Gold Fields Limited (GOLD) and Outokumpu Oyj Form Platinum GroupMetals Partnership in Finland
Source: Canada Newswire
JOHANNESBURG, South Africa, and ESPOO, Finland, March 17 /CNW/ -- [Gold Fields Limited] ("Gold Fields") (Nasdaq: GOLD; JSE: GFI) and Outokumpu Oyj ("Outokumpu") are pleased to announce the conclusion of a partnership agreement between wholly owned subsidiaries of the parent companies. The partnership has been established with the objective of exploring and developing a 14,000 hectare (50 square mile) land package in Finland for platinum group metals. The land package includes areas from the municipalities of Keminmaa, Rovaniemen maalaiskunta, Ranua, Simo, Tervola and Posio.
Gold Fields will have the right to earn a 30% interest in the partnership through funding US$5,000,000 of exploration expenditure prior to December 31, 2002. Gold Fields can increase its interest to 49% by continuing to fund a further US$6,000,000 of exploration expenditure prior to December 31, 2004. Gold Fields will have the right to earn an additional 2% interest for a total of 51% by completing a bankable feasibility study for then development of a mining operation or funding additional exploration over the next year. Gold Fields has committed an amount of US$1,500,000 to exploration funding for the year ending December 31, 2000.
Gold Fields will be the operator during the earn-in period and will manage the exploration phase using staff seconded from Outokumpu. A 7,650 metre (25,100 ft) initial diamond drilling program on the project has commenced. The objective of this program is to drill test exploration concepts on four of six resource definition projects known on the properties. Metallurgical testing of the four projects will be completed in addition to the drill program, as well as detailed analysis of the two other resource projects.
The project area contains two major layered intrusive complexes, Penikat and Portimo. Outokumpu has explored this ground since the 1960's as logical extensions of its chrome operations at Kemi. In the 1980's Outokumpu conducted specific exploration toward Platinum Group Elements (PGE) and have amassed a database of over 600 drill holes. At Penikat, the SJ Reef has been defined over a strike length of 23 km. Past drilling has yielded average grades of 8.0 g/t 3PGE+Au (Pt, Pd, Rh, Au) over widths of 1 metre, with some northern sections increasing to 2.4m in average width and grading greater than 15.0 g/t 3PGE+Au. This style of mineralization is comparable to reef structures at the Bushveld or Stillwater layered complexes in South Africa and Montana. Four resource definition targets have been defined by Outokumpu in the Portimo complex.
Two occur as broad zones of Cu, Ni -- PGE mineralization in marginal series rocks, similar to Platreef mineralization in the Bushveld complex, the third as conformable reef-type mineralization in the layered succession, and another as high grade lode structures offset from the base of the layered complex.
Craig Nelsen, Senior Vice President Exploration for Gold Fields said: "We are pleased to have Outokumpu as a partner in this venture. Their superior skills in underground mining, mineral beneficiation, concentrate marketing and geologic experience in this district make them an ideal co-venturer. This partnership represents an exciting opportunity to potentially develop Europe's first PGM mine."
Markku Isohanni, Senior Vice President Exploration for Outokumpu said: "Outokumpu is pleased to have Gold Fields, the second largest gold producer with experience in platinum mining in South Africa, as a partner in this venture. Together Gold Fields and Outokumpu are in an excellent position to explore and develop these promising platinum group metals targets in Southern Lapland."
Gold Fields is one of the world's largest gold producers, with resources of 152 million ounces, proven and probable reserves of 74 million ounces, and annual production in excess of 4 million ounces. Gold Fields trades on Nasdaq (GOLD) and on the Johannesburg (GFI), London, Paris, Brussels, and Swiss stock exchanges.
Outokumpu is a metals and technology company. In addition to its strategic focus -- stainless steel -- Outokumpu specialises in copper products, base metals production and related technology. Outokumpu has mining operations in Australia, Finland, Ireland and Norway and exploration in Australia, Canada, Finland, Ireland, Morocco, Russia and Sweden. The parent company Outokumpu Oyj is listed on the Helsinki Exchanges.
Publication date: Mar 17, 2000
¸ 1999, NewsReal, Inc.
|
