Anyone have any comments on the news release??
March 19, 2001 FOR IMMEDIATE RELEASE
(Vancouver, B.C.) - Bema Gold Corporation ("Bema" or the "Company") is
pleased to announce that construction of the Julietta Mine in Russia is
on
schedule and gold production at the Refugio Mine in Chile has improved
significantly.
Julietta Mine
Magadan Region, Far Eastern Russia
At the 79% owned Julietta Mine, underground development and surface
facilities construction are well advanced and all critical path items are
on
schedule for the commencement of full production in the fourth quarter of
2001. The underground development is progressing on the 850 main adit
level
and has advanced approximately 850 meters as of the end of February.
The total construction cost for the Julietta Mine is projected at US$45
million. The project financing was completed in September 2000 and to
date
approximately US$32 million has been expended. Production from the
Julietta
Mine's 350 tonne per day plant is projected at 130,000 ounces of gold
equivalent annually, with operating costs, including revenue taxes and
royalties, at less than US$100 per ounce.
Refugio Mine Chile
Cia. Minera Maricunga ("CMM")
(50%Bema 50% Kinross)
Production from the Refugio Mine has significantly exceeded expectation
since in-pit mining recommenced in mid December 2000 after a five week
shutdown.
Through February 28, 2001, the mine crushed 1,945,000 tonnes of ore (year
to
date), for a record daily average of 32,967 tonnes, against the budgeted
29,051 tonnes. Gold production for this period was 34,353 ounces, 21%
over
the budgeted 28,500 ounces, while operating cash costs averaged US$224
per
ounce, 14% below the projected US$259 per ounce cost. As previously
announced, due to the current low gold price and capital expenditure
requirements in the second half of 2001, mining and crushing operations
at
Refugio are currently planned to cease at the end of May. Gold
production
will continue for the remainder of the year, as the inventory of gold in
the
heaps is leached and recovered. The mine will be placed on care and
maintenance, to be restarted when gold prices improve. CMM's 2001 Budget
estimates the mine will produce 122,000 ounces of gold for the year, with
operating cash costs of US$243 per ounce. Based on these projections
Refugio will generate positive cash flow for this year.
Financial
Over the past few months the Company's financial position has improved
significantly through the sale of non-core assets, the reduction of
corporate overhead costs and project expenditures, and the renegotiation
of
the Refugio Project Loan Facility.
In light of the planned suspension of mining in May, the Company has
renegotiated the Refugio Loan repayment terms with Barclay Bank PLC and
will
use a portion of its cash proceeds to repay US$7 million of the loan
during
2001 leaving US$5 million outstanding by year end.
Based on current cash projections it is not anticipated that the Company
will require any further financing in 2001.
On Behalf of BEMA GOLD CORPORATION
"Clive T. Johnson"
Chairman, C.E.O., & President
For more information on Bema Gold please contact Investor Relations at
(604)
681-8371 or toll-free 1-800-316-8855 or alternatively contact our
web-site
at www.bema.com.
The Toronto Stock Exchange neither approves nor disapproves the
information
contained in this News Release. Bema Gold Corporation trades on The
Toronto
Stock Exchange and the American Stock Exchange. Symbol: BGO.
Some of the statements contained in this release are forward-looking
statements, such as estimates and statements that describe the Company's
future plans, objectives or goals, including words to the effect that the
Company or management expects a stated condition or result to occur.
Since
forward-looking statements address future events and conditions, by their
very nature, they involve inherent risks and uncertainties. Actual
results
in each case could differ materially from those currently anticipated in
such statements. |
