News: UNITED KENO HILL MINES LIMITED
ÿÿÿ TORONTO, Aug. 14 /CNW/ - United Keno Hill Mines Limited is pleased to
announce that the Yukon Territory Water Board has issued a Type A Water
Licence to the Corporation. The licence, the terms of which are substantially
as applied for, has been forwarded to the Minister of Indian and Northern
Affairs Canada for approval.
ÿÿÿ Environmental permitting in the form of a water licence will now enable
the Corporation to secure the production financing necessary to permit the
resumption of commercial production at its silver-lead-zinc mines in Yukon.
ÿÿÿ The Corporation embarked on its Reserve Development Strategy in June,
1994 with the objectives of re-establishing an adequate mineral inventory, of
identifying and implementing strategies to lower mining costs and increase
production efficiencies, and of securing a water licence to permit the
re-commencement of production.
ÿÿÿ A two and one-half year exploration program succeeded in trebling the
mineral inventory present. Mineral resources now stand at 944,000 tons grading
30 ounces of silver per ton, 4.8% lead and 3.9% zinc, the highest level in the
Corporation's 50 year history. Within that resource, a mineable reserve of
520,000 tons has been established grading 33 ounces of silver per ton, 6.6%
lead and 5.0% zinc. The mineable reserve is sufficient to provide for a
three-year mine plan and adjacent mineral resources are expected to be
sufficient to provide an initial mine life of five years.
ÿÿÿ Mine planning and a Feasibility Study completed in October, 1996
incorporate modern, trackless mining methods with development off-vein in
competent quartzite. In that study, mining costs are forecast to decline
substantially from historic levels, production rates are forecast to improve
considerably and profitable operations are indicated. As previously announced,
Yukon Gold and Mineral Development Company Inc. is in the process of
completing an equity financing for the Corporation. In conjunction with those
financing activities, Yukon Gold has identified opportunities for substantial
reductions in projected capital and operating costs and is now revising mine
and operating plans to incorporate those improvements.
ÿÿÿ Ministerial approval of the water licence will deliver the third
objective of the Reserve Development Strategy and permit the Corporation to
complete the production financing required to complete surface rehabilitation
and mine development. Endeavour Financial Corporation, the Corporation's
financial advisors, is now preparing to secure those funds. Production will be
resumed following a pre-production period of four to six months.
ÿÿÿ -0-ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ 08/14/97
For further information: Stephen F. Powell, Chairman and Chief Executive Officer, United Keno Hill Mines Limited, Tel: (416) 955-9085, Fax: (416) 955-9459
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