News Release
Goldminco JV with Northern Mining in Papua New Guinea
Goldminco Consolidated Mining Corp GMC
Shares issued 6,835,539 Jan 25 close $0.13
Wed 27 Jan 99 News Release
Mr. Peter Tambanis reports
After months of negotiating, the company has finalized a joint venture
agreement with Northern Mining Ltd., a Papua New Guinea-based company, to
explore for gold and other minerals over an area of 1,020 square
kilometres. Goldminco will be granted the option to earn 70 per cent of the
project by reimbursing Northern Mining K298,000 in instalments by cash or
the equivalent in shares of Goldminco and incurring exploration
expenditures of K1.5-million over the next two years. Upon the formation of
a joint venture on Goldminco's earn-in of its 70 per cent interest,
Goldminco has the potential to earn up to 95 per cent of the project, if
Northern Mining cannot or elects not to finance its project contributions
at the development stage.
The property is in the Keveri fault system at the Owen Stanley Range. No
gold mining activity has been reported since the mid-1920s and only limited
reconnaissance took place by the Bureau of Mineral Resources, which
reported the presence of gold, silver, copper, nickel and chromium.
Rock chip samples obtained by the vendors and assayed by Goldminco from the
Keveri fault system assayed 9.2 grams per tonne gold and 5.7 per cent
copper.
At the beginning of its exploration program, Goldminco intends to
concentrate primarily in this area and other reported areas for early
results. In the absence of vehicular road accessibility, Goldminco will use
helicopters to transport personnel and equipment. Goldminco intends to
engage the services of Geological Technologies of the University of New
England to conduct high definition surveys as soon as possible. It is hoped
that exploration in the reported areas will advance towards September to
October this year for some diamond drilling to take place before December
1999.
WARNING: The company relies on litigation protection for "forward-looking"
statements.
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