Red Back Mining Inc.
TSX : RBI

Red Back Mining Inc.

February 01, 2010 08:30 ET

Tasiast M&I Resources Increase by 21% to 6.5 Moz

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2010) - Red Back Mining Inc. (the "Company" or "Red Back") (TSX:RBI) is pleased to report continuing extensive Mineral Resource growth at its Tasiast Gold Mine ("Tasiast") in Mauritania.

Since the previous Mineral Resource calculation (News Release: November 16, 2009), the Measured and Indicated Resource at Tasiast has increased by 1.14 million ounces to 6.51 million ounces (at cut off grades of 0.2g/t for oxide and 0.5g/t for fresh material) to December 31, 2009. This is an increase of 21% in three months.

Tasiast Mineral Resources

Zone Cut-Off Measured Indicated Measured + Indicated Inferred
Mt Au g/t Moz Mt Au g/t Moz Mt Au g/t Moz Mt Au g/t Moz
Oxide 0.2 20.99 0.83 0.56 22.23 0.70 0.50 43.22 0.76 1.06 6.28 0.6 0.12
Fresh 0.5 41.23 1.55 2.05 70.41 1.50 3.40 111.64 1.52 5.45 26.52 1.4 1.18
Total   62.22 1.30 2.61 92.64 1.30 3.90 154.86 1.30 6.51 32.8 1.24 1.30
All ore types 1.0 27.55 2.17 1.93 41.87 2.13 2.86 69.42 2.15 4.79 13.38 2.1 0.91
  • The Company reports resources on the basis of mining cut-off grades to be applied to the various ore types and, for comparison purposes, at a 1.0 g/t cut-off grade
  • Minerals Resources are reported below the December 31, 2009 mined surface.
  • Figures may not add correctly due to rounding.
  • Oxide is referred to as material amenable to Dump Leaching and CIL. Fresh is referred to as material amenable to Heap Leaching and CIL.
  • The resources are estimates of recoverable tonnes and grades using Multiple Indicator Kriging with block support correction into 15 metres (East) by 25 metres (North) by 5 metres (Elevation) model blocks and assuming smallest mining unit for ore selection in mine grade control of 3 metres (East) by 5 metres (North) by 2.5 metres (Elevation).
  • Measured resources lie in areas where drilling is available at a nominal 25 x 25 metre spacing, Indicated resources occur in areas drilled at approximately 25 x 50 metre spacing and Inferred resources exist in areas of broader spaced drilling.
  • Gold estimation and model blocks were constrained within geologically derived wireframes.

This large increase is the result of an ongoing drill program targeting the Greenschist Zone at West Branch. From November 16, 2009 to December 31, 2009, approximately 50 holes (20,000m) were drilled in the Greenschist Zone. The new Resource represents only 500 metres of strike length of the Zone. Step out drilling since December 31, 2009 has extended the strike a further 400 metres (News Release: January 20, 2010).

Drilling continues with six rigs on site and three further rigs on route to site. 200,000 metres of drilling is planned for the first half of 2010 at Tasiast.

A new Mineral Reserve for Tasiast is currently being estimated and is expected to be released in March 2010.

Commenting on the growth at Tasiast, Richard P. Clark, President and CEO stated, "The Greenschist Zone is a remarkable discovery and it is transforming Tasiast at a rapid pace. Exploration of the Zone is still in its infancy. The Zone remains open down dip and along strike to the north and the south. The Tasiast mine is at the centre of an extensive Greenstone Belt which is completely controlled by Red Back. With an aggressive exploration program underway, we are excited by the potential for further significant expansions of Resources and Reserves at Tasiast and by the prospects for brand new discoveries along this prolific geological structure."

About Red Back

Red Back is an unhedged African focused gold producer. It owns and operates the Chirano Gold Mine in Ghana and the Tasiast Gold Mine in Mauritania. Major plant expansions at both Chirano and Tasiast were completed in 2009. Aggressive exploration programs aimed at increasing the Company's resource and reserve base at both Chirano and Tasiast are ongoing.

The independent Resource estimate reported herein was undertaken by Nic Johnson (Member of the Australian Institute of Geoscientists) of Hellman and Schofield Pty. Ltd with more than five years experience in the use of geostatistics for estimation of recoverable resources in gold deposits. For the purpose of reporting under National Instrument 43-101 Mr. Johnson is regarded as a Qualified Person.

The technical contents of this release have been reviewed by Hugh Stuart, BSc., MSc, a Qualified Person pursuant to NI-43101. Mr. Stuart is the VP - Exploration of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Samples are prepared and analyzed by fire assay using a 50 gram charge at the SGS facility at the Tasiast mine site in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted. Selected samples from this lab are check assayed each month at other SGS laboratories worldwide.

FORWARD-LOOKING INFORMATION

This press release contains "forward-looking information" that is based on Red Back's current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Red Back's plans, outlook and business strategy. The words "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "intend", "estimate", "plan", "forecast", "project", and "believe" or other similar words and phrases are intended to identify forward-looking information.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Red Back's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for Red Back's mineral products or increases in input costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters.

This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Red Back disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.

On behalf of the Board of Directors,

Richard P. Clark, President

Contact Information

  • Red Back Mining Inc.
    Simon Jackson
    Vice President, Corporate Development
    604-689-7842
    or
    Red Back Mining Inc.
    Sophia Shane
    Investor Relations
    604-689-7842
    www.redbackmining.com