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24TH
Floor - 1111 W. Georgia St. �
Vancouver, BC,
Canada V6E 4M3
Phone: 604.685.5492�
Fax:
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www.buffalogold.ca
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Trading Symbol: TSXV – BUF.U
OTC\BB –
BYBUF
FWB – B4K
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BUFFALO GOLD FINALIZES INVESTMENT
INTO KINBAURI GOLD
Kinbauri Receives Approval For Acquisition of Rio Narcea Gold-Copper Assets
Vancouver,
B.C., July 4th, 2007 – Buffalo Gold Ltd. (TSX-V: BUF.U)(OTC-BB:
BYBUF)(FWB: B4K) is pleased to announce the closing
of the previously announced private placement financing which sees Buffalo take
a 25.4% strategic interest in Kinbauri Gold (TSX-V:KNB,
“Kinbauri”).� Buffalo
acquired 11,000,000 subscription receipts of Kinbauri at a purchase price of
CAD$0.50. Each receipt is convertible to a unit comprised of one common share
and one-half common share purchase warrant exercisable until September 31, 2008
at a price of CAD$0.70. (See Buffalo News Release dated April 5th,
2007.)�� At the close of trading on June 28th, 2007 Kinbauri’s
share price was CAD$0.60.�
In conjunction with TSX
approval of the private placement, Kinbauri has received conditional approval
for the acquisition of the El Valle Mill and Mine, Carles Mine, auxiliary
facilities and La Brueva and Godan properties in the Rio Narcea Gold Belt of
Asturias, northwestern Spain.
The El Valle and Carles mines have combined measured and indicated resources of
477,000 oz gold and 26,000 tonnes copper. (See Kinbauri News Release dated July
4th, 2007.)
CAD$5.4
Million Exploration Program Initiated at El Valle
Kinbauri is moving ahead
with an approximate CAD$5.4 million exploration program, including underground
and surface drilling, to expand resources and define reserves towards recommencing
mine production at El Valle. A
successful program will result in defined resources to support six years of
production. Kinbauri then plans to complete engineering studies to determine
the mine development required to convert resources to reserves sufficient for
three years production at the El Valle Mill’s optimal production rates.�
Thereafter, the plans are to continue exploration in order to delineate
resources and reserves at El Valle/Carles to allow a mining life beyond six
years.
Underground Exploration Program
A 21-hole underground
drill campaign has been proposed at Area 107 (14 holes) and Black Skarn North
(7 holes) for a total of 7,000 metres.� Drilling priorities at Area 107 will
include following the high grade mineralization at depth and extending it to
the north and south, while at the Black Skarn North drilling will focus on
extending the continuity of the mineralization.� The program is expected to be
completed near the end of September 2007.
The 2007 planned program
also includes drifting at Area 107 to include 150 meter access and 20 meters of
drilling bays with a 15 meter testing drift in ore, followed by definition
drilling of 1,500 meters with one rig to commence in November.� As well,
drifting will be undertaken concurrently in the Black Skarn area in the fall
with a 300 meter decline and 50 meters of drilling bays to accommodate
definition drilling of 3,000 metres with two rigs slated to begin in
November.���
The aforenoted highly
mineralized zones targeted in the 2007 exploration program have been identified
among those having the potential for rapid identification of reserves to
support a mining operation, due to their proximity to the existing mine
workings and the apparent continuity.� As of March 21, 2007 ORE has estimated indicated resources of
12,000 ounces gold (38,000 tonnes at 9.8g Au/t) and inferred resources of
342,000 ounces gold (913,000 tonnes at 11.6g Au/t) for Area 107; it is open at
depth and along strike.� The Black Skarn North has estimated inferred resources
of 73,000 ounces gold and 5,000 tonnes copper (445,000 tonnes at 5.1g Au/t and
1% Cu) and is open to the east and west.
Surface Exploration Program
Surface drilling is
expected to commence in September with one rig over three areas: Area 208 at El
Valle, Carles and Godan as follows:
•���� Area
208 (El Valle): Six holes for a total of 1,750 meters to be drilled from August
to October to test this potential high grade extension of Area 208.
•���� Carles:�
Three holes in Carles for a total of 1,150 meters to be drilled in September
and October to test the extension of open-pittable resources.
•���� Godan:�
Two holes for 600 meters to be drilled in November to test a Mo-Au target.
Regional
Outlook
The Rio Narcea Gold Belt (RNGB)
has been subjected to multiple phases of mineralization common to most major mining
camps.� However, the El Valle and Carles mines are currently the only deposits
in the RNGB with NI 43-101 compliant resources, with a total measured and
indicated resource of 477,000 ounces gold and 26,000 tonnes copper (2,594,000
tonnes at 5.7g Au/t and 2,343,000 tonnes at 1.13% Cu) and inferred resource of
845,000 ounces gold and 11,600 tonnes copper (3,159,000 tonnes at 8.3g Au/t and
1,607,000 tonnes at 0.84% Cu),�� The El Valle project was first identified in
1992 when several areas having significant gold mineralization were
discovered.� After the 1996 Feasibility Study, additional gold deposits were
discovered, including Area 107, Black Skarn North, Sienna, Charnela, Charnela
South and Caolinas, and Area 208.� Discovery of these deposits clearly
indicates that the El Valle-Boin�s area still has great potential for discovery
of additional gold mineralization.� Some locations may have potential to
combine the mining of large tonnage, low grade deposits concurrently with small
tonnage, high grade deposits.
For further description
of Kinbauri’s projects in the Rio Narcea Gold Belt, including proposed
work programs and objectives, please refer to Kinbauri’s press releases
of January 16, 2007 as well as ORE’s
Technical Report and Kinbauri’s third quarter MD&A available on
Kinbauri’s website and on Sedar.�
McEwen
Appointed to Kinbauri Board
In tandem with the
approval of the private placement, Brian McEwen,
President and COO of Buffalo Gold, has been appointed to the Board of Directors
of Kinbauri.
About
Kinbauri Gold Corp.
Kinbauri is a mineral
exploration company focused on the development of mineral properties, primarily
precious metal prospects in northwestern Spain,
Nevada and Canada.� Its immediate focus is to
expand and upgrade resources to reserves at the El Valle property in Asturias, Spain
with a view to re-starting operations at the mine and mill complex, and to
establish resources to support a mine and mill at Corcoesto in Galicia, Spain where it has an option to
earn a 65 percent interest.
About
Buffalo Gold Corp.
Buffalo's
management is dedicated to maximizing shareholder value through growth
strategies that emphasize careful opportunity assessment and vigilant project
management. The Company is actively acquiring and advancing gold resources to
create producing assets.
To find out more
about Buffalo Gold Ltd. (TSX-V: BUF.U), please visit the company website at www.buffalogold.ca.
On behalf of the Board
of Directors of
BUFFALO GOLD LTD.
���� “Damien Reynolds”
�������������
��������������������������������� �����������
Damien Reynolds,
Chair of the Board
of Directors
and Chief Executive
Officer
For further information please contact:
Julie Hajduk, Investor Relations
E-mail: julie@buffalogold.ca
Phone: 604.685.5492 or T.F. 1.888.685.5492
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT
ACCEPT RESPONSIBILITY FOR THE ACCURACY OF THIS PRESS RELEASE
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.
This news
release may contain information about adjacent properties on which we have no
right to explore or mine. We advise U.S. investors that the S.E.C.'s mining
guidelines strictly prohibit information of this type in documents files with
the S.E.C. U.S. investors are cautioned that mineral deposits on adjacent
properties are not indicative of mineral deposits on our properties.
PLEASE
PUT UNSUBSCRIBE IN THE SUBJECT LINE IF YOU WOULD LIKE TO BE REMOVED FROM THE
MAILING LIST
Julie
Hajduk
24th
Floor, 1111 W. Georgia St.,
�Vancouver, BC V6E
4M3�
�604.685.5492
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