Red Back finding gold at Boin Valley (November 14, 2005)

The Boin Valley prospect in western Ghana is proving to be a promising one for new producer Red Back Mining (RBI-T, RBIFF-O), as a drill program continues to intersect wide mineralized zones.

After drilling 26 reverse-circulation drill holes at the prospect, 80 km southwest of the company’s Chirano gold mine, Red Back has outlined a 400-metre strike length of mineralized reef structure based on results from 11 of the holes. The mineralized intersections range from 3 to 33 metres in length, with most between 8 and 17 metres long.

The gold grades are typically 1 to 3 grams per tonne, with the best results including 30 metres grading 1.9 grams per tonne, 21 metres grading 2.6 grams per tonne, and 33 metres grading 2.1 grams.

The mineralization is open along strike, and is in silicified and pyritized zones near the contact between volcanic and sedimentary rocks of the Birimian series. The structures dip steeply to the northwest and are near the strike extension of a major regional structure that hosts both Chirano and AngloGold Ashanti‘s (AU-N, AGD-L) Bibiani gold mine.

Deep drilling below ore zones at Chirano has also been successful. A diamond drill hole drilled below the limit of the Obra pit intersected a 92-metre interval that graded 1.8 grams gold per tonne. One hole beneath the Tano pit intersected 50.4 metres grading 6.3 grams gold per tonne, while a second intersected two zones, one of 1.2 metres grading 6.9 grams and another of 4.9 metres grading 1.4 grams per tonne.