Trading Symbol: TSX-V:RGZ
TORONTO, April 19 /CNW/ - Randsburg International Gold Corporation
(TSX-V:RGZ). On August 9, 2006, the British Columbia Securities Commission
(the "BCSC") issued a cease trade order prohibiting trades in the Company's
securities (the "Order"). The Order was issued by the BCSC because of issues
raised during a continuous disclosure review of the Company's disclosure
The Company is issuing this news release to clarify and, where necessary,
correct previous information it has disclosed regarding its Titan and Victory
THE TITAN PROJECT IN ONTARIO
The Titan Project is an iron-titanium-vanadium project. Concurrently with
the issuance of this news release, the Company is filing an NI 43-101 report,
concerning the Titan Project on SEDAR. The report can be viewed by the public
by going to www.sedar.com and reviewing the Company's public filings.
The report (the "MDA Report"), titled "Technical Report, Titan Project,
Ontario Canada, dated November 7, 2006, and revised February 12, 2007", was
authored by Neil Prenn, P. Eng. of Mine Development Associates (Reno, Nevada)
("MDA"). MDA stated that only inferred resources can be calculated for the
project since the drill holes have not been surveyed and the recovery of
saleable products and economics of the project have not been defined. The
inferred resources for the project total 49.0 million tones grading 48%
Fe(2)O(3) (iron oxide), 14.8% TiO(2) (titanium dioxide), and 0.24% V
(vanadium) (the "New Estimate"). The new estimate was prepared at a cut-off
grade of 40% Fe(2)O(3) and a specific gravity of 4.29 g/cm3.
The New Estimate was prepared November 7, 2006 and used the following
methodologies and key assumptions: Grades for Fe(2)O(3), TiO(2), and V were
interpolated by ordinary kriging into 5 x 5 x 10 metre blocks from 10 metre
composites from mineralized zones. These kriged block grades were compared to
grades estimated by inverse distance methods and were essentially the same
globally. A minimum of one composite and a maximum of nine composites were
used to interpolate grades. Since the economics and recoveries of the
different materials contained in the mineralized zone have not been defined
all of the material estimated within the high-grade mineralization boundary
(approximately a 40% Fe(2)O(3) cutoff grade) and within the variogram range of
108 metres from a composite has been defined as an inferred resource.
In its April 28, 2006 news release, and in subsequent disclosure such as
that on its website, in public documents including its MD&A for the year ended
January 31, 2006 and in published advertisements for the Company, the Company
announced that the Titan Project had a 58 million tonne iron-titanium-vanadium
indicated mineral resource estimate for Titan consisting of 40 million tonnes
grading 11.41% TiO(2) (titanium dioxide), 25.86% Fe(2)O(3) (iron oxide) and
0.188% vanadium, and 18 million tonnes grading 6.86% TiO(2), 41.70% Fe(2)O(3),
and 0.092% vanadium (collectively, the "Titan Estimate").
The Titan Estimate was not supported by an NI 43-101 compliant technical
report. The Company's disclosure overstated the resource category and did not
comply with other requirements of NI 43-101. As such, the April 2006 Titan
Estimate should not be relied upon and the Company retracts this Titan
The MDA Report concludes that the next phase of work should concentrate
on the metallurgy of the deposit. Testing utilizing both Altairnano's new
technology and conventional technology should be completed. The metallurgical
program should be designed by an independent metallurgist after reviewing the
data. The drill holes and project area should be surveyed to obtain more
accurate drill hole coordinates and site topography. A surface geologic map
should be completed utilizing methods to clear the soil and till to expose the
surface geology where required. Additional surface drilling should be
completed in open areas. This work should lead to a preliminary assessment of
the Titan Project.
The Company notes that readers should not rely upon its previous
disclosure of recovery from use of the Altairnano technology as those results
were preliminary in nature and the disclosure overstated the significance of
the test results by suggesting these figures related to the extraction of the
metals. The Altairnano technology only tested the amount of the material
dissolved and not how much could be extracted or recovered as a saleable
Additional testing, as the MDA Report concludes, needs to be completed
before conclusions are drawn.
The Company has, concurrently with the filing of this news release and
the MDA Report, filed a material change report summarizing the New Estimate
and also directing readers to the MDA Report as filed on SEDAR.
GoldInsider, an industry newsletter, prepared and disclosed an economic
analysis of the Titan Project (the "Preliminary Assessment"). The Preliminary
Assessment was not prepared or reviewed by a Qualified Person as that term is
defined under NI 43-101 and was not supported by an NI 43-101 compliant
report. As a result, the Preliminary Assessment should not be relied upon by
readers. GoldInsider was acting on behalf of the Company when it prepared and
disclosed the economic analysis. As such, the Company's disclosure of the
Preliminary Assessment through GoldInsider did not include required cautionary
statements, was based on inappropriate assumptions and analysis and did not
comply with the other requirements of NI 43-101. The Company retracts the
preliminary assessment and advises the public not to rely upon it.
In addition, the Preliminary Assessment prepared by GoldInsider included
an estimate of exploration potential that was not prepared or reviewed by a
Qualified Person, was not supported by an NI 43-101 compliant report and was
based on inappropriate assumptions and analysis and should not be relied upon.
Neil Prenn, P. Eng., a Qualified Person as that term is defined under
NI 43-101, has reviewed the contents of this news release as they relate to
the Titan Project and to the MDA Report.
THE VICTORY STRIKE DIAMOND PROJECT IN BRAZIL
The Victory Strike Project is a diamond exploration project located in
Brazil. Randsburg is carrying out exploration through an 85%-owned subsidiary
Diadem Mineracao Ltda. (Diadem). Diadem commenced acquiring ground near
Ipameri, Goias State in 2003 and currently holds 30 contiguous claims with an
aggregate area of 526.6 km(2).These properties are wholly owned by Diadem. The
area in southern Goias is on the westerly continuation of a field of alkaline
ultrabasic intrusions that include a large number of kimberlite diatremes.
In its previous news releases disclosing the results of its sampling
efforts on the Victory Strike property, the Company did not in some instances
report full sample weights and numbers. In future the Company will report
sample size and weights in conformity with CIM best practice guidelines. The
Company is reporting sample sizes and weights below with respect to core
drilling undertaken in 2006. In order to comply with NI 43-101 and CIM best
practice guidelines with respect to future disclosure, the Company has reached
an agreement with an experienced diamond exploration geologist to act as the
Company's Exploration Manager and to oversee the Company's exploration at
Victory Strike. The agreement to retain this person is subject to resumption
of trading in the Company's securities and to the Company securing additional
funding. In addition, all technical and geological disclosure will be reviewed
and approved by a Qualified Person, in accordance with NI 43-101, prior to
Since acquiring the Victory Strike project, Randsburg has completed an
airborne magnetic survey using Sander Geophysics Limited. The survey was
managed and interpreted by Dr. A. Spector, an independent geophysical
consultant based in Toronto. Some 70 anomalies were outlined at that time.
Randsburg has completed a diamond drilling program using Boart Longyear
Geoserv. The company completed 27 NQ-size diamond drill holes for an aggregate
depth of 3,874.9 m. Randsburg has tested 17 anomalies. This drilling
identified eight diatremes and petrographic studies by Dr. G. Sinclair of
Toronto have confirmed the presence of kimberlite or olivine melilitite in all
of these. Parts of the core recovered were weathered and friable, and amenable
to treatment through an elutriator. It should be understood that this is a
non-standard recovery process. Small diamonds have been identified in three of
the diatremes but caution is advised in interpreting the results. All of the
diamonds recovered are smaller than 0.85 mm and have no commercial value.
Hole Anomaly From To Length Sample No. of
No. (m) (m) (m) weights Diamonds
VS-06-09 A44 146.7 149.1 2.7 24 1
VS-06-13 A47 25.5 30.0 4.5 50 27
VS-06-27 A40 191.5 192.3 0.8 5 1
The diamonds tabulated above are the only diamonds located by Randsburg
to date that are specifically related to a kimberlite bedrock source.
The Company intends to send samples of its core drilling for caustic
fusion to an accredited laboratory for further analysis.
The soil auger programs have yielded a number of diamonds but it is
unclear whether any of the reported diamonds have been derived from a magnetic
or potentially kimberlitic source on or immediate to the Victory Strike
project. Randsburg considers that the presence of diamonds in soil adjacent to
magnetic anomalies is encouraging in an exploration sense.
The BCSC has raised with the Company a number of concerns regarding
disclosure of exploration results for Victory Strike.
These concerns are as follows:
1. Disclosure of Diamond Exploration Results used the terms "micro" and
"macro" diamonds without defining these terms.
CIM Guidelines for the Reporting of Exploration Results have dropped the
distinction between the terms "micro" and "macro" and have adopted
recommendations that companies report diamond exploration results as the
number and total weight of each size class using a standard progression
of sieve sizes. As the use of the terms "micro" and "macro" to describe
diamonds is no longer industry standard, the Company advises that its
previous disclosure using these terms should not be relied upon.
The Company's descriptions of diamonds recovered did not include
description of characteristics such as crystal habit, colour, resorption
and breakage as recommended by CIM Guidelines. As a result, the Company
advises that its previous disclosure may have been incomplete and was not
in accordance with present industry standards and guidelines.
2. Disclosure of bedrock source of diamonds:
Randsburg has been carrying out soil auger programs to differentiate
various airborne magnetic and other targets. The purpose of the work is
to identify the presence or absence of diamonds within or adjacent to the
identified targets. Randsburg has not exhaustively separated all of the
diamonds in each soil sample. The relatively small sample size and the
planned use of the information were considered to make the requirement to
separate and report full sample weights and numbers unnecessary and not
useful. The objective of this work was solely to establish the presence
or absence of diamonds.
Randsburg has reported that diamonds recovered in soil sampling were from
non-kimberlitic bedrock sources. While a number of diamonds have been
recovered from layers below the present soil layer, they may be related
to regolith material. The land surface in northwestern Minas Gerais and
southeastern Goias States and the Victory Strike Project is relatively
There is a long history of weathering that is not well understood. The
host rocks to the Cretaceous diatremes are Proterozoic rocks and are
unlikely to be a source of diamonds.
Further, from May 2005 through January 2006 the Company disclosed that a
bedrock source of diamonds found on the Victory Strike Project was an
eclogite. The initial use of the term "eclogite" was a field term used to
identify weathered rock. As field work progressed, cobble-sized pieces of
rock located in the area were also identified as eclogite. The use of the
term eclogite in both cases has been found to be in error and its usage
has been discontinued. Since April of 2006, the Company disclosed that
the possible sources of diamonds found on the Victory Strike Project are
adjacent kimberlite pipes.
Previous disclosure concerning the eclogite should not be relied upon and
readers should be aware that:
(i) the use of the term "eclogite" was incorrect;
(ii) material identified as eclogite may have been free-floating; and
(iii) the material previously identified as eclogite may possibly not
have been the source of all of the diamonds found in the vicinity
of the Victory Strike Project.
3. Quality Control/Quality Assurance and Security
Randsburg has, in the past, had a number of procedures in place to ensure
security in the field but these procedures need to be revised and
Only employees handle samples. Field parties are always accompanied by
members of the Brazilian police force. The reason for the police presence
relates to previous problems with land-owners but the presence of police
keeps non-company personnel away from the field activity.
All of the company's sample treatment activities take place within a
locked compound. Randsburg has treated its soil samples internally. While
the treatment facilities have been designed in-house, the methodologies
are standard for the treatment of diamond samples at this stage of
exploration. No parties owning an interest in the Victory Project handle
the samples prior to or during treatment.
'Spiking' is used to test the efficacy of the treatment process, the
training of Randsburg personnel and the recovery process and has worked
The company's Qualified Person, Dr. R. Ken Germundson, maintains
supervision of the field parties on a regular basis.
With the appointment of an experienced diamond exploration geologist as
the Company's Exploration Manager, the Company is undertaking to conform
to best industry practices as set out in CIM guidelines.
The Exploration Manager will be responsible for assuring that data
verification, quality assurance/Quality control and sample procedures
will be followed according to best industry practices., In addition, the
Company has retained an independent consulting geological firm, with
extensive experience in diamond exploration, to prepare a technical
report in accordance with NI 43-101. A representative of this firm
visited the Victory Strike property in February, 2007 and has reviewed
the Company's exploration results to date.
Dr. R. Ken Germundson, a Qualified Person as that term is defined under
NI 43-101, has reviewed the contents of this news release as they relate to
the Victory Strike Project.
On behalf of the Board of Directors of
Randsburg International Gold Corp.
President and Chief Executive Officer
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. Copyright, 2007 Randsburg International Gold
Corporation. This news release can be reproduced and retransmitted in
whole, with no changes permitted, and providing it is supplied and made
available without charge to the end reader.
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