August 8, 2012
Bisha Updated Operating Outlook
Bisha Mining Share Company (BMSC) is pleased to announce it has increased its total 2012 gold production forecast to 280,000 – 300,000 ounces from its previous target of 240,000 – 260,000 ounces. This is compared to guidance of 190,000 to 210,000 ounces provided in February 2012.
The improved outlook is attributable to continuing unusually high gold grades encountered in a portion of the oxide zone that is the interface between the gold oxide and copper supergene zones, commonly termed the acid domain. The variable high grades, which are expected to persist until September, when mining of the acid zone will be complete, could not be fully included in the July 2012 mineral reserves update because drill hole core recovery from the acid domain was sporadic and the core was difficult to assay.
BMSC cautions that the competency of the material in this interface zone is poor and requires sophisticated stockpile blending to facilitate successful processing and recovery of the precious metals. In addition, the combination of both a clay-like and sandy composition of the acid material leads to challenging daily ore control sampling, making it difficult to predict grades. The associated gold grade is highly variable and includes both very high and low grades.
Mining of the Harena deposit will begin in August. Ore from Harena will be processed at the Bisha plant. Once oxide gold production is completed, the carbon-in-leach plant will be mothballed such that it can be restarted should more oxide deposits be discovered in the Bisha vicinity.
The Company completed its 13,500 meter exploration drill program at the North West Zone, which lies 3 km from the Bisha deposit, and expects to release a resource estimate in the first half of 2013.
Forward Looking Statements: The above contains forward-looking statements regarding future gold production, future gold recoveries, and gold production grades. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimates,” “potential,” “possible” and similar expressions, or statements that events, conditions or results “will,” “may,” “could” or “should” occur or be achieved. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors. The Company’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made and the Company assumes no obligation to update such forward-looking statements in the future.
Bisha Mining Share Company
“Cliff T. Davis”
Cliff T. Davis