NEWS
Searchgold Resources Inc (C:RSG)
Shares Issued 148,530,171
Last Close 1/31/2011
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Tuesday February 01 2011 - News Release
Mr. Philippe Giaro reports
SEARCHGOLD SIGNS JOINT VENTURE AGREEMENT WITH SWALARESOURCES PLC ON GUEGUERE PROPERTY IN BURKINA FASO
Searchgold Resources Inc. has entered into an jointventure agreement dated Jan. 28, 2011, with Swala Resources PLC on the Guegueregold property located in Burkina Faso, West Africa.
The Gueguere property is located 180 kilometres west ofOuagadougou, Burkina Faso's capital, in the Boromo birimian greenstone beltbetween the past producing Poura mine and Orezone Resources' Bondi project. ThePoura past producing mine is located approximately 35 km north-east of Gueguereand produced over 800,000 ounces of gold before its closure in 1999. The Bondiproject is located approximately 30 km south-west of the Gueguere property and ispresently being developed by Orezone Resources Inc. which has outlined measuredand indicated resources of 4.1 million tonnes @ 2.12 g/t Au for 282,000 ouncesof gold.
Swala can acquire an interest of up to 80% in Gueguere bymeeting the following conditions :
-- Swala can earn 25% upon paying SearchGold the sum ofUS$50,000 and agreeing to take over SearchGold's exploration expenditurecommitments for the two Gueguere exploration licences.
-- Swala can earn a further 26%, for a total of 51%, uponthe completion of a Phase 1 program entailing exploration expenditures ofUS$400,000 on each of the exploration licences, for total of US$800,000 overthe entire property, prior to March 29th 2012.
-- Providing positive results from the Phase 1exploration program, Swala can earn a further 9%, for a total of 60%, upon thecompletion of a Phase 2 program entailing the execution of a NI 43-101compliant report demonstrating the existence of indicated and inferredresources. Phase 2 will be executed within such time frame and with thenecessary associated expenditures to insure full compliance with the BurkinaFaso Mining Code.
-- Providing positive results from the Phase 2 program,Swala can earn a further 20%, for a total of 80%, upon the completion of aPhase 3 program entailing the execution of a NI 43-101 compliant preliminaryfeasibility study, followed by a NI 43-101 compliant bankable feasibility studyconcerning any promising targets identified on the Property.
Thereafter SearchGold will participate in the developmentcosts or will be diluted pro-rata its interest. Swala will be project operatorand a technical committee will be established to overview the development workto be executed on the property. In the event of commercial production, bothparties agree to be diluted by the 10% Burkina Faso state free carryparticipation pro-rata their respective interest in the project.
A first step of the Phase 1 program on Gueguere willinvolve using the equipment mobilized to Burkina Faso to execute a low-altitudeairborne geophysical survey to cover the property.
About Swala Resources plc
Swala Resources plc is a private African explorer with afocus on gold in Burkina Faso and Zimbabwe. In Burkina Faso, Swala owns 100% ofthe Arae-Gassel project directly adjoining to the north Avocet's 1.8 millionounce Inata gold deposit. In Zimbabwe, Swala has a 50% joint venture interestin 15 gold claims where a small production plant came on line in December 2010and a controlling interest in a 60/40 joint venture with other parties for theexploitation of high-grade alluvial deposits covering in excess of 15,000hectares. In addition, the Company owns carried joint venture interests inexploration projects located in Gabon and the Democratic Republic of the Congo.Swala's strategy for 2011 is to grow its resource base on the Arae-Gasselproject and provide NI 43-101 reporting with the objective to list the Companyon the TSX Venture Exchange in 2011 while concomitantly increasing cash flowfrom its Zimbabwe gold producing operations.