Armada Gold Corp. Holds Interest in 8 Million Ounces of Gold & Billions of Pounds of Copper.TORONTO--(BUSINESS WIRE)--Feb. 26, 1998--Armada Gold Corp. (TSE-AAU-$0.25) is a company with HUGE potential that's selling for a small fraction of its true value. The recent market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. (Cdn$ 20 million) is only a fraction of its true value. A description of the SIGNIFICANT interests of Armada An earlier brand name for laptop computers from Compaq. The line was noted for its quality and innovative features. Gold Corp. A Large, Proven Gold Deposit in S.E Siberia Armada holds an 85% interest in the Baley gold project, in the Chita region of southeastern Siberia through Balgold Ltd which contains a world class 8 MILLION ounces of gold. World renowned Kvaerner Metals Davy Ltd. of Toronto which conducted the feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. , estimates the cash operating cost will average a mere $166 an ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . A particularly favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. aspect of this massive project is that higher-grade ore can be produced in the first two years of operation. The study estimated production in the first year to be 267,000 ounces rising to 324,000 ounces in the second year of operation. Cash operating costs operating costs npl → gastos mpl operacionales would be US$140 an ounce in the first year and US$120 an ounce in the second year. It is expected to produce an additional 200,000 ounces per annum Per annum Yearly. for another 9 years. Once in production the Baley project will be the largest, lowest cost gold mine in the region. A Huge Copper Deposit in Mongolia Armada Gold also controls a 49% interest in the Erdimin SX/EW project in Mongolia which has the potential to host BILLIONS of pounds of copper. These resources are truly large and compare favourably with that of Phelps Dodge's Morenci's SX.EW operation in Arizona which has 8.40 BILLION lbs of contained copper. The cash cost of operations is expected to be just $0.30 per lb of copper on site which will make it amongst the lowest cost producers in the world. A study is underway being led by Merubeni of Japan (due in June) to determine the feasibility of expanding the production 5 fold. The operation treats the waste rock from the Erdnet Copper mine which has 80 years of reserves. Conclusion Between Armada's large Gold & Copper projects and some of Canada's top brokerage firms recommending the stock with a $4.00 to $6.00 target, the stock remains SIGNIFICANTLY undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. . For more information on Armada Gold Corp., please call Ross Orr and/or Chris Cory at 416/777-0001 or FAX 416/777-1254 Website: http://www.armadagold.com CONTACT: Armada Gold Corp., Toronto Ross Orr or Chris Cory, 416/777-0001 |
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