Searchgold(RSG.V) Gabon deal with Managem; plans WAfrica acquisitions
JANUARY 30, 2006 - 09:00 ET
SearchGold Provides Update on African Gold Strategy
MONTREAL, QUEBEC--(CCNMatthews - Jan. 30, 2006) - SearchGold Resources Inc. (TSX VENTURE:RSG) is pleased to provide an update on the development of its gold activities in Africa.
SearchGold will emphasize two axis of development for gold in Africa :
- Advancement of its Bakoudou-Magnima gold project in Gabon
- Acquisition of additional gold properties in West Africa
Bakoudou-Magnima gold project
SearchGold initiated work on Bakoudou in 2004 following the positive recommendations of a scoping study by Met-Chem Canada inc. which outlined a combined oxide-sulfide measured and indicated resource of 277.380 oz Au on Zone A of the project (oxide resource of 165.412 oz Au comprising 2.100.000 metric tons at a grade of 2,45 g/t Au in the measured and indicated categories and a sulfide resource of 111.968 oz Au comprising 570.000 metric tons at a grade of 6,11 g/t Au in the measured and indicated categories). This study relied on historical data and should not be interpreted as NI 43-101 compliant.
One of the highlights of the 2005 drill program on Zone A, is the recovery by SearchGold of an intersection of 4,64 g/t Au over 55,10m from 14,90m to 70,00m in hole BA04-18 (press release dated June 28th 2005). This result was obtained under the supervision of Mr. Philippe Giaro, geologist and Qualified Person as defined in NI 43-101.
In mid-2005 SearchGold entered into a joint venture agreement with Managem which can earn 63% of the Project by executing :
- Cash payments : $CDN 1,200,000.
- Work commitments : $CDN 3,000,000 over a 2-year period.
- A bankable feasibility study.
A first technical committee meeting was held in late November 2005 during which it was decided that the following axis of development would be implemented.
- Execution of ground geophysical and geochemical surveys followed by pitting and trenching to cover the entire 24 km2 Bakoudou permit surface area with the objective to better define the underlying geology and locate additional extensions of Zone A.
- Execution of detailed reconnaissance on the Magnima permit with stream sampling and prospecting in a 5 km wide zone immediately surrounding the Bakoudou 24 km2 permit to identify potential gold mineralization associated with clearly identified structural features.
Exploration teams are now operational and presently in the field in Gabon to implement this strategy.
Additional gold properties in West Africa
SearchGold intends to leverage its competitive advantage provided by an established presence in West Africa through the acquisition of additional gold properties.
The Company is targeting the classic Proterozoic belt comprising the Birimian formations which are the host of the world class Ashanti deposits and which have provided significant recent discoveries such as the Sadiola deposit. SearchGold will also be targeting the Archean greenstone belts which underlie a significant part of West Africa and which have so far been severely under explored.
Negotiations and due diligence visits are presently underway and should pave the way for significant new additions to the Company's property portfolio.
SearchGold will provide regular updates on the development of its gold activities in Africa.
SearchGold Resources is a Canadian based mining exploration company whose primary mission is to target, explore and develop gold and diamond deposits in Africa and in Canada. SearchGold's project strategy maximizes its experience and resources, and supports the company's commitment to strengthen shareholder value.
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