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Gold/Mining/Energy : Mt. West--Best gold/energy combo -- Ignore unavailable to you. Want to Upgrade?

To: Dale Schwartzenhauer who wrote (62)	6/3/1998 3:04:00 PM
From: Dale Schwartzenhauer	Respond to of 77

Progress report on Elkhorn Gold District: Addition to due diligence team Treminco Resources Ltd TMO Shares issued 10,508,197 May 27 close $0.55 Wed 3 Jun 98 News Release Mr. David Hottman reports The company has appointed Highland Technical Services to lead the independent due diligence review of community, environmental and government affairs at the Elkhorn project in Montana. Highland Technical Services is a consortium of Montana consulting companies with extensive experience in permitting, mineral exploration, and mine development projects. The principals of Highland have been integral to the permitting of several Montana mines: the Diamond Hill mine, the Montana Tunnels mine, the Beal Mountain mine, the Golden Sunlight mine, the Rock Creek mine and the Mineral Hill mine. Highland's experience in permitting mines in Montana is unparalleled within the mining industry. Its independent review of the community, environment and government issues surrounding the development of the Elkhorn project will underpin Treminco's due diligence exercise. In April 1998, Treminco announced a letter of intent to acquire the Elkhorn project in Montana from Hospah/Santa Fe Pacific Gold, subsidiaries of Newmont Gold Company. The 1.6 million ounce Elkhorn project is an advanced stage gold project on the southern end of the Elkhorn Mountains in Jefferson County, Montana. Over $12-million (U.S.) has been spent on the exploration and development of the property by a succession of related major mining companies including Gold Fields Mining Company and Santa Fe Pacific Gold Corp. Initial analysis by Treminco, using a life of mine average gold price of $335 (U.S.) per ounce ($300 (U.S.) year one, $325 (U.S.) year two, $350 (U.S.) year thereafter), indicates that the Elkhorn project can be developed as a near-surface high grade underground mine similar to Pegasus Gold's nearby operating Diamond Hill mine. Analysis using an estimated diluted mineable reserve of 256,000 ounces (1.1 mt at 0.240 opt Au, cut off grade 0.15 opt Au) and an underground study completed by H.A. Simons, suggests the Elkhorn project could support minimum annual production of 45,000 ounces at a cash cost of approximately $230 (U.S.) per ounce. This first phase of development will be expanded to accommodate reserve expansion from improving gold prices, operational optimization and exploration successes. The company is currently carrying out a detailed due diligence review of the Elkhorn project including confirmation drilling and audit, revision of reserves and mine plan, metallurgical audit and a review and update of environmental, permitting and community issues. Upon completion of due diligence, the company will begin a comprehensive exploration plan to investigate untested drill targets and identify new areas of interest. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com