dimensioning of administrative buildings,

- Dimensioning of base camp: housing, kitchen, recreation, showers,

- Estimation of areas requiring stripping,

- Evaluation of site upgrades (road, stripping, fences),

- Evaluation of access to the site (roads and bridges),

- Consultations with Gabonese construction companies,

- Consultations for ready-made housing.

Other studies

- The design and conception of the tailings dam has been subcontracted to Scott Wilson based in England. A preliminary report has been received by Managem in December 2007. The final report will incorporate the recently completed topographic map of the dam area and will be executed on the basis of the on-going geotechnical study executed by Scott Wilson.

- The environmental impact study has been subcontracted to the engineering group Terea based in Gabon. A preliminary report has been received and the impact study as well as a management and rehabilitation plan is in the process of being finalized.

- The hydrogeological and hydrological study has been subcontracted to the engineering group Geopole based in Morocco. The first phase report has been obtained by Managem. Geopole will use the geotechnical study by Scott Wilson to obtain the piezometric data necessary for the finalization of the work.

Philippe Giaro, P.Geol., President and CEO of SearchGold Resources Inc. and Qualified Person for SearchGold, has reviewed and approved the content of this release.

In July 2005, SearchGold signed a strategic $4,200,000 joint venture agreement on the Bakoudou-Magnima Gold Project with Managem, a successful, established African-based mining company (www.managem-ona.com). Through its subsidiaries, Managem operates 6 mines in Morocco and was also involved in the development of two gold mines in West Africa.

In June 2007, SearchGold announced the appointment of SRK Consulting (Canada) Inc. ("SRK") for an engineering mandate concerning the assistance for the development of the on-going feasibility study on Zone A. A site visit was then executed by SRK and SearchGold's management in Gabon and Morocco in the context of this mandate.

About SearchGold Resources Inc.

SearchGold Resources is a Canadian-based mining exploration company whose primary mission is to target, explore and develop gold deposits in Africa. The expansion strategy executed in 2006 has set the stage for the Company's development in 2007 through increased activity on the advanced projects, a new acquisition and the segmentation of its activities to unlock value for its shareholders. SearchGold's diamond assets were re-organized along with Mano River Resources Inc., to create an integrated diamond company called Stellar Diamonds Limited of which SearchGold holds 2.7 million shares. SearchGold's Canadian gold assets were also re-organized through the creation of Golden Share Mining Corporation which will focus on exploration principally for gold in Canada. SearchGold intends to distribute a dividend to its shareholders as part of the Golden Share transaction.

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