NEWS RELEASE
May 18, 1999 VSE-EMG
Sedar Profile #00003879
The Board of Directors is pleased to provide this update:
SANTA ROSA PROJECT
The plans to proceed with project finances and on to production have been
advanced this week.
The data in hand are sufficient to allow El Misti Gold Limited to proceed
initially on the oxide zones at Santa Rosa.
With the low cost metal production (gold and silver) and the low estimated
capital cost, the Board is taking an accelerated path through project
finance to allow project initiation. Sufficient resources have been
outlined to sustain 400 days at 3,240 tonnes per day mining rate. When
the feasibility study is signed off, full details will be published.
Project finances will dictate the start date. If finances can be drawn
down early, project long lead items can be purchased earlier and save
significant time. Current scheduled key dates are:
Complete Piping & Instrumentation Drawings & Civil Engineering June 30, 1999
Completion of Feasibility July 20, 1999
Place Crusher Order September 30, 1999
Commission Project February 28, 2000
Project Complete March 31, 2000
SAND DOS - Update
The Sand Dos project as announced December 16, 1998 is being placed into
production by Roca Fuerte S.A. El Misti Gold S.A. receives a 7% NSR for
all metal and mineral production. The production rate is 10,000 TPD
according to the agreement between El Misti Gold S.A. and Roca Fuerte S.A.
Roca Fuerte have advised they believe sufficient material exists to allow a
minimum of 5 years production at the contract rate. Roca Fuerte have
requested a 60 day inclement weather extension to initiate production.
Production at 5,000 TPD is now scheduled to begin in early July. An
increase to 10,000 TPD will follow two months thereafter.
For further information, please contact John Huguet or Marie Antoinette
Shields - Market Finance Development.
Phone: (604) 681-6186 Direct Fax : (604) 681-3652 Web site :
www.elmisti.com
On behalf of the Board,
"John Huguet"
John Huguet
Chairman & CEO
This news release may contain forward-looking statements regarding upcoming
work programs and actual results may differ materially from those currently
anticipated in such statements.
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release |
