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NEWMONT GOLD AND AMERICAN BARRICK REACH JOINT CO-OPERATION AGREEMENT

NEWMONT GOLD AND AMERICAN BARRICK REACH JOINT CO-OPERATION AGREEMENT
 TORONTO/DENVER, Jan. 29 /PRNewswire/ -- Newmont Gold Co. (NYSE: NGC) and American Barrick Resources Corp. (NYSE: ABX) have signed an agreement in principle for joint co-operation in all aspects of developing their common areas in the northern sector of the Carlin Trend in Nevada. The agreement includes development of the Deep and Lower Post ore body, exploration and development along the common property boundaries, and sharing of Newmont's bioleach technology.
 In announcing this agreement, T. Peter Philip, president and chief operating officer of Newmont Gold and Robert M. Smith, president and chief operating officer of American Barrick stated, "This is an excellent agreement for both companies that will serve to optimize production from the joint area. It effectively realizes many of the benefits identified during merger discussions last year."
 Barrick has been developing the Betze deposit for the past four years and has agreed to expand the Betze Pit to encompass Deep and Lower Post, the larger pit to be known as the Betze-Post Pit. Stripping beyond the Betze Pit outline will commence in 1993. Both companies will benefit from additional production during this stripping phase of the Betze-Post Pit with the majority of the Deep and Lower Post ore becoming available commencing in 1997.
 The Deep and Lower Post ore body crosses the border between the two companies and contains approximately 9 million ounces of gold, of which Newmont owns 5 million ounces and Barrick owns approximately 4 million ounces. In addition, the mining of the Betze-Post Pit will access 580,000 ounces from near-surface material on Newmont land. Until now, neither company has shown gold from the Deep and Lower Post in its production forecasts.
 Barrick and Newmont will share the costs of mining the Deep and Lower Post reserves beyond Barrick's Betze Pit outline in direct proportion to the benefits received. Thus, the cost per ounce of gold mined from the Deep and Lower Post will be the same for both companies.
 Newmont will dedicate certain of its land in its North Area for waste rock disposal and dewatering facilities to effect the most efficient mining of the Deep and Lower Post deposit.
 The two companies have agreed to a range of activities which are designed to maximize the potential of their properties in the North Area of the Carlin Trend. The agreement contemplates joint exploration with Newmont and Barrick sharing data for the area which contains highly prospective exploration targets. The companies have established the principles to enable rapid and economic development of any ore bodies discovered along the common property boundaries.
 The agreement also provides for Newmont to process all Barrick's refractory subore, currently classified as waste, with a grade below 0.065 ounces per ton subsequent to commercialization of Newmont's bioleach technology. Newmont will construct on its property and operate the bioleach facilities necessary to process Barrick's ore in return for a 50 percent share of the profits, after recovery of capital. Barrick is providing Newmont 25,000 tons of bioleach material to accelerate the commercialization of the process.
 The two companies are now working on the details of a final agreement which is expected to be completed in the near future.
 Newmont Gold is the largest gold producer in North America and operates in three separate areas along a 38-mile section of the Carlin Trend in Nevada, including the northern sector which will be subject to the agreement with American Barrick.
 American Barrick is a leading North American gold producer with interests in five producing gold mines, the principal asset being the Goldstrike mine which is located in the Northern sector of the Carlin Trend. American Barrick's shares are traded under ticker symbol ABX on the Toronto, Montreal, New York and London Stock Exchanges and the Paris Bourse and under ABR on the Swiss Stock Exchanges.
 -0- 1/29/92
 /CONTACT: Vincent Borg or Belle Mulligan both of American Barrick, 416-923-9400; or James F. Hill of Newmont Gold, 303-837-5977/
 (NGC ABX) CO: Newmont Gold Co.; American Barrick Resources Corp. ST: Colorado, Nevada IN: MNG SU:


BB -- DV004 -- 4661 01/29/92 10:54 EST
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Publication:PR Newswire
Date:Jan 29, 1992
Words:690
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