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Sorowar Drilling Programme – Simberi Oxide Gold Project
August 31, 2004
(Simberi Mining Joint Venture (“SMJV”) – Nord Pacific Ltd. 50%/Simberi Gold Corporation 50%)
Toronto – August 31, 2004 – Simberi Gold Corporation (TSX-V: SAU) – Simberi Gold Corporation (“Simberi”) announces wide thicknesses of surface and near surface oxide gold mineralization have been intersected in step-out and infill reverse circulation (“RC”) drilling underway at the Sorowar deposit.
Significant results are tabulated below:
| Drill hole |
Northing
(mN)
local grid |
Easting
(mE)
local grid |
Dip/Azimuth
()
local grid |
Interval
(m) |
Intersection
(m@g/tAu) |
Mineralization
Type |
|
RC881 |
1,722 |
297 |
vertical
including |
0-101 (eoh)
0-31
38-77 |
101 @ 1.40
31 @ 2.84
39 @ 1.14 |
oxide 0-92m
sulphide 92-101m
oxide
oxide |
|
RC882 |
1,450 |
150 |
-60/090
including |
0-50 (eoh)
8-17 |
50 @ 0.69
9 @ 2.01 |
oxide
oxide |
|
RC883 |
1,430 |
180 |
-60/090
including |
0-50 (eoh)
0-17 |
50 @ 0.64
17 @ 1.35 |
oxide 0-13m
sulphide 13-50m
oxide 0-13m
sulphide 13-17m |
|
RC884 |
1,390 |
175 |
-60/090
including
including |
0-130 (eoh)
5-50
60-66 |
130 @ 0.78
45 @ 1.69
6 @ 2.62 |
oxide 0-90m
sulphide 90-130m
oxide
oxide |
|
RC885 |
1,330 |
270 |
-60/090
including |
0-100 (eoh)
35-52 |
100 @ 0.47
17 @ 2.05 |
oxide 0-91m
sulphide 91-100m
oxide |
|
RC886 |
1,190 |
200 |
-60/090
including |
0-120 (eoh)
76-120 |
120 @ 1.73
44 @ 3.84 |
oxide with minor
sulphide
oxide |
|
RC887 |
1,230 |
200 |
-60/090
including |
0-100 (eoh)
12-91 |
100 @ 2.10
79 @ 2.47 |
oxide 0-77m
sulphide 77-100m
oxide 12-77m
sulphide 77-91m |
|
RC888 |
1,270 |
175 |
060/090
including |
0-100 (eoh)
38-77 |
100 @ 4.06
39 @ 9.81 |
oxide 0-24,
31-100m
sulphide 24-31m
oxide |
|
RC889 |
1,310 |
150 |
-60/090
including
including |
0-60 (eoh)
9-14
29-42 |
60 @ 0.59
5 @ 1.64
13 @ 1.21 |
oxide 0-15,
20-60m
sulphide 15-20m
oxide
oxide |
Discussion of Resources (refer to plan attached) Sorowar is located in Simberi Island, approximately 80 km to the northwest of Lihir Island in the New Ireland Archipelago of eastern Papua New Guinea.
Sorowar is one seven oxide gold deposits so far identified on Simberi Island. The Simberi oxide gold deposits represent the oxidized portions of underlying epithermal gold-sulphide systems and previous drilling at Sorowar has resulted in the delineation of measured, indicated and inferred oxide gold resources totaling 383,000 ounces from 10.87 million tonnes at 1.10 g/t Au.
In August, 2003, Lycopodium Pty Ltd. completed a feasibility study on the development of the Simberi Oxide Gold Project which determined that proved and probable ore reserves of 179,000 ounces from 4.80 million tones at 1.16 g/t Au could be mined from a 700 metre long pit at Sorowar. Due to the presence of extensive background oxide gold mineralization within the proposed pit, all of the material mined will be processed resulting in total ore reserves and inferred mineral resources of 192,000 ounces from 5.19 million tonnes at 1.15 g/t Au from the Sorowar pit being scheduled for mining and processing.
As previous drilling has concentrated on testing the Sorowar mineralization within the designed pit limits, the aim of the current drilling programme is to:
- Better identify pit limits by exploring for extensions along strike and on the flanks of the known oxide gold resource.
- Further interrogate the extent and area of influence of interpreted high-grade feeder systems within the Sorowar deposit.
RC drilling commenced at Sorowar in July with 52 drill holes for approximately 4,300 metres being drilled in this program to investigate the percentage of oxide mineralization at the Sorowar pit for the purpose of early production. To date, 45 drill holes have been completed and assay results have been received from the first 11 holes.
The first two holes drilled, RC879 and RC880 returned broad anomalous gold mineralization on the western margin of the northern portion of the proposed Sorowar pit. Both holes returned average grades of 0.14 g/t Au.
Drill holes RC 882 - 883 and RC 888 - 889 were drilled outside and to the west of the southern portion of the proposed Sorowar pit. Assay results from these holes are very encouraging, indicating that considerable oxide mineralization exists to the west of the planned pit. RC888 is of particular significance returning 100m at 4.06 g/t Au in a predominantly oxidized envelope over the entire drill hole length.
Drill holes RC 884 - 887 were drilled within the southern portion of the proposed pit in areas with relatively open drilling spacing. The results from drill holes RC886 and RC887 are particularly significant being close to the southern edge of the pit. These drill holes returned robust grades over wide intervals within a deeply oxidized mineralized envelope.
In summary, many of the most significant gold intercepts were returned from drill holes which are located outside the current pit design, implying that future resource re-estimation and pit reoptimization that will be carried on receipt of all the results will result in increased mine life and additional gold production from Sorowar.
Further drilling has been completed around the southern and eastern margins of the Sorowar pit and assay results are awaited.
Analytical Procedures
For each single metre of drilling, a sample is collected and treated at the SMJV’s Simberi Island sample preparation facility prior to being air freighted to ALS Chemex Laboratories in Townsville for analysis.
Sample treatment procedures are:
Simberi Island
The entire 1 metre drill sample (~20kg) is dried, crushed thorough a jaw crusher and hammer milled to approximately 500 microns in size. The sample is mixed and split down to 1kg in weight then 400gms of the sample is collected, packaged and air freighted to Townsville.
Townsville
The sample is pulverized to <75 microns at ALS Chemex Laboratories prior to assaying for gold by fire assay (50gm) with AAS finish and for Ag, As, Cu, Fe, Mn, Pb, S, Sb, and Zn by aqua regia digest and ICP-AES finish.
During August 2004 a representative from ALS Chemex carried out a site audit on the Simberi Island sample preparation facility and reported that all procedures confirm to ALS Chemex quality procedures and industry standards.
Quality control in the analytical process is monitored by inserting a duplicate sample for analysis for every 20 samples submitted and a standard sample comprising Sorowar ore for every 50 samples submitted to ALS Chemex.
Simberi Mining Joint Venture The Sorowar gold deposit is subject to the SMJV, a 50%/50% joint venture between Nord Pacific Limited (“Nord”) and Canadian stock exchange listed Simberi Gold Corporation. Nord has entered into a merger arrangement with Allied Gold Limited (“Allied”) whereby on completion Nord will become a wholly-owned subsidiary of Allied.
The SMJV holds a mining lease over the central and eastern portion of Simberi Island, the northernmost island of the Tabar Island Group and so far, the SMJV has identified gold resources totaling 1.49 million ounces within the mining lease comprising:
Oxide Resources Measured, indicated and inferred (free milling-type – 0.5 g/t Au cutoff) 19.7 million tonnes at 1.17 g/t Au (740,000 ounces)
Sulphide Resources Inferred (refractory-type – 1.0 g/t Au cutoff) 9.3 million tonnes at 2.5 g/t Au (750,000 ounces)
To find out more about Simberi Gold Corporation (TSX-V: SAU), please contact Jim Voisin at (519) 699-5352 or visit our website at www.simberigold.com.
This press release includes certain “Forward-Looking Statements” within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are “Forward-Looking Statements” that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these “Forward-Looking Statements”. All dollar amounts are Canadian dollars unless otherwise noted.
The TSX Venture Exchange Inc. has neither approved nor disapproved the information herein contained.
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