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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Paul Bilecki who wrote (13312)	1/26/1999 9:35:00 AM
From: Gord Bolton	Respond to of 26850

Canada NewsWire Give us your message. We'll give you the world. Canadian Quotes from Telenium FN. (TSE) EN. (TSE) Attention Business Editors: Midas Joint Venture FRANCO-NEVADA EURO-NEVADA (TSE:FN) (TSE:EN) ------------------------------------------------------------------------- - Overall gold resources at the Midas Joint Venture expand 33% to 8 million ounces of gold equivalent. - Proven and probable gold reserves at the Ken Snyder Mine increase 36% to 3.74 million ounces of gold equivalent in 1998. - The Ken Snyder Mine achieves commercial production on budget and four months ahead of original plan. ------------------------------------------------------------------------- TORONTO, Jan. 26 /CNW/ - The Midas Joint Venture, an equal partnership between Franco-Nevada Mining Corporation Limited (TSE:FN) and Euro-Nevada Mining Corporation Limited (TSE:EN) is pleased to report on its calendar 1998 exploration and development program. EXPLORATION HIGHLIGHTS ---------------------- At the Ken Snyder Mine, year end 1998 mineable reserves calculated at US $300 per ounce gold and US $6 per ounce silver utilizing a cut-off grade of 0.25 ounces per ton gold equivalent grew to 2.73 million tons grading 1.12 ounces per ton gold and 12.82 ounces per ton silver for 3.04 million ounces of gold plus 35 million ounces of silver or 3.74 million ounces of gold equivalent. This is a 36% increase over year end 1997 mineable reserves of 2.75 million ounces of gold equivalent. Resources at the Ken Snyder Mine also continue to grow, adding over 2.1 million equivalent ounces of gold, to 7 million ounces at an average grade of 1.30 ounces of gold equivalent representing a 43% increase over last year. This increase combined with other Midas property resources brings the global Midas resources to 8 million ounces of gold equivalent, a 33% increase over the 1997 year end total of 6 million ounces. The reserve and resource numbers at the Ken Snyder Mine were audited by Mine Development Associates of Reno, Nevada. During 1998, the Midas Joint Venture spent US $5.9 million on surface exploration. A total of 172,390 feet was drilled from surface of which 82,285 feet was core drilling in 63 holes and 90,105 feet was reverse circulation drilling in 94 holes. In addition, the underground development drilling program consisted of 37 core holes totalling 37,832 feet. Since inception some 847 exploration and development holes totalling 788,222 feet have been drilled on the Midas property. DEVELOPMENT ----------- The underground development of the Ken Snyder Mine was completed during December 1998. A total of 22,000 feet or 4 miles of excavation was done to prepare the necessary stopes for production. The mine continues to be dry and the ground conditions remain excellent. The 500 ton per day mill came on line at 3:30 p.m. on November 21, 1998. The first gold was poured on December 9, 1998 weighing in at over 3,000 ounces of dore. The mill was turned over to Dynatec, the contract operator, on December 18, 1998. Through year end 1998, approximately 11,000 tons of low grade stockpile ore was processed and 60,000 ounces of dore were recovered. The Ken Snyder Mine was officially declared in commercial production on January 26, 1999. The US $84 million development was completed on budget and four months ahead of the original feasibility plan. From the start of construction in late February 1998 to attaining full commercial production took only eleven months. This is a testament to the quality of the personnel and contractors that were assembled by Andre Douchane, our Vice President of Operations, to engineer, build and operate this facility. The mine is projected to produce 250,000 ounces of gold equivalent per year at a cash cost of US $80 per ounce of gold equivalent. ------------------------------------------------------------------------- ------------------------------------------------------------------------- Euro-Nevada closes $115 million financing ----------------------------------------- Euro-Nevada Mining Corporation today completed the previously announced agreement to issue 4.225 million Units at $27.35 per Unit. Each Unit consists of one common share and 0.15 of a Euro-Nevada Warrant. Each Warrant is exercisable into four common shares at $25.00 per share and expires on November 12, 2003. ------------------------------------------------------------------------- Franco-Nevada acquires interest in Aber Resources ------------------------------------------------- Franco-Nevada has acquired an interest in the developing Canadian diamond industry by acquiring a 9.6% interest in Aber Resources Ltd. at a cost of $41 million. Aber holds a 40% interest in the Diavik diamond project in Canada. Franco-Nevada has acquired its interest for investment purposes and may increase or decrease its interest as appropriate. %SEDAR: 00002195E -30- For further information: please contact: Seymour Schulich, Chairman, (416) 480-6496; Pierre Lassonde, President, (416) 480-6498