Desert Sun Increases Measured & Indicated Resources to 2.3 Million oz of Gold and Inferred Resources to 3 Million oz At Jacobina
Tuesday December 20, 4:30 am ET
Deep drilling at Jacobina Mine confirms depth extent
TORONTO--(BUSINESS WIRE)--Dec. 20, 2005--DESERT SUN MINING CORP. (TSX:DSM - News; AMEX:DEZ - News) has completed an updated mineral resource estimate incorporating new drilling results for all zones at its Jacobina Mine on the Bahia Gold Belt in northeastern Brazil. This provides a final statement of updated mineral resources as at December 15, 2005 as shown in Table 1 below. (Figure 1 shows the location of the major zones).
Measured and Indicated mineral resources for all zones at Jacobina now total 27,900,000 tonnes grading 2.57g Au/t containing 2,311,000 ounces of gold. This is a significant increase of 261,000 ounces of gold compared to the December 2004 measured and indicated resource of 24,800,000 tonnes grading 2.53g Au/t containing 2,050,000 ounces of gold. Since the August 2003 resource estimate that formed the basis for the SNC-Lavalin feasibility study, exploration and development work by Desert Sun has increased Measured and Indicated mineral resources by 949,000 ounces of gold at an average discovery cost of approximately US$10 per ounce. At the Jacobina Mine, drilling and development has outlined sufficient new measured and indicated resources to replace 2005 production.
Additionally, Inferred mineral resources in all zones now total 33,600,000 tonnes grading 2.80g Au/t containing 3,029,000 ounces of gold. This a substantial addition of 1,129,000 ounces of gold compared to the December 2004 inferred mineral resource of 22,200,000 tonnes grading 2.61g Au/t containing 1,900,000 ounces of gold. This increase reflects major additions at the Jacobina Mine (Joao Belo zone) where inferred mineral resources now total 14,430,000 tonnes grading 2.66g Au/t containing 1,235,000 ounces of gold compared to the December 2004 inferred resource of 5,300,000 grading 2.33g Au/t containing 390,000 ounces of gold. The Inferred mineral resource at Canavieiras now totals 6,900,000 tonnes grading 3.29 g Au/t containing 730,000 ounces compared to the December 2004 Inferred mineral resource of 3,700,000 tonnes grading 2.41g Au/t containing 290,000 ounces of gold, an increase of 440,000 ounces.
"This increase in resources is significant in terms of Desert Sun's future growth prospects," commented Mr. Bruce Humphrey, P.Eng., President and CEO. "Based on historical and recent experience, Desert Sun has a proven track record of successfully converting about 75% of Inferred resources into Indicated resources by further drilling. Based on our operating experience, the conversion rate of Measured and Indicated resources to Proven and Probable reserves is typically about 75%. Desert Sun mine staff is currently completing an updated mineral reserve estimate incorporating the new Measured and Indicated mineral resource at the Jacobina Mine (Joao Belo Zone). In addition, pre-feasibility studies will be initiated in early 2006 on the new indicated resources at the Canavieiras and Morro do Vento Extension zones. We anticipate an increase in overall reserves, further supporting our plans for production expansion."
"The 2005 drilling program was very successful in not only outlining additional indicated mineral resources but also substantially expanding inferred mineral resources so that the total inferred resource is now greater than in August 2003," commented Dr. Bill Pearson, P.Geo., Vice President, Exploration. "Since 2003, exploration has outlined five development projects at Jacobina (Joao Belo II extension, Morro do Vento, Serra do Corrego, Canavieiras and Morro do Vento Extension.) The focus in the 2006 exploration program will be to continue to identify new mineral deposits in the Bahia Gold Belt and to further expand inferred mineral resources."
The updated resource estimate has been reviewed and confirmed by B. Terrence Hennessey, P.Geo. of Micon International Limited. Mr. Hennessey, who is an independent qualified person as defined under National Instrument 43-101, visited the site from December 6 to December 9, 2005. The resource estimation methodology and classification used is the same as outlined in the August 2003 report by Mr. Hennessey and the March 2005 report prepared by Dr. Bill Pearson, P.Geo. and Peter Tagliamonte, P.Eng. of Desert Sun, both of which are filed on SEDAR.
Results of Deep Drilling at Jacobina Mine
"Also important to our future growth are the results of the two deep holes we have completed at the Jacobina Mine," commented Dr. Pearson. "These results confirm that the main (LMPC) reef we are currently mining extends down to a depth of 455 metres below the main haulage level (670 level) and is still open at depth as well as along strike. One hole also had a significant intersection in the FW (footwall) reef (see also press release November 21, 2005)."
Significant results from the two holes are summarized in Table 2 and are as follows:
- 2.77g Au/t over 9.4m true width in the main (LMPC) reef and 2.64 g Au/t over 4.3m true width in the FW reef in hole JBA-370
- 4.24g Au/t over 7.3m true width in the main (LMPC) reef in hole JBA-418, 300m south of JBA-370
The results from these holes have been incorporated in the updated resource estimated as outline above.
Assaying for the 2005 drilling program, including the deep drilling at the Jacobina Mine, was carried out by SGS Lakefield Geosol, an ISO 9001, 2000 laboratory based in Brazil, using fire assay on 50 gram pulps. Check assaying was routinely carried out, by ALS Chemex in Vancouver, on 10% of sample pulps and 5% of sample rejects. Independent standard reference samples are also inserted at regular intervals into each batch of analyses. Security is maintained at the core logging and sampling facility. Dr. Bill Pearson, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the geoscientific and technical work on the program.
Assaying for the underground drilling and channel sampling program at the Jacobina Mine (Joao Belo Zone) was carried out at the mine site laboratory which is an independent laboratory operated for the Jacobina mine by SGS Lakefield Geosol, using fire assay on 50 gram pulps. Blanks, duplicates and independent standard reference samples are inserted at regular intervals into each batch of analyses. The mine laboratory uses the full SGS QA/QC protocols and participates in regular intra-laboratory checks. Security is maintained at the core logging and sampling facility. Peter Tagliamonte, P.Eng., is the Qualified Person as defined under National Instrument 43-101 responsible for all mining and engineering work at the Jacobina Mine. Dr. Bill Pearson, P.Geo. is the Qualified Person as defined under National Instrument 43-101 responsible for the geoscientific and technical work.
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 in the Jacobina Mine area are 17,620,000 tonnes at 2.11 g Au/t containing 1,200,000 ounces of gold as at August 11, 2005. As a result of the Desert Sun's exploration programs to date, Measured and Indicated resources total 27,900,000 tonnes grading 2.57g Au/t containing 2,311,000 ounces of gold and Inferred Resources total 33,600,000 tonnes grading 2.80g Au/t containing 3,029,000 ounces of gold. The mineral reserves are included within the Measured and Indicated mineral resources. For additional information, contact Naomi Nemeth, Vice President, Investor Relations at 416-861-5901 (info@desertsunmining.com) or visit Desert Sun's website at www.desertsunmining.com.
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