RAB Special Situations (fka RAB)

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Sargold SRG receives Sa Perrima assay results

2004-07-22 11:54 ET - News Release

Mr. Richard Warke reports

SARGOLD INTERSECTS HIGHEST GOLD GRADES TO DATE AT SA PERRIMA INCLUDING 14 METRES OF 11.75 G/TON AU.

Sargold Resource Corp. has received the gold assay results from six diamond drill holes drilled at the Sa Perrima stratabound gold-pyrite deposit at the Furtei gold mine in Sardinia, Italy. The holes were drilled to provide representative samples for metallurgical testing.

 
  
                    Inter-   Gold 
          From To   section  grade 
 Hole No.  (m) (m)  (m)       (g/t) 
  
 SPDM 001  37  77     40      2.38 
 including 44  54     10      5.29 
             
 SPDM 002  26  53     27      0.98 
 including 26  34      8      1.68 
 and       70  79      9      1.15 
   
 SPDM 003  50  53      3      1.80 
 and       57  58      1      1.17 
  
 SPDM 004  49  88     39      6.30 
 including 57  71     14     11.75   
  
 SPDM 005  71  95     24      2.12 
 including 79  95     16      2.77 
 including 80  84      4      5.82  
  
 SPDM 006  56  88     32      1.70 
 including 67  68      1      5.37 
 including 85  87      2      7.16 
 

Grades encountered in holes SPDM 001, SPDM 004 and SPDM 005 are the highest yet recorded at Sa Perrima. Most notably SPDM 004, a step-out hole drilled 10 metres to the north of CAR 251 (29 metres at 2.02 grams per tonne gold), indicates that the Sa Perrima mineralized area is still open to the north. Further drilling is warranted and will be undertaken to test the extent of this area.

SGS Lakefield Research of Ontario has been contracted to carry out a variety of bench tests that will provide valuable information regarding ore characteristics and other data necessary to confirm and optimize gold recoveries. The holes were designed to collect representative samples of variable ore material from throughout the Sa Perrima deposit. The Sa Perrima deposit area is currently over 500 metres long by 350 metres wide and is located approximately 150 metres from the Furtei sulphide flotation plant. The plant is capable of processing up to one million tonnes of ore per year.

All exploration and drilling at Furtei are under the direct supervision of Dan MacInnis, PGeo. Mr. MacInnis is the qualified person under National Policy 43-101 for Sargold Resource Corporation. Samples from the current drilling program have been analyzed for gold by fire assay in Sardinia by Progemisa, an Italian government mining research organization. As part of the quality assurance/quality control program, standard, blank and duplicate samples are inserted into each batch of 20 samples sent for analysis. In addition, select samples are sent to OMAC Laboratories in Ireland for check gold assaying and multielement ICP analysis.