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Gold/Mining/Energy : Gold Reserves Limited GLR - TSE -- Ignore unavailable to you. Want to Upgrade?

To: Helmut who wrote (255)	3/2/1998 5:26:00 PM
From: Syncrude	Read Replies (1) \| Respond to of 406

Twenty-five cents is quite insignificant considering where GLR used to trade. A volume of 17 thousand adds up to sixty six thousand dollars. Again a very small amount of money.

To: Helmut who wrote (255)	3/3/1998 12:27:00 PM
From: Damon Pham	Read Replies (1) \| Respond to of 406

Probably in anticipation of the news today. ***** Gold Reserve Reports On Brisas Pre-feasibility Study Spokane, Wash.--(BUSINESS WIRE)--March 3, 1998--Gold Reserve Corporation (TSE:GLR - news; NASDAQ:GLDR - news) is pleased to announce that it has received the results of the Detailed Pre-Feasibility Study on its Brisas gold and copper property, located in southeastern Venezuela, from JE MinCorp, a Denver, Colorado-based division of Jacobs Engineering Group Inc. [NYSE:JEC - news] of Pasadena, California. The Detailed Pre-Feasibility Study is based on Gold Reserve's current estimates of mineable reserves using the data obtained from 737 drill holes amounting to 155,000 meters. The key findings of the Pre-Feasibility Study are as follows: Using a long-term historical gold price of $375 per ounce and $1.00 per pound copper (''base case''), the Company believes that Brisas contains a mineable reserve of approximately 5.62 million ounces of gold and 747 million pounds of copper in 249.2 million tonnes of ore grading 0.84 grams of gold equivalent per tonne with a strip ratio (waste to ore) of 1.68:1. Using $350 per ounce gold and $0.90 per pound copper, the Company believes that Brisas contains approximately 5.46 million ounces of gold and 723 million pounds of copper in 239.3 million tonnes of ore grading 0.71 grams gold per tonne and 0.14 percent copper with a strip ratio of 1.56:1. Using $300 per ounce gold and $0.80 per pound copper, the Company believes that Brisas contains approximately 4.55 million ounces of gold and 454 million pounds of copper in 177.5 million tonnes of ore grading 0.80 grams gold per tonne and 0.12 percent copper with a strip ratio of 1.67:1. Using the base case, the Company currently expects that the project would have an estimated pre-tax internal rate of return of 11.8 percent with a production cash cost of $222 per ounce and total cost (independent of previously incurred sunk costs) of $295 per ounce, net of copper credits. The base case pre-feasibility study operating plan assumes a large open pit mine using conventional truck and shovel mining methods with the processing of ore at 55,000 tonnes per day yielding an average annual production of 335,000 ounces of gold and 38.3 million pounds of copper over an estimated mine life of 14.2 years. Initial capital costs are estimated to be $293 million. The current processing flowsheet developed from metallurgical testwork completed by three independent laboratories includes conventional crushing with a primary gyratory crusher and grinding with SAG mill and ball mills. This is followed by gravity separation to recover coarse gold, then flotation, and cyanidation of cleaner flotation tailings. The Company currently expects that final products on site would be copper concentrate (containing gold) and gold dore and that the concentrate would be transported 373 km to Puerto Ordaz and shipped to a smelter for final processing. Behre Dolbear & Company, Inc. has completed an independent review of the Company's mineral deposit modeling and ore reserve methodology utilized in the pre-feasibility report. They concluded that estimating techniques used by the Company are appropriate for estimating ore reserves; that drill hole spacing in the deposit was sufficient to generate estimates of proven and probable reserves; and that the drill hole and assay database was correct and reliable. This complements Behre Dolbear's audit relating to the Company's data collection, sampling and assaying procedures completed during 1997. The following are the key assumptions and conclusions contained in the pre-feasibility study: Gold price U.S. $375 per ounce Copper price U.S. $1.00 per pound Mineable reserve 249.2 million tonnes; 0.70 g/t gold and 0.14% copper Throughput 55,000 tonnes per day Metal recoveries Gold 83% Copper 73% Average annual gold production 335,000 ounces Average annual copper production 38.3 million pounds Strip ratio (waste to ore) 1.68:1 Mine Life 14.2 years Initial capital cost U.S. $293 million Working Capital U.S. $15 million Ongoing capital U.S. $53 million Preliminary Economic Indicators (pre-tax) Total cash operating cost per tonne U.S. $6.28 (on site and off site) Operating cash costs (a) U.S. $222 per ounce of gold Total costs (b) U.S. $295 per ounce of gold Internal rate of return (c) 11.8% Project net present value @ 0% U.S. $354.9 million @ 5% U.S. $140.4 million Project payback 6.6 years (a) Net of copper credit (b) Net of copper credit and excluding costs incurred to date of US $38.4 million (c) The after-tax rate of return would be 8.2% with a total cash cost of $231 per ounce and total cost of $304 per ounce of gold (excluding sunk costs). The Company believes that there are a number of items which may enhance project economics as identified below; additional testwork and other evaluations are ongoing: -- Improvements in the reserve estimate, pit design and mine plan to improve ore grades. -- Improvements in mine planning and waste dump design to minimize mine equipment requirements, including the possible backfilling of the mine pit with waste rock. -- In-pit crushing and conveying of ore and waste to possibly reduce capital and/or operating costs. -- Optimization of flowsheet and confirmation of gold and copper recoveries. -- Evaluation of on-site copper refining In addition, the Company is methodically proceeding with the completion of the final feasibility study expected sometime during the next 12 months. The Brisas mineralized deposit does not yet qualify as a commercially mineable ore body under standards promulgated by the U.S. Securities and Exchange Commission and may so qualify only after a positive comprehensive economic, technical and legal final feasibility study has been completed. Rockne J. Timm, President and CEO stated, ''We are pleased with JE MinCorp's attention to detail and professional manner in which this study was conducted. The completion of this study concurrent with the approval of the Brisas hardrock mining title moves us closer to our goal of maximizing shareholder value. We believe Gold Reserve has a world class gold and copper deposit and we look forward to developing the next phase of the Brisas property.'' The information presented in this news release includes both historical information and ''forward looking statements'' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 relating to the future results of the Company (including projections and business trends), which involve risks and uncertainties. Prospective investors are cautioned not to put undue reliance on forward looking statements. The Company cautions that numerous factors could cause actual results to differ materially from those in the forward looking statements, including without limitation the risk that actual reserve estimates may vary considerably from mineralized deposit estimates presently made, exploration and development results, the impact of metals prices and metal production volatility, the Company's concentration of operations and assets other than cash and investments in Venezuela, regulatory risks, the political and economic risks associated with international operations, the anticipated future development costs for the Company's Brisas property and the risks normally incident to the operation and development of mining properties. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in documents filed periodically with the U.S. Securities and Exchange Commission, including under the heading ''Risk Factors'' in some of such documents. All subsequent written and oral forward looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice. Brisas property refers to the gold alluvial concession and other areas under application.