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

To: Syncrude who wrote (284)	9/30/1998 10:05:00 PM
From: barry doment	Read Replies (1) \| Respond to of 406

Attention Business Editors: GOLD RESERVE ANNOUNCES FAVORABLE MODIFICATIONS TO BRISAS PRE-FEASIBILITY REPORT SPOKANE, Wash., Sept. 30 /CNW/ - Gold Reserve Corporation (TSE: GLR - NASDAQ: GLDR) of Spokane, WA announces modifications to the Brisas pre-feasibility report which include 1) a revised mine operating plan, resulting in a 7 percent reduction in cash operating cost to $206 per ounce of gold, net of copper credit and, 2) an on-site copper production process coupled with the revised mine operating plan, resulting in a 24 percent reduction in cash operating cost to $169 per ounce of gold, net of copper credit. Rockne J. Timm, President & CEO stated, ''The cash operating costs contemplated by the revised mine plan and the on-site copper production would place Brisas among the lowest cost gold mines in the world. In respect to the prospects of on-site copper production, the economics of treating the Brisas concentrates by the Cominco Engineering Services Ltd. (CESL) hydrometallurgical process appears favorable. We are very excited about this proposed copper production process, however additional analysis of the process is required and sample preparation for testwork has already commenced. We are continuing to evaluate modifications to the mine operating plan, the on-site copper production method and the potential positive impact on the project economics.'' The supplement to the pre-feasibility report, more limited in scope than the original pre-feasibility report, was prepared by the Company and JE Mincorp, a Denver, Colorado-based division of Jacobs Engineering Group Inc. (NYSE:JEC) of Pasadena, CA. Below is a table of the key assumptions and parameters comparing the original pre-feasibility report and the two new alternatives: << Pre- On-site Feasibility Copper Study Revised Production U.S. $ (March 98) Mine Plan and Revised Mine Plan ----------------------------------- Pit design gold price ($/oz.) $375 $335 $335 Pit design copper price ($/lb.) $1.00 $.90 $.90 Mine cut-off grade (grams of gold per tonne) 0.40 0.50 0.50 Mineralized deposit (mm tonnes) 249 200 200 Mineralized deposit (mm gold ozs.) 5.6 5.0 5.0 Gold grade (grams/tonne) 0.70 0.77 0.77 Copper grade % 0.14 0.14 0.14 Throughput (tonnes/day) 55,000 55,000 55,000 Average annual gold production (oz.) 335,000 362,000 362,000 Average annual copper production (mm lbs.) 38 39 39 Strip ratio (waste to ore) 1.68:1 1.97:1 1.97:1 Mine life (Years) 14.2 11.5 11.5 Initial capital cost (mm) $293 $299 $344 Working capital (mm) $15 $20 $20 Ongoing capital (mm) $53 $42 $42 Total cash operating cost (per tonne) $6.28 $6.40 $5.78 Operating cash cost (per oz.)(x) $222 $206 $169 Total capital and operating costs (per oz.)(xx) $295 $288 $262 >> (x) Net of copper credit (xx) Pre tax and independent of costs incurred to-date In addition to the modifications to the pre-feasibility report, the company is continuing with metallurgical testing and ore reserve modeling. An update to the mine model, which will be verified by an independent engineering firm, is expected later this year. The Company is proceeding with the completion of the final feasibility study expected next year. 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.