Consolidated Nevada Goldfields Corp. announces positive Nixon Fork feasibility and production decision.DENVER--(BUSINESS WIRE)--Jan. 11, 1995--Consolidated Nevada Goldfields n. 1. A small slender woolly annual (Lasthenia chrysostoma) with very narrow opposite leaves and branches bearing solitary golden-yellow flower heads; it grows from Southwestern Oregon to Baja California and Arizona; - it is often cultivated. Corp. announced the completion of an updated 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. for its Nixon Fork Project and has resolved to put the 60,000-ounce-per-year underground gold mine and gravity/flotation mill into production by fourth quarter 1995. The feasibility study, performed by Pincock, Allen & Holt, concludes that the project is feasible and returns a 116 percent pre-tax internal rate of return on incremental capital at a gold price of US $385 per ounce. The mine and mill, based on existing proven and probable reserves, are projected to generate a pre-tax net cash flow of US $16 million after recovery of US $13.4 million of incremental capital and working capital expenditure. Cash operating costs are projected to be US $169 per ounce of gold. Mineable proven and probable reserves for the mine are 122,549 tons at a grade of 1.33 ounces of gold per ton for a total of 163,030 ounces of gold. Additionally, the mine has 39,160 tons of ore in the mineable possible category at a grade of 0.96 ounces of gold per ton for a total of 37,600 ounces of gold. Mineable reserves in all categories total 200,630 ounces of gold. These reserves result from drill-testing less than 18 percent of the known length of the gold-prospective contact on the property. In addition, the deepest exploration drilling to date extends only 650 feet below the surface whereas the total depth of the potential gold resource extends to more than 5,000 feet. According to Pincock, Allen & Holt, excellent potential exists for the discovery and development of additional ore grade mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. . The company's board of directors has formally resolved to complete the development of the mine and mill at Nixon Fork subject to completion of appropriate financing. The company anticipates that it will need an incremental US $10 million to US $11 million in order to complete the mine and mill. At present, the company plans to raise up to US $17 million through a gold loan or other debt facility which will be used for Nixon Fork, to repay outstanding indebtedness and for working capital. Discussions are ongoing with several different financing groups exploring the availability and terms of debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay required to take the project into production. The company's current plans are to put the financing in place during the first quarter of 1995 in order for the project to stay on critical path for completion in September 1995. Consolidated Nevada Goldfields Corp. is a gold mining and exploration company which operates the Aurora Mine in Nevada, the Barite barite (bâr`īt), barytes (bərī`tēz) [New Lat., from barium], or heavy spar, a white, yellow, blue, red, or colorless mineral. Hill mine in South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , and the Nixon Fork development project in Alaska. The company's common shares trade on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol KNV KNV Koninklijk Nederlands Vervoer (Dutch) , on NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on under the symbol KNVCF and on the Stuttgart Exchange in Germany under the symbol CNV-SG. CONTACT: Consolidated Nevada Goldfields Corp., Denver Geoffrey Hoyl, 303/296-3200 |
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