NEWMONT MINING ACQUIRES MINING RIGHTS ON TWO PROSPECTIVE GOLD PROPERTIES IN U.S.A.
NEWMONT MINING ACQUIRES MINING RIGHTS ON TWO PROSPECTIVE GOLD PROPERTIES IN U.S.A. DENVER, Oct. 13 /PRNewswire/ -- Newmont Mining Corp. (NYSE: NEM) today announced it had acquired the exploration, development and mining rights on two gold prospects, one of which already has approximately 1 million ounces of reserves. The acquisition was from Atlas Corp. (NYSE: AZ). The consideration for the acquisition of the rights, which was through a lease, was $22.5 million. Atlas also will receive a 5 percent royalty on production, against which an advance payment of $7.5 million was made at closing. The Grassy Mountain property, Malheur County, Ore., has proven and probable reserves of 995,900 ounces of gold and 2,467,400 ounces of silver. Reserves consist of 15.9 million tons of ore at an average grade of 0.06 ounces of gold per ton. The ore is oxidized and can be mined by open pit. Atlas has completed a feasibility study which projected annual production at 100,000 ounces and cash costs below $150 per ounce, and was in the process of obtaining the required state and federal permits for the exploitation of the deposit. The property, which covers some 43 square miles of land, also has significant additional exploration potential. The Musgrove Creek property, in Lemhi County, Idaho, is in an early exploration stage. Limited drilling by Atlas indicated promising mineralization. The property covers approximately 20 square miles of land. The lease agreement on the two properties is for 35 years with options for three additional 10-year periods. "Newmont Mining Corporation has been aggressively pursuing attractive new gold properties and we were pleased to be able to acquire these interests," said Gordon R. Parker, chairman and chief executive officer of Newmont Mining. Newmont Mining is a pure gold company which owns 90.1 percent of Newmont Gold Co. (NYSE: NGC), the largest producer from North American properties; and 100 percent of Newmont Exploration Ltd., which conducts exploration worldwide for gold. -0- 10/13/92 R /CONTACT: James F. Hill of Newmont Mining, 303-837-5977/ (NEM NGC AZ) CO: Newmont Mining Corp.; Atlas Corp. ST: Colorado, Oregon, Idaho IN: MNG SU: TNM
PS -- DV007 -- 9481 10/13/92 16:16 EDT
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|Date:||Oct 13, 1992|
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