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July 9, 2012

Bisha Announces Q2 Gold Production of 87,000 Ounces

 

Q2 2012 HIGHLIGHTS

  • Produced 87,000 ounces of gold (169,000 ounces year-to-date)
  • Mined 500,000 tonnes of ore at 6.04 g/t gold
  • Harena mining license granted by State of Eritrea
  • Copper plant expansion on plan for mid-2013 commissioning

Bisha Mining Share Company (BMSC) is pleased to announce strong production results of 87,000 ounces of gold for the quarter ending June 30, 2012.  Gold production in the quarter was above expectations due to higher than anticipated grades in portions of the transitional oxide zone. We reiterate our revised full year 2012 production guidance of 240,000 to 260,000 ounces of gold production however will re-evaluate in August when reviewing the full quarter financial results with the added benefit of observing July actual mining results.

A summary of the Company’s second quarter operating results are as follows:

 

Q2 2012

3 months ending June 30

Q1 20121

3 months ending March 31

Year-to-Date 2012

Six months ending June 30

Mining

 

 

 

Ore mined, tonnes

500,000

349,000

849,000

Mined grade, g/t

6.04

4.71

5.49

Waste mined, tonnes

1,658,500

1,826,200

3,484,700

Strip ratio

4.0

6.2

4.9

Copper phase prestrip, tonnes

480,600

739,000

1,219,600

Milling

 

 

 

Ore milled, tonnes

465,000

430,000

895,000

Feed grade, g/t

6.93

6.58

6.76

Processing

 

 

 

Recovery % of gold

85%

86%

86%

Gold in doré, ounces poured

87,000

82,000

169,000

Sales

 

 

 

Gold ounces sold

87,500

83,100

170,600

[1] Q1 2012 mining tonnage and strip ratio have been revised to reflect updated density tests completed in Q2.

 

The mine performed well in the quarter, with improved feed grade and mill throughput relative to the previous quarter but offset slightly by reduced metallurgical recoveries. Recovery declined as expected due to the increased transitional ore adjacent to the underlying supergene ore which requires more ROM stockpile management and blending strategies.  Waste mining to access oxide ore and pre-strip of the copper supergene progressed to plan.  Ore mining increased relative to the previous quarter in order to create sufficient buffer capacity on the ROM pad prior to the June to September rainy season. 

Harena

In early July the State of Eritrea granted a mining license for the Harena deposit, located approximately 9 km south of the Bisha plant.  Harena is a satellite VMS deposit with oxide gold and base metal sulphide ores, similar in configuration to Bisha but smaller and lower grade.  Resources and reserves for Harena will be included in the Bisha resource and reserve update in early Q3 2012.

Bisha has all the equipment on-site to commence mining operations at Harena over the remainder of this year.  The lower grade Harena gold oxide ore will be blended with the higher grade Bisha oxide, which should stabilize overall gold recovery while providing additional payable ounces.

Other Updates

The copper plant expansion continues to progress for start-up in mid 2013 and orders have been placed for equipment needed to export copper concentrate by mid-2013.

 

Forward Looking Statements: The above contains forward-looking statements regarding future gold production, future gold recoveries, future copper phase expansion and timing of copper production. Forward-looking statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,” “estimated,” “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
Chairman