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Gold/Mining/Energy : WWS.T World Wide Minerals -- Ignore unavailable to you. Want to Upgrade?

To: traacs who wrote (572)	8/7/1998 11:18:00 AM
From: R.A.K.	Read Replies (1) \| Respond to of 784

World Wide Minerals Ltd. - Dornod Uranium Project Placed on Standby TORONTO, ONTARIO--World Wide Minerals Ltd. (TSE - WWS) announced today that, pending the resolution of the Kazakhstan Government's obligations to WWS and a general strengthening of uranium prices, the Management Committee of Central Asian Uranium Company, Ltd. ("CAUC") has decided to place the Dornod Uranium Project on standby. The Dornod Project is owned by World Wide's 58 percent owned subsidiary, CAUC. The CAUC Management Committee has also approved revised plans for the future staffing and operation of the mine. As a means of further reducing operating costs when the Project is reactivated, consideration is being given to utilizing a "man-camp" operation. Only employees directly involved in mining operations will be housed at the camp that will be installed near the mine. The infrastructure of the town of Mardai will no longer be part of CAUC. All employees' families will be returned immediately to their hiring location and only a few key employees will be retained for security and maintenance and ongoing work at the Dornod Project. This will include the construction of the second heap leach pad, footings for the process plant, site work for the "man-camp" and general maintenance activities. The decision to employ a "man-camp" and related changes is estimated to result in considerable production cost savings from improved labor productivity and the elimination of infrastructure operating costs. Wallace Mays, President of World Wide Minerals, stated that "the temporary suspension of operations is important to the effort being made to reduce the ongoing costs of the Dornod Project. Until factors overhanging the uranium industry - such as uncertainty over the marketing of uranium under the Russian HEU agreement and the anticipated negative market effects from the transfer of additional uranium inventories from the US Department of Energy to the newly privatized USEC, Inc. - are resolved, WWS's financing of the Dornod Project cannot be completed and the Project proceed." Mr. Mays said, "World Wide remains committed to the long-term success of the Dornod Project, which can be one of the lowest-cost conventional uranium mines in the world. However, continuing depressed uranium prices cannot support the construction and operation of any new uranium mine at any location. World Wide is engaged in marketing initiatives that are designed to reduce the risk inherent in current market prices and to allow the Dornod Project to proceed once the Kazakhstan settlement is finalized and we can resume mining operations." -30- FOR FURTHER INFORMATION PLEASE CONTACT: World Wide Minerals Ltd. Wallace M. Mays President and COO 976-1-325-621 976-1-313-781 (FAX) E-Mail: ikhdashir@magicnet.mn or World Wide Minerals Ltd. Corinna J. de Beer Director of Investor Relations (416) 369-6084 (416) 369-6088 (FAX) cdebeer@worldwideminerals.com Web Site:www.worldwideminerals.com