Doug
That would be nice but, I do not think George will need it. Here is the news they put out to day. The market has not responded as the news went out after the close. This is huge deal and considering that George was $2. not 6 months ago, it could heat up very fast.
December 13, 1996 TRADING SYMBOL: REW-V and GGP-V
NEWS RELEASE
Robert Crompton, President of Reward Mining Corp. and Kevin McCrory, Director of George Resource Company
Ltd. are pleased to announce the signing of an Agreement today in La Paz, Bolivia with Bolivian Gold S.R.L.,
regarding a Sub-Lease Agreement owned by Bolivian Gold to explore and to develop the COROCORO copper deposit
in Bolivia. The COROCORO district located about 100 kilometers S.W. from La Paz, has been in partial or full
production for over 400 years. The COROCORO mine is one of the largest copper deposits in Bolivia encompassing
a concession of about 2877 hectares. It is famous for its high-grade native ores.
Bolivian Gold has acquired the property on a 20 year Lease Agreement from the Government Mining Agency,
COMIBOL. Bolivian Gold has subsequently entered into a Sub-Lease Agreement with Reward Mining Corp. as to a
60% interest and as "operator" of the project and with George Resource, as to a 40% interest. The Agreement
encompasses not only the copper deposit but also, the old mill and work buildings as well as many buildings in the
town of COROCORO which is situated in the center of the concession. In other words, an entire infrastructure for a
renewed mining operation ( railroad, power, water, sewers, transportation, etc. ) is in place including mine personnel.
There were several consortiums operating between 1873 and 1934 when Asarco became owner. COMIBOL leased the
COROCORO from Asarco in 1955 after the government take-over of mines in 1952. In the year 1955, the records
show that the COROCORO was mined underground to a depth of 1600 feet with annual production of 2.25 thousand
tons of metallic copper and 363 kilograms of silver. Production has historically been derived almost equally between
sulphide and native ores.
In 1986, COMIBOL and a South African mining company, sank a $12,000,000 (U.S.) 2330 foot shaft which was
cemented to depth. Because of serious mis-management and labour unrest, the mine was allowed to flood to prevent
the miners from working. Certain local miners were given the right to "high-grade" a 77 hectare area, hand-cobbing
500 tons annually of 40-45% native copper.
In the late 1970's and early 1980's, COMIBOL carried out a program of underground drilling, surface trenching and
assaying to determine the potential for an expanded mining operation underground and/or a heap leach operation,
which resulted in the sinking of the 1986 shaft. These tonnages, values and maps are available along with a large
volume of valuable mining and milling data.
This COMIBOL Report indicates an in-situ underground resource of 5.6 million tons of 3.17% copper ore consisting
of 2.67 % oxide copper and .5% native copper. The gross value of this Resource is about $438 million. The tailing
piles contain an estimated 500,000 tons grading 1 1/2 - 2% copper amendable to heap leaching. This reserve
represents a possible source of copper for initial heap leach feed.
The terms of the Lease is a payment of $10,000 (U.S.) already paid, the posting of a $50,800 (U.S.) redeemable
performance bond and an expenditure commitment of $254,000 (U.S.) for exploration and development during the
first two years. Property overheads are about $15,000 (U.S.) annually and COMIBOL
participates in any production as to 5% of net profits.
The terms of the Reward / George Agreement with Bolivian Gold is as follows:
- $120,000 (U.S.) payable as to $20,000 (U.S.) upon signing the Agreement(paid) and $100,000 (U.S.) upon
Approval of the Agreement by the Vancouver Stock Exchange.
- 1,000,000 shares of Reward plus 1,000,000 shares of George to be issued as follows:.
- 200,000 shares of each Company upon V.S.E. approval of the Agreement.
- 400,000 shares of each Company after the expenditure of $254,000 (U.S.) as required under the Lease.
- 400,000 shares of each Company when the COROCORO reaches production of at least 500 tons / day.
Under the terms of the Agreement, Reward / George will assume all of the obligations, commitments and payments
of the Bolivian Gold / COMIBOL Lease Agreement. Any environmental problems from previous mining are the
responsibility of COMIBOL who, in this regard, are about to receive an Environmental Impact Study prepared by
Dames & Moore, of Cochabamba, Bolivia and Miami, Florida.
Until further investigation, the several alternatives available to put the COROCORO back into production, cannot be
determined. The obvious plan would be an open pit, heap leach operation utilising the most modern of extraction
methods such as the SX-EW (solvent extraction, electrowinning) technology.
Reward contracted Dr. Darryl Drummond, well known Professional Engineer, to visit the COROCORO. He just
returned from the trip and made the following comment:
"The COROCORO property is worthy of an extensive drill program to evaluate the copper oxide. Of special interest
is the presence of surface copper over a 2 kilometer length with a width of 150 meters along the COROCORO fault.
This mineralization is centered beneath the ridge that should be drilled to determine the average copper grade on the
entire 2 kilometer long ridge and hence, the open pit potential of the copper deposit. It is conceivable that the entire
hill from the Toledo shaft northward, may be amenable to an open pit operation."
A reverse circulation drill program will be the first step in the evaluation of this deposit. The cost of this exploration
program will be minimised because of the extensive information already in place.
ON BEHALF OF THE BOARD
R.G. CROMPTON, President
Reward Mining Corp.
The Vancouver Stock Exchange has neither approved or disapproved the information contained herein |
