Gold found beyond Sorowar pit in Papua New Guinea

Vancouver — Reverse-circulation drilling by Simberi Gold (SAU-V) has intersected high gold grades from the surface of the Sorowar deposit in Papau New Guinea.

Many of the significant gold intercepts occurred in holes outside the current pit design.

Sorwar is one of seven oxide gold deposits on Simberi Island. The mining lease is held in a 50-50 joint venture with Nord Pacific (NORPF-PS).

A 2003 feasibility study outlined proven and probable reserves of 4.8 million tonnes grading 1.16 grams gold per tonne, or 179,000 oz., which is potentially minable from a 700-metre-long pit.

Since July, 52 infill and stepout RC holes (4,300 metres) have been drilled in the oxide zone to test the strike extensions on the flanks of the gold resource and the extent of high-grade feeder zones. Highlights include the following:

— hole 881 — 1.4 grams gold over 101 metres;

— hole 886 — 120 grams gold over 1.73 metres;

— hole 887 — 2.1 grams gold over 100 metres; and

— hole 888 — 4.06 grams gold over 100 metres.

Holes 884 to 887 were drilled in the southern portion of the proposed pit, whereas holes 886 and 887 were near the edge. Hole 888 was drilled outside and west of the southern portion of the proposed pit, and intersected an oxidized envelope over its entire length.

The oxide deposit overlies an epithermal gold-sulphide system.

The company plans to mine and process all the material from the Sorowar pit (including the inferred resources), owing to the extensive background oxide gold mineralization in the proposed pit. This would account for another 13,000 oz. gold.

A re-estimation of the resource and re-design of the pit will likely increase production forecasts, and the mine life.

Simberi can earn an additional 1% interest in the joint venture, in which it already has a half-stake, by arranging project financing.