Desert Sun Going To Full Feasibility At Jacobina; Study Expanded from Pre-Feasibility to Fully Bankable.Business Editors TORONTO, Ontario--(BUSINESS WIRE)--May 1, 2003 DESERT SUN MINING CORP. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension .V: DSM 1. DSM - Data Structure Manager. An object-oriented language by J.E. Rumbaugh and M.E. Loomis of GE, similar to C++. It is used in implementation of CAD/CAE software. DSM is written in DSM and C and produces C as output. ) has instructed SNC-Lavalin, Dynatec Corporation and Micon International to expand the scope of the pre-feasibility study at Desert Sun's Jacobina mine to a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. as defined under National Instrument 43-101. Completion of the feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. , expected by August 2003, means that DSM could make a production decision immediately thereafter and, depending on the results, start mine re-development and construction by early next year. The Jacobina mine includes three past producing areas that collectively produced 700,000 ounces of gold between 1983 and 1998. These mines, located in the southern part of the Bahia Gold Belt, currently host all of the 1.4 million ounces of measured and indicated mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature and most of the 2.2 million ounces of inferred mineral resource previously referenced by DSM and reviewed by Micon International Limited (see Table 1 below). There is a processing plant at the site that has a one million tonne per year capacity. SNC-Lavalin will complete a bankable bank·a·ble adj. 1. Acceptable to or at a bank: bankable funds. 2. Guaranteed to bring profit: a bankable movie star. feasibility that will determine the capital and operating costs and develop a detailed time line to put existing mine back into production. The capital and operating cost estimates will be targeted to +/- 15% accuracy. SNC-Lavalin will also investigate the open pit potential of the mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. around Jacobina, particularly in light of the recently announced drill results in and around the Serra do Corrego area. "The completion of a bankable feasibility will give DSM the framework within which to reactivate re·ac·ti·vate v. 1. To make active again. 2. To restore the ability to function or the effectiveness of. re·ac the Jacobina Mine. Construction and re-development could begin as early as 2004", said Stan Bharti, President, Desert Sun Mining. "The appointment of SNC-Lavalin and Dynatec is especially important because both of these companies have the capability to complete the feasibility study and construct the mine as well as eventually put it into production and operate it on an ongoing basis. SNC-Lavalin has completed Engineering, Procurement and Construction The study will be headed by Mr. Tim Mann, P. Eng., of SNC-Lavalin who are one of the world's largest mine construction and engineering companies. Mr. Mann has over 25 years of experience in the mining industry and prior to joining SNC-Lavalin was Vice President of Operations at Goldcorp Inc., and General Manager of the Campbell Mine for Placer Dome in Red Lake, Ontario Red Lake is a municipality and census subdivision 535 km north-west of Thunder Bay, Ontario, Canada. The municipality consists of 6 small towns ( Balmertown, Cochenour, Madsen, McKenzie Island, Red Lake and Staratt-Olsen) and has a local population of approximately 8,500 people. . Mr. Mann was also involved with the exploration and feasibility study work at Placer Dome's Musselwhite Mine, as well as feasibility study work and operation of Placer's Detour Lake Mine. Under the overall coordination of SNC-Lavalin, the mining study will be carried out by Dynatec Corporation. They are a leading international provider of mining and drilling services and metallurgical technology to the mining industry and have extensive experience in mine access design, pre-production development and contract mining. Currently Dynatec is operating Gold Corp.'s Red Lake Mine on a turnkey basis. Dynatec is listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (DY: TSX). Work for the study will be completed by the Mining Division which is headed by Mr. William M. Shaver, P. Eng., Vice President The previously completed review of mineral resources by Micon International Limited will be updated by Micon as part of the bankable feasibility study. Micon provides consulting services to the international mining industry, specializing in the areas of financial analysis, technical analysis, production feasibility studies, project monitoring, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. support and environmental management. The Project Manager for Micon International is Mr. Terry Hennessey, P. Geo. Desert Sun recently released results from Phase I of its exploration drilling at the Jacobina Mine and the Bahia Gold Belt. The drill results, combined with the previous data and drilling at the mines, indicate a continuous mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. zone up to 10 kilometres long of low grade, potentially open-pittable material within 50-60 metres of surface, which is ideal for bulk open pit mining. Although the current drill program consists of shallow holes of less than 100 metres true depth, past drilling and data from this belt indicates the mineralization extends to a depth of at least 500 metres. DSM has initiated Phase II of the exploration program in the Bahia Gold Belt with three drill rigs in operation. The Company recently completed a $4.7 million financing and has a strong balance sheet with no debt. Desert Sun Mining is a Canadian gold exploration and development company listed on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. . (www.desertsunmining.com). Table 1: Mineral Resource Estimated by JMC and reviewed by Micon 1998(a): Category Tonnes Grade (g Au/t) Contained Oz. Measured 2,753,000 2.68 237,400 Indicated 12,271,000 2.91 1,146,500 ------------------------------------------------------ Total M & I 15,024,000 2.87 1,383,900 Inferred 22,947,000 3.10 2,286,000 (a)Micon considers the historical mineral resource estimate at Jacobina to be relevant today and that it is reasonable for DSM to rely on it as justification for its exploration program. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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