Barrick's president resigns; offer for Argentina to expire
Barrick Gold Corp
ABX
Shares issued 376,475,371
1999-02-05 close $30.1
Monday Feb 8 1999
Mr. Peter Munk reports
The board of directors has accepted the resignation of Paul Melnuk as president
and chief executive officer, effective today.
Ms. Belle Mulligan reports
Barrick Gold's bid for Argentina Gold Corp. expires at midnight tonight.
Barrick has carefully reviewed all of the available information recently released by
Argentina Gold. Barrick continues to be of the view that its offer is full and fair.
Shares will not be taken up unless the number of shares deposited demonstrates
sufficient support for Barrick's bid.
Mr. Steve Todoruk of Abacus reports
Abacus Minerals has formally signed documentation with Barrick Gold pertaining
to the letter agreement dated March 5, 1997, whereby Abacus was granted the
option to acquire a 100 per cent interest in the La Manchuria property and five
other gold exploration properties in Santa Cruz, Argentina.
At closing, Abacus will issue to Barrick 150,000 shares as required by the
agreement. Additional shares will be issued to Barrick as exploration continues.
With the newly-issued shares, Barrick now owns 1,150,000 shares of Abacus.
Mr. James Mancuso of Queenstake reports:
Barrick Gold, Queenstake's joint venture partner on the Uchcumachay property,
has advised the Queenstake of drill results on its initial program described in news
release 98-9 (Stockwatch Nov. 26, 1999).
Barrick completed nine reverse circulation holes ranging from 128 to 300 metres
for a total of 2,121 metres drilled. Holes were sited to intersect gold targets
defined by geochemistry, alteration, and structure along a plus two kilometre long
high sulphidation epithermal system.
Although strong alteration features were intersected, gold assay results were
disappointing in that only a few intervals have greater than 0.1 of a gram per tonne
gold (100 parts per billion), the highest being 0.232 of a gram per tonne, as noted
on the table.
Hole Length From To
m m m
UCH-03 248 No significant results
UCH-04 300 Best result 161 ppb/2m
UCH-06 270 116 120
Best result 232 ppb/6m
UCH-07 132 186
Best result 110 ppb/4m
UCH-10 171 No significant results
UCH-11 234 No significant results
280 No significant results
210 Best result 100 ppb/2m
128 No significant results
A full report from Barrick is expected shortly. Queenstake has not yet been
advised whether Barrick intends to continue to finance the joint venture at
Uchcumachay or whether more holes will be drilled. Barrick has met its first year
requirement to drill 1,000 metres on the property.
Mr. Lukas Lundin of Argentina reports
Argentina Gold Corp. has defined over five million ounces of gold and 150 million
ounces of silver to date (eight million ounces gold equivalent). Several additional
successful holes have been drilled since this estimate was made and Argentina is
now in the process of updating the resource estimate again.
There are a growing number of international mining companies visiting the
Veladero project with the recognition of Argentina's exploration success and its
strategic land position.
Much of the resource at the Amable target is high grade (over five grams per
tonne Au) and Argentina's diamond drilling program is indicating that this grade
could substantially increase. There is also a growing high-grade sector of the Filo
Federico resource with every indication that it may link with the northwest target
resource. The high-grade sectors Argentina is defining add enormous financial and
strategic value to the company.
Lukas H. Lundin stated, "Shareholders should not be concerned about the expiry
of Barrick's bid this evening. We believe Barrick would have advised shareholders
if they did not intend to increase or extend the bid."
Six rigs are currently in operation and durther drill results are expected to be
released shortly.
Dr. Arpad Farkas of Altai Resources reports
Altai Resources has concluded an agreement with Minera ABX Exploraciones
S.A., the wholly owned Peruvian subsidiary of Barrick Gold on Altai's Rodeo
property in Ancash Province, Peru.
The agreement stipulates that the property will be held in a joint stock company
which will be owned 85 per cent by Barrick and 15 per cent by Altai del Peru
SRL, Altai's wholly owned subsidiary. To maintain its interest, Barrick must spend
$1.5-million (U.S.) on or before July 1, 2003 on and for the property. Thereafter
all expenditures, if any, will be made by Barrick. Altai del Peru's 15 per cent
interest in the joint stock company may not be diluted.
Barrick will make yearly cash payments to Altai against possible future revenues
of the joint stock company. Starting July 1, 2004 and if Barrick still maintains its
interest in the joint stock company, such payment will increase to $100,000 (U.S.)
per year.
The Rodeo property is 25 kilometres south of Barrick's Pierina property which is
being developed as a high-volume, low-cost gold producer.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
