Category: Uncategorized
- Published: 29 November -0001
Red Back Mining Inc.: 1 Million Ounce Akwaaba Deeps Reserve
Red Back Mining Inc. (TSX:RBI) (the \"Company\" or \"Red Back\") is pleased to announce that the ore reserve at Akwaaba Deeps is now over 1 million ounces. Akwaaba Deeps is the Company\'s first underground deposit at its Chirano Gold Mine in Ghana.
The Company\'s independent consultants, AMC Consultants of Perth, Western Australia have now reported ore reserves based on the sub-level caving (\"SLC\") mining method. The following table shows the Akwaaba Deeps underground reserves as at May 31, 2008:
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Akwaaba UG Reserve May 2008
below 2212mRL
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Tonnes Grade Ounces
Class (million) (g/t) (million)
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Probable 8.8 3.7 1.04
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Notes
1. The Underground Ore Reserve is based on SLC design and comprises
development and production (stope) ore. Development ore includes
only the Indicated Resources that are intersected by the development
headings.
2. For the SLC Stopes only Indicated resource was included in the stoping
shapes for production levels 2200mRL to 1775mRL
3. All unclassified material (zero grade) lying within the above SLC
Stopes was included as planned dilution essential for the mineable SLC
shape. Similarly any Inferred resource (and its grade) lying within the
indicated resource in the ore development, was included as planned
dilution with mineralisation/grade. The total quantity included amounts
to less than 0.19% of the ore development ounces. All Inferred resource
& unclassified material lying at the extremes of the ore body was
excluded from the mine design and SLC Stoping shapes.
4. The reserve estimates are based upon a cut of 2.1g/t, a gold price of
US$700/oz and 9.8c/kWhr electricity price.
The revised Ore Reserve Estimate is based on an updated Underground Mineral Resource Estimate calculated by Hellman & Schofield Pty Ltd that includes all drilling to the end of April 2008 and is detailed in the table below:
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Akwaaba UG Resource - May 2008
below 2212mRL
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Tonnes Grade Ounces
Class (million) (g/t) (million)
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Indicated 6.1 6.0 1.17
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Inferred 0.4 3.4 0.04
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Notes: Underground Mineral Resources are reported above a 2.5g/t cut off
and below the 2212mRL which is the base of the proposed Akwaaba
open pit. Gold grades for the reported underground resource model
have been determined using Ordinary Kriging (OK) with grades
interpolated into parent blocks with dimensions of 5m (east) by 25m
(north) by 10m (elevation). Gold estimation and model blocks were
constrained within geologically derived wireframes.
Development of the Akwaaba Deeps decline is underway and it is anticipated that first ore will be delivered to the mill in the fourth quarter of 2008. Mining will be carried out using the SLC method.
The capital cost to construct Akwaaba Deeps has been revised down by 19% and is now estimated to be US$67m inclusive of owners costs and contingency. Life of mine operating costs to deliver underground ore to the Chirano mill have been estimated to be approximately $25 per tonne (inclusive of contingency).
Chirano Surface Reserves
The Chirano surface reserves are contained in nine open pits and at December 31, 2007 contained 1.38 million ounces as detailed in the table below:
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Open Pit Reserve December, 31 2007
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Tonnes Grade Ounces
Class (million) (g/t) (million)
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Proven 22.0 1.6 1.12
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Probable 5.4 1.3 0.22
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Stockpiles 1.2 1.1 0.04
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Total 28.6 1.5 1.38
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Notes
1. Variable cut-off grades were used to estimate the Open Pit inventory
that form the Ore Reserve depending on material type and location with
an average breakeven cut-off grade in the range of 0.60g/t and 0.65g/t.
2. The reserve estimates are based upon a gold price of US$700/oz, 3.5mtpa
processing throughput, $1.20/l diesel and 9.8c/kWhr electricity price.
Commenting on the new reserve and the continuing development of Akwaaba, Richard Clark, President and CEO of the Company stated:
\"Ever since the discovery of Akwaaba we have been excited about the potential for this deposit to change the perception of Chirano. Now with the reserve over 1 million ounces, development underway and competitive estimated operating costs we are close to delivering significant added value from Akwaaba. As drilling continues both at Akwaaba and under other surface deposits on the Chirano Shear Zone, we are excited about the possibility of adding further underground high grade ore to the Chirano story.\"
The independent Resource estimate reported herein was undertaken by Nic Johnson (Member of the Australian Institute of Geoscientists) of Hellman and Schofield Pty. Ltd with more than five years experience in the use of geostatistics for estimation of recoverable resources in gold deposits. For the purpose of reporting under National Instrument 43-101 Mr. Johnson is regarded as a Qualified Person.
The independent Underground Ore Reserve estimate reported herein was undertaken by Tony Silveira (Member of the Australasian Institute of Mining and Metallurgy), Senior Mining Engineer of AMC Consultants Pty Ltd with more than five years experience in Ore Reserve estimation. For the purpose of reporting under National Instrument 43-101 Tony Silveira is regarded as a Qualified Person.
The independent Surface Ore Reserve estimate reported herein was undertaken under the supervision of Bruce Gregory (Member of the Australasian Institute of Mining and Metallurgy), Principal Mining Engineer of AMC Consultants Pty Ltd with more than five years experience in Ore Reserve estimation. For the purpose of reporting under National Instrument 43-101 Bruce Gregory is regarded as a Qualified Person.
The technical contents of this release have been reviewed by Hugh Stuart, BSc., MSc, a Qualified Person pursuant to NI 43-101. Mr. Stuart is the VP - Exploration of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Samples are prepared and analyzed by fire assay using a 50 gram charge at the Analabs facility in Bibiani, Ghana in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted. Selected samples from this lab are check assayed each month at other Analabs laboratories worldwide.
About Red Back
Red Back Mining Inc. is an unhedged African focused gold producer. It owns and operates the Chirano Gold Mine in Ghana (90% interest) and the Tasiast Gold Mine in Mauritania (100% owned). Major plant expansions at both Chirano and Tasiast are underway. An aggressive exploration program aimed at increasing the Company\'s resource and reserve base at both Chirano and Tasiast is continuing.
This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and disclaims any legal liability to the contrary.
On Behalf of the Board,
Richard P. Clark, President and CEO
SOURCE: Red Back Mining Inc.
Red Back Mining Inc. Simon Jackson VP-Corporate Development (604) 689-7842 Red Back Mining Inc. Sophia Shane Investor Relations (604) 689-7842 Website: www.redbackmining.com
