SALT LAKE CITY--(BUSINESS WIRE)--June 25, 1999--Under the terms
of the agreement, Cerro Dorado, Inc. will issue to Medinah Gold, Inc.,
500,000 shares of Cerro Dorado, Inc. in exchange for a 60% interest in
the Ipun properties and 100,000 shares of Cerro Dorado, Inc. to
Medinah Mining, Inc. for reimbursement of its costs and expenses
incurred to date.
Medinah Gold, Inc. owns the properties by way of an agreement
signed with Sr. Juan Jose Quijano in April 1998, and will retain a 40%
carried interest.
Consulting Engineer, Ralph Bonham, recently visited the Ipun
properties that are located 250 miles south of Puerto Mont, Chile. The
Island is 6 miles wide, 12 miles long, has fresh water lakes, mild
climate and can be worked year round. Ipun is the site of reported
large areas of gold bearing placer sands covering major sections of
the shoreline and dunes inland. Bedrock-hosted gold deposits are the
source of these placers.
The first trip to the Island by Bonham was brief and was designed
to test numerous reports of gold placers in the beach sands. Bonham
has confirmed that gold is present in the sands and has recommended
programs to confirm commercial viability. Gold was found in several
streams that he tested and, he therefore concluded that bedrock
sources probably exist nearby. The first test site was a stream on the
southeast side of the Island that showed enough free gold to bring
back ore samples for assay. The second test site, also a stream,
showed free gold in the assays. The third site was the largest stream
to be sampled and carried the best visual showing on the Island so
far. The stream is about 10 feet wide and meanders to the ocean behind
sand dunes. Bonham indicates the probability of old streambeds
carrying gold.
"Ipun Island, with a little more testing and found to be
commercial, could be put into production within a short period of time
and be producing a profit with a minimal capital expense."
Management of Cerro Dorado, Inc. has approved Mr. Bonham's
recommendations for a return trip to Ipun and the undertaking of
extensive testing to determine production feasibility.
Note: This News Release may contain certain "forward-looking
statements" within the meaning of the United States Securities
Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included in this release, including,
without limitation, statements regarding potential mineralization and
reserves, exploration results, and future plans and objectives of
Cerro Dorado Inc. are forward-looking statements that involve various
risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future
could differ materially from those anticipate in such statements.
Important factors that could cause actual results to differ materially
from the Company's expectations are disclosed under the heading "Risk
Factors" and elsewhere in documents filed from time to time with the
United States Securities and Exchange Commission and other regulatory
authorities.
--30--jp/ny* sw/ny
CONTACT: Cerro Dorado
Investor Relations, 801/484-2668
|
