MONTREAL, Jan. 6, 2005 (PRIMEZONE) -- SearchGold (TSX Venture Exchange:RSG) is pleased to report that it has finalized a US$ 1,100,000 financing. Mr. Michael Landau of Vango, SearchGold's new, New York based IR company, explained that the New York based accredited investor group sees this investment as an ideal opportunity to invest in a junior mining company so advanced in its production objectives.
Mr. Maurice Giroux expressed his enthusiasm for this latest investment in Searchgold. "It is not every day that we get approached by accredited investors whom, unsolicited, wish to invest over a million dollars in our company. It is a testament to the unrealized value of Searchgold as well as to the strong management team that will allow the company to bring to term the gold and diamond production objectives that we have been promoting through the past few years."
The proceeds of the financing will be used mainly for the completion of the Bankable Feasibility Study currently in progress on SearchGold's 90%-owned Bakoudou Gold Project in Gabon. According to Met-Chem's Scoping Study, the gold resource, at the current gold price, could generate in excess of US$25m in annual revenue.
As of now, data from a total of 800 samples are being compiled for further announcements. The drilling program has reached the heart of Zone A and wide quartz veins with visible gold have been reported from many holes.
The following schedule is anticipated for the coming months:
-- January 2005, diamond drilling resumption -- February 2005, bulk sample collection for metallurgical testing -- April 2005, gold reserve calculation and pit outlining
A positive scoping study by Met-Chem Canada Inc., outlining 170,000 ounces of gold exploitable by open pit, prompted the ongoing bankable feasibility study, which includes an 82 diamond drill hole program totaling 5,000 meters. A total of 50 holes representing 3,577 m of drilling have been completed so far. The results of the first 29 holes have been previously released and confirm the continuity and grade of the mineralization (see September 8, 13, 22 and 29, 2004, press releases). Additional fences of holes have been added to extend the deposit towards the north and west of its initial outline.
The company is also completing an extensive soil geochemistry survey covering the entire Bakoudou 2 km long structure at a 25-meter sample interval, in order to better target additional drilling.
The Bankable Feasibility Study is carried out under the direct supervision of Met-Chem Canada Inc., a world-renowned mining and engineering firm.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.