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VENEZUELAN GOLDFIELDS LTD. ANNOUNCES ACQUISITION OF 20 PERCENT INTEREST IN LIHIR ISLAND

 VANCOUVER, Aug. 9 /PRNewswire/ -- Venezuelan Goldfields (Vengold) is pleased to announce that it has reached an agreement in principle to acquire a 19.99 percent interest in the Lihir Island Gold Deposit in Papua New Guinea for U.S.$60 million. This interest is being acquired from RTZ Corporation Plc. (RTZ), the operator of the project. Vengold and RTZ will participate through a project holding company, control of which will be retained by RTZ.
 Upon completion of certain agreements the ownership interests in the project will be:
 RTZ/Vengold 40 percent
 Niugini Mining 30 percent
 PNG Government 30 percent
 Construction is expected to commence in early 1994 and be completed in mid-1996.
 A feasibility study carried out by RTZ estimates that the Lihir gold deposit has proven and probable reserves of over 16 million ounces that contain a mineable reserve of 13.7 million ounces. The mining plan contemplates production of 620,000 ounces of gold per year in the first 12 years. An economic evaluation of the project, to be completed by the end of August, will provide a capital cost estimate that is expected to be considerably below the original estimate of U.S.$767 million.
 Vengold intends to finance the costs of this acquisition and its pro rata share of construction costs through a combination of equity and project financing. Completion of the acquisition is subject to final documentation and PNG Government and regulatory approvals.
 The common shares of Venezuelan Goldfields Ltd. trade on the Vancouver Stock Exchange (symbol: VZG).
 The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
 -0- 8/09/93
 /CONTACT: Ian Telfer, president of Venezuelan Goldfields, 416-956-4852/


CO: Venezuelan Goldfields Ltd. ST: British Columbia IN: MNG SU: TNM

PS -- NY041 -- 0717 08/09/93 11:27 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
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