GBS Gold Reports Base Metals Drilling Results
TORONTO, ONTARIO–(Marketwire – Sept. 4, 2008) – GBS Gold International Inc. (TSX:GBS) (“GBS Gold” or the “Company”) announces the initial assay results from its base metals drilling program into the Iron Blow and Mt Bonnie polymetallic deposits within its Union Reefs Operations Centre in the Northern Territory of Australia.
The results of the first two holes in the Iron Blow deposit include: —————————————————————— ____________From______To__ Interval____Zn____Au____ Ag____Cu__ Pb Drillhole____ (m)____ (m)________(m)__ (%) (g/t)__(g/t)__ (%)__(%) —————————————————————— IBDH001____117.0__ 129.0______ 12.0__ 2.7__ 1.6__ 12.8__ 0.3__0.1 —————————————————————— IBDH002____111.1__ 115.0________3.9__ 9.1__ 4.1__173.2__ 0.4__1.4 —————————————————————— The full drill results are attached hereto as Table 1.
The Iron Blow and Mt Bonnie polymetallic massive sulphide deposits are located approximately 12km to the east of GBS Gold’s Brocks Creek underground gold mine. Both deposits have been the subject of small scale historic underground and open pit mining activity. Limited exploration drilling was last carried out during the mid-1970s.
Between June and August 2008, GBS Gold completed the first phase of exploration drilling comprising six holes at Iron Blow and two holes at Mt Bonnie in order to test both the down dip continuity of the mineralization and the validity of the historic data. At Iron Blow, an initial program comprising 1,500 metres of HQ-diameter diamond core was completed in six angled holes that ranged in depth from 190 metres to 320 metres. All six holes successfully intersected massive sulphide mineralization.
Significant assay results from the first two holes are contained in Table 1 of the Attachment to this news release. Drillhole IBDH001 targeted the near-surface extremity of the deposit and drillhole IBDH002 was drilled on the same northing to establish the sectional geometry and continuity of the mineralization.
Notable observations from the initial results are:
– The Iron Bow deposit comprises multiple parallel massive- sulphide lodes;
– Assayed true widths are up to 18 metres;
– Elevated gold grades are associated with massive-sulphide mineralization together with discrete gold intervals peripheral to the massive-sulphide mineralization; and
– Logged true-widths of up to 22 metres of massive-sulphides at depth (for example, drillhole IBDH006 from which assay results are pending).
To view a map of “Iron Blow Section 10050N”, please visit the link below:
Scoping study work into the potential economics of the Iron Blow deposit will be commenced upon receipt of the outstanding assay results for the remaining drillholes.
About GBS Gold International Inc.
GBS Gold is a junior gold producer with 2.7 million ounces of Indicated Resources and 1.7 million ounces of Inferred Resources of gold at its Union Reefs Operations Centre located in the Northern Territory of Australia. GBS Gold produces gold through its 2.5Mtpa Union Reefs processing plant. The Company has recently commenced gold production at its Tom’s Gully operation and plans to develop its Cosmo Deeps underground mine in 2009-10. GBS Gold has consolidated over 3,500km2 of prospective tenements and gold deposits and also holds gold exploration properties in Western Australia. The Company trades on the Toronto Stock Exchange under the symbol “GBS”.
The drilling results and technical disclosures in this news release regarding GBS Gold’s properties were approved by Mr Alfred Gillman (F.Aus.IMM, CP), an employee of GBS Gold and a qualified person under NI 43-101.
GBS Gold manages its drilling and assaying activities in accordance with industry standard quality assurance/quality control (QA/QC) procedures. Samples are collected by GBS Gold personnel and prepared in accordance with specified procedures at the relevant assay laboratories. The primary assay laboratory is North Australia Laboratories in Pine Creek, Northern Territory. Laboratory site reviews are undertaken. Assay QA/QC involves the use of assay standards (sourced from reputable suppliers and cross-checked through umpire laboratories), field duplicates, blanks and barren quartz flushes. A third party “umpire” laboratory is used to cross- check and validate approximately 5% of the assay results. Sample coarse rejects are retained and approximately 5% of samples are re- submitted for further assay verification. All sample pulps, half- core and rock-chip samples are retained at site. QA/QC work relating to the assays reported in this news release is not yet fully complete. Initial reviews indicate that the zinc results may potentially be understated versus actual grades. Assay cross- checking by an umpire laboratory is being undertaken in accordance with standard procedures.
The Company’s mineral resources comprise indicated resources of 26.8 million tonnes at 3.1g/t for 2.7 million ounces of contained gold and inferred resources of 21.5 million tonnes at 2.4g/t for 1.7 million ounces of contained gold as set out in its technical reports (refer below) and news releases dated May 13 and July 2, 2008. The Company has filed on May 8, 2008 a technical report entitled “GBS Gold International: Burnside, Union Reefs, Maud Creek and Moline Projects, Northern Territory, Australia” dated February 2008 and authored by Jeames McKibben and Christine Standing of Snowden Mining Industry Consultants Pty Ltd and Heath Gerritsen of HG Mine Design Pty Ltd. The Company has also filed two technical reports on its Tom’s Gully project being a technical report entitled “Form 43-101 Technical Report on the Tom’s Gully Project” authored by Paul Payne of Resource Evaluations Pty Ltd dated and filed on January 14, 2008 and a technical report entitled “Technical Report on the Mineral Reserves of the Tom’s Gully Gold Mine” authored by Heath Gerritsen of HG Mine Design Pty Ltd dated December 2007 and filed on January 31, 2008.
The Company has completed feasibility studies on its Tom’s Gully and Cosmo Deeps projects, and a life-of-mine study on its operating Brocks Creek underground mine, all of which have declared mineral reserves in accordance with the above technical reports. Where the Company has not completed a feasibility or life of mine study on a particular project, there is no certainty that such project will be economically successful. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Certain disclosures in this release, including management’s assessment of GBS Gold’s plans and projects, constitute forward- looking statements that are subject to numerous risks, uncertainties and other factors relating to GBS Gold’s operation as a mineral development company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward looking statements: fluctuations in gold prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; general market conditions; the uncertainty of future profitability; and the uncertainty of access to additional capital. Full descriptions of these risks can be found in the Company’s Annual Information Form available on the SEDAR website, www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking statements. GBS Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
__________________________________________________________Attachment __________________________Iron Blow Deposit ______________________________ Table 1 __________________ List of Significant Assay Results ——————————————————————– ——- ________________ Grid Co-ordinates______Survey Data __________———————————————————- ——- Drillhole____ Local____Local__ Local__ Azi-____ Dip __________ Northing__Easting__ RL (m)__muth ——————————————————————– ——- IBDH001______9973.4__10050.7__1122.2____270____ -60 IBDH002____ 10008.3__10047.9__1123.2____270____ -60 ——————————————————————– ——- ——————————————————————– ——- ____________________________________Significant Intercepts __________———————————————————- ——- Drillhole____________ From____ To__ Inter-__ Zn________ Au____ Ag__ Cu__Pb ________________________(m)____(m)____ val__ (%)______(g/t)__(g/ t)__(%) (%) ________________________________________(m) ——————————————————————– ——- ______________________66.0__ 67.2______1.2____-________3.2______- ____-__ – ______________________67.2__ 78.0____ 10.8__0.9__________-__ 28.9____- 0.3 ______________________69.4__ 70.1______0.7____-________1.2______- ____-__ – ______________________78.6__ 78.9______0.3____-________1.5______- ____-__ – IBDH001 ____________________ 104.7__108.1______3.4__1.7________0.6____5.9__0.2__ – ____________________ 117.0__129.0____ 12.0__2.7________1.6__ 12.8__0.3 0.1 ____________________ 147.1__150.0______2.9____-________7.1______- ____-__ – ____________________ 162.7__163.6______0.9____-________1.2______- ____-__ – ——————————————————————– ——- ____________________ 104.0__115.0____ 11.0____-________2.6______- ____-__ – __________ contains__111.1__115.0______3.9__9.1________4.1__173.2__0.4 1.4 ____________________ 122.4__124.0______1.6____-________1.2______- ____-__ – ____________________ 158.6__180.5____ 21.9____-________1.5______- ____-__ – IBDH002 __________ contains__158.6__166.0______7.4__1.2__________- ____7.0__0.2 0.1 __________ contains__172.0__179.3______7.3__1.1__________- ____9.7__0.2 0.1 ____________________ 186.0__189.0______3.0__1.1__________-__ 10.7____- 0.1 ____________________ 212.6__214.0______1.4____-________1.1______- ____-__ – ——————————————————————– ——- Notes: (i)__ Results are based on 50g fire assays. (ii)__All results are from half-core NQ diameter diamond drilling (variable ______intervals). (iii) RC average grades have been calculated on a minimum 2m interval, ______0.7g/t lower cut off and no upper cut off applied, and maximum 2m ______internal dilution. (iv)__Diamond drilling average gold grades have been calculated on variable ______cut offs which are defined by ore zone contacts (generally greater ______than 2.0g/t). (v)__ All intersections are down hole intervals. (vi)__All deviations have been verified by down hole camera. (vii) Collar co-ordinates are confirmed by survey pickup.
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