MK Gold announces partial write-off of Jerooy Gold Project.BOISE, Idaho--(BUSINESS WIRE)--Dec. 28, 1995--MK Gold Co. ("MKAU" - 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 ) announced today that its board of directors has determined that a portion of the investment in the Project will be written-off. The board determined that as a result of certain factors surrounding the Jerooy Gold Project in Kyrghyzstan, it is probable that the company's investment in the Project will not be fully recovered. The company will record a charge for the third fiscal quarter ended Dec. 31, 1995, of approximately $6 million, or 31 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , representing 43 percent of the company's $14 million investment in the Project. In 1995, the company commissioned an in-depth engineering study on the proposed development of an underground mine and mill for the Project, including an analysis of the risks, constructability and contingencies Contingencies (ISSN 1048-9851) is the bimonthly magazine of the American Academy of Actuaries, providing a large and diverse readership with general interest and technical articles on a wide range of issues related to the actuarial profession. associated with undertaking this Project. Because this study did not produce satisfactory economics, the company undertook an engineering analysis of an open pit and heap leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. mining design to determine if an alternative approach to the Project would result in favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. project economics. Neither the underground mine and mill nor the heap leach test results suggest gold recoveries of a magnitude which will likely result in an economically viable Project. Therefore, the Project will not be completed as previously designed, and the engineering, design work and certain related costs incurred in connection with the underground and heap leach designs that provide no future benefit to the Project will be written off. The company has requested Kilborn Engineering Inc. to prepare a new engineering and cost study based on a design which includes open pit mining and milling of the gold ore. This study will be completed by March 1996. MK Gold will evaluate the new study and discuss the outcome with representatives of the Kyrghyzstan government to determine whether there are viable Project alternatives. There can be no assurance, however, that the company will be able to develop an economically viable alternative for the Project that will be acceptable to the company, in which event the company will write off its remaining investment in the Project. MK Gold Co., with headquarters in Boise, is an international mining company with two operating mines in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . CONTACT: MK Gold Co., Boise Alan Moore
Alan Moore (born November 18, 1952[7] in Northampton) is an English writer most famous for his influential work in comics, including the acclaimed graphic novels , 208/386-8900 |
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