DSM Drills Good Holes & Outlines Extensive Gold Belt
TORONTO, ONTARIO--
DESERT SUN MINING CORP. (TSX.V:DSM) is delineating a major gold
district at Jacobina, State of Bahia, Brazil, along what has long
been recognized as an extensive geological belt. Phase I of the
program comprised twelve NQ diamond drill holes, totaling 2,247
metres, in six initial target areas on DSM's large property
position. Significant results have been obtained on all six of
these target areas. This press release reports the results of the
first six holes in three of the targets, namely the Serra do
Corrego, Morro do Cuscuz and Joao Belo Sul. These targets are
from 2 to 8 kilometres from the existing Jacobina plant. The
drill results, combined with the previous data and drilling at
the Joao Belo and Itapicuru mines, indicates a continuous
mineralized zone up to 10 kilometres long of low grade,
potentially economic material within 50-60 metres of surface,
ideal for bulk open pit mining. Although the current drill
program consists of shallow holes (less than 100 metres true
depth), historical drilling and data from this belt indicates the
system runs to a depth of atleast 500 metres.
The Company's work to date has also generated a substantial
increase in the number of known mineralized zones both along
strike from the original mining area and in other parallel areas
within the geological belt. DSM is now mapping and sampling the
numerous workings of local miners, known as garimpos, (358 at
last count) which trace the favorable horizons for up to 100
kilometres along the zones that are being collectively labeled
the Bahia Gold Belt.
"The results are encouraging and confirm that we have a
continuous, potentially economic large gold belt on our hands
that has tremendous upside potential. Previous scoping studies by
SRK Consultants confirm that, partly due to the present
favourable currency rates in Brazil, we can mine the existing
reserves at below U.S. $190 per oz cash cost. The additional
expansion of the belt means we may be able to start open pit
mining earlier and enhance economics further," said Gerry
McCarvill, Chairman of DSM. "In light of the new results, we are
in the process of retaining a large consulting firm for a
pre-feasibility study on Jacobina and we also plan to
significantly expand the drilling program".
The emerging geological picture is one of extensive and
repetitive sequences of wide horizons of steeply dipping
sedimentary rocks hosting low-grade gold mineralization of
sedimentary origin. However, DSM is recognizing that within these
beds are high-grade zones that are related to structural features
such as shearing and faulting. The gold in these zones show
characteristics of a hydrothermal origin, suggesting that there
was a secondary influx, or remobilization, of gold along major
zones through the rocks. This zone of hydrothermal overprinting
extends for over 100 kilometres.
This has major implications for the property as it could likely
yield several lower grade, bulk mineable orebodies, similar to
the existing Joao Belo open pit and underground mine, as well as
several high grade, selective mining operations like the
Itapicuru and Canavieiras mines. These three mines produced
approximately 700,000 ounces of gold until their closure in 1998
due to the then extremely low gold prices coupled with a strong
Brazilian currency. These mine zones currently host all of the
1.4 million ounces of measured and indicated mineral resources
and most of the 2.2 million ounces of inferred mineral previously
referenced by DSM.
This press release reports on results of six holes along a
portion of the Bahia Gold Belt's westernmost stratigraphic
horizons, the Serra do Corrego Formation, which hosted the Joao
Belo and Itapicuru mines. Three target areas had been selected
for drilling, namely; Joao Belo Sul, located 2 kilometres south
of the Joao Belo mine; and the Serra do Corrego and Morro do
Cuscuz targets, about 5 kilometres to the north and quite close
to the existing 3,000 tonne per day processing plant.
Major New Extension of Joao Belo Mine
Two holes, totaling 266 metres, were drilled in the current drill
campaign. JBA-292 was drilled 100 metres south of a hole drilled
several years ago that returned 2.03 grams gold per tonne over
9.1metres true width, and JBA-293 was drilled 350 metres north of
this hole.
JBA-292 intersected 3.75 grams gold per tonne over a true width
of 14.6 metres at a depth of about 69 metres below surface. This
intersection included a high-grade section of 10.62 grams gold
per tonne over 3.6 metres true width.
JBA-293 returned 1.69 grams gold per tonne over a true width of
11.4 meters at a depth of about 94 metres below surface with a
higher grade section of 3.68 grams gold per tonne over 2.8 metres
true width. Both intersections in JBA-292 and 293 correlate well
with surface exposures of the quartz pebble conglomerates that
have garimpos along the horizon and are in the same stratigraphic
units as the reefs previously mined at Joao Belo. This work
establishes more than a 3 kilometre horizontal continuity of the
favorable horizon from the Joao Belo open-pit. The underground
workings and drilling at Joao Belo, which extended down to 500
metres below the surface, give an indication to the down-dip
potential of these rock units. The horizon was still open at the
base of the Joao Belo mine.
The mineralized horizons intersected in the holes at Joao Belo
Sul continue to the south for an additional 9 kilometres of
strike length to the Campo Limpo area. Eight wide spaced holes
were previously completed over a strike length of 1000 metres at
Campo Limpo in the 1980's that returned several significant
results including 3.76 grams gold per tonne over 9.5 metres true
width and 2.65 grams gold per tonne over 7.4 metres true width.
Potential Major Open Pittable Zone Identified Near Plant
Serra do Corrego, located 2 kilometres north of the processing
plant, is a 900 metre long target zone. Here the reefs form a
zone approximately 50 metres wide with extensive garimpos on the
surface. Previous drilling focused on the higher-grade portions
in the footwall and hanging wall of this zone. Three holes
totaling 362 metres were completed to test the grade of the wider
zone.
SCO-82 returned 1.29 grams gold per tonne over 36.5 metres true
width at an approximate depth below surface of 40 to 50 metres.
This intersection included a high-grade portion grading 17.52
grams gold per tonne over 1.8 metres true width or 9.76 grams
gold per tonne over 3.4 metres true width.
Hole SCO-80, drilled 50 metres north of SCO-82, returned 0.85
grams gold per tonne over 36.0 metres true width including 4.26
grams gold per tonne over 4.2 metres true width. Hole SCO-81
drilled a further 100 metres north returned 1.66 grams gold per
tonne over a true width of 6.1 metres.
The third target area, Morro do Cuscuz is located approximately
300 metres north of the plant in the Itapicuru mine area. Work by
DSM identified a 300 metre gap in previous drilling into horizons
that are the southern continuations of the same units as at Serra
do Corrego. This target was tested by one 208 metres long hole.
MCZ-78 intersected 0.76 grams gold per tonne over 50.8 metres
true width including 6.98 grams gold per tonne over 4.0 metres
true width.
These results from drilling at Serra do Corrego and Morro do
Cuscuz clearly demonstrate that there is excellent potential for
defining significant open pittable resources in the reefs which
are typically 40 to 50 metres wide. This would apply not only
within a few kilometres of the plant but also elsewhere along the
30 kilometre strike length. Previous mining focused only on the
higher grade portions of the rock units and the bulk mining
potential has not been evaluated.
Dr. Bill Pearson, Vice President of Exploration added, "I am very
excited about these results. It is clear that we have identified
an emerging gold camp which has the potential to host substantial
open pittable as well as higher grade underground gold deposits.
We have just scratched the surface with this program but our
understanding of the geology and controls on mineralization has
significantly increased."
Assaying for the program was carried out by Lakefield Geosol, an
ISO 9002 laboratory based in Brazil, using fire assay on 50 gram
pulps. Check assaying is routinely carried out, by ALS Chemex in
Vancouver, on 10% of sample pulps and 5% of sample rejects.
Security is maintained at the core logging and sampling facility.
Dr. Bill Pearson, P.Geo. is the Qualified Person as defined under
National Instrument 43-101 responsible for the scientific and
technical work on the program.
Results are still pending for some of the drill hole and surface
samples for the Canavieiras, Maneira and Rio Coxo areas and these
results will be released in February. Further results on work in
the North Area will be released when additional ground
acquisition is completed.
/T/
TABLE OF SIGNIFICANT DRILLING RESULTS
Hole No. From (m) To (m) Gold (g/t) Interval True Width Depth Below
(m) (m) Surface*(m)
JOAO BELO SUL
JBA-292
Dip -58 deg. 104.75 121.20 3.75 16.45 14.6 69
incl. 108.32 121.20 4.46 12.88 11.5 70
incl. 112.71 121.20 6.15 8.49 7.6 72
incl. 115.24 119.29 10.62 4.05 3.6 72
JBA-293
Dip -57 deg. 35.23 36.47 4.92 1.24 1.1 45
94.07 106.55 1.69 12.48 11.4 94
Incl. 103.48 106.55 3.68 3.07 2.8 96
SERRA DO CORREGO
SCO-80
Dip -61 deg. 30.85 33.24 0.97 2.39 2.1 25
59.44 101.32 0.85 41.88 36.0 51
incl. 62.80 67.62 4.26 4.82 4.2 42
SCO-81
10.60 16.82 2.23 6.22 5.8 15
Dip -49 deg. 85.18 91.70 1.66 6.52 6.1 61
Incl. 90.20 91.70 4.99 1.50 1.4 63
SCO-82
Dip -65 deg. 30.25 75.32 1.29 45.07 36.5 39
incl. 60.68 62.95 17.52 2.27 1.8 49
incl. 60.68 64.85 9.76 4.17 3.4 50
97.90 100.33 1.00 2.43 2.0 77
MORRO DO CUSCUZ
MCZ-78
Dip -41 deg. 27.41 190.80 0.76 163.83 50.8 56
incl. 170.51 183.25 6.98 12.74 4.0 87
incl. 170.51 189.64 5.04 19.13 5.9 90
* depth calculated based on midpoint of intersection
/T/
Desert Sun Mining is a Canadian gold exploration and development
company listed on the TSX Venture Exchange.
(www.desertsunmining.com).
NOTE: A map is available on CCNMatthews' website at:
172.26.6.82
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Desert Sun Mining Corp.
Mark Brennan
(416) 364-2266 or 1-877-600-6001
or
Desert Sun Mining Corp.
Kam Gill
(416) 861-0341 or 1-866-477-0077
(416) 861-8165 (FAX)
www.desertsunmining.com
The TSX Venture Exchange has not reviewed and does not accept
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