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Gold/Mining/Energy : Buckey's Bottom Bounce Short Term Picks (CDN ONLY) -- Ignore unavailable to you. Want to Upgrade?

To: Buckey who wrote (2468)	12/27/2000 4:24:10 PM
From: StocksDATsoar	Read Replies (1) \| Respond to of 5887

National Gold Corp - News Release National Gold to acquire 3.4 million ounce gold resource National Gold Corp NGT Shares issued 5,175,000 2000-12-20 close $0.5 Wednesday Dec 27 2000 News Release Mr. Albert Matter reports National Gold has signed a contract with subsidiaries of Placer Dome Inc. and Kennecott Minerals Inc. for the acquisition of the 15,000-hectare Salamandra property located in the state of Sonora, Mexico. With this acquisition National Gold will become one of the top 50 per cent of all North American gold companies as ranked by size of their gold resources. A feasibility study conducted by Placer Dome Inc. and Kennecott Minerals Inc. in 1997, and pit optimization work concluded in 1999, identified a measured and indicated recoverable gold resource of 1.5 million ounces (using a $300 (U.S.) per ounce gold price) in the Mulatos deposit, the most advanced of the seven auriferous epithermal systems discovered to date on the Salamandra property. This resource was calculated on the basis of 511 drill holes totalling 295,000 feet and 994 underground channel samples using a 0.8 gram per tonne (g/t) cut-off grade. These 1.5 million ounces of gold are contained within the 1999 optimized smoothed pit containing 2.2 million ounces in 43.5 million tonnes grading 1.58 g/t gold at 66.2 per cent recovery rate. Within this resource is a higher grade core containing 1.2 million ounces of gold in 11.5 million tonnes grading 3.2 g/t gold. The partners also calculated an all categories measured, indicated and inferred resource for the Mulatos deposit of 3.4 million ounces. This resource is contained in 68 million tonnes grading 1.6 g/t gold at a 0.8 g/t cut-off grade. Much of the Mulatos deposit's gold mineralization remains open to expansion along strike and to depth. The total purchase consideration for 100 per cent of the Mulatos gold resource and the six satellite systems (the Salamandra property) is $10.5-million. In addition, National is required to maintain the property in good standing during the four-year term of the transaction, and the partners retain a 20-per-cent net smelter royalty on the first two million ounces of gold production. The signing of the contract took place on Dec. 21, 2000, in Hermosillo, Mexico. The closing is scheduled for Feb. 28, 2001. The $10.5-million is payable as to $3-million over the first year with the remaining $7.5-million secured by a debenture with payments due at the end of the fourth year with interest thereon at 7 per cent payable semi-annually. National may, at its option, prepay the debenture at the end of the second year for a reduction of $2-million or at any time thereafter during the remaining term of the debenture for a prorated reduction. The Salamandra property sits within the famed Sierra Madre gold belt in the northern-most Mexican state of Sonora, 400 kilometres due south of Tucson, Ariz., and approximately 220 kilometres east of Hermosillo, the capital of the state. It is owned 70 per cent/30 per cent respectively by Placer Dome Inc. and Kennecott Minerals Inc. The partners have spent in excess of $50-million in exploration and development programs over the past seven years. "The partners have been extraordinarily courteous and mindful of our junior status throughout the lengthy negotiation process," commented Albert Matter, president of National Gold. The divided ownership of the property, the changing priorities of the partners, and the opportunity for the partners to realize on their $50-million tax loss during this period of devastated gold prices have combined to present National Gold this extraordinary opportunity to purchase the Salamandra gold deposit," continued Mr. Matter. "With this purchase we achieve the first of our objectives within one year of being listed on the CDNX." National Gold has been mining the Internet and other information sources for the past year seeking a property with established gold resources and the best possible expansion potential that could be purchased on favourable terms from companies reducing their commitment to exploration. Once focused on the Salamandra property, National deployed a due diligence team of experts including engineers, metallurgists and landsmen along with legal, environmental, political and social consultants. More significantly comments Mr. Matter: "The Mulatos and its associated epithermal system occupies only 15 per cent of the area covered by the seven auriferous epithermal systems identified on the Salamandra property by the partners. As such the remaining 85 per cent represents an exciting opportunity for National Gold to develop additional resources of gold. This, coupled with recovering gold prices, could transform the Salamandra property into a significant North American gold mining camp in the historically very productive Sierra Madre district." (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com old url (better for printing)