SearchGold Options Gueguere Property South of Poura Mine in Burkina Faso
May 19 2009 - 9:00AM
Marketwired
SearchGold Resources Inc. ("SearchGold")(TSX VENTURE:
RSG)(FRANKFURT: S1O) is pleased to announce that it has entered
into an option agreement with Somika SARL ("Somika") to acquire a
100% interest in the 500 km2 Gueguere Gold Property ("Gueguere")
located in southwestern Burkina Faso.
The Gueguere property is located 180 km west of Ouagadougou,
Burkina Faso's capital, in the Boromo birimian greenstone belt
between the past producing Poura mine and Orezone Resources' Bondi
project. The Poura past producing mine is located approximately 35
km north-east of Gueguere and produced over 800,000 ounces of gold
before its closure in 1999. The Bondi project is located
approximately 30 km south-west of the Gueguere property and is
presently being developed by Orezone Resources Inc. which has
outlined measured and indicated resources of 4.1 million tonnes @
2.12 g/t Au for 282,000 ounces of gold.
The north-north-east trending Boromo greenstone belt consists
primarily in birimian metavolcanics and metaandesites. These
metavolcanic rocks are intruded by mafic and ultramafic plutonic
bodies and by granitoids. On Gueguere, these various formations
hosts quartz veins and are transected by numerous lineaments.
On the Gueguere property, geochemical and geophysical surveys
executed in 2003-2004 have outlined gold geochemical anomalies over
a strike length of 1,700 m and over which follow-up RC drilling in
2004-2005 confirmed significant gold grades at less than 100 m
vertical depth.
See attached figure "Gueguere Property Geology":
http://media3.marketwire.com/docs/Property_Geology_0515.pdf
- DRC007 : 15.30 g/t Au over 2 m from 14 to 16 m
- DRC004 : 13.42 g/t Au over 3 m from 59 to 62 m
- DRC002 : 1.83 g/t Au over 9 m from 56 to 65 m
- DRC013 : 1.40 g/t Au over 20 m from 2 to 22 m
No cut-off grade was reported for the calculation of the above
intersections and even though exploration drilling attempts to
intersect the mineralized structures at a high angle to determine
exact widths, the above intersections do not represent perfect true
widths.
SearchGold can acquire a 100% interest in Gueguere over three
years by meeting the following conditions:
- Paying Somika a total of $US50,002 as follows: $US2 upon
signature; $US20,000 two years after the date of signature and
$US30,000 three years after the date of signature;
- By issuing Somika a total of 500,000 SearchGold shares as
follows: 200,000 shares upon signature; 100,000 shares on the first
anniversary date; 100,000 shares on the second anniversary date and
100,000 shares on the third anniversary date;
- By incurring a total of $US800,000 in exploration expenditures
over three years ; $US200,000 during the first year ; $US200 000
during the second year and $US400 000 during the third year.
Following SearchGold's acquisition of a 100% interest, Somika
will retain a 2% Net Smelter Return (the "NSR"). SearchGold will
have the right to purchase up to half of the NSR held by Somika (or
1%) for $US500,000 per 0.5% NSR bracket, or for a total of
$US1,000,000 for 1% of the NSR held by Somika. Moreover, SearchGold
holds a right of first refusal on the remaining 1% NSR
corresponding to the second half of the 2% NSR.
The optioning of the Gueguere property from Somika represents
the continuation of SearchGold's development in West Africa, and
specifically in Burkina Faso, a country recognized for its strong
gold potential.
See figure "SearchGold Burkina Faso":
http://media3.marketwire.com/docs/Burkina_Faso_0515.pdf
High River Gold Mines Ltd. commenced production from the Taparko
gold deposit in July 2007 and three more recently outlined gold
deposits are Etruscan Resources Inc.'s Youga deposit; Semafo Inc.'s
Mana deposit and Wega Mining Inc.'s Inata deposit. Furthermore,
other historically renowned regions, such as the Poura mine,
produced over 800,000 ounces of gold confirming the country's
potential.
About SearchGold Resources Inc.
SearchGold Resources is a Canadian-based mining company
primarily focussed on gold deposits in Africa. Shares of SearchGold
Resources Inc. are listed for trading on the TSX Venture Exchange
as "RSG"; and the Frankfurt Stock Exchange as "S1O".
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: SearchGold Resources Inc. Philippe Giaro President
& CEO 32-473-52-30-29 phgiaro@skynet.be SearchGold Resources
Inc. Denis Tremblay Vice-President 1-514-866-4224
info@searchgold.ca www.searchgold.ca CHF Investor Relations Alison
Tullis Senior Account Manager 1-416-868-1079 x233
alison@chfir.com
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