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Re: krazikid post# 373617

Tuesday, 04/19/2005 8:15:17 AM

Tuesday, April 19, 2005 8:15:17 AM

Post# of 704049
*** Gold related post (DEZ) ***


Desert Sun Provides Project Update

Tuesday April 19, 3:00 am ET

100,000 tonnes of ore processed at the Jacobina Mine to date

TORONTO--(BUSINESS WIRE)--April 19, 2005-- DESERT SUN MINING CORP. (TSX:DSM - News; AMEX:DEZ - News) 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 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 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 (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 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 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. 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 and the silicified Proterozoic Jacobina Group quartzites.

- A geophysical survey involving induced polarization 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 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 (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 and the American Stock Exchange 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. For additional information, please see Desert Sun's website at www.desertsunmining.com.

http://biz.yahoo.com/bw/050419/195211.html?.v=1

Dan

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