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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Canuck Dave who wrote (4002)	5/29/2002 11:11:42 AM
From: Brumell	Read Replies (2) \| Respond to of 39344

GLR Resources going into production. A new producer. GLR board gives go-ahead for Box and Athona project GLR Resources Inc GRS Shares issued 13,324,619 May 28 close $0.40 Wed 29 May 2002 News Release Mr. Robert Kasner reports GOLDFIELDS PROJECT TO PROCEED TO PRODUCTION With the sustained higher price for gold and the positive technical work done in the past year, GLR's board of directors has given approval to proceed with the development of the Box and Athona open pittable gold deposits situated at its Goldfields property in Northern Saskatchewan. The approval is based on an updated in-house engineering study prepared by John Cook, director, that indicated to the company that the project is financially robust at a $300 (U.S.) gold price and a Canadian dollar exchange rate of $1.50 (Canadian) to $1 (U.S.). The study was done assuming an all gravity gold recovery system using Gekko equipment, as previously reported. All costs used in the study are based on contractor or contractor supplier prices in Canadian dollars except when noted. The key points of the study are as follows: initial capital costs: $13-million (mining $3-million, treatment $6-million services and administrative $4-million); gold production: 40,000 ounces per year averaged over 10 years; operating cash cost per ounce: less than $200 (U.S.); pretax net production value at 10 per cent: $19,519,000; mining rate: initially 1,000 tpd rising to 2,000 tpd; environment: final submissions are being prepared by GLR's contractor and approval is expected by late summer; and reserves and resources: the 10-year plan analyzed in the study is only based on a measured and indicated resource of approximately 500,000 contained ounces at a grade of 2.7 grams/tonne. The overall measured and indicated resource for the Box and Athona deposits is more than 950,000 ounces, as previously reported. Exploration The Goldfields project area has several known gold and gold/platinum group metal showings, one with underground development, that offer excellent potential to find more ore bodies. It is anticipated that through aggressive exploration the known resources and the potential for discoveries could lead to a long mine life. The qualified person in charge of the project is Mr. Cook, PEng, who has been involved with tile Goldfields project for over five years. (c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com