Buffalo, Bondi and Newcrest Complete Arrangement for Uranium Rights
at Mt. Hogan
VANCOUVER, BRITISH COLUMBIA--(Marketwire - August 23, 2007) - Buffalo
Gold Ltd. (TSX VENTURE: BUF.U) (OTCBB: BYBUF) (FRANKFURT: B4K) is
pleased to announce that, through Buffalo's wholly-owned Australian
subsidiary, Murphy Uranium Pty Ltd., Bondi Mining Ltd. ("Bondi")
(ASX: BOM) has acquired the uranium rights to an area of interest at
Newcrest Operations Limited's ("Newcrest") (ASX: NCM) Mt Hogan
Project in Queensland.
The property has been acquired through a Concurrent Rights Deed
between Newcrest and Murphy Uranium. Newcrest's parent company,
Newcrest Mining Ltd., is Australia's largest gold mining company, and
ranks in the top ten gold producers globally. Murphy Uranium is the
unlisted subsidiary of Buffalo to be sold to Bondi as part of the
previously announced LOI that sees Bondi acquire Buffalo's uranium
portfolio in exchange for Buffalo receiving a 44% stake in Bondi (see
Buffalo News Release May 13th, 2007).
Under the terms of the deal Bondi will acquire 100% ownership of any
uranium-only deposits delineated and, upon the decision to mine,
Newcrest will receive a 2.5% gross product royalty on all uranium
produced including an AUD$500,000 royalty pre-payment on the decision
to mine.
"We are pleased to be able to include the Mt Hogan project into the
portfolio of uranium projects," stated Buffalo Chairman and CEO
Damien Reynolds. "We now look forward to a quick finalization of our
transaction with Bondi, following approval by Bondi shareholders.
This will allow Bondi to commence an aggressive exploration program
on the uranium projects."
About the Mt. Hogan Project
The Mt. Hogan project is located in northeast Queensland
approximately 135 kilometres south of the Maureen uranium deposit
where Mega Uranium reports an historical indicated resource estimate
of 6.5 million pounds U3O8 at 0.12% U3O8 and 0.07% molybdenum (ref
www.megauranium.com). The Mount Hogan project contains high grade
uranium mineralisation in altered pyritic metasediments in contact
with highly radioactive granite. Limited drilling of soil and
radiometric anomalies by CRA Ltd. in the late 1970's produced best
results of:
- 7 metres at 0.38% U3O8 in percussion drill hole 79 HH PDH-1,
including 1 metre at 1.2% U3O8. The intersection starts at a
down-hole distance of 29 metres. At current gold and long-term
uranium prices, this intersection is equivalent to 7 metres at 36.9
grams per tonne gold.
- 1 metre at 0.17% U3O8 in percussion drill hole 79 HH PDH-2, within
a broader interval of 5 metres at 0.05% U3O8 starting at a depth of
37 metres.
These intersections remain open in every direction, as part of a
regionally extensive granite contact zone which has only been tested
by four percussion holes over a strike length of at least 5
kilometres containing multiple radiometric and soil anomalies. Host
rocks to the high grade uranium mineralisation are chloritic and
pyritic metasediments and silicified pyritic shale adjacent to a
high-background radioactive granite. Soil samples taken by CRA over
the granite ranged up to 0.13% U3O8. Available radiometric data show
that granites within Bondi's 100% owned Juntala Project some 40
kilometres south of Mount Hogan, have similar high background
radioactive signatures.
Twelve other separate occurrences of uranium mineralisation are also
noted on the published geoscience datasets within the Mount Hogan
project and these will also be a focus of the planned program by
Bondi. Bondi intends to carry out a program of detailed ground
inspection followed by ground radiometrics and drill testing of a
range of targets including the previous high-grade uranium zones
defined by CRA.
About Bondi Mining
Bondi is a Brisbane-based uranium exploration company with a focus on
high-grade cycle-proof uranium targets with world class size
potential. The company announced on 14 May 2007 a letter of intent
with Buffalo Gold Ltd. to acquire 100% of its Australian uranium
portfolio, which is made up of 10 granted tenements and 13
applications totalling 15,085km2 in three major uranium provinces in
the Northern Territory and Queensland. Buffalo retains a 44% interest
in Bondi.
About Buffalo Gold
Buffalo Gold Ltd. is dedicated to maximizing shareholder value
through growth strategies that emphasize careful opportunity
assessment and vigilant project management. Buffalo is aggressively
exploring the Mt. Kare gold project in Papua New Guinea and a
portfolio of gold exploration projects in producing and
past-producing regions of Australia. In July 2007, Buffalo announced
a merger with Sargold Resource Corporation (TSX VENTURE: SRG), a
junior gold miner with mining and exploration projects in Sardinia,
Italy.
To find out more about Buffalo Gold Ltd. (TSX VENTURE: BUF.U), please
visit the company website at www.buffalogold.ca.
On behalf of the Board of Directors of BUFFALO GOLD LTD.
Damien Reynolds, Chair of the Board of Directors and Chief Executive
Officer
Cautionary note to U.S. Investors - The United States Securities and
Exchange Commission ("SEC") permits mining companies in filings with
the SEC to disclose only those mineral deposits that a company can
economically and legally extract or produce. The company may use
certain terms in this news release, such as "inferred resource", that
the SEC guidelines strictly prohibit from including in filings with
the SEC. U.S. investors are urged to consider closely the disclosure
contained in the company's Form 20-F Registration Statement, File No.
000- 30150. The company's filings are available on the SEC's website
at http://www.sec.gov/edgar.shtml.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the accuracy of this press release.
Contacts:
Buffalo Gold Ltd.
Julie Hajduk
Investor Relations
(604) 685-5492 or Toll Free: 1-888-685-5492
(604) 685-2536 (FAX)
Email: julie@buffalogold.ca
Website: www.buffalogold.ca
