Waseco Resources is a Canadian junior mining company, previously
referred to on the Diadem thread, as Diadem holds 41 % of Waseco
shares. However, Waseco has a relatively smaller market cap, and is
making significant advances in its Indonesia projects, particularly
the Tewah. It is traded on the Canadian Dealing Network, under the
symbol WSCO. Waseco trades for about C$1.10, and has 12.8 mill
shares. Its projects are exclusively in Indonesia, unlike partner
Diadem. I have copied the latest news release from the company, which
appears well on its way to becoming a small to intermediate producer.
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: WASECO RESOURCES INC.
CANADIAN DEALING NETWORK SYMBOL: WSCO
MARCH 24, 1997
Waseco Reports on Tewah Progress
SCARBOROUGH, ONTARIO--
WASECO RESOURCES INC. (WSCO.CDN) is pleased to report on the
status of its Tewah Project in Central Kalimantan, Indonesia.
The property is held under a fourth generation Contract of Work
(CoW). Waseco has secured a 40 percent interest in the property
and will earn, in total, a 60 percent interest in the property
upon completion of the final positive mining feasibility study.
To-date, over U.S. $4.6 million has been spent on exploration and
engineering on the property.
Production grade control and detailed dredge path delineation for
the first two operational years has been completed and the
requisite environmental impact study is underway. The Company has
also completed its world-wide search for appropriate dredges and
has identified at least two existing dredges that meet its
specifications. Discussions to enter into a long-term leasing
contract for a dredge are taking place.
Gold production, initially at 30,000 ounces per year, at an
operating cost of U.S.$123/oz Au, is scheduled to begin in the
fall of 1997. In year two, production will be doubled by the
addition of a second dredge, and in year three, production from
the terrace resource will be initiated, bringing the total annual
production to approximately 100,000 ounces of gold per year.
Production will be sustainable at this level for in excess of 14
years. At the present time, the drill indicated river resource is
approximately 1 million ounces and the drill indicated terrace
resource is 2.4 million ounces. The full drill indicated resource
calculation has yet to be completed, as the meanders and point
bars along the 168 kilometre Kahayan River remain essentially
untested.
Follow-up work on recent gold discoveries (announced February 27th
and March 5th/97) on the hard rock prospects on the Island of Java
is presently in progress and further assay results from surface
samples will be released later this week.
Waseco is a Canadian exploration company which, in addition to the
Tewah Project, holds five hard rock prospects, four of which are
on the Island of Java and one on the Island of Kalimantan. Waseco
is affiliated with Diadem Resources Ltd. (DIR-ME) which holds
approximately 41 percent of the 12,821,614 common shares issued
and outstanding and is the operator of the exploration program.
BY ORDER OF THE BOARD
A.C.A. HOWE, President
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FOR FURTHER INFORMATION PLEASE CONTACT:
Waseco Resources Inc.
Richard Williams
Secretary and Director
(416) 364-3123
(416) 364-5400 (FAX)
or
Waseco Resources Inc.
Mike Bird
Vice-President - Asia
011-62-21-252-1093
or
Blackwell Investor Relations
(416) 869-0632
(416) 364-5400 (FAX)
INDUSTRY: MNG
SUBJECT: MEX
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