Republic Gold Limited (ASX:RAU) Receives Initial 2009 Metallurgy Drilling Results At The Tregoora Project In FNQ

Perth, Aug 13, 2009 AEST (ABN Newswire) - Republic Gold Limited (ASX:RAU) today announce that the Company has received analysis results for the initial four diamond drillholes for the 2009 field season drilling at its Sleeping Giant Prospect within its 100%-owned Tregoora Gold Project in Far North Queensland ("FNQ").

These drillholes are to provide samples for ongoing metallurgical testwork at Tregoora, with a further eight diamond drillholes being completed in addition to these drillholes reported A total of 450 metres of diamond drilling is planned for this phase. Each of the drillholes currently drilled has intersected material mineralisation.

The calibre of grades returned in TGA089 may be an indication that the drilling may have encountered another high grade sub-body within the broader mylonitic mineralisation, similar to Terrace Creek. This would be highly encouraging as TGA089 is within the Sleeping Giant resource and some distance south of Terrace Creek. It is possible that these high grade shoots are oriented such that the drill density to-date, designed to define the mylonite zone, is insufficient in delineating the smaller, but much higher grade shoots. If this is correct, it would have the effect of yielding an average lower grade in resource modelling, but higher grades when the deposit is mined, unless smaller high grade zones are more adequately delineated. The Company is considering using its current database to identify potential locations of very high grade shoots and increasing the drilling density in these areas, to adequately capture the grade profile in the block model estimates.

Republic's Managing Director; John Kelly, said:

"The high grades encountered are exciting, particularly if we are seeing a repetition of the Terrace Creek geology. Preliminary metallurgical testwork had previously been carried out at Tregoora. With the success of last year's drilling field season in demonstrating resources away from the main Sleeping Giant zone, more metallurgical testwork is necessary to ensure that the testwork adequately covers all possible economic prospects. In addition, an alternative to the GEOCOAT(R) bacterial oxidation technology is being tested at the recommendation of the Company's new Project Development Manager. This process, the Albion Process, is a hydrometallurgical process and appears to have a number of advantages over GEOCOAT(R) such as recovery time and potentially operating costs. To ensure that the metallurgy of the project is thoroughly tested, this work is necessary."

Contact

John Kelly Managing Director Tel: +61-418-577-759