Fairmile Leases outlying Buffalo Valley claims to Newmont,
Hecla drops out of Highland JV
FAIRMILE GOLD CORPORATION
For Immediate Release
May 15, 2000
CDNX: FLA
Fairmile Leases outlying claims at Buffalo Valley to Newmont, Hecla drops out of Highland JV
Vancouver, BC: Fairmile Gold Mining Inc, the wholly owned US subsidiary of Fairmile Gold Corporation (Fairmile, CDNX: FLA), has leased 29 outlying claims at Fairmile's Buffalo Valley Project to Newmont Gold Company, a wholly owned subsidiary of Newmont Mining Corporation (Newmont, NYSE: NEM). Fairmile's underlying Buffalo Valley purchase agreement with Repadre Capital Corp. (Repadre, TSE: RPD) has been modified to reflect this lease.
The claims are located approximately 1.5 miles northeast of Fairmile's ABO Complex resource, and are directly southwest of Fairmile's claims in section 14, which are already leased to Newmont (see News Release dated June 29, 1999).
The lease is for an initial term of 20 years unless terminated earlier, and thereafter as long as minerals are mined, produced or sold from the property. Fairmile will receive advance royalty payments annually and will be relieved of certain land payments.
Newmont has agreed to conduct a minimum work program of US$25,000 on the claims during the first year of the lease. The lease will have a royalty of 5% NSR, with 3% to Repadre and 2% to Fairmile. Should a Federal royalty be instituted, Fairmile's portion would be reduced by that amount to a minimum of 1% NSR.
In other Company news, Hecla Mining Company has notified Fairmile that they are dropping out of the Highland Project Joint Venture without conducting the proposed drilling program. Fairmile will seek a new partner to advance the project.
To obtain more information about Fairmile, visit our Web Site at fairmile.com or contact Investor Relations at 1-604-257-4254.
On Behalf of the Board of Directors,
"Joseph Anthony Kizis, Jr."
Joseph Anthony Kizis, Jr., President and CEO
This News Release contains forward-looking statements that are subject to various risks and uncertainties. Such statements contained herein represent management's best judgment as of this date based on information currently available. Actual results may differ materially from those currently anticipated in these statements.
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein. |
