St. Jude Resources Ltd.

St. Jude Resources Ltd.

August 29, 2005 20:42 ET

St. Jude Now Owns 90% of Hwini-Butre for USD $2 Million

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 29, 2005) - St. Jude Resources Ltd. (TSX VENTURE:SJD) is pleased to announce that it has acquired the remaining 10% interest in the Hwini-Butre concession for USD $2 Million from B.D. Goldfields Ltd. (the original Ghanaian vendor of the project). These funds will be paid in four instalments of $500,000.00 over 18 months. St. Jude now owns 100% of the available interest in the Hwini-Butre project, subject only to the standard Government of Ghana 10% interest. Management feels that this transaction is a critical milestone in the advancement of both the Hwini-Butre and Benso projects through feasibility to production. A feasibility study is currently underway and is expected to be completed before year end.

Deep Drilling at Adoikrom and Father Brown Deposits

Deep drilling (100 - 200 meters) beneath anticipated pit bottoms continues to yield positive results at Hwini-Butre. Nine new drill holes covering a strike length of approximately 700 meters of the Adoikrom and Father Brown deposits all met with success. Highlights below the Adoikrom deposit include 6.98 g/t over 9 meters (including 13.68 g/t over 6 meters) and 4.84 g/t over 9 meters. Below the Father Brown deposit similar grades are found in FBZ-99, 13.75 g/t over 3.5 meters.

The mineralized intersections ranged from narrow high grade zones to wider lower grade zones consistent with the up dip grades and widths. Management is quite encouraged by these results as they clearly demonstrate that these deposits are open at depth. More drilling will be required to formally increase the resource at these deposits to N.I. 43-101 standards.

Coordinates From - To
North East (m) Width Grade
Hole # Azimuth Dip (m) (m) --------- (m) (g/t)
ADK-78 90 -65 33489.48 176217.47 113-126 13 2.24
ADK-79 90 -65 33390.78 176231.4 109-119 10 2.18
ADK-80 90 -60 33591.16 176168 142-151 9 4.84
ADK-81 90 -45 33492.23 176096.94 205-223 18 2.20
Incl. 214-222 8 3.74
ADK-82 90 -55 33465.34 176165.68 158-167 9 1.13
111-114 3 1.86
ADK-83 90 -45 33442.74 176207.81 111-120 9 6.98
Incl. 116-120 6 13.68
ADK-84 90 -60 33442.86 176206.77 120-134 14 2.43
Incl. 120-132 10 3.14
FBZ-99 90 -68 32938.56 176506.93 153-156.5 3.5 13.75
Incl. 153-156 3 15.7
FBZ-100 - -90 32938.56 176505.94 188.6-190.3 1.9 6.91

Both the Adoikrom and Father Brown Deposits are part of the Southern Deposits. The total measured and indicated resource (N.I. 43-101 compliant) within St. Jude's Hwini-Butre and adjoining Benso projects is currently 1,316,000 ounces.

St. Jude's exploration program is under the direct supervision of George A. Flach, B.Sc., P.Geo., who is the qualified person responsible for the compilation of these results as well as the design and management of the drill program.

St. Jude Disposes of Non-Core Assets

The company is pleased to announce it has sold its remaining non-core assets. St. Jude's strategic plan is to remain focused on its core mining assets in West Africa where the company is developing significant gold resources.

i to i logistics inc.

St. Jude has sold its remaining interest in i to i logistics inc. ("i to i") for CDN $50,000.00 to Michael Docherty and Associates ("MDA"). Mr Docherty is the principal shareholder and managing director of both MDA and i to i. This asset was written off the financial statements of St. Jude on January 31, 2004.

Uchi Lake

The Uchi Lake property in Ontario has been sold to Dollard Mines Ltd. ("Dollard") for the purchase price of CDN $10,000.00, together with a 1% NSR back to St. Jude. Dollard has the option to purchase the NSR back for CDN $1 million until September 1, 2009. This asset was previously written off the financial statements of St. Jude in January of 2003 and has been inactive for over 14 years. Dollard Mines is a company controlled by St. Jude's President Michael A. Terrell.

St. Jude is a leading West African explorer focused on the discovery and development of gold deposits that are amenable to low cost mining techniques. The company's projects cover over 2,900 sq. km. or 716,605 acres of West Africa's most productive gold region. With a strong treasury, experienced exploration team, independently verified gold resources, and several advanced exploration targets, St. Jude is well positioned to continue its strong growth.



No Stock Exchange has reviewed or accepts the responsibility for the adequacy or accuracy of this release.

Contact Information

  • St. Jude Resources Ltd.
    Todd McMurray
    Vice President, Corporate Development
    (604) 940-6565
    (604) 940-6566 (FAX)