Moydow Secures Participation In Normandy Development And Mining Plans For The Yamfo Gold Deposits.Business Editors VANCOUVER, B.C.--(BUSINESS WIRE)--July 27, 2000 Moydow Mines International Inc (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :MOY MOY Man of the Year MOY Minister of Youth .) is pleased to announce the execution of a Development and Production Agreement between the Normandy Mining Limited Group, Moydow and Rank Mining Company Limited. Rank is a Ghanaian exploration company presently held 53% by Moydow and 47% by Normandy. The Agreement sets forth the terms upon which, subject to successful completion of feasibility studies, Moydow and Normandy will participate in the development and mining of Zones E, A and C on Rank's Ntotoroso property located in west central Ghana. It will also enable Moydow to participate in an enlarged Processing Plant to be constructed on the adjacent Normandy property to process ore mined from both the Rank held Ntotoroso licence and the Normandy wholly owned ground. The Agreement will facilitate optimization of the mining and processing of ore from the gold deposits in the central portion of the Yamfo-Sefwi gold belt. On completion of exploration and feasibility work presently being funded by Normandy, Moydow and Normandy will each hold a 50% interest in Rank. Moydow estimates that the Ntotoroso licence currently contains a resource in excess of 1.7 million ounces of gold. Feasibility Work Integrated feasibility studies on the combined Rank and Normandy deposits on the Yamfo-Sefwi belt are now underway. The Agreement provides for the studies to consider enlarging the Normandy Processing Plant to 5,000,000 tons per annum Per annum Yearly. in order to accommodate ore from the deposits on Rank's Ntotoroso licence. The feasibility studies on the Rank deposits are to be completed by year-end. A supplemental study is intended to be completed for Rank by December 31, 2001 addressing the economics of mining Zone C and any other mineral deposits within the Ntotoroso property. As announced on July 5, 2000, Lycopodium Pty Ltd PTY LTD Propriety Limited (company structure in Australia) ., an Australian technical consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , has been appointed to carry out these feasibility studies. Production Normandy has agreed to target the treatment of 1.5 million tonnes per annum of Rank ore. Processing of ore derived from Zones E and A will commence within 3 months of the completion of the Processing Plant. Moydow's Interest in the Processing Plant Under the Agreement Normandy has given Rank the option to participate in the ownership of the Processing Plant. This option entitles Rank to acquire an ownership interest equal to its proportionate share of the combined initial reserves In amphibious operations, those supplies that normally are unloaded immediately following the assault waves; usually the supplies for the use of the beach organization, battalion landing teams, and other elements of regimental combat teams for the purpose of initiating and sustaining as reported in the integrated feasibility studies. Should Moydow not elect to exercise the Rank option, Rank would pay its share of allocated capital charges to Normandy through an annual capital allocation charge based on its share of mill throughput. Normandy and Moydow have agreed to jointly seek 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 for both the Processing Plant and Rank mining plant costs. Further Exploration Exploration is continuing on the Ntotoroso licence, including drill holes targeted at 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. below the parameters of an open pit. Within a portion of Zone E over a strike length of 1.15 km over the grid 7900N to 9000N Pincock Allen & Holt ("PAH PAH, PAHA aminohippuric acid. PAH abbr. para-aminohippuric acid PAH 1 Polycyclic aromatic hydrocarbon, see there 2. Pulmonary artery HTN "), an international mining consultancy group based in Lakewood, Colorado The City of Lakewood is a home rule municipality located in Jefferson County, Colorado, United States. Lakewood is the fourth most populous city in the State of Colorado and the 164th most populous city in the United States. , has estimated a measured and indicated resource of 1.11 million ounces of gold. The PAH study on Zone E determined the measured and indicated resource to be 13.217 million tonnes with an average grade of 2.62 g/t gold applying a cut-off cut-off Anesthesiology The point at which elongation of the carbon chain of the 1-alkanol family of anesthetics results in a precipitous drop in the anesthetic potential of these agents–eg, at > 12 carbons in length, there is little anesthetic activity, grade of 1 g/t. In addition to Zone E the in-house gold resource estimates for Zones A and C using standard cross-section, polygonal pol·y·gon n. A closed plane figure bounded by three or more line segments. po·lyg  o·nal adj. methods with methodology reviewed by PAH are 526,000 ounces (7.6 million tonnes grading 2.14 g/t gold) and 79,000 ounces (1.3 million tonnes grading 1.83 g/t gold), respectively. Moydow shall continue as operator of the exploration programs on other zones identified on the Ntotoroso licence and this exploration is to be funded equally by Moydow and Normandy. The Agreement provides for Normandy to become operator of the mining activities. Mr. Brian Kiernan, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Moydow said "The story at Ntotoroso is far from over. We have secured our route towards production in a way which allows the company to consider further options which will become available to us. The participation option allows us to fully consider the results of the feasibility studies prior to making a decision to participate in the processing plant. The property holds great potential and our continuing exploration program will aim to increase the resource base at Ntotoroso in the short term". "Moydow believes the Agreement provides the best approach to advance Rank's gold deposits in the Yamfo-Sefwi belt to production and looks forward to continued joint success in the exploration, development and mining of the Ntotoroso property with its partner Normandy Mining". Brian Kiernan,President & CEO |
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