Adelaide, Aug 25, 2006 (ABN Newswire) - Barra Resources Limited (ASX: BAR) is pleased to announce that the first gold bars from its flagship Burbanks Gold Project located 8 kilometres south-west of Coolgardie, Western Australia were poured this week. The Company has matured from junior explorer to gold producer with the production of 22kg (approx 710 ounces) from ore sourced primarily from the Tailor Shoot.

For the month of August the company expects to produce 11,250 tonnes at 6.7 g/t for 2,400 ounces (approx. 74 kgs). This compares favourably to the budgeted 6,500 tonnes at 5.3 g/t for 1,100 ounces with an additional 1,300 ounces above budget expected to be poured.

The definition of an initial 74,000 ounce resource is considered the first step in re-establishing a major mining operation at Burbanks as the orebody's full potential is realised with continued aggressive exploration along strike and down dip of existing and recently defined high grade ore shoots. Historically, Burbanks has produced 366,000 ounces largely from above 150 metres vertical depth.

The Company would like to thank Shareholders, Barminco and Kalassay Group for their support in meeting this significant milestone. The Company remains unhedged during this time of high gold prices and looks forward to further success at Burbanks both along strike and down dip of existing and recently discovered ore shoots.

Follow-up Diamond Drilling of Recently Discovered Wahloo Shoot

The Company is pleased to announce the intersection of further gold mineralisation associated with its recently discovered Wahloo Shoot at Burbanks. These holes were designed to upgrade inferred category resources. Results comprise:

 6.8 metres grading 33.2 grams per tonne gold
10.1 metres grading 5.8 grams per tonne gold
11.9 metres grading 4.9 grams per tonne gold
 6.6 metres grading 4.6 grams per tonne gold
 9.5 metres grading 3.0 grams per tonne gold

Most holes failed to reach Wahloo Shoot as they were drilled prior to the exposure of the lode system in the south access drive and instead tested lower grade halo mineralisation beneath Wahloo. The controls to this mineralisation are now clearly understood and new holes to best test Wahloo Shoot down dip and down plunge have been designed and are in progress.