Good results reported from Ghana drill

Australian explorer Red Back Mining announced significant initial results from a 10 000 m reverse circulation and diamond drilling programme, which started in December 2003 at the Chirano Gold Project in Ghana.

To date 4 900 m of drilling has been completed in 32 holes and assay results have been received for 90% of the completed holes.

The purpose of the drilling is reportedly to ultimately convert currently defined Inferred Resources into ore reserves and to test Chirano mineralisation at depth to maximize the economic size of the current pits with a higher gold price applied.

Results received to date have revealed the discovery of blind, open-at-depth mineralised shoots in the Tano area, which will be captured by a $400/oz pit.

Extension of the Akoti North and Akwaaba shooted to vertical depths of 180 m and 150 m respectively.

These intersections lie within $400/oz pits and remain open at depth.

The intersection of economic mineralisation below current pit designs within the 3,5 km long main pit complex.

Upon completion of the programme, a revised resource and reserve inventory will be estimated and announced.

Results to date reportedly support management’s expectation of an increased size potential for Chirano and enhanced project economics.

As previously reported, the issuance of the Chirano mining lease is expected in March 2004.

Construction will start immediately upon issuance of the mining lease with gold production scheduled for the second quarter of 2005.