Desert Sun Provides Project Update.TORONTO -- 100,000 tonnes of ore processed at the Jacobina Mine to date 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 ) continues to make steady progress with mine commissioning following the first gold pour announced in late March and with the exploration and development programs that have been planned for 2005. Desert Sun has focused on achieving full production in the last half of 2005, increasing resources and reserves in 2005, advancing feasibility studies on new development projects and exploring the northern part of the Bahia Gold Belt. "We are extremely pleased with the progress we have made at Jacobina," commented Bruce Humphrey, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Desert Sun. "We are tracking to the plan developed at the outset of this project and are confident that we can continue to increase resources and reserves through our planned exploration and development programs in the area around the mine." Desert Sun will hold an investor conference call update at 10:00 AM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on Wednesday April 20, 2005. Dial-in numbers can be found on the Desert Sun website (www.desertsunmining.com) in the investor section under press releases. As well, the company will hold its Annual General and Special Meeting at 4:30 PM EDT on Wednesday April 20, 2005 at the National Club, 330 Bay Street, Toronto, Ontario. MINE UPDATE - Commissioning of the processing plant has been completed and the plant is now operating on a continuous manner - 100,000 tonnes of ore have been processed - 2,000 meters of development have been completed - 5,600 meters of ITH ITH If That Helps ITH Instituto Tecnologico de Hermosillo (Sonora, Mexico) ITH Ithaca, NY, USA - Tompkins County (Airport Code) ITH Integration Time Horizon (environmental gases) (In-the-Hole) production holes have been drilled - 50,000 tonnes of development ore have been stockpiled on the surface ready for processing - The first gold was poured in March, 2005 - Approximately 1,500 ounces of gold have been poured to date and another 3,800 ounces are contained in the system - All the required heavy mining equipment is currently on site (The late delivery of the production drills have delayed the planned start of stope stope n. An excavation in the form of steps made by the mining of ore from steeply inclined or vertical veins. tr.v. stoped, stop·ing, stopes To remove (ore) from or mine by means of a stope. production ore. Efforts to minimize the impact have been successful and the year end impact on production will be minimal.) - Grades have met expectations with an accumulated average grade for the month of April of 1.98 g/t. DEVELOPMENT PROJECTS UPDATE Mine Area An internal review and evaluation of the development projects was completed in January. From this evaluation, the sequence of up coming development was established with Morro do Vento identified as the first development project. Morro do Vento - A project development engineering team started work on Morro do Vento in January 2005 - An independent 43-101 ore resource has been completed - An internal study was completed in April indicating that underground mining is the best option for this project and an independent feasibility study has been started and is expected to be completed by the end of May, 2005 - An engineering study on optimizing the processing plant for expansion has been started with Vancouver-based AMEC AMEC African Methodist Episcopal Church AMEC Agent Mediated Electronic Commerce AMEC Arctic Military Environmental Cooperation AMEC Advanced Micro-Fabrication Equipment Inc AMEC Association of Media Evaluation Companies Americas Limited - An exploration and development budget of CAD$6 million (US$5 million) was approved in March 2005 - A decision on advancing the project is expected in June EXPLORATION UPDATE As previously announced, Desert Sun has initiated a CAD$6 million ($US5 million) exploration program for 2005 which will include at least 25,000 meters of diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral . This program is focused on further exploring and developing major targets in the Jacobina mine area as well as significantly expanding the exploration work in the northern area of the Bahia Gold Belt, especially at Pindobacu and Canavieiras. Separate press releases will be issued shortly with greater detail on the exploration programs. Canavieiras - Two underground drills and one surface drill are currently working and focusing on the MU/LU (Middle Unit/Lower Unit) target. The mine is being re-surveyed and an underground development heading is being extended to allow enhanced drill access to test the potential extension of reefs previously mined and the MU/LU reefs. Morro do Vento Extension - One surface drill is testing the strike and downdip extension of the Basal and Main reefs. Underground drifts are being prepared to allow access for underground drilling which is expected to start soon. Pindobacu - In the Pindobacu area, one surface drill is following up on excellent intersections previously reported and to characterize the nature of the faulted contact between the Archean Mundo Nova volcanic rocks rocks which have been produced from the discharges of volcanic matter, as the various kinds of basalt, trachyte, scoria, obsidian, etc., whether compact, scoriaceous, or vitreous. See also: Volcanic and the silicified si·lic·i·fy v. si·lic·i·fied, si·lic·i·fy·ing, si·lic·i·fies v.tr. To convert into or impregnate with silica. v.intr. To become converted into or impregnated with silica. Proterozoic Jacobina Group quartzites. - A geophysical survey Geophysical survey refers to the systematic collection of geophysical data for spatial studies. Geophysical surveys may use a great variety of sensing instruments, and data may be collected from above or below the Earth's surface or from aerial or marine platforms. involving induced polarization Induced polarization (IP) is a geophysical imaging technique used to identify subsurface materials, such as ore. The method is similar to electrical resistivity tomography, in that an electric current is induced into the subsurface through two electrodes, and voltage is work has been completed on 50 line kilometers. Priority anomalies identified will be drill-tested later in the program. - A basin study by Dr. Paul Karpeta, an expert on Precambrian quartz pebble conglomerate-hosted gold deposits, has been completed and results of this study will be reported separately. - Detailed geological mapping and soil geochemical sampling continue to be carried out to better characterize the extensive 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. system in the Pindobacu area. - Diamond drilling is now proceeding at a rate of approximately 3,000m per month and will continue at this rate through the rest of the program. FINANCIAL UPDATE Desert Sun has a cash position of approximately CAD$27 (US$22.5 million). The Jacobina Mine redevelopment project costs to March 31, 2005 are CAD$38 million (US$30 million). In early March 2005, Desert Sun raised CAD$25 million (US$20.8 million) through a bought deal financing with approximately CAD$12 million (US$10 million) of the proceeds from this offering to be used to expand the exploration program in Morro do Vento, Jacobina mine, Pindobacu and Canavieiras. An additional CAD$6 million (US$5 million) to be used to finance pre-feasibility and other development work at Morro do Vento and Canavieiras and the balance for working capital purposes. To mitigate currency risk over the long term, Desert Sun entered into a currency protection agreement in March 2005 with BankBoston to purchase Brazilian Real The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, ISO 4217 code: BRL, plural: reais) is the currency of Brazil. It is also the name of the earliest Brazilian currency (see from the Colonial period to 1942. (R$) for monthly delivery of the equivalent of US$1 million per month beginning January 1, 2006 at an exchange rate averaging 3.00 for the year. This represents approximately 60% of the Jacobina Mine capital and operating budgets and the rate is in line with the exchange rate assumed in the 2003 feasibility study. Contract discussions are being finalized for gold purchase agreements with several international companies. Gold sales are expected to begin at the end of April 2005. Desert Sun Mining is a Canadian gold mining 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. Proven and Probable mineral reserves are 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 Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature . For additional information, please see Desert Sun's website at www.desertsunmining.com. Statements in this release that are not historical facts are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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". This news release also uses the terms "measured resources", 'indicated resources' and 'inferred resources'. Desert Sun Mining Corp. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Desert Sun Mining Corp. (TSX:DSM) (AMEX:DEZ) |
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