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| | Mandiana Property Status In January 2006, SearchGold signed an option agreement to acquire a 100% interest in the 475 km² Mandiana Gold Property in Guinea through the execution of total work commitments of USD 270,000 over 18 months; a 2% NSR; and a percentage payment of project expenditures, considered as an advanced royalty. SearchGold has now fulfilled its USD 270,000 work commitment. In order to maintain its 100% interest, SearchGold has to execute the advance royalty payments which are to be paid on a quarterly basis and represent percentage payments of project expenditures with a minimum of USD 10,000 per quarter. Regional Context Mandiana is located in eastern Guinea, near the border with Mali, and is accessible by road. The property is underlain by the world famous Birimian rocks, a very prolific rock sequence for gold. It is best known for the Ashanti Gold Belt in Ghana located towards the south of the Birimian terrane. Towards the north, where Mandiana is located, + 10,000,000 oz gold deposits such as Morila (Rangold) and Sadiola (Anglogold-Iamgold) are currently being mined. The property itself is situated along the western margin of the Bougouni basin and is underlain by sedimentary rocks of the lower part of the Upper Birimian Group. The Morila-Syama Gold Belt (Morila mine), a large endowment of gold, is located across the Bougouni basin, along its eastern margin. Important auriferous mineralization is also associated to the western margin of the Bougouni basin with the main feature being Avnel Gold's 900,000 oz Kalana deposit located 25 km east of Mandiana. Recent exploration activity has demonstrated the area's potential for significant additional discoveries in a 40 km radius of the Mandiana Property.
Work History SearchGold's Mandiana Gold Property is located within an area covered by a systematic 5,000 km2 reconnaissance geochemical soil survey executed by Ashanti Goldfields Corporation under a joint venture called the Ashanti-AGEM Alliance (Alliance). AGEM is a wholly-owned subsidiary of Iamgold Corp. A total of 25 anomalous areas were followed up by the Alliance through the execution of detailed surface surveys and three of these anomalous areas, namely the N'Diambaye, Karfakolo and Intercolonial gold prospects are located on Mandiana. Previous follow-up work on these prospects includes : detailed geochemical surveys, pitting and trenching, geological mapping, ground geophysical surveys and/or drilling. The highlights of this work are significant preliminary drill results such as intercepts of 3.68 g/t Au over 10 m on Karfakolo and 1.89 g/t Au over 20 m and 0.94 g/t Au over 47 m on Intercolonial. Moreover, numerous extensive artisan gold workings are present on Mandiana as well as some Alliance secondary targets from the reconnaissance geochemical surveys that have yet to be followed up. In addition, previous studies by the BRGM (French) and the BGR (German) have outlined a regional, north-south trending, shear system under the Sankarani River along the western boundary of the property which is consistent with the regional grain. Anomalous soil sites from the Alliance reconnaissance survey show east-north-east trends that may reflect mineralized splays buried under alluvial cover at the western boundary of the property. These working hypotheses were not tested by the Alliance. Lastly, the potential for placers and paleo-placers was not investigated by the Alliance although the Siguiri deposits were found during the profitable mining of industrial-scale alluvial placers (the Koron mine). Exploration Works Completed by SearchGold Since Acquiring the Property in 2006 Phase # 1 of termite mound survey In the case of the N'Diambaye prospect, this semi-tactical phase allowed the definition of a termite mound anomaly similar in size and strength to the major termite mound gold anomalies of West Africa, specifically in the sector of the Sadiola Mine (+10,000,000 ounces of gold). The main soil anomaly (as previously defined by Ashanti Goldfields Corporation) is confirmed on a length of 1,200 m in a NE direction and its width varies between 80 and 400 m. The strongest anomalous directions are from NNE to NNW for a length of at least 1,000 m. Such directions are highly mineralized at Sadiola, Yatela, Syama, SAG and Léro. Phase # 2 of termite mound survey The regional geochemical termite mount sampling was carried out over the entire property and resulted in the identification of ten new targets. Detailed follow-up led to the discovery of the Fadaninda gold anomaly, which is located in the southern part of the property. It shows an orientation of 330°, an approximate length of 500m and a width of up to 75m. This anomaly is defined at the +50 ppb Au level, shows an average grade of 190 ppb with a peak at 1960 ppb. It is hosted in a geological context similar to N'Diambaye with the observed lithology being quartz crystal tuffs. Results of the check sampling confirmed this anomaly and the northern extension. Geological mapping and rock sampling This work was part of a preliminary reconnaissance field program to characterize the geological context of the property. A total of 50 punctual surface samples were taken from outcrops, angular floats, saprolite and artisan mining pits. Two larger 20-kg samples were also collected. This campaign targeted in priority the N'Diambaye area which to date shows the best outcrop exposure and where a quartz-rich, gold-bearing, mineralized system was recognized over strike length of 2,1 km so far. Drilling campaign - 4,300 m From December 2006 to January 2007 SearchGold executed a 54-hole, 4,300 m drilling program to proceed with a first pass evaluation of four distinct targets. This campaign yielded very encouraging results. Two of the targets are gold termite mound anomalies:
Two additional targets were identified during field reconnaissance and were considered sufficiently mineralized and geologically significant to warrant drilling:
1 - N'Diambaye target, main termite mound anomaly The N'Diambaye prospect hosts a north-south trending mineralized structure containing high grade intersections. A preliminary interpretation suggests that this mineralized structure, recognized so far over 400 m, has been intersected on all seven drilling sections. These are, from north to south: Section 1189600 - hole NDI-33
Section 1189500 - hole NDI-28
Section 1189450 - hole NDI-02
Section 1189400 - hole NDI-10
Section 1189350 - hole NDI-17
Section 1189300 - hole NDI-24
Section 1189200 - hole NDI-39
The results of hole STO-03, drilled on this new structure, are particularly significant as two mineralized zones were intersected with the principal one returning an interval of 4.29 g/t Au over 9 m from 39 to 48 m. This single hole, drilled on a target identified by prospecting during field reconnaissance and located 1 km north-east of Mandiana's previously reported North-South zone appears to be tapping into a second, possibly parallel, mineralized zone. Indeed, recent field measurements on nearby outcrops show a north-south schistosity in the rocks. 3 - Kodiérani target No significant assays were obtained on this target. 4 - Karfakolo target Several mineralized intercepts were returned form holes KAR-07 and 08 with a higher grade intersection reporting 25.82 g/t Au over 1 m from 10 to 11 m in hole KAR-07. Latest Developments In April 2007 Philippe Giaro, President and CEO, and Moussa Keita, Project Geologist, traveled for two weeks in Guinea mainly to execute a thorough site visit and introduce M. Keita to the project and local authorities. The visit was very successful and resulted in:
Property Pictures
Property Maps
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