GBS Reports Record Second Quarter Gold Production

Tag : yellow hg

TORONTO, ONTARIO -- (MARKET WIRE) -- 07/15/08 -- GBS GoldInternational Inc. ( TSX:GBS ) ("GBS Gold" or the "Company") is pleased to report record goldproduction during the second quarter from its Union ReefsOperations Centre in Australia's Northern Territory (C$ representsCanadian dollars, A$ represents Australian dollars and US$represents United States dollars):
Gold production increased by 34% to 35,259 ounces for the June 2008quarter from the milling of 622,100 tonnes of ore at an averagehead grade of 1.9 g/t and processing recovery of 93.1%. The higherthroughput represents a 44% increase from the previous quarterreflecting improved utilization of the Union Reefs plant followingcommissioning of the second milling circuit. During the quarter,ore was sourced from the Brocks Creek underground mine, theFountain Head and Chinese "big pit" area open pits, and fromhistoric low-grade stockpiles.
Development work is progressing well at the Tom's Gully mine sitewith the underground decline having been extended into the mainBlock 2 part of the orebody, and ore being stockpiled on surfacefor processing. Commissioning activities within the Tom's Gullyplant have commenced, with final "wet" commissioning expectedtowards the end of this month. Production will commence shortlythereafter, and is expected to increase over the balance of 2008.GBS Gold remains on track to meet its 2008 production guidance of130,000 ounces.
During the June quarter, the Company sold 32,641 ounces of goldinto the spot market for an average price of A$951/ounce(US$897/ounce). Cash holdings currently total approximately C$20million.
GBS Gold plans to release its second quarter financial results andMD&A on August 12, 2008.
Mr. Gil Playford, Chairman of GBS Gold, commented: "The significantincrease in gold production in the second quarter reflects theoperating strategy implemented earlier in the year to improveutilization of the existing capacity of the Union Reefs plant inorder to maximize operating cashflows. We are targeting furthercapacity utilization increases and the results achieved to date areattributable to the excellent efforts of our staff and contractorpersonnel."
About GBS Gold International Inc.
GBS Gold is an emerging gold producer with 2.7 million ounces ofIndicated Resources and 1.7 million ounces of Inferred Resources ofgold at its Union Reefs Operations Centre located in the NorthernTerritory of Australia. GBS Gold produces gold through its moderndual-mill 2.5Mtpa Union Reefs processing plant. The Company expectsto commence production at its Tom's Gully operation in 2008 and atits Cosmo Deeps operation in 2010 to increase production to anannualized rate of 250,000 ounces, and to subsequently commenceproduction from the Maud Creek refractory gold project to furtherincrease gold production from the Union Reefs Operations Centre to300,000 ounces per year. The Union Reefs plant is adjacent to themain Stuart Highway and the trans-continental Adelaide-Darwinrailway line, and is on the Northern Territory power grid. Within125km trucking distance of the Union Reefs plant, GBS Gold hasconsolidated over 3,500km(2) of prospective tenements and golddeposits and also holds gold exploration properties in WesternAustralia. GBS Gold trades on the Toronto Stock Exchange under thesymbol "GBS".
The Company's mineral resources comprise indicated resources of26.8 million tonnes at 3.1g/t for 2.7 million ounces of containedgold and inferred resources of 21.5 million tonnes at 2.4g/t for1.7 million ounces of contained gold as set out in its technicalreports (refer below) and news releases dated May 13 and July 2,2008. The Company has filed on May 8, 2008 a technical reportentitled "GBS Gold International: Burnside, Union Reefs, Maud Creekand Moline Projects, Northern Territory, Australia" dated February2008 and authored by Jeames McKibben and Christine Standing ofSnowden Mining Industry Consultants Pty Ltd and Heath Gerritsen ofHG Mine Design Pty Ltd. The Company has also filed two technicalreports on its Tom's Gully project being a technical reportentitled "Form 43-101 Technical Report on the Tom's Gully Project"authored by Paul Payne of Resource Evaluations Pty Ltd dated andfiled on January 14, 2008 and a technical report entitled"Technical Report on the Mineral Reserves of the Tom's Gully GoldMine" authored by Heath Gerritsen of HG Mine Design Pty Ltd datedDecember 2007 and filed on January 31, 2008.
The Company has completed feasibility studies on its Tom's Gullyand Cosmo Deeps projects, and a life-of-mine study on its operatingBrocks Creek underground mine, all of which have declared mineralreserves in accordance with the above technical reports. Where theCompany has not completed a feasibility or life of mine study on aparticular project, there is no certainty that such project will beeconomically successful. Mineral resources that are not mineralreserves do not have demonstrated economic viability.
Certain disclosures in this release, including management'sassessment of GBS Gold's plans and projects, constituteforward-looking statements that are subject to numerous risks,uncertainties and other factors relating to GBS Gold's operation asa mineral development company that may cause future results todiffer materially from those expressed or implied in suchforward-looking statements. The following are important factorsthat could cause the Company's actual results to differ materiallyfrom those expressed or implied by such forward looking statements:fluctuations in gold prices and currency exchange rates;uncertainties relating to interpretation of drill results and thegeology, continuity and grade of mineral deposits; uncertainty ofestimates of capital and operating costs, recovery rates,production estimates and estimated economic return; general marketconditions; the uncertainty of future profitability; and theuncertainty of access to additional capital. Full descriptions ofthese risks can be found in the Company's Annual Information Formavailable on the SEDAR website, www.sedar.com . Readers are cautioned not to place undue reliance onforward-looking statements. GBS Gold expressly disclaims anyintention or obligation to update or revise any forward-lookingstatements whether as a result of new information, future events orotherwise.


The TSX does not accept responsibility for the adequacy or accuracyof the information contained herein.