Red Back Inaugural Paboase Underground Reserve Exceeds 900,000 Ounces

19.07.2010  |  Marketwired

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/19/10 -- Red Back Mining Inc. (TSX: RBI) (the 'Company' or 'Red Back') is pleased to announce the first underground Ore Reserve estimate for Paboase at its Chirano Gold Mine ('Chirano') in Ghana.

The Company's independent consultants, AMC Mining Consultants of Vancouver, British Columbia have reported ore reserves based on the sub-level caving ('SLC') mining method. The following table shows the Paboase underground reserve as at May, 2010:

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                        Paboase UG Reserve May 2010
                               below 2200mRL
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Class                        Mt                Au g/t                   Moz
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Probable                   7.86                  3.64                  0.92
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Notes:
1. The Underground Ore Reserve is based on SLC design and comprises
   development and production (stope) ore.
2. The development and SLC Stope design shapes are based on Indicated
   Resources.
3. All Inferred Resource material to be mined within the above SLC Stopes
   was considered dilution at zero grade. All Inferred Resource &
   unclassified material lying at the extremes of the ore body was excluded
   from the mine design and SLC Stoping shapes.
4. Where an appropriate level of confidence exists for low grade
   mineralization within planned waste and dilution, this has been included
   in the reserve. This mineralization makes up 3% of the Au content in the
   reserve.
5. The reserve estimates are based upon a cut off grade of 1.7g/t, and a
   gold price of US$800/oz.

The Ore Reserve Estimate is based on the Underground Mineral Resource Estimate carried out by Hellman & Schofield Pty Ltd which includes all drilling to the end of May 2010 and is detailed in the table below:

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                        Paboase UG Resource May 2010
                               below 2235mRL
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Class                        Mt                Au g/t                   Moz
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Indicated                  7.73                  4.19                  1.04
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Inferred                   1.16                   4.4                  0.16
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Notes:
1. Underground Mineral Resources are reported above a 1.5g/t cut off and
   below the 2235m elevation, approximately 15m below the base of the
   Paboase open pit and above the minimum elevation of 1525m.
2. Resources are contained within a strike length of approximately 450m.
3. Gold grades for the reported underground resource model have been
   determined using Ordinary Kriging (OK) with grades interpolated into
   parent blocks with dimensions of 2m (east) by 10m (north) by 25m
   (elevation).
4. Gold estimation and model blocks were constrained within geologically
   derived wireframes.

The Paboase orebody remains open at depth with a number of intercepts below the new reserve giving grades in excess of 7g/t. The extension will be drilled from underground during the course of decline development.

Development of the Paboase decline is underway and it is anticipated that first development ore will be delivered to the mill in late 2011.

Commenting, Richard Clark, President and CEO of the Company stated, 'Paboase is the second underground mine that Red Back has discovered at Chirano. Further delivery of high grade tonnes will continue to transform the Chirano operation into a significant producer. With exploration continuing with 5 rigs targeting both the direct Paboase area and throughout the 10km Chirano trend we are confident that this is just the second of several underground operations.'

About Red Back

Red Back is an unhedged African focused mid-tier gold producer. It owns and operates the Chirano Gold Mine in Ghana and the Tasiast Gold Mine in Mauritania and continues to expand the potential of those operations. In addition to its two mines, the Company holds an extensive exploration portfolio in West Africa.

The independent Resource estimate reported herein was undertaken by Nic Johnson (Member of the Australian Institute of Geoscientists) of Hellman and Schofield Pty Ltd with more than five years experience in the use of geostatistics for estimation of recoverable resources in gold deposits. For the purpose of reporting under National Instrument 43-101 Mr. Johnson is regarded as a Qualified Person.

The independent Underground Ore Reserve estimate reported herein was undertaken by Herbert Smith, B.Sc., M.Sc., P.Eng. (Member of the Association of Professional Engineers and Geoscientists of B.C.), of AMC Mining Consultants (Canada) Ltd with more than five years experience in Ore Reserve estimation. For the purpose of reporting under National Instrument 43-101 Mr Smith is regarded as a Qualified Person.

The technical contents of this release have been reviewed by Hugh Stuart, BSc., MSc, a Qualified Person pursuant to NI 43-101. Mr. Stuart is the VP - Exploration of the Company and a Member of the Australasian Institute of Mining and Metallurgy. Samples are prepared and analyzed by fire assay using a 50 gram charge at the Analabs facility in Bibiani, Ghana and ALS Chemex in Kumasi, Ghana in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted. Selected samples from this lab are check assayed each month at other Analabs laboratories worldwide.

This News Release contains forward looking statements which are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking statements. The Company does not intend to update this information and disclaims any legal liability to the contrary.

On behalf of the Board of Directors:

Richard P. Clark, President

Contacts:

Red Back Mining Inc.

Simon Jackson

VP-Corporate Development

604-689-7842


Red Back Mining Inc.

Sophia Shane

Investor Relations

604-689-7842

604-689-5452 (FAX)
www.redbackmining.com