Here's a hardcopy of the $50 ounce
To all: News Release - JV with Barrick
Wed 24 Sept 97 News Release
Also Barrick Gold Corp (ABX)
Mr James Mancuso reports
An agreement in principle has been reached on terms with Minera ABX Exploraciones, SA, Barrick Gold's Peruvian subsidiary, for a joint venture on Queenstake's properties in the northern Ancash District, Peru. Barrick will have an option to finance US$4,500,000 to earn a 51% interest in 53,800 hectares of Queenstake property near and along trend with Barrick's Pierina orebody acquired by it in 1996 through its purchase of Arequipa
Resources. Pierina is reported to contain proven and probable reserves of 6.5 million ounces gold with projected initial production of 750,000 ounces of gold per year in 1999 at an average cost of $50 per ounce of gold. The agreement in principle with Barrick is subject to the successful negotiation and execution of definitive agreements that Queenstake anticipates will be completed in the near future.
The 63 properties subject to the joint venture total 53,800 hectares and are owned 100% by Minera IRI Peru, SA, Queenstake's wholly owned subsidiary. Queenstake and Barrick are equal landholders in the 100km long northern Pierina trend. Barrick, through its knowledge of the geology at Pierina and the surrounding areas, is in a unique position to explore Queenstake's properties, much of which is covered by post-mineral volcanic rocks, gravel, soil and glacial moraine. Barrick's recently completed airborne geophysical survey has already identified targets that may reflect Pierina type of mineralization on both Barrick and adjacent Queenstake
properties. Exploration work is to begin immediately.
Barrick may earn a 51% interest in each of the 63 properties by completing staged exploration expenditures on the properties beginning with a commitment to spend US$300,000 between now and May 30 1998. To maintain the option Barrick must spend an additional US$1,000,000 in the second year, US$1,400,000 in the third year and US$1,800,000 in the fourth and final year. Barrick may return any of the properties after the first year, or if after the first year, prior to completing its earn-in expenditures, but shall retain no interest.
Upon earn-in by Barrick, Queenstake will have the option to finance 49% of continuing programs or dilute its interest. If either party elects to dilute its interest to 30%, and the other party elects to proceed, then it will be required to carry the non-contributing party through to a positive decision to mine.
(c) Copyright 1997 Canjex Publishing Lt
Best Regards
KEITH |
