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BLACK HOLE TECHNOLOGIES AND ALGERIA'S OFFICE OF GEOLOGY AND MINERAL EXPLORATION SIGN JOINT VENTURE ON MINERAL EXTRACTION

BLACK HOLE TECHNOLOGIES AND ALGERIA'S OFFICE OF GEOLOGY AND MINERAL
 EXPLORATION SIGN JOINT VENTURE ON MINERAL EXTRACTION
 NEW YORK, Aug. 18 /PRNewswire/ -- Black Hole Technologies (BHT), a New York City ore-processing and mining equipment manufacturer, has signed a definitive agreement with Algeria's mineral resources ministry, Office National de la Recherche Gologique et Minire (ORGM), to develop gold reserves in Algeria.
 The agreement is the first mining venture between ORGM and a Western company. BHT expects significant production to be underway by year end. The two partners will share equally the costs and revenues of the project. First-year, net revenues are expected to be in the $20-million range, the parties said.
 BHT will contribute its patented processing technologies and equipment as well as operate and supervise the projects. BHT's American team of gold mining and processing specialists will oversee all aspects of the operation.
 ORGM will identify the mining sites and provide evaluations, personnel, infrastructure, and laboratory facilities. ORGM has invested nearly $1 billion in research and evaluation, mapping, drilling and sampling hundreds of gold deposits. The deposits are for the most part found in the extreme southern region of Algeria known as "the Hoggar." This arid region is separated from Algeria's Mediterranean population centers by 900 miles of Sahara desert.
 "Until recently, oil and gas development have been the engines of Algeria's economic development, but we are now turning our attention to the development of our extensive mineral resources. The proven mineral reserves within the seven development zones covered by this agreement are conservatively estimated in excess of $3 billion (U.S.)," said Mourad Maache, President du Conseil d'Administration at ORGM.
 "We selected BHT because its technology is well-suited for extracting and processing high volumes of precious metals and minerals from ore. Also, we are impressed with the company's willingness to share its technology and to manufacture pulverizing mills here in Algeria," Maache said.
 Erik Scudder, chief executive officer of BHT, said, "Given the remote, dry locations in which a bulk of the reserves are located, our mobile pulverizing technology offers significant advantages over traditional, large-scale crushing machinery. Combined with the fact that the gold deposits are surface veins with medium size volumes of ore, our small, portable, high-yield operation is ideal to maximize the yield."
 Discussions are underway to expand the scope of the agreement to include the processing of titanium, zinc and barite, as well as gold. The petroleum sector has operated similar joint ventures since the early 1970's through Sonnetrac, the Algerian state agency responsible for oil production, but the mineral development has not been addressed until now.
 Formed in 1990, Black Hole Technologies is a Delaware corporation with offices in New York City, Houston, and Denver. As part of the agreement, BHT plans to open a new office in Algiers.
 -0- 8/18/92
 /CONTACT: William Campbell of GCI Corporate & Financial, 212-546-2664, for Black Hole Technologies/ CO: Black Hole Technologies ST: New York IN: MNG SU: JVN


SH -- NY037 -- 0963 08/18/92 12:35 EDT
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Publication:PR Newswire
Date:Aug 18, 1992
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