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Gold/Mining/Energy : Whitegold Resources Corp (WGO) Asset Rich, by any measure -- Ignore unavailable to you. Want to Upgrade?

To: Mark Bartlett who wrote (287)	3/16/1998 7:33:00 PM
From: Mr Metals	Read Replies (3) \| Respond to of 378

Your right Mark, **NEWS RELEASE*** GOOD NEWS FOR ALL SHAREHOLDERS. Whitegold Resources Corp - ISK wollastonite project draft feasibility study completed Whitegold Resources Corp WGO Shares issued 12231343 1998-03-13 close $0.7 Monday Mar 16 1998 Mr Brian Lueck reports The company has completed a full feasibility study on the ISK wollastonite project based on a 20 year proven reserve mine life. This study is an interim report due to the fact that confirmatory engineering and environmental work associated with the last leg of the road is outstanding and will be completed this summer. The study was conducted by Rescan Engineering of Vancouver and is based on a proven and probable mineable reserve, which allows for a 20 year mine life, and consists of 1.02 million tonnes of 58.14% wollastonite (using a 50% grade cut-off). The projected price of ISK wollastonite, based on laboratory plastics testing is $1250/tonne. The following is a summary table of the project economics as per the full feasibility study: Project Economics Pre- After Tax Tax Discounted cash flow 26.6% 19.4% Rate of Return Net Present Value: at 5% discount (million) $169.3 $80.9 at 10% discount (million) $83.4 $35.1 For clarification, a discounted cash flow rate of return is generally equivalent to an interest rate at a bank for a deposit account. It means that the entity that finances the ISK wollastonite project will expect to receive a profit of 19.4% on the capital loan. The net present value approximates the value of the project while taking into account the payback of capital costs and including a discount rate which reflects inflation and time value of the capital invested. Of concern to shareholders is how the project economics translate to projected share value. The following is a summary table of showing the projected share value based on 10% discount, after tax, net present value. Projected Share Value Shares issued 12,231,343 Project share value based on 10% discount (after tax) Net Present Value $2.87/share It should be noted that this share value is based on only a fraction of the resources on the property. The ISK wollastonite property contains five surface-exposed wollastonite deposits other than the one slated for development. These are spread over a 3 sq km area and contain a conservative geological resource in excess of 20 million tonnes. That means that the proven and probable mining reserve represents about 5% of the wollastonite resource. Also not included in the projected share value is the potassium feldspar resource around which the property is centred. This feldspar resource consists of a syenite pluton (potassium feldspar-rich rock derived from an underground-cooled magma chamber), which is elliptically shaped and 2 x 3 kilometres in area. The amount of feldspar on the property far exceeds the amount of wollastonite. Potassium feldspar is used in glass making applications and sells for US$50-US$100/ton. Whitegold's ISK wollastonite property in northwest BC is targeted to supply the high end plastics markets, specifically, nylon (polyamide) and polyurethane compounds used in injected molded automotive parts. Whitegold's Bril deposit is exposed on surface and is amenable to conventional open pit mining. The open pit dimensions after 20 years of mining are anticipated to be 110m long, 100m wide and 80m deep. Mining would occur only three months of the year and would extract 50,000 tonnes of ore annually. Mining for only a quarter of the year means that the environmental disturbance of the surrounding environment is minimized. Garnet, the major by-product, is used increasingly in water purification and as a non-harmful abrasive to replace carcinogenic silica in sandblasting. The ISK wollastonite property contains five surface exposed wollastonite deposits other than the one slated for development. These are spread over a 3 sq km area and contain a potential geological resource in excess of 20 million tonnes. The long term goal of the ISK wollastonite project is to become the major North American wollastonite producer capable of supplying global markets for most of the next century. During February 1998, the company was elected onto a land resource management planning committee for the Cassiar Iskut-Stikine area in NW BC. This ensures that the development of the ISK wollastonite project will be economically and environmentally sustainable and will coincide with the interests of locals, First Nations, environmental groups and governmental agencies. (c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com Mr Metals