Steppe acquisition of Goldbelt subsidiary progressing
Steppe Gold Resources Ltd SPE
Shares issued 27,967,926 Jun 2 close $0.17
Wed 3 Jun 98 News Release
Also Goldbelt Resources Ltd (GDB)
Mr. John Menzies reports
As announced in Stockwatch March 20, 1998, Steppe Gold and Goldbelt
Resources have entered into a contract whereby Steppe Gold acquires all of
the shares in Goldbelt International Limited (GBIL) a wholly owned
subsidiary of Goldbelt Resources.
GBIL indirectly has or will have title to a 50 per cent interest in the
Leninogorsk gold tailings project and a 60 per cent interest in the Abyz
copper-gold-zinc deposit. In the previous release it was stated that
closure of the acquisition transaction was scheduled to occur on or before
May 15, 1998. Conditions precedent to closure included legal and technical
due diligence and title matters, all of which are progressing, however the
closing is now anticipated on or before June 15, 1998.
The Leninogorsk gold tailings project is an advanced acquisition with 2.4
million ounces in previously stated reserves and resources. A comprehensive
bankable feasibility for a plant treating 7.2 million tonnes per annum was
previously completed. Steppe Gold has initiated a complete review and has
received a proposal from an independent engineering contractor for the
preparation of a new feasibility study targeting a process facility
treating 1.5 million tonnes per annum. This development is expected to
produce both gold dore and zinc concentrate, the latter would be treated at
the adjacent Leninogorsk zinc smelter.
The Abyz high grade copper-zinc-gold project is to the northwest of the
Mizek and is similar to the company's Kosmurun and Akbastau deposits south
of Mizek. A pre-feasibility study conducted by Sitka Corp. based in
Washington and Mine Development Associates based in Nevada reported diluted
mineable open pit reserves of 1.4 million tonnes at 9.8 g/t gold, 86 g/t
silver, 3.0 per cent copper and 7.3 per cent zinc and underground reserves
of 2 million tonnes at 6.2g/t gold, 61.6 g/t silver, 2.1 per cent copper
and 5.3 per cent zinc. A reconnaissance IP survey conducted during 1997
delineated two high chargeability targets which are believed to represent
sulphide mineralization along strike from Abyz - these IP targets remain
untested. Steppe Gold plans to drill both IP targets and to conduct
additional exploration on the 50 square kilometre licence. |
