Gold Exploration in West Africa

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Semafo's (SMF.TO) Mana (Burkina Faso) Increases Reserves 62%

[Note: This is ANOTHER reserves increase, at a different mine, in Burkina Faso, in addition to the one just announced the other day about Semafo's Kiniero Mine in Guinea. Disclosure: I have some Semafo stock. The original, better-formatted article is at:
http://web1.kitco.com/pr/1170/article_01192006155531.pdf

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PRESS RELEASE
SEMAFO TSX-SMF
FOR IMMEDIATE RELEASE

INCREASE IN MINERAL RESERVES BY 62% AT THE MANA PROJECT.

Montreal, Quebec, January 19, 2006. – SEMAFO (TSX – SMF) is pleased to announce that the in-situ proven and probable mineral reserves stated as of December 31, 2005 at its Mana project in Burkina Faso have increased by 334 800 ounces of ore, representing a 62% increase over the recovered mineral reserves reported in the 2004 year-end statement.

The Mana project in-situ total proven and probable mineral reserves as of December 31, 2005, stand at 9,443,000 tonnes at a grade of 2.89 g/t Au representing 877,200 ounces, using a gold price of US$450 per ounce. This compares to 6,916,200 tonnes at a grade of 2.78 g/t Au representing a total of 542,400 recoverable ounces, as at December 31, 2004, using a gold price of US$380 per ounce.

As a result of the conversion of mineral resource into mineral reserve, the measured and indicated mineral resources decreased by 60%, totalling 2,296,100 tonnes at a grade of 2.28 g/t Au and representing a total of 168,600 ounces (424,400 ounces as of December 31, 2004) thus leading to total mineral reserves and resources of 11,738,500 tonnes at a grade of 2.77 g/t Au representing 1,045,800 ounces of gold (966,600 ounces as of December 31, 2004).

The table below shows the details of the Reserves and Resources estimations as of December 31, 2005. Reserves and Resources as of December 31, 2005 Mana Project.

MINERAL RESERVES Dec.31, 2005 (2)
Dec.31, 2004 (1)
Proven Mineral Reserves
tonnes 6,831,000 5,488,800
grade (g/t Au) 2.89 2.50
ounces 635,300 391,300
Probable Mineral Reserves
tonnes 2,612,000 1,427,400
grade (g/t Au) 2.88 3.85
ounces) 241,900 151,100
Total Mineral Reserves
tonnes 9,443,000 6,916,200
grade (g/t Au) 2.89 2.78
ounces 877,200 542,400
MINERAL RESOURCE Dec.31, 2005 (3) Dec.31, 2004(1)
Measured Mineral Resources
tonnes 537,300 1,484,900
grade (g/t Au) 1.77 2.53
ounces 30,600 120,800
Indicated Mineral Resources
tonnes 1,758,800 3,413,800
grade (g/t Au) 2.44 2.76
ounces 138,000 303,400
Total Mineral Resources
tonnes 2,296,100 4,898,700
grade (g/t Au) 2.28 2.69
ounces 168,600 424,400

TOTAL MINERAL RESERVES
AND RESOURCES Dec.31, 2005 (3)
Dec.31, 2004(1)
tonnes 11,738,500 11,814,900
grade (g/t Au) 2.77 2.74
ounces 1,045,800 966,600
Inferred Mineral Resource
tonnes 7,396,000 7,472,200
grade (g/t Au) 2.31 2.31
ounces 555,400 557,000

(1) In 2004, mineral reserves included consideration for metallurgical and mining recoveries and a gold price of US$380 per ounce.
(2) 2005 in-situ mineral reserves at Mana at US$450 /ounce
(3) 2005 mineral resources at Mana: cut-offs: oxide and sulphides at 0.50 g/t.
Mr. Benoit La Salle, President and Chief Executive Officer of Semafo is pleased to comment that ‘’With mineral reserves and resources exceeding 1 million ounces, the Mana project confirms its long-term viability and potential.’’ In 2006, Semafo will continue its local exploration programs to further increas e the mineral reserves and resources and consequently, the expected mine life of its Mana Project.

The mineral reserves and mineral resources estimations reported above are documented in conformity with Canadian National Instrument 43-101. The estimations are based on a technical report that will be made available on SEDAR. Michel Cormier, geological engineer and Semafo’s Qualified Person has supervised the preparation of the technical report on the reserves and resources estimates for the Mana Project, as of December 31, 2005. He has reviewed this press release for accuracy and has confirmed that the information relating to mineral reserves and mineral resources outlines above derived from the technical report prepared for Semafo by experienced mining geologists under his technical supervision.

The common shares of Semafo are traded on The Toronto Stock Exchange under the symbol “SMF”.

FORWARD-LOOKING STATEMENTS
This press release contains « forward-looking statements », including, but not limited to, the statements regarding the Company’s expectations as to the market price of gold, strategic plans, future commercial production, production targets, timetables, mine operating costs, fixed assets expenses, mineral reserve estimates and to the company’s perspectives. Forward -looking statements express, as at the date of this press release, our estimates, forecasts, projections, expectations and beliefs as to future events or results. Forward-looking statements are reasonable, but involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuatins in the market price of precious metals, mining industry risks, uncertainty as to calculation of mineral reserves, risks related to the grade of reserves, risks related to hedging strategies, risks of delays in construction and requirements of additional financing.

Semafo is a mining company whose mission is to explore, develop and mine major gold deposits in West Africa. Semafo currently operates the Kiniero mine in Guinea, the Samira Hill mine in Niger and is developing the Mana project in Burkina Faso.

For more information contact :
MONTREAL :
Benoit La Salle,
President & CEO
Tel : [phone]
E-Mail : [e-mail]

MONTREAL
Michel Cormier
Geological Engineer, Qualified Person
Tel: [phone]
E-mail: [e-mail]
RENMARK :
Tina Cameron
Tel : [phone]
E-Mail : [e-mail]

More extensive information on Semafo can be found on our home page at http://www.semafo.com

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS RELEASE