Moydow Exploration And Development Update.TORONTO -- Brian Kiernan, President and Chief Executive Officer of Moydow Mines International Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :MOY MOY Man of the Year MOY Minister of Youth )(AIM:MOY) today issued an exploration and development update on the Company's activities as follows: Gold Projects Ntotoroso Property, Ghana - The Newmont Royalty The Ntotoroso property is located on the Sefwi belt in Ghana and forms part of the Newmont Mining Newmont Mining Corporation NYSE: NEM, based in Denver, Colorado, USA, is one of the world's largest producers of gold, with active mines in, Nevada, Indonesia, Australia/New Zealand, Ghana, and Peru. Some smaller operations include Bolivia, Mexico, and Canada. Corporation ("Newmont") owned Ahafo project. Newmont announced on January 31, 2006 that average annual gold sales from the Ahafo project is estimated to be 500,000 - 550,000 ounces starting in mid - 2006. Moydow sold its participating interest in the Ntotoroso property to Newmont in 2004 but retained a 2% net smelter return royalty on all recovered ounces of gold and silver produced from Ntotoroso after the first 1.2 million gold equivalent ounces, which was approximately the resource estimate at that time based on a gold price of $275 dollars an ounce. Newmont has published Public Disclosure Documents on the Ahafo project, which includes the Ntotoroso property, and shows the locations, tonnes of ore to be mined and gold production over the mine life for several of the pits in its Ahafo project. The "Subika" pit, which was formerly known as Moydow's Zone E, is shown as containing a reserve of 2.46 million ounces of gold. This pit lies 100% within the Ntotoroso property. A second pit in the project, known as the "Awonsu" pit is shown as having 30% of its surface area located within the Ntotoroso property. The reserve number for this pit is given as 1.24 million ounces. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the Newmont Public Disclosure Documents these reserves are now calculated at a gold price of US$380 per ounce. It should be noted that Newmont has not published the current proven and probable mining reserves for the Ntotoroso licence as a separate figure; however, attention is drawn to the increase in the gold price over that used by Newmont in calculating the reserves quoted in its recent Disclosure. Okumpreko, Ghana The Okumpreko property comprises two mining licences, totalling 95.3 square kilometres, and is located in a former placer gold producing area which has derived the bulk of its payload from streams draining the famous Ashanti belt of south-central Ghana. Attention until the late 1990's focused on the placer potential of the district but a recent discovery by an Australian company, Leo Leo, in astronomy Leo [Lat.,=the lion], northern constellation lying S of Ursa Major and on the ecliptic (apparent path of the sun through the heavens) between Cancer and Virgo; it is one of the constellations of the zodiac. Shield, identifying near-surface bedrock 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. with bulk-mineable potential on the licence immediately to the north, has led to a re-evaluation of the hard rock potential of the Okumpreko licence. Moydow has carried out a detailed soil sampling program which has identified several target areas, one of which appears to be the immediate strike extension of the Leo Shield gold mineralization. Moydow is pleased to announce that a 2,000 metre reverse circulation drilling program has begun to test the anomalous areas and their strike projections lying under and masked by the considerable alluvial cover of the placer gold deposits. Results from this drilling program will be provided on an on-going basis as they become available. Hwidiem, Ghana The Hwidiem property, located in Ghana's Sefwi Belt, is a 24.7 square kilometre block surrounded on all sides by the Newmont owned Ahafo project which is currently scheduled to be in production in the latter half of this year. The licence boundary is approximately 3 kilometres east of the Newmont owned "Subika" pit. In addition Newmont has acquired, under an agreement with Gold Fields Gold Fields Limited is one of the world’s largest unhedged producers of gold, providing investors with maximum leverage to the gold price. The company was formed in 1998 with the amalgamation of the gold assets of Gold Fields of South Africa Limited and Gencor Limited. Limited ("Gold fields") the concession lying immediately south of the Moydow Hwidiem licence where Gold Fields completed over 25,000 metres of drilling. A geochemical survey covering the Hwidiem licence has identified several anomalous areas, though much of the area lies in the floodplain floodplain, level land along the course of a river formed by the deposition of sediment during periodic floods. Floodplains contain such features as levees, backswamps, delta plains, and oxbow lakes. of the Tano River The Tano is a river in the Akan lowlands of Ghana. It flows 400km from Techiman to Aby Lagoon where it enters the Atlantic Ocean. Indigious local beliefs hold that Taakora, the highest of the Akan Gods on earth lives at the source of the river. and the alluvial cover masks any geochemical signatures. Moydow plans to test both the anomalous areas and their strike projections under the alluvial cover in a 2000 metre drilling program scheduled to begin later this month. Other Projects DALA Diamond Project, Angola Moydow signed an agreement on December 16, 2005 with Endiama, the Angolan state diamond company, to explore for kimberlites on its DALA project, a 3,000 square kilometre tract of ground located in the heart of the Angolan diamond producing area. The Catoca kimberlite kimberlite: see diamond. kimberlite or blue ground Dark, heavy, often fragmented igneous rock that may contain diamonds in the rock matrix. mine, the world's fourth largest diamond mine, lies 40 kilometres to the north of the licence and the BHP / Petra kimberlite discovery lies 40 kilometres to the west. To date over US$2.9 million has been spent in exploration on the property. In addition, and as a condition of the granting of the kimberlite licence, Moydow has deposited US$1 million with Endiama, which is refundable to Moydow once it has incurred further expenditures of US$1 million in services and equipment on the property within six months of the ratification of the licence. Since September 2005, Moydow has been funding 100% of the expenditures in respect of the licence and under an agreement with its partner in the project, Moydow has increased its interest in the licence from 20% to 32.8%. The decision to apply for the kimberlite licence was spurred by the discovery of fresh (minimally transported) kimberlite indicators in high concentrations at several localities during appraisal of the alluvial potential in the 2005 field season. A 17,000 line-kilometre, aeromagnetic survey An aeromagnetic survey is a common type of geophysical survey carried out using a magnetometer aboard or towed behind an aircraft. The principal is similar to a magnetic survey carried out with a hand-held magnetometer, but allows much larger areas of the Earth's surface to be identified several anomalies coincident with the concentrations of kimberlite indicators and initial examination of these sites has prompted the company to commission a gravity - ground magnetic survey to better define drilling targets for the oncoming dry season. A program to test three targets, designated as high priority areas, is scheduled to begin in April. Moydow geologists are working with a team of diamond exploration specialists to coordinate the drilling program and integrate it with an intensive ground follow-up of the most promising aeromagnetic targets identified from the airborne surveys. Port Loko Port Loko is a city located in Port Loko District, in the Northern Province of Sierra Leone. It lies 50 km to the northeast of the national capital Freetown, and has a population of about 105,200 residents. Port Loko lies on Port Loko Creek, which flows into the Sierra Leone River. Bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities. Project, Sierra Leone Sierra Leone (sēĕr`ə lēō`nē, lēōn`; sēr`ə lēōn), officially Republic of Sierra Leone, republic (2005 est. pop. 6,018,000), 27,699 sq mi (71,740 sq km), W Africa. Moydow has commissioned 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. on its Port Loko bauxite property which is expected to be completed later this month. On completion of the feasibility study, Moydow will have spent about $1.7 million and will have earned a 60% controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in the project. The remaining 40% interest is held by Gondwana Resources, a private company controlled by Jean-Raymond Boulle. On receipt of the feasibility study Moydow will investigate all possible production scenarios in order to ensure that the project provides the best possible value for Moydow shareholders. Corporate Matters We are currently investigating a number of funding opportunities to advance our exploration projects as speedily as possible and in a manner that will add value for all our shareholders. Moydow Mines is engaged in the acquisition, exploration and development of mineral properties worldwide. Corporate information is available on the Company's website www.moydow.com. The Company 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. and the Alternative Investment Market (AIM) of the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. under the symbol "MOY". "Signed" Brian Kiernan President and Chief Executive Officer Suite 1220 - 20 Toronto Street Toronto ON M5C 2B8 Tel: 416-703-3751 Fax: 416-367-3638 Toll Free: 1-877-211-8877 74 Haddington Road Dublin 4, Ireland Tel: 011 353 1 667-7611 Fax: 011 353 1 667-7622 Toronto Stock Exchange "MOY" www.moydow.com Moydow Mines International Inc. (TSX:MOY) (AIM:MOY) |
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