Thursday, 19th June 2008 (587 views)

GBS Gold International has sold its financial investment in MDN.

By selling its shareholding GBS Gold realised cash proceeds of C$7.6 million (£3.8 million).

Gil Playford, chairman of GBS Gold, said the company had sold its shareholding as. "this investment is no longer part of the company's strategy.

"The proceeds derived from the sale can be more effectively deployed to fund GBS Gold's internal growth projects, in particular the development of the large Cosmo Deeps gold deposit."

GBS Gold has indicated resources of 3.4 g/t of gold for 2.5 million ounces and 2.5 g/t of gold for inferred resources of 1.6 million ounces of gold at its Union Reefs operation centre in Australia.

New operations at Tom's Gully and Cosmo Deep are expected to increase the annual production rate to 250,000 ounces by 2010.

Tom's Gully has an initial probable reserve of 7.1 g/t of gold for 170,000 ounces.

Cosmo Deep has an initial probable reserve of 5.0 g/t of gold for 350,000 ounces.

 

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