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AMAX GOLD TO ACQUIRE 50 PERCENT OF REFUGIO PROJECT

 GOLDEN, Colo., Nov. 19 ~PRNewswire~ -- Amax Gold Inc. (NYSE: AU; Toronto: AXG) has agreed to acquire 50 percent of the Refugio Project in the Maricunga Mining District in central Chile for 3.15 million restricted shares of Amax Gold common stock. Documents to complete this agreement have been signed with the final closing scheduled for mid-January 1993. The Refugio Project contains 3.3 million ounces of proven and probable gold reserves or 112 million tons of ore at a grade of 0.030 ounce of gold per ton. Amax Gold will purchase this interest from a privately held Chilean company. The property will be held by Compania Minera Maricunga (CMM), a Chilean contractual mining company, which will be owned 50 percent by Amax Gold and 50 percent by Bema Gold Corp., a publicly-traded company based in Vancouver, Canada.
 Total production from the project is expected to be about 200,000 ounces of gold per year with cash production costs of less than $200 per ounce. Capital expenditures for the project are expected to be about $135 million, of which one-half will be Amax Gold's share. CMM intends to seek project financing under which each shareholder would be responsible for supporting its respective share.
 "The Refugio project is one that clearly meets Amax Gold's quality criteria, and we are pleased with the expected acquisition of this interest," commented Timothy J. Haddon, president and chief executive officer. "Gold will be produced from a 33,000 ton-per-day heap leaching facility with a recovery rate in the range of 60 to 70 percent. Project development should take approximately two years from the start of final engineering. Our goal will be to work diligently with Bema Gold to bring this project to production status as economic conditions and project financing permits."
 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- 11~19~92
 ~CONTACT: Gina Wilson of Amax Gold, 303-273-0623~
 (AU)


CO: Amax Gold Inc.; Bema Gold Corp. ST: Colorado IN: MNG SU: TNM

BB -- DV004 -- 2723 11~19~92 09:28 EST
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Publication:PR Newswire
Date:Nov 19, 1992
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