Republic Gold Limited (ASX:RAU) Announce Significant Progress On Resource Model At Amayapampa Gold Project

Brisbane, Nov 9, 2009 AEST (ABN Newswire) - Republic Gold Limited (ASX:RAU) today announced that the Company has made significant progress on its upgrade of the resource model at the Amayapampa Gold Project ("Amayapampa or the Project") in Bolivia. All trenching and shaft sampling has been completed and the majority of the new surface topography is complete. This remodelling exercise is a major revamp of the previous geological block model containing 1.1Moz, with extensive new data being input. In addition to the new data, the Company is currently examining the cut-off grade at which the new resource will be reported.

Surface Sampling Programme

The surface sampling programme was completed in the second last week of October, with all samples dispatched for analysis. A total of 36 trenches over nearly 5 kilometres have been completed, along with 5-metre deep shafts every 10 metres along each trench. The surface sampling will compliment the earlier diamond core drilling completed by the Company.

New Surface Topography

The Bolivian Military surveying section, the National Service of Aerofotogrametria, has completed all site survey work at Amayapampa. This work will see a new surface generated, with all underground workings be tied in with this new topography. This work will allow new collar coordinates to be generated for all the drillholes. This level of accurate positioning of the drillholes and other data is required if the resource model is to stand scrutiny under a Definitive Feasibility Study framework and to be JORC compliant. The complete new surface is anticipated before mid-November.

Structural Geology

Work resulting from the Company's consulting Structural Geologist, Dr Steve King's site visit in September is awaiting the final survey adjustments to the database before completion. The structural geology framework will form an integral part of the upcoming mineral resource estimate update. The understanding of the deformation and movement of the sediments is important for not only highlighting future targets but also in optimising the orebody interpretation and grade estimation.

Cut-Off Grade Analysis

The Company is examining the cut-off grade at which the new resource will be reported. The current resource is reported at a cut-off grade of 0.6 g/t Au. When this resource was estimated in November 2008 the gold price was approximately US$750 per ounce and a tonne of mineralisation at the average grade of the resource, 1.3 g/t Au, had US$31.35 in gold value. At the current gold price of US$1,045 that same tonne is now has a gold value of US$43.68. With this sharp increase in in-ground value of the resource, the potential to lower the cut-off grade is significant.

Treatment Plant Site

The success of the surface sampling programme has meant that the obvious locations for the treatment plant and associated infrastructure were no longer available. The Company's Project Development Manager, Mr Paul Pyke, has chosen a new site on the northeast extremity of the hill that the resource lies beneath. This location is subject to sterilisation sampling, which will commence immediately.

New Surface Sampling Programme

The prospectivity in the immediate vicinity of Amayapampa offers exciting potential. The sampling teams will now focus their efforts on the zone to the northeast of the proposed open pit, along a local major structure striking for 2.5 kilometres within the Company's concessions. To the northeast of the proposed pit this structure is associated with a number of gold and base metals occurrences, with the previous owners of the Project never carrying out any sampling and mapping in this zone.

Republic's Managing Director; John Kelly, said: "We are in the final stages of completing our resource upgrade and remain confident that we will see a meaningful improvement in the resource base at Amayapampa once this work has been completed.

"It is critical for the Company to approach the activity in a comprehensive manner and to ensure that no short-cuts are taken to finalise the activity currently underway at Amayapampa."

Contact

John Kelly Managing Director Republic Gold Limited Mob: +61-418-577-759