FIRST STANDARD MINING LTD. ANNOUNCES UPDATE
FIRST STANDARD MINING LTD. ANNOUNCES UPDATE VANCOUVER, British Columbia, June 30 /PRNewswire/ -- First
Standard Mining Ltd. (Vancouver: FSL) announces that at its Val St. Gilles Gold Mine, 60 miles north of Noranda, Province of Quebec, all environmental permits and other necessary considerations have been approved and dewatering of the mine is now in progress. Local contractors are being directed by mine manager, Paul Cregheur and as the ore horizons are exposed, check-sampling will be carried out to ensure maximum efficiency during the mining of bulk samples in Phases I and II.
An agreement has been reached with the Barrick Camflo Mill for processing. Cregheur has projected a net pre-tax cash flow or $1,628,000 Cdn. and gross revenues of $4,576,929 Cdn. from Phase I. Parameters Phase I Time Frame - 8 Months Ore reserves 34,500 tons x 0.35 O.P.T. Au Production rate 175 tons/day Recovery 95 percent Gold production 11,471 ounces. Production cost $2,760,000 Cdn. ($80/ton) Capital cost $200,000 Cdn. Gold price $350 US per ounce Exchange rate 1.20 Cdn. Cregheur projects a net pre-tax cash flow of $2,737,000 Cdn. and gross revenues of $10,679,634 Cdn. from Phase II. Parameters Phase II Time Frame - 15 Months Ore Reserves 80,500 tons x 0.35 O.P.T. Au Production rate 200 tons/day Recovery 95 percent Gold production 26,766 ounces Gold price $350 US per ounce Exchange Rate 1.20 Cdn. Production Cost $6,444,000 Cdn. ($80/ton) Capital Cost $1,200,000 (developing additional or reserves) The company intends to utilize the funds to further develop reserves both laterally and to depth. Additionally work could potentially produce a 2-3,000,000 ton ore body. Many of the major mines in this well-known gold belt have encountered ore to the 5,000-6,000 foot level. -0- 6/30/92 /CONTACT: M.M. Guthrie, president of First Standard Mining Ltd., 604-437-0671/ (FSL.) CO: First Standard Mining Ltd. ST: British Columbia IN: MNG SU: EH -- LA022 -- 5384 06/30/92 17:46 EDT
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|Date:||Jun 30, 1992|
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