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AMAYAPAMPA RESOURCE UPGRADE WELL ADVANCEDKey Points• Amayapampa...

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    AMAYAPAMPA RESOURCE UPGRADE WELL ADVANCED
    Key Points
    • Amayapampa resource block model upgrade well advanced.
    • Surface sampling programme has been completed, ~ 5 kilometres of trenching.
    • The new topographic surface nearing completion.
    • Structural geology interpretation nearing completion.
    • Work being undertaken on cut-off grades for the new block model.
    • Treatment plant site located.
    • Surface sampling to be extended approximately 2.5 kilometres to the northeast of the proposed
    open pit along a major local fault.
    The Directors of Republic Gold Limited (“Republic” or the “Company”) 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 Aerofotogrametría, 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
 
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