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EL CONDOR RESOURCES LTD. AND ST. PHILIPS RESOURCES INC. ANNOUNCE KILBORN STUDY COMPLETED -- MAJOR MINE CONFIRMED

 VANCOUVER, British Columbia, July 19 /PRNewswire/ -- Kilborn Engineering Pacific Ltd. has provided the Kemess South Joint Venture a Pre-feasibility Study on the design, construction, operation and viability of a 40,000-ton-per-day open-pit gold-copper mine-mill complex at the Kemess South property, located near Mackenzie in north central British Columbia. The Kemess South Joint Venture is comprised of El Condor Resources (NASDAQ: ECNCF; Vancouver ECN) (60 percent) and St.Philips Resources (Vancouver: SPP) (40 percent). El Condor is project operator.
 Kilborn Engineering Pacific Ltd., a member of the Kilborn Group of Companies, is an internationally recognized engineering company offering complete project services worldwide. The Kilborn Group is involved in major overseas and North American developments such as the Omai Project in Guyana, Barrick Goldstrike Project in Nevada, the Mina Ivan SX-EW Project in Chile and the Kubaka Projects in Russia. For the engineering, procurement and construction management mining projects completed by Kilborn Engineering Pacific, cost and schedule analyses shows a less-than-2-percent variance on cost and on completion time performance.
 The engineering work by Kilborn and associated consultants on the project has determined that the Kemess South gold-copper porphyry deposit is an attractive, low-cost, co-product mine. Kemess South, when in production, will rank among Canada's largest and lowest cost producers of gold and copper.
 Kilborn's Pre-feasibility Study evaluated and addressed all aspects of the Kemess South Project, including geology, ore reserves, mining, metallurgy, processing, concentrate handling, tailings disposal, infrastructure, ancillary facilities, environmental requirements and project economics. In particular, the study identified and described all aspects of the project and compiled all cost information required to construct and operate the proposed mine so that a detailed economic analysis could be performed. In most cases, the level of detail in the database and its subsequent analysis is that of a feasibility study caliber. Only a portion of those sections on process facilities and tailing impoundment are at pre-feasibility level.
 Gold production will average 213,000 ounces per year for a 15 year mine life at a pro-rata average estimated cost of U.S. $206 per ounce or expressed on a normal-cost basis by applying copper as a credit, the estimated cost to produce an ounce of gold will be US$48. During the first six years of operation gold production will average 259,000 ounces per year.
 Copper production is estimated to average 58,000,000 pounds per year for the 15 year life at a pro-rata average estimated cost of US$0.60 per pound. On a normalized basis applying gold as a credit, the estimated cost to produce a pound of copper is negative US$0.24.
 The Kemess South deposit contains a mineable reserve of 200,440,000 tons of Hypogene and Supergene ore at an average grade of 0.22 percent copper and 0.63 grams gold per ton (0.018 oz/ton). The geometry and continuity of the reserve is such that it is amenable to very efficient open pit mining at a nominal extraction rate of 40,000 tons per day with an overall life of mine stripping ratio of 1.26:1.
 Extensive metallurgical testing and process work have confirmed that conventional crushing, grinding and staged flotation will recover on average 78.2 percent of gold and 88.3 percent of copper from Hypogene material and 70.2 percent of gold and 70.1 percent copper from Supergene material. The standard flotation process will produce a very clean concentrate ranging between 22 percent to 28 percent copper, 1.5-3.0 ounces gold and 1.5-2.0 ounces silver.
 Average annual production will be 213,000 ounces gold, 58,000,000 pounds copper and 170,000 ounces silver. Production levels emphasize the co-product nature of the deposit where 63 percent of the value is in gold and 37 percent is in copper.
 Cost engineering and economic analyses demonstrate that the mine- mill complex will have an estimated average life of mine site operating cost of $4.75 per ton of ore and an average net smelter return (NSR) of $10.32 per ton.
 Total pre-tax cash flow produced by the 15-year mine life will be $1,062,800,000. Cash flow in the first six years will total $578,000,000 for an annual average of $96,400,000. Capital costs for the mine, mill, ancillary facilities and infrastructure are estimated at $374 million, resulting in a short project payback period of 3.8 years.
 The pre-tax net present value of the project, at US$375/ounce gold, US$1/pound copper, CDN$0.77 exchange rate and at a 10 percent discount factor, is $180,385,000 with an IRR of 19.9 percent.
 The Kemess South Joint Venture will now rapidly proceed with completion of mine permitting and planning. An Application for a Mine Development Certificate will be submitted in September 1993 to the Provincial Government. Results from more than two years of studies completed to date covering the mine/mill areas and project infrastructure components indicate that there are no environmental concerns that would preclude the granting of a Mine Development Certificate. Upon obtaining a certificate from the province, a production decision will be made. Detailed design, procurement and construction will follow.
 The time for permitting, engineering, procurement and construction management activities to complete the Kemess South Project is estimated to be 37 months. Commencement of large scale production of gold and copper is expected to commence at Kemess South during the last half of 1996.
 -0- ? 7/19/93
 /CONTACT: Robert G. Hunter, chairman of El Condor Resources, 604-684-6365; or Jim Heras president of St. Philips Resources Inc., 604-685-2877/
 (ECNCF)


CO: El Condor Resources Ltd.; St. Philips Resources Inc.;
 Kilborn Engineering Pacific Ltd. ST: British Columbia IN: MNG SU:


BP -- LA016 -- 3129 07/19/93 13:51 EDT
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Date:Jul 19, 1993
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