AMAX GOLD ACQUIRES GUANACO PROJECT IN CHILE
AMAX GOLD ACQUIRES GUANACO PROJECT IN CHILE GOLDEN, Colo., April 6 /PRNewswire/ -- Amax Gold Inc.
(NYSE: AU; Toronto: AXG) announced it has acquired the Guanaco Project from Sociedad Contractual Minera Guanaco (SCMG), a privately-held Chilean company. The assets of the project were acquired for about $35 million which was financed by short-term notes from Chilean banks. Amax Gold, with a 90 percent interest in the project, will be the operator.
Amax Gold's 1991 drilling program has identified a resource of about 900,000 ounces of gold located on a 36 square mile property position about 100 miles south of Antofagasta, Chile. Only a small portion of this property has been drilled. By developing this project in a staged approach, Guanaco could produce about 45,000 ounces of gold in 1993. Cash operating costs are expected to be less than $200 per ounce with total capital costs in the range of $67 million. The mine is currently producing about 10,000 ounces of gold per year from a small open pit, heap leach operation. In excess of one million ounces has been extracted from high grade veins in this mining district since mining began in 1886. "We believe the Guanaco Project offers great potential for Amax Gold," commented President and Chief Executive Officer Timothy J. Haddon. "Limited production will be realized this year from Guanaco, with production increasing in 1993 as the heap leach operation is upgraded. Our longer term plan for this property is to add facilities which will increase annual production to around 100,000 ounces." Haddon went on to say, "At full production, this property is expected to meet the $300 per ounce 'all-in' cost requirement that we've set for project development." Amax Gold produces and explores for gold in North and South America and New Zealand and is listed on the New York and Toronto stock exchanges. Amax Gold warrants trade on the American Stock Exchange under the symbol AUWT and on the Toronto Stock Exchange under the symbol AXGWT. -0- 4/6/92 /CONTACT: Gina Wilson of Amax Gold, 303-273-0623/ (AU) CO: Amax Gold Inc.; Sociedad Contractual Minera Guanaco ST: Colorado IN: MNG SU:
BB -- DV006 -- 5521 04/06/92 16:24 EDT
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|Date:||Apr 6, 1992|
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