Simberi Gold Corporation

Simberi Gold Corporation

April 11, 2006 10:23 ET

Simberi Gold Corporation: Press Release

TORONTO, ONTARIO--(CCNMatthews - April 11, 2006) - Simberi Gold Corporation (TSX VENTURE:SAU) ("Simberi") - Simberi announced today that it has engaged MPH Consulting Limited ("MPH") to complete a technical report in compliance with National Instrument 43-101 ("NI 43-101") on its copper - cobalt project (the "Kakanda Project") located in Kakanda and Kambove in the Democratic Republic of the Congo ("DRC").

The Kakanda Project is located approximately 120 kilometers northwest of Lumbumbashi in the African copper-cobalt belt in the province of Katanga. This zone also includes a number of other copper-cobalt developments including Tenke Fungurume (Tenke Mining Corp.) and the Kolwezi Tailings Project (Adastra Minerals Inc.).

The previous operator of the Kakanda Project, International Panorama Resource Corp., engaged Bateman Minerals & Industrial Limited ("Bateman") in conjunction with Steffen Robertson Kirsten (SRK) to complete a feasibility study for the Kakanda Project in 1997. The study concluded that the Kakanda Project was technically feasible and economically viable at that time. The resource estimate for the study was completed by SRK and estimated a tailings resource of 18.4 million tonnes containing 1.22% copper and 0.15% cobalt. The study also delineated a mineable open pit resource of 11.3 million tonnes containing 3.14% copper and 0.19% cobalt. Both of these resources were incorporated in Bateman's operating plan.

MPH will be reviewing the previous study to determine areas that require updating to prevailing current market and technical conditions.

The resource estimates and feasibility study described above are historical in nature and as such are based on prior data and reports. The work necessary to verify the classification of the mineral resource estimates has not been completed and the resource estimates, therefore, cannot be treated as NI 43-101 defined resources verified by a qualified person. The historical estimates should not be relied upon. Management of Simberi, however, believes that Bateman and SRK are technically competent and has comfort in the reliability of this study.

Simberi holds its interest in the Kakanda Project indirectly through PTM Minerals (Cayman) Ltd. ("PTM Minerals"), a Cayman Islands domiciled mineral exploration and development company. PTM is a wholly-owned subsidiary of New Congo Resource Development Company Inc. ("NCRDC"). Simberi currently owns 67% of NCRDC and, as announced in a press release dated April 4, 2006, has entered into a binding agreement to acquire the remaining 33%.

PTM Minerals and Gecamines, the state owned mining company in the DRC, have agreed to enter into a joint venture to develop the Kakanda Project. Currently, their agreement provides for the parties to participate in the joint venture on a 51% (PTM Minerals) and 49% (Gecamines) basis. The parties are currently in the process of finalizing the terms of the joint venture agreement including a proposed increase of PTM's interest in the joint venture from 51% to up to 80%.

About Simberi

Simberi is a junior resource company focused on the exploration and acquisition of developed low cost precious and base metal projects internationally. The current focus of the Company's activities is the development of the Kakanda Project. The company is now proceeding to update the technical information contained in 1997 Bateman feasibility study described above. Simberi is also seeking additional advanced exploration projects.

Michael Newbury is a qualified person as identified by NI 43-101, and has reviewed and verified the technical content of this press release.

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". All dollar amounts are Canadian dollars unless otherwise noted.

Neither the TSX Venture Exchange, nor any other securities regulatory authority has approved or disapproved of the contents of this news release.

Contact Information

  • Simberi Gold Corporation
    Mike Newbury
    (416) 603-7200
    Simberi Gold Corporation
    Shanda Theaker
    (416) 603-7200