Chirano



January 2008

Gold Production

The Company had record gold production in 2007, producing 127,196 oz at Chirano and 20,812 oz at Tasiast, for total gold production of 148,008 oz. Production levels at both Tasiast and Chirano will increase in 2008 and beyond with expansions at both projects and with the development of the Akwaaba Deeps underground operation at Chirano. It is estimated that the Company will produce approximately 245,000 oz in 2008 (135,000 oz at Chirano and 110,000 oz at Tasiast). For 2009, total production is estimated at 350,000 oz upon completion of the plant expansion projects. By 2010, Red Back is aiming to produce in excess of 400,000 oz per annum from Chirano and Tasiast.

Chirano Plant Expansion

The Chirano plant expansion is progressing well with some significant milestones having been achieved during the holiday period.

Lycopodium Pty Ltd, the EPCM contractor for the original construction of the Chirano plant, has been awarded an EPCM contract for the plant expansion. The new EPCM contract covers all major work items for the expansion, including an additional ball mill and cyclone cluster, conversion of existing tails thickener to leach feed thickener, the installation of an additional elution column and electrowinning cells and upgrades to tailings pumps, reagent mixing, instrumentation and services. In late 2007, the Company purchased a new ball mill which will be shipped to Ghana from Australia in the first quarter of 2008.

It is anticipated that the Chirano plant expansion will be completed and commissioned early in the first quarter of 2009.

A separate EPCM contract has been awarded to Sandvik Mining and Construction for the upgrading of the Chirano crushing system. The installation of tertiary crushing will reduce the diameter of the ore feed to the mill, maximizing milling throughput. This installation is expected to be complete by the end of the third quarter. Additional temporary mobile crushing capacity was added at the end of 2007 to provide sufficient mill feed during the period that the new, permanent crushing circuit is constructed.

Akwaaba Deeps Development

The box cut and portal preparation for the decline development at Akwaaba Deeps is well underway with completion expected shortly. Barminco Pty Ltd, a leading Australian underground development company, has been awarded a letter of intent by the Company as the preferred contractor for the underground development at Akwaaba Deeps. Barminco is mobilizing to site, with decline development scheduled to commence in April 2008. It is anticipated that first ore from Akwaaba Deeps will be fed to the plant in the fourth quarter of 2008.

Exploration

Chirano

Drilling at Chirano is currently focused on infill drilling at Akwaaba Deeps. To date 8 holes (4,272m) have been completed with 5 holes (2,240m) remaining in the program. Recent results continue to confirm the potential of Akwaaba Deeps:

Hole

From (m)

To (m)

Length (m)

Au (g/t)

Comment

CHRC1245D

437.2

474.65

37.45

18.89

 

including

437.2

442.6

5.4

9.42

 

and

442.6

455

12.4

32.3

Black Breccia

and

455

474.65

19.65

13.04

 

CHRC1251D

550.00

586.65

36.65

13.27

 

CHDD1253

341.65

360.00

18.35

2.29

 

and

378.60

397.40

18.80

4.07

 

and

407.89

425.10

17.21

5.85

ended in mineralization

CHRC1257D

607.88

631.84

23.96

3.84

 

CHDD1262

234.00

257.10

23.10

4.23

 

and

266.60

280.00

13.40

3.39

 

and 

282.50

296.00

13.50

9.74

 

CHDD1265

399.00

457.00

58.00

9.54

 

including

428.31

439.70

11.39

30.32

 

and including

433.25

437.54

4.29

35.84

Black Breccia

CHDD1268

304.00

337.00

33.00

7.95

 

including

309.56

333.45

23.89

10.30

 

CHDD1276

386.00

413.90

27.90

18.46

 

including

391.00

394.00

3.00

49.90

Black Breccia


Note: True width is approximately 75% of drilled width.

These new results demonstrate the impressive conversion of inferred resources at Akwaaba Deeps. More significantly, this recent program has again intercepted the very high grade "Black Breccia" which appears to represent a distinct structural unit within the mineralised envelope of Akwaaba Deeps. These new intercepts will allow further detailed targeting of the "Black Breccia" towards a potential further increase in the resources and reserves at Akwaaba Deeps

A revised Mineral Resource and Ore reserve calculation for Akwaaba Deeps is scheduled for completion before the end of the first quarter 2008. Click here to go back

Akoti Extended & Akoti North Drill Results

Pit

Hole

From

To

Metres

Au g/t

Akoti Extended

CHRC825D

254

261

7.00

3.80

CHRC360

98

101

3.00

13.70

CHRC597

179

182

3.00

5.18

CHRC984

54

68

14.00

11.08

CHRC059

144

147

3.00

3.55

CHRC208

140

156

16.00

8.72

CHRC209

81

99

18.00

6.59

CHRC113

92

107

15.00

4.22

CHRC600

168

178

10.00

4.67

CHRC058

141

145

4.00

4.24

CHRC206

95

98

3.00

4.42

CHRC980

64

73

9.00

3.64

CHRC1191

140

178

38.00

7.41

CHRC1192

147

177

30.00

3.00

including

168

174

6.00

5.73

CHRC1194

102

155

53.00

6.27

including

143

150

7.00

9.76

CHRC1197D

266

277

11.00

3.54

CHRC1198

205

227

22.00

9.30

CHRC1206

237

246

9.00

3.17

CHRC1217

117.00

124.00

7.00

4.76

CHRC1227D

354.00

367.00

13.00

4.50

CHRC1228

209.00

220.00

11.00

2.85

CHRC1229D

231.90

236.00

4.10

13.48

CHRC1231D

120.00

123.00

3.00

4.51

CHRC1232

162.00

172.00

10.00

3.01

CHRC1233

139.00

147.00

8.00

2.15

CHRC1234

138.00

149.00

11.00

9.31

CHRC1235

216.00

221.00

5.00

11.61

CHRC1236

265.00

282.00

17.00

2.36

CHRC1237

125.00

140.00

15.00

3.37

CHRC1258

141.00

147.00

6.00

5.77

Akoti North

CHRC554

218

227

9.00

3.29

CHRC555

151

169

18.00

5.02

CHRC556

159

167

8.00

4.02

CHRC557

141

147

6.00

3.26

plus

122

130

8.00

4.06

CHRC559

209

222

13.00

5.95

CHRC204

136

162

26.00

5.49

CHRC824D

339.25

353

13.75

3.75

CHRC1183D

293.00

313.72

20.72

2.40

CHRC1184D

287.50

312.00

24.50

3.83

CHRC1185D

255.00

266.70

11.70

3.26

CHRC1187D

239.00

263.60

24.60

2.04

CHRC1189D

160.80

177.00

16.20

2.70

incl

172.50

177.00

4.50

5.47

CHRC1192

147.00

175.00

28.00

3.05

incl

157.00

162.00

5.00

5.14

and

168.00

174.00

6.00

5.73

Note: Results in italics have been previously reported.
     True widths are on average 60% of drilled width. Click here to go back

Suraw Drill Results

Pit

Hole

From

To

Metres

Au g/t

Suraw

CHRC065

63

71

8.00

6.90

CHRC1036

83

90

7.00

5.00

CHRC1038

81

88

7.00

7.41

CHRC1047

116

123

7.00

6.15

CHRC1071

105

112

7.00

8.87

CHRC1074

77

86

9.00

7.10

CHRC1089

134

146

12.00

8.21

CHRC1093

203

211

8.00

8.97

CHRC1094

116

123

7.00

6.73

CHRC1097

203

213

10.00

5.59

CHRC1100

206

214

8.00

2.61

CHRC1199D

352

362.25

10.25

5.59

CHRC1200D

176.3

183.8

7.50

3.53

CHRC1201D

124.1

134.3

10.20

6.33

including

126

128.9

2.90

15.22

CHRC1213D

251

260.4

9.40

3.71

and

266.9

279.15

12.25

4.91

CHRC1216D

143

149

6.00

5.65

CHRC1225

220

242

22.00

1.94

CHRC1238D

431.9

436.5

4.60

3.80

CHRC1238D

445

450

5.00

3.84

CHRC1238D

518

526

8.00

2.32

CHRC1239D

408.1

416

7.90

3.24

CHRC1240D

216

236

20.00

3.18

including

218

222

4.00

9.68

CHRC1241

154

166

12.00

3.42

CHRC1242

105

115

10.00

3.86

CHRC1243

224

236

12.00

5.83

including

224

229

5.00

10.47

CHRC1246D

165.4

172.05

6.65

3.01

CHRC1247

127

137

10.00

3.78

CHRC1248

164

170

6.00

7.58

CHRC1249D

266.5

276.8

10.30

7.57

CHRC1250D

228

234.3

6.30

5.87

CHRC1252

223

240

17.00

5.44

CHRC1254D

268

301

33.00

4.30

Note: Results in italics have been previously reported.
     True widths are on average 60% of drilled width. Click here to go back

Drill Hole CHRC 1245D Summary

Summary

Hole ID

From

To

Length

Grade g/t

CHRC1245D*

437.20

474.65

37.45

18.89

including

437.20

442.60

5.40

9.42

and Black Breccia

442.60

455.00

12.40

32.30

and

455.00

474.65

19.65

13.04

*True width is approximately 75% of drilled width

Detail

Hole ID

From

To

Grade g/t

CHRC1245D

437.20

438.20

17.50

 

438.20

439.00

6.94

 

439.00

440.00

4.15

 

440.00

441.15

5.30

 

441.15

442.00

15.15

 

442.00

442.60

7.85

Black Breccia

442.60

444.00

29.75

444.00

445.00

30.20

445.00

446.00

17.60

446.00

447.00

18.50

447.00

448.00

29.90

448.00

449.00

21.10

449.00

450.00

28.30

450.00

451.00

36.45

451.00

452.00

49.87

452.00

453.00

49.50

453.00

454.00

40.90

454.00

455.00

36.55

 

455.00

456.00

12.90

 

456.00

457.00

8.94

 

457.00

458.00

9.35

 

458.00

459.00

35.40

 

459.00

460.00

8.79

 

460.00

461.00

12.55

 

461.00

462.00

6.37

 

462.00

463.00

27.50

 

463.00

464.00

15.60

 

464.00

465.00

8.15

 

465.00

466.00

6.92

 

466.00

467.00

6.93

 

467.00

468.00

5.36

 

468.00

468.50

4.46

 

468.50

469.00

12.00

 

469.00

470.00

12.55

 

470.00

471.00

17.10

 

471.00

472.00

11.60

 

472.00

473.00

20.55

 

473.00

474.00

16.60

 

474.00

474.65

7.42

Click here to go back

Material Intercepts

Pit

Hole

From

To

Metres

Au g/t

Suraw

 

 

 

 

 

 

 

 

CHRC065

63

71

8.00

6.9

CHRC1036

83

90

7.00

5.00

CHRC1038

81

88

7.00

7.41

CHRC1047

116

123

7.00

6.15

CHRC1071

105

112

7.00

8.87

CHRC1074

77

86

9.00

7.10

CHRC1089

134

146

12.00

8.21

CHRC1093

203

211

8.00

8.97

CHRC1094

116

123

7.00

6.73

Akoti North

 

 

 

 

 

 

 

CHRC554

218

227

9.00

3.29

CHRC555

151

169

18.00

5.02

CHRC556

159

167

8.00

4.02

CHRC557

141

147

6.00

3.26

plus

122

130

8.00

4.06

CHRC559

209

222

13.00

5.95

CHRC204

136

162

26.00

5.49

CHRC824D

339.25

353

13.75

3.75

CHRC1183D

293

313.72

20.72

2.40

CHRC1184D

287.50

312

24.50

3.83

CHRC1185D

254.20

266.70

12.50

3.09

CHRC1187D

239

263.60

24.60

2.04

Akoti Extended

 

 

 

 

 

 

 

 

 

 

 

CHRC825D

254

261

7.00

3.80

CHRC360

98

101

3.00

13.70

CHRC597

179

182

3.00

5.18

CHRC984

54

68

14.00

11.08

CHRC059

144

147

3.00

3.55

CHRC208

140

156

16.00

8.72

CHRC209

81

99

18.00

6.59

CHRC113

92

107

15.00

4.22

CHRC600

168

178

10.00

4.67

CHRC058

141

145

4.00

4.24

CHRC206

95

98

3.00

4.42

CHRC980

64

73

9.00

3.64

CHRC1191

140

178

38.00

7.41

CHRC1192

147

177

30.00

3.00

incl

168

174

6.00

5.73

CHRC1194

102

155

53.00

6.27

incl

143

150

7.00

9.76

CHRC1197D

266

277

11.00

3.54

CHRC1198

205

227

22.00

9.30

CHRC1206

237

246

9.00

3.17

Paboase South

 

 

 

 

CHRC139

80

85

5.00

4.80

CHRC918

93

99

6.00

4.14

CHRC253

136

153

17.00

3.93

CHRC920

178

187.25

9.25

3.24

CHRC254

126

143

17.00

4.20

CHRC915

183

198

15.00

5.70

CHRC930D

174

186.85

12.85

3.04

Obra

CHRC602D

219

347

128

1.75

incl

313

343

30

4.01

CHRC676D 2

302.3

399.6

97.3

1.77

CHRC848D

243.2

409

165.8

1.81

incl

303.5

343

39.5

3.86

CHRC856D

258.4

354.7

96.3

2.14

incl

323

348

25

4.36

CHRC877D

130

265

135

2.76

incl

247.9

264

16.1

7.61

Tano

CHRC923

151

225

74

5.68

incl

168

188

20

9.99



Technical Reports

Click here to go back

Abodoabo Drill Results

Hole

Northing

From

To

Metres

Au g/t

CHRC 714

41950

9

17

8

0.96

26

33

7

2.06

41

44

3

1.00

51

57

6

2.55

CHRC 715

42000

10

20

10

2.42

28

33

5

0.86

58

61

3

3.64

67

70

3

1.63

84

87

3

0.65

CHRC 716

42050

37

41

4

1.09

46

49

3

0.61

CHRC 717

42050

29

32

3

3.35

CHRC 718

42150

59

62

3

2.23

71

76

5

1.77

82

85

3

0.52

86

91

5

1.34

CHRC719

42250

14

17

3

0.62

CHRC 720

42300

91

109

18

2.80

incl 95

98

3

9.72

112

115

3

2.03

CHRC721

42400

53

56

3

0.65

77

80

3

1.31

CHRC722

42500

39

42

3

1.09

61

64

3

0.75

CHRC723

42600

70

73

3

0.60

127

150

23

2.80

CHRC724

42700

61

73

12

1.82

76

82

6

1.52

Click here to go back

Akwaaba Drill Results

Hole ID

From

To

Metres

Au g/t

CHRC733D

269

279.2

10.20

7.54

CHRC733D

298

324

26.00

13.23

CHRC734D

390.89

393

2.11

18.21

CHRC734D

397

420

23.00

4.07

incl.

400.4 

 405

4.60

8.72

CHRC734D

420

433

13.00

64.95

CHRC734D

433

450

17.00

2.42

CHRC735D

267

270

3.00

1.00

CHRC736D

231

237

6.00

2.57

CHRC737

No Significant Intercept

CHRC738

41

44

3.00

1.12

CHRC738

61

65

4.00

1.67

CHRC739

37

42

5.00

1.75

CHRC740D

65

68

3.00

13.95

CHRC740D

74

79

5.00

2.32

CHRC741D

270

292

22.00

6.78

incl.

 270

272 

2.00

30.34

CHRC742D

150

154.2

4.20

2.78

CHRC742D

160

164

4.00

3.58

CHRC742D

174

192

18.00

3.90

CHRC743D

387

392.5

5.50

13.65

CHRC743D

399.6

405

5.40

8.34

CHRC743D

410

444.8

34.80

8.68

CHRC744D

439.86

496

56.14

7.06

incl

 457

467 

10.00

14.97

CHRC745D

411

423

12.00

6.50

CHRC745D

450.5

479.9

29.40

5.46

incl

465 

472 

7.00

12.87

CHRC746D

352

357

5.00

3.25

CHRC746D

360

383

23.00

2.15

CHRC747D

527

535

8.00

1.86

CHRC747D

538

560

22.00

2.42

CHRC748D

490

500

10.0

2.74

CHRC748D

508

534

26.0

3.80

CHRC749D

357

366.4

9.40

3.43

CHRC749D

385

393

8.0

3.86

CHRC749D

411.2

415.6

4.40

2.56

CHRC749D

418

434

16.0

5.26

CHRC750D

297.5

303

5.0

2.42

CHRC750D

321

326

5.0

3.36

CHRC750D

342

344

2.0

7.97

CHRC750D

351

374

23.0

1.76

CHRC751D

300.18

301.72

1.54

5.24

CHRC751D

329

334

5.0

1.95

CHRC751D

337

386

49.0

12.89

CHRC752D

225

239

14.0

1.48

CHRC753D

215.33

222.6

7.27

2.41

CHRC753D

226

241.18

15.18

2.27

CHRC753D

252

259

7.0

3.41

CHRC753D

262

269

7.0

3.48

CHRC754D

305.67

308

2.33

5.50

CHRC754D

317

328

11.0

8.36

CHRC754D

331

362

32.0

7.19

CHRC772D

366.5

381.4

14.9

2.02

CHRC772D

384

410

26.0

10.64

CHRC773D

364

390

26.0

12.33

CHRC774D

464.8

494.6

29.8

10.80

CHRC775D

296

299

3.0

5.11

CHRC775D

303.5

306

2.5

7.73

CHRC775D

312

340.1

28.1

8.67

CHRC778D

203.0

211.0

8.0

3.42

CHRC778D

215.32

224

8.68

4.56

CHRC778D

246

278

32.0

6.37

CHRC779D

194.6

198

3.4

3.16

CHRC779D

212.6

230

17.4

6.51

CHRC807D

131

145.2

14.2

2.14

CHRC820D

457

462.9

5.9

1.25

CHRC820D

465

516

51.0

6.88

CHRC821D

471

474.1

3.0

1.24

CHRC821D

478

489.2

11.2

2.40

CHRC1123

157.0

179.0

22.0

3.79

CHRC1126D

215.0

222.0

7.0

6.99

CHRC1134

117.0

139.0

22.0

4.49

CHRC1124

109.0

116.0

7.0

6.77

CHRC1125D

269.0

288.0

19.0

4.56

CHRC1127D

174.0

184.0

10.0

6.73

CHRC1128D

188.2

198.7

10.6

11.74

including

191.0

197.0

6.0

18.17

and

207.0

218.0

11.0

8.00

CHRC1131D

560.7

605.0

44.3

2.79

CHRC1145D

186.0

219.9

33.9

13.64

CHRC1146D

180.0

187.0

7.0

6.61

and

196.0

205.4

9.4

4.13

CHRC1151

147.0

164.0

17.0

7.94

CHRC1153D

120.0

146.0

26.0

2.16

including

136.0

144.0

8.0

5.00

CHRC995D

471.0

497.0

26.0

14.50

CHRC1148D

196.0

210.0

14.0

6.03

and

218.0

230.0

12.0

6.04

CHRC1150D

168.3

198.9

30.6

3.78

including

190.0

196.0

6.0

10.40

CHRC1155

101.0

142.0

41.0

3.39

including

117.0

142.0

25.0

4.89

CHRC1164

149.0

161.1

12.1

1.71

CHRC1167D

95.0

108.0

13.0

3.26

including

102.0

105.0

3.0

6.52

CHRC1188

98.0

102.0

4.0

5.77

and

95.0

103.0

8.0

3.60

CHRC1193

205.0

218.0

13.0

2.43

CHRC1190

150.0

158.0

8.0

4.86

CHRC1196

178.0

191.0

13.0

6.06

CHRC748D

490

500

10.0

2.74

CHRC748D

508

534

26.0

3.80

CHRC749D

357

366.4

9.40

3.43

CHRC749D

385

393

8.0

3.86

CHRC749D

411.2

415.6

4.40

2.56

CHRC749D

418

434

16.0

5.26

CHRC750D

297.5

303

5.0

2.42

CHRC750D

321

326

5.0

3.36

CHRC750D

342

344

2.0

7.97

CHRC750D

351

374

23.0

1.76

CHRC751D

300.18

301.72

1.54

5.24

CHRC751D

329

334

5.0

1.95

CHRC751D

337

386

49.0

12.89

CHRC752D

225

239

14.0

1.48

CHRC753D

215.33

222.6

7.27

2.41

CHRC753D

226

241.18

15.18

2.27

CHRC753D

252

259

7.0

3.41

CHRC753D

262

269

7.0

3.48

CHRC754D

305.67

308

2.33

5.50

CHRC754D

317

328

11.0

8.36

CHRC754D

331

362

32.0

7.19

CHRC772D

366.5

381.4

14.9

2.02

CHRC772D

384

410

26.0

10.64

CHRC773D

364

390

26.0

12.33

CHRC774D

464.8

494.6

29.8

10.80

CHRC775D

296

299

3.0

5.11

CHRC775D

303.5

306

2.5

7.73

CHRC775D

312

340.1

28.1

8.67

CHRC778D

203.0

211.0

8.0

3.42

CHRC778D

215.32

224

8.68

4.56

CHRC778D

246

278

32.0

6.37

CHRC779D

194.6

198

3.4

3.16

CHRC779D

212.6

230

17.4

6.51

CHRC807D

131

145.2

14.2

2.14

CHRC820D

457

462.9

5.9

1.25

CHRC820D

465

516

51.0

6.88

CHRC821D

471

474.1

3.0

1.24

CHRC821D

478

489.2

11.2

2.40

Note: The table above summarizes intercepts based on a minimum of 3m grading 3g/t. True widths are on average 60% of drilled width.



Mineralisation

The gold deposits comprise fractured and altered granite, and include stacked arrays of parallel veinlets, veinlet stockworks, and mineralised cataclasites. The Chirano gold deposits occur within 200 metres to the west of the Chirano Shear. The geometry and shape of the deposits range from tabular (Obra), or pipe-like (Tano), to multiple parallel lodes (Paboase). The mineralised zone thickness ranges from a few metres to over 70 metres. Most deposits dip very steeply towards the west or southwest, and also plunge very steeply. Generally, the tenor of the gold mineralisation correlates with the intensity of alteration, veining and brecciation. The gold mineralisation is associated with 1% to 5% pyrite, and the distribution of gold appears to be closely associated with the presence of pyrite. The hydrothermal alteration assemblage is characterised by ankerite, albite, muscovite and pyrite which overprint earlier hematite dusting of the granite.


Introduction

The Chirano Gold Mine achieved its first gold pour in October, 2005 after commissioning of the process facilities in September, 2005. The current mine plan calls for material to be mined from deposits along an elongated mineralised zone by open pit methods. There are eleven deposits that currently comprise the Chirano project: Akwaaba, Suraw, Akoti South, Akoti North, Akoti Extended, Paboase, Tano, Obra South, Obra, Sariehu and Mamnao.

Gold mineralisation continues at depth, below the current open pit designs at many of the deposits currently included in the mine plan. Drilling at the Akwaaba deposit has established a high grade underground resource which is now being developed as an underground operation. Called the Akwaaba Deeps, first ore is anticipated in the fourth quarter of 2008.

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