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Gold/Mining/Energy : Atacama Minerals -- Ignore unavailable to you. Want to Upgrade?

To: kfdkfd who wrote (78)	10/5/1999 9:24:00 AM
From: kfdkfd	Read Replies (1) \| Respond to of 105

Atacama To Proceed With Financing And Development Of Aguas Blancas, Appointment Of Richard P. Clark As President VANCOUVER, BRITISH COLUMBIA--Atacama Minerals Corp. (the "Company") is pleased to announce the decision of the Board of Directors to proceed with the financing and development of the Aguas Blancas Iodine Heap Leach Project. The heap leach testing program carried out over the past 5 months was extremely successful. Based upon the results from this program, the Company's independent engineers, Pincock, Allen & Holt, have developed a mine plan for a minimum of 15 years of iodine production. These reserves represent exploration on only 30% of Atacama's vast land holdings. Numerous other mineralized zones have been identified and it is expected that further work in these areas will expand the life of the Aguas Blancas mine well beyond 15 years. Iodine is an important strategic element used in a number of critical applications worldwide. These applications cut across several industries including pharmaceutical, industrial and agricultural areas. Worldwide consumption is projected at 18,000 tonnes for 1999, with a 3% growth rate forecast for the year 2000. At full capacity, Aguas Blancas will account for approximately 6% of global production. The schedule for mine construction is 11 months. Initial production will be iodine only, at 1267 tonnes per year. Capital costs for construction are US$27 million. On a full equity basis, the internal rate of return for the iodine project is estimated at 21% at current iodine prices. On a leveraged basis, 70% debt and 30% equity, the IRR for the project increases to 30%. Of particular significance, recent test work of the leachable ore has proven a much higher nitrate grade than previously expected. Accordingly, nitrate and sulphate salts recovered from iodine production will be stockpiled for later processing. At current grades and with a future plant expansion, nitrate production could exceed 100,000 tonnes per year, significantly increasing the upside of Aguas Blancas. Independent marketing and engineering reports have been commissioned to evaluate the nitrate potential. These reports are expected within the next two weeks. Commencement of construction at Aguas Blancas is scheduled for the first quarter of 2000. Following on the decision to proceed with the development of Aguas Blancas, the operations of Atacama will now be centralized in Santiago, Chile. In this regard, the Company is also pleased to announce the appointment of Richard P. Clark as President of the Company. Mr. Clark will initially coordinate financing of the construction phase of Aguas Blancas, and in the first quarter of 2000 he will relocate to Santiago with his family to direct Atacama's corporate and marketing operations. Mr. Clark is a mining and securities lawyer with a specialty in industrial mineral issues. For the past six years Mr. Clark has been active as senior management in a number of V.S.E. and T.S.E. companies and during this time has coordinated and assisted in capital financing exceeding $100 million. ON BEHALF OF THE BOARD Adolf H. Lundin, Chairman