Here is the press release. Regards
"Production To Begin At Golden Bear Mine
WHEATON RIVER MINERALS LTD ("WRM-T;WEATF-L")
NORTH AMERICAN METALS CORP ("NAM-V;NAMVF-L")
- Production To Begin At Golden Bear Mine
Ian J. McDonald, Chairman and Chief Executive Officer of Wheaton River Minerals Ltd., and North American Metals Corp.,
are pleased to announce that production will begin this summer at the Golden Bear heap leach gold mine in northwestern
British Columbia. The structure for an US$11 million project financing has been agreed to with BZW Mining and Metals, a
division of Barclays Bank PLC of London, England. The bank has accepted the technical review by Behre Dolbear &
Company, Inc. of the recently completed feasibility study. An open pit mining contract is expected to be awarded within 10
days. It is anticipated that mobilization of the mining contractor to the Golden Bear site will be completed by March 30th.
Estimated capital costs to completion are Cdn. $9.8 million. In the risk analysis section of the technical review, Behre,
Dolbear states, "the low front-end capital and robust pre-tax cash flows combine to make a very attractive project".
Gold production is expected to be 25,000 oz. in 1997, rising to 39,000 oz. in 1998, 45,000 oz. in 1999 and 51,000 oz. in
2000. The company's mine plan estimates that 214,000 oz. of gold will be produced from 1,528,000 tonnes of ore grading
5.1 grams gold per tonne over the next six years. Starting in June, heap leach pad number 1, which was constructed in 1996,
will be loaded with 350,000 tonnes of ore grading 3.03 grams gold per tonne. Solution will be applied to the heap during
August and September. Heap leach pad number 2 will be constructed this summer to allow for loading and leaching during
1998. Approximately one-half of the Golden Bear resources are in the current mine plan. Projected life-of-mine production
costs are US$232 per oz. and total costs are US$266 per oz.
It is anticipated that loan documentation will be completed by April 30th, at which time the company will have the ability to
draw down on the loan.
The Golden Bear mine is owned by North American Metals Corp., which is an 82 percent-controlled subsidiary of Wheaton
River Minerals Ltd.. Mercantile Resource Finance, of Parker, Colorado, is acting as advisor to Wheaton River.
TEL: (416) 860-0919 Ian J. McDonald, Chairman and CEO
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