Desert Sun Increases Jacobina Gold Mine Reserves To Nearly 1 Million Ounces.TORONTO -- DESERT SUN MINING CORP. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :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. )(AMEX AMEX See: American Stock Exchange :DEZ DEZ Dezember (German: December) DEZ Disease Eradication Zone DEZ Death Egg Zone (Sonic 2/3 & Knuckes level) DEZ Di-Ethylzinc ) has completed a mineral reserve estimate for its Jacobina Mine - Joao Belo Zone - based on the latest Measured and Indicated mineral resource estimates released on December 15, 2004. Mineral reserves in the Joao Belo zone as estimated in the SNC SNC St Norbert College (De Pere, Wisconsin) SNC Sistema Nervioso Central SNC Société en Nom Collectif (French: Partnership) SNC Système Nerveux Central (French: central nervous system) 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. of September 2003 were 7,471,000 tonnes at 2.10 g Au/t containing 504,000 ounces of gold. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]Proven and probable mineral reserves in the Joao Belo zone are now 11,102,000 tonnes grading 2.04 g Au/t containing 727,000 ounces, an increase of 44% in contained ounces. Total Proven and Probable mineral reserves in all zones at Jacobina, which previously were 10,746,000 tonnes at 2.20 g Au/t containing 758,000 ounces of gold, are now 14,378,000 tonnes at 2.12 g Au/t containing 980,000 ounces of gold as summarized in Table 1 below. The conversion rate of the new indicated resource to mineral reserve is about 75% which is comparable to the historical experience at the mine and to the conversion rate of the SNC Lavalin feasibility study. E[acute accent]This new reserve is now being used in the Jacobina Mine development plan and increases mine life by over two years. The other major zones - Morro do Vento, Morro do Vento Extension (Basal/Main Reef), Canavieiras and Serra do Corrego - will have updated and/or new mineral reserves estimated as mine planning/feasibility studies for each area are completed. The total Measured and Indicated mineral resource at Jacobina for all zones is 24,800,000 tonnes grading 2.53 g Au/t containing 2,050,000 ounces of gold (see press release December 15, 2004). E[acute accent]"The 44% increase to 727,000 ounces from the original estimate of 504,000 ounces in Proven and Probable reserves for the Jacobina Mine - Joao Belo Zone - allows us to extend the mine life of our primary ore zone," commented Peter Tagliamonte, Vice President, Operations and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "Our expectations are that, as the Mine Project Team works through the other zones included in the Measured and Indicated resources, we will see further significant increases in reserves." E[acute accent]The Measured and Indicated resource estimate upon which these new reserve estimates are based was reviewed and confirmed by Terry Hennessey William Terrence Hennessey (born September 1, 1942 in Llay, Wales) was a Welsh international football player. He attained 39 caps for Wales and played his club football for Derby County. , P.Geo. of Micon International. Mr. Hennessey, who is an independent qualified person as defined under National Instrument 43-101 as reported in the press release dated December 15, 2004. The resource estimation methodology and classification used is the same as outlined in the August 2003 report by Mr. Hennessey filed on SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review . The mineral reserve estimate was completed by the Desert Sun Mining group at Jacobina under the direction of Mr. Tagliamonte, P.Eng. who is a Qualified Person, as defined by National Instrument 43-101. E[acute accent]Key parameters for the mineral reserve estimate as set out in Table 1 below are as follows: E[acute accent]- 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 reserves were estimated using the polygonal method on vertical longitudinal sections E[acute accent]- Dilution is 1 metre on the hanging wall and 1 metre on the footwall foot·wall n. Geology 1. The mass of rock underlying a mineral deposit in a mine. 2. The underlying block of a fault having an inclined fault plane. at grades indicated by diamond drilling E[acute accent]- Mining recovery rate is 80% E[acute accent]- High assay cutting factor is 30 grams gold per tonne E[acute accent]- Specific gravity specific gravity, ratio of the weight of a given volume of a substance to the weight of an equal volume of some reference substance, or, equivalently, the ratio of the masses of equal volumes of the two substances. is 2.6 based on tests completed for the SNC Lavalin feasibility study E[acute accent]- Block cut-off grade is 1.33 grams gold per tonne E[acute accent]- Gold price is US$350 per ounce E[acute accent]- Desert Sun has all operating permits in place for production
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Table 1: Estimated mineral reserves as of March 1, 2005 +
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Area Proven Probable Proven & Probable
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Ounces
Gold
g g g Con-
Tonnes Au/t Tonnes Au/t Tonnes Au/t tained
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Joao
Belo(a) 1,955,000 2.02 9,147,000 2.04 11,102,000 2.04 727,000
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Basal
Reef(b) Nil Nil 2,304,000 2.51 2,304,000 2.51 186,000
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Serra do
Corrego(b) Nil Nil 972,000 2.14 972,000 2.14 67,000
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Total 1,955,000 2.02 12,423,000 2.14 14,378,000 2.12 980,000
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+ Mineral reserves have been classified in accordance with CIM
standards under NI 43-101
(a) Desert Sun Mining internal reserve estimation March 1, 2005
following procedures outlined in SNC Lavalin feasibility study.
(b) As per original Dynatec mineral reserve estimation September 2003
in the SNC Lavalin feasibility study
E[acute accent]Assaying for the drilling program, which defined the new Indicated mineral resources, was carried out by Lakefield Geosol, an ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001, 2000 laboratory based in Brazil, using fire assay on 50 gram pulps. Check assaying is routinely carried out, by ALS Als (äls), Ger. Alsen, island, 121 sq mi (313 sq km), Sønderjylland co., S Denmark, in the Lille Bælt, separated from the mainland by the narrow Alensund. Chemex in Vancouver, on 10% of sample pulps and 5% of sample rejects. Independent standard reference samples are also inserted at regular intervals into each batch of analyses. Security is maintained at the core logging and sampling facility. Dr. Bill Pearson, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program. E[acute accent]Desert Sun Mining is a Canadian gold exploration and development company listed on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. with 100% ownership of the Jacobina Mine and the 155 km long Bahia Gold Belt in the state of Bahia, in northeastern Brazil. The mine is scheduled to re-start operations in April of 2005 with proven and probable mineral reserves of 14,378,000 tonnes at 2.12 g Au/t containing 980,000 ounces of gold. As a result of the Desert Sun's exploration programs to date, Measured and Indicated resources total 24,800,000 tonnes at 2.53 g Au/t containing 2,050,000 ounces of gold, and Inferred Resources total 22,200,000 tonnes at 2.61 g Au/t containing 1,900,000 ounces of gold. The mineral reserves are included within the Measured and Indicated mineral resources. For additional information, please see Desert Sun's website at www.desertsunmining.com. E[acute accent]Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements". E[acute accent]DESERT SUN MINING CORP. (TSX:DSM) (AMEX:DEZ) |
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