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NEWMONT MINING SIGNS FINAL ACCORD ON GOLD JOINT VENTURE WITH REPUBLIC OF UZBEKISTAN

 NEWMONT MINING SIGNS FINAL ACCORD
 ON GOLD JOINT VENTURE WITH REPUBLIC OF UZBEKISTAN
 DENVER, March 2 /PRNewswire/ -- Newmont Mining Corp. (NYSE: NEM) and the Republic of Uzbekistan have signed a definitive agreement creating a joint venture in the Republic for the processing of certain gold ores there, its was announced today by Gordon R. Parker, chairman and chief executive officer of Newmont Mining.
 "The signing of this final agreement is an opportunity for Newmont Mining not only in the specific project involved, but for what it could lead to in the Republic of Uzbekistan, which is one of the more significant gold producing regions in the world," said Parker. "Metallurgical testwork is being undertaken on a large sample of material and a feasibility study is well underway to determine the economics for treatment of the gold ore involved," he added.
 The project would employ Newmont's leaching technology to treat low-grade gold ore stockpiled at the Muruntau gold mine in the Republic. The Muruntau mine is one of the largest open-pit gold mines in the world, producing 1.8 million ounces a year. The stockpile contains an estimated 165 million short tons of material with an average grade of 0.034 ounces of gold per ton. Based on an assumed recovery rate of 50 percent of the contained gold, the stockpile would yield approximately 2.8 million ounces of gold. As currently projected, gold production could vary annually over the 15 years anticipated for the depletion of the stockpile. Cash cost of production is anticipated to be low enough to make the project competitive with cash costs elsewhere in the world. The feasibility study currently in progress looks to construction on the project beginning in 1992 with output of gold slated to begin late in 1993.
 The joint venture is entitled to sell its gold on the world market for the equal benefit of Newmont and its joint venture partners.
 Project financing for the joint venture will be sought through international development banks and other sources, Parker said. Pending completion of the feasibility study, capital costs for the project have been provisionally estimated at about $75 million, of which 66 percent will be debt and the balance will be equity shared by the 50/50 partners in the joint venture.
 "President Islam Karimov of the Republic of Uzbekistan, Minister Tulkun S. Shayakubov, chairman of the State Committee on Geology and Mineral Resources, and other officials of the Repubic have handled this agreement expeditiously and with great practical emphasis, and Newmont is pleased to be able to participate in accelerating the development of their country's resources," said Parker.
 Newmont Mining, Parker added, already is looking at other possible gold projects in the Republic at the invitation of its Uzbek joint venture partners, who are the State Committee on Geology and Mineral Resources and the Navoi Mining and Metallurgical Co.
 Newmont Mining is a pure gold company that owns 90.1 percent of Newmont Gold Co. (NYSE: NGC), the largest producer in North America and the largest operator of gold leaching operations in the world. Newmont Mining also owns 100 percent of Newmont Exploration Ltd., a company engaged in worldwide exploration for gold.
 -0- 3/2/92
 /CONTACT: James F. Hill of Newmont Mining, 303-837-5977/
 (NEM NGC) CO: Newmont Mining Corp. ST: Colorado IN: MNG SU: JVN


MC -- DV005 -- 3925 03/02/92 11:40 EST
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Publication:PR Newswire
Date:Mar 2, 1992
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