Moto Goldmines reports more positive drill results, increasing pressure on Red Back Mining to lift offer to match Randgold Resources C$546 million bid

xploration and development company Moto Goldmines Ltd (AIM & TSX:MOE) has reported on the results of its infill diamond drilling campaign conducted within the Moto Gold Project - a multi-million ounce gold deposit in the Democratic Republic of the Congo - between December 2008 and July 2009.

Moto targeted broad zones of high grade Inferred Mineral Resources on the Durba/Chauffeur/Karagba (KCD) deposit, located within the project. The company said the results signalled potential for further growth in high grade resources.

The results included an impressive 8 metres of 18.96 g/t gold from 402m to 410m and 20 metres of 16.09 g/t gold from 208m to 228m.

The KCD deposit accounts for over 70% of the project’s mineral reserves.

“The KCD deposit has delivered Mineral Resource growth rates envied by the gold industry over the last 5 years, and the lodes targeted by this drilling have long been attractive targets. It is pleasing to see the results aligned with our expectations and the increased definition of these Mineral Resources puts the Project in a strong development position by providing potential for high value, organic growth of Mineral Reserves adjacent to the planned processing facility,” said President and COO Andrew Dinning.

Moto Goldmines’ stock was bolstered by the news, rising 1% today and would be considered a positive development for the company amid acquisition negotiations with gold miner Randgold Resources (LSE: RRS, Nasdaq: GOLD), which approached Moto with an unsolicited offer of C$546 million, or C$5 per share.

Randgold is in competition with Red Back Mining Inc (TSX: RBI), which offered C$513 million for the company. On Monday Moto announced that it was considering Randgold Resources unsolicited offer as it is potentially superior to the terms of the current agreement between Moto and Red Back

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