International Gold updates reserves at Bibiani

Following the completion of a feasibility study at its Bibiani gold project in Ghana this summer, International Gold Resources (TSE) has completed an additional 100 drill holes and recalculated reserves.

The measured and indicated resource is now believed to exceed 35 million tonnes averaging 2.28 grams gold per tonne, which is equivalent to more than 2.5 million oz. gold.

Proven and probable reserves are estimated at 26 million tonnes averaging 2.28 grams, which is equivalent to more than 2 million oz.

Of the resource figure, 29.4 million tonnes averaging 2.53 grams are hosted in sulphide material within the Main

zone. The measured and indicated resource in the Main zone extends to about the eighth level of the old underground workings.

Moreover, since the structure is continuous and because the old workings are known to extend down to the 12th level, International Gold concludes the Main zone may hold an additional, inferred resource of 1 million oz.

All estimates are based on a cutoff of 0.5 gram gold per tonne, except for the sulphide material in the Main zone, for which a 0.75-gram cutoff was used.

Exploration drilling is continuing on the Main zone, as well as on parallel structures.

In other news, the government of Ghana has sold an 18% interest in the Bibiani project to the Libyan Arab African Investment Company. Despite the disappointment, International Gold will remain as operator of the project and hold a minimum 45% interest.

Elsewhere in West Africa, the government of Burkina Faso has received a US$13.3-million grant from the financing arm of the European Development Fund. The grant will be used by the government to help International Gold and its partner, Echo Bay Mines (TSE), in the rehabilitation of the Poura gold mine. International Gold can rearn a 90% stake in the mine and surrounding 500 sq. km exploration licence by spending $6 million.