Thursday, 22nd December 2005 (3006 views)

Canadian gold mining company Desert Sun is in high spirits after finding more yellow metal at its Bahia gold belt properties in Brazil.

Inferred resources now contain 3.03 million ounces of gold.

This is a substantial increase on December 2004, when Desert Sun said its inferred resources in the area contained just 1.9 million ounces of gold.

Desert Sun says the discovery could mark a pivotal point in its development.

"This increase in resources is significant in terms of Desert Sun's future growth prospects," asserted president Bruce Humphrey.

Inferred gold resources can never be completely relied upon but the company is confident it can turn the find into indicated resources.

"Based on historical and recent experience, Desert Sun has a proven track record of successfully converting about 75 percent of inferred resources into indicated resources by further drilling," explained Mr Humphrey.

The company is celebrating particularly strong progress at its newly-acquired Jacobina site, which forms part of the Bahia properties.

The company has produced 55,000 ounces from the site in 2005 and expects this figure to increase to 115,000 in 2006.

 

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