Located in the northern region, ghana birim goldfields ghana limited

TERMINAL REPORT

TINGA PROSPECTING LICENSE
LVB 505/95

LOCATED IN THE NORTHERN REGION, GHANA

BIRIM GOLDFIELDS GHANA LIMITED.

May 2007.

Distribution:
The Minerals Commission

Geological Survey of Ghana

Mines Department, Accra

Birim Goldfields Ghana Ltd.

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 1

2. INTRODUCTION 4

Ownership And License Details 4

2.1 Location 4

2.2 Access 4

2.3 Physiography 4

2.4 Local Politics And Socio-Economics Of The Area 5

2.5 Existing Environmental Issues 5

3. EXPLORATION AND GEOLOGY 5

3.1 General 5

3.1.1 Environmental Compliance 5

3.1.2 Logistics 6

3.1.3 Social Relations 6

3.1.4 Occupational Health And Safety 6

3.2 Geology 6

3.2.1 Regional Geology 6

3.2.2 Concession Geology 7

3.3 Exploration 7

3.3.1 Introduction 7

3.3.2 Work Completed 8

3.3.2.1 Remote Sensing Interpretation 8

3.3.2.2 Drilling 8

3.3.2.2.1 Introduction 8

3.3.2.2.2 Methodology 9

3.3.2.2.3 Quality Control / Quality Assurance 9

3.3.2.2.4 Results And Conclusions- Drill Programme One 9

3.3.2.2.5 Results And Conclusions- Drill Programme Two 10

3.3.2.3 Gradient Array Induced Polarisation survey 15

3.3.2.3.1 Introduction 15

3.3.2.3.2 Methodology 15

3.3.2.3.3 Results and Conclusions 16

3.4 FINANCIAL REPORTING 16

3.4.1 Exploration Expenditure Incurred To Date 16

3.5 PROPOSED EXPLORATION WORK PROGRAMME 18

3.5.1 Outline Of Proposed Future Exploration Program 18

4. CONCLUSION AND RECOMMENDATIONS 18

TABLE OF APPENDICES
APPENDIX 1 : DRILL HOLE BFE001 TO BFE063, AND BTI001 TO BTI018 COLLARS

APPENDIX 2 : DRILL HOLE BFE001 TO BFE078, AND BTI001 TO BTI018 ASSAYS

APPENDIX 3 : DRILL HOLE BFE001 TO BFE078, AND BTI001 TO BTI018 GEOLOGY

APPENDIX 4 : STEREOGRAPHIC PLOTS FROM TINGA FAR EAST DRILL PROSPECT

LIST OF TABLES

Table 1: Pillar Co-ordinates for the Tinga Prospecting License 4

Table 2: Significant drill intersections from Drill Programme One 10

Table 3: Significant drill intersections from Drill Programme Two. 10

Table 4: Expenditure incurred on the Tinga Prospecting licence 18

LIST OF FIGURES
FIGURE 1: LOCATION MAP

FIGURE 2: GEOLOGY OF THE BUI GOLD BELT AND MALUWE BASIN SHOWING THE LOCATION OF THE TINGA PROSPECTING LICENSE

FIGURE 3: LOCAL GEOLOGY OF TINGA LICENCE

FIGURE 4: DRILL HOLE COLLARS OF FAR EAST PROSPECT

FIGURE 5: DRILL SECTIONS OF THE FAR EAST PROSPECT

FIGURE 6: TINGA INDUCED POLARISATION IMAGES:

I: TOTAL CONDUCTIVITY

II: TOTAL RESISTIVITY

III: RESIDUAL RESISTIVITY

IV: RESIDUAL CHARGEABILITY

V: TOTAL CHARGEABILITY

VI: IP INTERPRETATION WITH GEOLOGY

FIGURE 7: EXTENSION MAP FOR TINGA PROSPECTING LICENSE

1.EXECUTIVE SUMMARY

Semafo Inc. acquired Tinga through a merger with Prospex Mining Inc (“Prospex”) on 30th June, 1999. Prospex, formerly, signed a Joint Venture Agreement with AGEM Ltd., a wholly owned subsidiary of IAMGOLD Ltd., January 19th, 1999. IAMGOLD, had formerly explored Tinga in a jointly funded alliance (“Alliance”) with Ashanti Goldfields Company Ltd. from August, 1995 until June, 1997.

Over the two year period, to June 1997, the Alliance undertook regional stream sediment, anthill, laterite and soils multi-media geochemical surveys. Two main areas of follow-up were identified as Tinga Workings Anomaly and Wasipe East Workings Anomaly. A total of 7451 metres of trenching, incorporating some 6887 samples, was completed over six defined prospects, the most noteworthy of which was the >1km strike length of defined mineralisation in trenches over Tinga Far East (AGEM, 1997).

Semafo started field operations on 1st July, 1999. 1299m of reverse circulation drilling, 1105m of trenching and 49.0km of line cutting where completed on the Tinga Project between 1st July and 30th September, 1999.
Five zones (A- E) were drill tested during the August program and intercepts recorded, where
‘A’ ZONE - TINGA FAR EAST

Prospect	SL	RC HOLE ID	From (m)	To (m)	Width (m)	Grade (g/t)
FAR EAST	8100N	RTA810A	22	25	3	6.33
“A” ZONE		RTA810B	22	27	5	6.35
		RTA810C	26	33	7	7.44
		RTA810X	22	24	2	3.93
		RTA810Y	14	15	1	0.89
			25	34	9	6.71
	7900N	RTA790A	20	26	6	5.50
		RTA790B	25	28	3	2.68
	7700N	RTA770A	22	31	9	5.19
		RTA770B	26	32	6	6.59
		RTA770C	45	47	2	1.16
		RTA770P	0	4	4	1.81
			15	22	7	9.77
			25	27	2	1.50
	7500N	RTA750C	12	15	3	2.40
			37	38	1	0.71

B’ – ‘E’ ZONES – TINGA MAIN AND WEST

Prospect	SL	RC HOLE ID	From (m)	To (m)	Width (m)	Grade (g/t)
MAIN EAST	7200N	RTB720A	8	11	3	1.54
“B” ZONE		RTB720B	12	14	2	1.37
			22	24	2	0.83
		RTB720P	11	12	1	1.01
	7400N	RTB740A	7	11	4	0.51
		RTB740B	29	30	1	0.74
			34	36	2	2.91
MAIN WEST	7200N	RTC720A	12	14	2	17.86
“C” ZONE		RTC740A	21	23	2	2.29
		RTC760A	28	29	1	1.47
TINGA WEST
“D” ZONE	8600N	RTD860P	4	6	2	0.53
“E” ZONE	8200N	RTE820A	5	8	3	2.78
		RTE820P	1	5	4	0.54

At Far East (Prospect A) surface indications showed the average intersection width to be four to five meters with an average grade of 5.0 grams per tonne gold. In 1999-2000, Semafo undertook a total of 8,308 meters of reverse-circulation drilling (100 holes). The work focused on testing the mineralization down to 75 metres. The drilling results showed the Far East gold-bearing structure to extend over a strike length of 1,400 metres. An internal estimate by Semafo gave 1,334,300 tonnes at 3.31 grams per tonne, containing 142,000 ounces as indicated resources. It is understood that this resource is not in accordance National Instrument 43-101.

Birim Goldfields Inc. acquired the Tinga prospecting license through the acquisition of all of the shares in the capital of Ebi (Ghana) Ltd., a wholly owned subsidiary of Semafo. The Tinga prospecting license currently covers a 43.8 square kilometer area and lies only 12 kilometers west of Birim's Kuri gold prospect.
Birim Goldfields Inc. has completed 7,942.16 meter Phase One drill program on the Tinga gold deposit the reporting term. The program consisted mostly of Reverse Circulation (RC) drilling (6,425.85m) with some diamond tails (1,516.31m) done on the deeper holes or in the vicinity of the expected mineralized zone. The general objective of the program on Tinga is to test the depth extension of the Far East Zone in order to move the project closer to a resource/reserve calculation in accordance with NI 43-101. The specific objectives included the following:

• 
  To verify key intersections previously reported by Semafo
  
• 
  To obtain a full stratigraphic diamond-core profile through the mineralized zone
  
• 
  To expand the down-dip resource base. In areas of high-grade mineralization, this will be extended to approximately 140 vertical meters.
  

The two noteworthy drill intersections from this programme are; BFE021 cut 7.1 meters of 3.06 g/t gold at a vertical depth of 87 meters, and 125 meters laterally from this result BFE023 defined 7.8 meters at 4.89 g/t gold at a vertical depth of 91 meters, appear to define a high-grade, shallowly plunging (20 degrees) thickening within the deposit that can be traced northeastwards for a current minimum strike of 170 meters from Semafo's unpublished drill hole intercept in RTC030 (14m @ 7.24 g/t Au at 53m vertical depth).

Both the Tinga and adjacent Kuri targets constitute a new node of mineralization, which Birim hopes will attain critical mass and warrant development work. The Far East gold zone is underlain by the same geological environment as Birim's Kuri prospect (bi-modal granites / granodiorites). Based on the success of Phase I results, a second phase of drilling will be initiated to follow the strike of the mineralized shear system which remains open to the north and south. Semafo have reported that the expression of the anomaly at surface is limited along strike in both directions by complex surface regolith (a clay drape which is subduing the soil geochemical response).
The drill hole samples were submitted to SGS Laboratories (Tarkwa). The samples were analyzed by fire assay using a standard 50g charge with an AAS finish, a gravimetric finish was requested for any fire assay results which reported above 5 g/t gold. Birim and SGS have routinely inserted quality control samples into all sequences of submitted samples to ensure full compliance with NI 43-101 securities regulations.
SAGAX were contracted in to undertake a gradient array induced polarisation electromagnetic ground survey. A survey grid was planned such that the lines would cut the structures normal to the strike of the structures. The aim of the programme was to identify lithological boundaries, structural controls of the Far East mineralisation and to identify similar geophysical signatures for future exploratory drilling.
Two phases of IP survey were undertaken; the first was located in order to cover known mineralisation at the Far East prospect and to extend into unexplored areas both north and south of delineated mineralisation (i.e. areas where the gold-in-soil response could have been subdued due to the presence of the clay drape). The second programme was planned to infill between the original four km² and thus provide total coverage of the Far East mineralised zone. This second programme also extended to cover the remaining soil geochemical target i.e. prospects ‘B’, ‘C’, ‘D’ and ‘E’, for a total of 11km² of gradient array IP and 2.59km of pole dipole.
IP targets and interpreted upside potential from previous Semafo exploration work were drill tested by means of a regional reverse circulation scout drilling programme. This programme consisted of drilling 33 holes for a total of 2,283m. The programme tested 17 individual targets.
Birim Goldfields intends to continue exploration on the Tinga Prospecting license. The systematic work and compilation of data undertaken by Birim will be followed up and targets will be pursued. Results from work completed have been encouraging and Birim is confident that additional careful systematic work could result in economic discoveries on the property.
Birim Goldfields requests that the Prospecting License be extended for an additional period of twelve (12) months to allow ongoing prospecting.
Birim Goldfields has expended approximately US$ 1,485,678.66 on the Tinga Prospecting License to date.