Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : GLAMIS GOLD - GLG -- Ignore unavailable to you. Want to Upgrade?

To: James N. Wilson who wrote (246)	7/9/1999 8:25:00 PM
From: George Castilarin	Read Replies (1) \| Respond to of 459

Friday July 9, 11:16 am Eastern Time Company Press Release Glamis Gold Dee Mine Underground Project Update RENO, NEVADA--(BUSINESS WIRE)--July 9, 1999--Glamis Gold Ltd.(TSE:GLG. - news; NYSE:GLG - news) is pleased to report that development of the North Underground Project at its Dee Mine is progressing on schedule, and that underground drilling has significantly increased the mineable reserves in the first ore zone. The Dee Mine is located at the north end of Nevada's Carlin Trend midway between Barrick's Meikle Mine and Franco-Nevada's Ken Snyder Mine. After completion of the steel portal structure, mining contractor American Mine Services (AMS) completed 473 feet of drifting during June. Development work included 248 feet of the main Decline, as well as 153 feet of the Zone 1 East ore access, and associated muckbays and drill stations. At month end, development of Zone 1 had faced off in ore grade mineralization (0.200 opt Au) in the undercut drift. Ground conditions continued to be excellent in all headings. The North Underground Project was approved based on conservative modeling of surface drilling only. Recent underground drilling in Zone 1 has significantly increased the mineable reserves in this ore zone. The drilling defined 3 separate blocks of mineralization, with an aggregate tonnage of 73,500 tons of oxide ore at a grade of 0.177 opt Au containing 13,000 ounces of gold and 110,000 ounces of silver. This represents a 173 percent increase in mineable reserves compared with the original estimate when the project was approved. Zone 1 remains open to the south. Definition drilling also continued for the first four ore zones to be mined. Reverse circulation drilling from the pit bottom consisted of 4,730 feet in 28 angle holes. Significant intercepts were encountered in all four areas, including 35' @ 0.226 opt Au and 45' @ 0.190 opt Au in Zone 1; 30 feet @ 0.328 opt Au, 40 feet @ 0.232 opt Au and 35' @ 0.428 opt Au in Zone 3; and 60 feet @ 0.656 opt Au in Zone 4. In addition, a hole down-dip from the mineralized structure west of Zone 3 encountered 155' grading 0.189 opt Au (including 70 feet @ 0.259 opt Au) beyond the boundary of the currently planned development zones. This intercept will be followed with additional drilling as the underground development proceeds. All intercepts are in oxide ore amenable to processing at the Dee mill. Cash costs for the North Underground Project are anticipated to be below $200 per ounce. Project development schedules are enhanced by the proximity of the reserves to the pit wall and good ground conditions, facilitating a low-cost open stoping mining method with minimal backfill and auxiliary support. Glamis Gold is a cost-effective gold producer with 1999 gold production anticipated to exceed 200,000 ounces and positive cash flow during these times of historically low gold prices. The Company is actively producing gold in Nevada and California and expects to commence construction at the low-cost San Martin gold project in Central Honduras in late 1999 or early 2000. Glamis is actively exploring additional prospects in Honduras, Guatemala, El Salvador and Panama, as well as in Nevada. Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of gold, estimated future production, costs of production, the Company's hedging policy and permitting time lines, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the factual results of current exploration activities, conclusions of feasibility studies now underway, changes in project parameters as plans continue to be refined, future prices of gold, as well as those factors discussed in the section entitled ''Other Considerations'' in the Company's Annual Report on Form 10-K. On behalf of the Board C. Kevin McArthur, President -------------------------------------------------------------------------------- Contact: Glamis Gold Ltd. Charles A. Jeannes, 775/827-4600 ext. 3107, Email: charlesj@glamis.com 775/827-5044 (FAX) Website: www.glamis.com Investor Info: info@glamis.com