upandaway

International Gold Mining buys new Lake Bahi property


2008-05-15 09:27 ET - News Release

Mr. Alan Phillips reports

IGL EXPANDS ITS GROUND HOLDINGS IN THE BAHI URANIUM PROVINCE, TANZANIA

International Gold Mining Ltd. has entered into an agreement with a private party to purchase a further 906 square kilometres of tenements in the uranium-rich province at Lake Bahi in Tanzania, East Africa.

This purchase brings the total landholdings of the company in four tenements in the Bahi/Manyoni uranium belt to 2,365 square kilometres.

This new purchase takes in a large portion of Lake Bahi, where drilling in the 1950s by the Geological Survey of Tanzania reported an intersection of 0.15 metre at 2.3 kilograms per tonne U3O8 near the centre of Lake Bahi (which is on this tenement). Lake Bahi is a dry lake bed in the centre of the Bahi depression.

Two of these tenements abut the western boundary and one tenement abuts the southern boundary of the Uranex NL tenement that contains the Manyoni C1 uranium deposit, where recent announcements to the Australian Stock Exchange (ASX) have reported intersections of 2.25 metres of 9.3 kilograms per tonne U3O8, two metres of 3.8 kilograms per tonne U3O8 and two metres of 2.6 kilograms per tonne U3O8.

Background to the Bahi/Manyoni project

The Bahi Swamp catchments area is a dry lake covering over 1,000 square kilometres, and incorporates an extensive closed drainage system that has developed over 27,000 square kilometres of weathered uranium-rich "hot" Archaean granites.

The recent positive exploration results announced by Uranex NL from the Manyoni C1 uranium deposit and other exploration successes in that area, have occurred in relatively small playa lakes, located to the northwest of Lake Bahi.

The Lake Bahi system is many magnitudes larger, and is the final repository of all the uranium-rich fluids draining from the hot Achaean granites. The potential exists in Lake Bahi for calcrete/playa and more importantly roll-front uranium deposits.

These tenements have given the company a significant presence on the ground in this highly prospective area that has the potential to generate new economic uranium resources at a reasonable cost.

The company regards this as a "priority project" and is putting the processes in place to get exploration under way as soon as possible.

Terms of agreement

Under the terms of agreement, the company will pay $14,000 (U.S.), reimburse $5,500 (U.S.) of past expenses and issue 900,000 fully paid shares to the seller to earn a 90-per-cent interest in the property.

The company has the right to purchase the remaining 10 per cent by the payment of $250,000 (U.S.) at any time and at its own discretion.

Nick Revell, BSc, is a member of AusIMM and oversees International Gold Mining's project initiatives. Mr. Revell is a qualified person as defined in National Instrument 43-101 and he is a director of International Gold Mining Ltd.