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BMR GOLD CORP. ANNOUNCES COMSTOCK JOINT VENTURE TO COMMENCE COMMERCIAL PRODUCTION

    VANCOUVER, British Columbia, Feb. 22 /PRNewswire/ -- BMR Gold Corp. (Toronto: BGL) and Rea Gold Corp. (Toronto, Vancouver: REO) jointly announced today that they have concluded negotiations of a formal joint venture agreement involving a two-phase development and operation program for BMR's Comstock Gold Project near Carson City, Nev.  Under the terms of the agreement Rea Gold will contribute up to US$2.5 million towards start-up and operating costs in two phases of US$1.25 million each.
    Rea Gold, having completed a feasibility study on Phase I of the Comstock project, has agreed to act as operator.  Work is currently underway to develop a detailed mine operating plan to bring the property into production without delay.  Current plans are forecasted to produce at the rate of 2,500 tons per day at a head grade of 0.07 opt gold and 0.7 opt silver.  Rea will earn a 50 percent undivided interest in the project by committing the first US$1.25 million at which time Rea is entitled to 100 percent of operating cash flow until payout of its initial US$1.25 million contribution.  Each company will be entitled to 50 percent of operating cash flow distribution after Rea recoups its initial investment.
    A feasibility study on the second phase will be prepared by Rea Gold and costs share equally.  On completion of this study and on Rea's commitment to proceed with the second phase, US$1.25 million will be contributed by Rea towards installation of new leaching faciliites to process ores from the North Comstock area.  Any subsequent contribution and all distribution will continue to be 50 percent for each company subject to usual dilution provisions for either party.
    The operating plan for the Comstock joint venture is to produce a minimum of 40,000 ounces annually from heap-leach facilities and, if feasible, proceed to develop and process potential higher-grade underground resources.
    -0-             02/22/93
    CONTACT:  Brant W. Little of BMR Gold, 604-685-5587
    (BGL. REO.) CO:  BMR GOLD CORP. IN:  MNG SU:  JVN ST:


-- LA023 -- X398 02/22/93
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Publication:PR Newswire
Date:Feb 22, 1993
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