Triumph Gold Corp.
TSX VENTURE : TAU

August 03, 2006 11:02 ET

Triumph Gold's Guariche Project Shows Robust Potiental

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 3, 2006) - Triumph Gold Corp. (TSX VENTURE:TAU), today released the results of a Preliminary Economic Assessment and an independent update of the gold resource estimate for its Guariche Project in Bolivar State, Venezuela. The revised gold resource estimate was completed by Minefill Services, Inc. of Vancouver, Canada and is based on 2,562 meters of drilling completed in 2004 by Triumph Gold Corp. and an additional 8,205 meters of drilling completed by Vista Gold Corp and Homestake Mining Company during the 1990's.

Highlights

- Global Measured and Indicated resources of 5.245 million tonnes at a grade of 1.85 grams/tonne ("g/t"), at a cutoff grade of 0.1 g/t, for a contained 314,779 ounces of gold

- In pit Measured and Indicated resources of 3.42 million tonnes at a grade of 2.40 g/t, at an economic cutoff of 0.5 g/t, for a contained 263,300 ounces of gold.

- Yearly gold production of 35,000 ounces of gold at a cash cost of $182 dollars per ounce.

- Initial development capital of $22 million.

- Mining rate of 1,500 tonnes of ore per day with gold extracted by the carbon in leach ("CIL") method.

- Payback of initial development capital is 1.7 years after gold production startup.

The project economics are based upon a $475 dollar gold price and show robust returns on initial development capital for the seven year project with an IRR of 50%. The net present value of the project is $25,700,000 calculated using a discount rate of 10%.

This study provides a basis to continue expanding the resource at Guariche and the Company is very encouraged by the results. The property has two high quality secondary targets (Target 10 and Rabin Rico) and five additional areas that require further work including a potential high-grade structure potentially recoverable using underground mining methods. There is the potential to significantly expand the existing resource base at Guariche.

This resource estimate does not include data recently collected by Triumph and previous trenching and pionjar drilling. The previous trenching and pionjar drilling data was not used due to the loss of the original assay receipts certificates resulting from vandalism at the property. Although the loss of this assay certificate data is unfortunate, the Company believes that there is excellent potential to define additional gold resources on the property.

2
The estimation of grade within the block model was done using inverse distance squared on 5 meter composites of verified assay data. Resource classification of 'Measured', 'Indicated', and 'Inferred' was calculated on drill hole spacing of 35 meters, 50 meters, and greater than 50 meters respectively. A key assumption used in the economic assessment was life of mine costs of $12.70/tonne US. The complete NI 43-101 compliant report prepared by Minefill Services, Inc. will be posted on SEDAR and on the Company's website.

The Preliminary Economic Assessment reported herein includes, in part, inferred mineral resources that are considered geologically speculative. It cannot be assumed that any part of an inferred mineral resource (less than 1% of the inpit resource) will be upgraded to an indicated or measured mineral resource or to a reserve status. Furthermore, it should not be assumed that any part of an inferred resource will be economically mineable. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Triumph has recently completed a trench sampling program on the property to expand the known resource area and to satisfy the yearly work commitments on the property.

The Company is currently seeking a partner for this project and is engaged in discussions with a number of mining companies interested in developing the Guariche project.

Please visit our Website at: www.triumphgoldcorp.com.



Global Resource Classification (0.1g/t cut off)
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Measured Indicated
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Grade Grade
Tonnnes (g/t) Ounces Tonnes (g/t) Ounces
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Target 2 45,816 0.30 440 50,481 0.40 646
Target 7 1,928,088 2.05 126,951 350,635 2.07 23,324
Target 11
& 12 2,304,145 1.80 133,563 566,567 1.64 29,855
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Combined
Totals 4,278,049 1.90 260,955 967,683 1.73 53,824
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Inferred
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Grade
Tonnes (g/t) Ounces
----------------------
Target 2 17,896 0.35 202
Target 7 18,296 1.80 1,060
Target 11 & 12 83,183 1.34 3,574
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Combined Totals 119,375 1.26 4,836
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Inpit Resource (Gold:475$/oz) (0.5g/t cut off)
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Measured Indicated
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Grade Grade
Tonnnes (g/t) Ounces Tonnes (g/t) Ounces
Pit 7 1,300,775 2.50 104,550 218,664 2.53 17,786
Pit 11 & 12 1,510,993 2.38 115,617 388,765 2.02 25,248
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Combined
Totals 2,811,768 2.44 220,166 607,429 2.20 43,034
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Inferred
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Grade
Tonnes (g/t) Ounces
----------------------
Pit 7 877 0.88 25
Pit 11 & 12 35,307 1.62 1,839
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Combined Totals 36,184 1.60 1,864
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Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed and elsewhere in the company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The company does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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