TSX SYMBOL: BGI
AUGUST 20, 2003 - 09:32 ET
Bui District Drill Program Proceeding Swiftly
Birim Goldfields Inc. (BGI: TSX) ("Birim") is pleased to announce that it has finalized the sale of the Dunkwa Property, which includes the Mampon gold deposit, to Golden Star Resources Ltd. ("Golden Star") for US$3.4 million and a sliding scale net smelter return ("NSR") royalty varying between 2.0 and 3.5 percent dependent upon the gold price. Further details relating to the transaction were outlined in the April 16, 2003 news release.
"The sale of the Dunkwa Property allows our shareholders to quickly realize the value from the Mampon deposit and, if economics warrant, the numerous other gold deposits and occurrences on the Dunkwa Property which Birim has outlined over past exploration campaigns" said Mr. Denis Simoneau, President and CEO of Birim. "The sliding scale NSR royalty will provide our shareholders leverage towards future increases in the gold price. We look forward to a long and mutually beneficial relationship with Golden Star."
Golden Star has indicated that it intends to mine the oxide portion of the Mampon gold deposit by open pit methods, processing the ore at its Bogoso milling facilities located to the immediate south of the Dunkwa property. Golden Star has identified a 0.24 million ounce probable gold reserve at the Mampon and Opon deposits and measured and indicated resources of 1.03 tonnes grading 2.92 grams per tonne gold along with indicated resources of 4.25 tonnes at 2.89 grams per tonne gold. The Mampon deposit remains open to depth. Development of road access from the Bogoso mill through the Dunkwa property to the Mampon deposit will improve the viability of smaller mineralized gold deposits already identified in the area including the recently discovered Mansiso gold prospect.
Proceeds from the transaction will be used to fund Birim's exploration activities on its 7,000 square kilometer, 100%-owned Bui District properties in Ghana. The Company is presently in the midst of a 5,000-meter reverse circulation drill program targeting a number of large, kilometer-scale gold anomalies identified during previous Birim exploration programs. Drilling on the 2,000 meter by 500 meter Namasa gold-in-soil anomaly has been completed and drilling is presently focused on the 10-kilometer long Brohani gold-in-soil anomaly. Tarkwaian quartz-pebble conglomerates similar to those found at Tarka also underlie both the Namasa and Brohani anomalies. Upon completion of the Brohani area program, drilling will commence on the Tombe-Parabu gold-in-soil anomaly, underlain by Birimian (Ashanti-style) metasediments. Assays for the Brohani area drilling are expected shortly and results will be reported on a timely basis.
FOR FURTHER INFORMATION PLEASE CONTACT: Birim Goldfields Inc. Denis Simoneau President (514) 393-8611 or 1-800-721-8611 (514) 393-1158 (FAX) Email: [email protected] Web site: www.birim.com