PIEDMONT MINING COMPANY REPORTS UPDATED PRELIMINARY ECONOMIC EVALUATION OF HAILE PROPERTY
PIEDMONT MINING COMPANY REPORTS UPDATED PRELIMINARY
ECONOMIC EVALUATION OF HAILE PROPERTY
CHARLOTTE, N.C., Nov. 14 /PRNewswire/ -- Piedmont Mining Company, Inc. (NASDAQ: PIED) today announced the results of an updated Preliminary Economic Evaluation of its Haile property near Kershaw, S.C. Piedmont retained American Mine Services, Inc. of Aurora, Colo., to update their 1990 Preliminary Economic Evaluation of the Haile property with the new drilling data and analyses available through Sept. 6, 1991. This updated preliminary evaluation shows that the proven, probable and possible mineral inventory in three of the ten known zones of mineralization on the property has increased to 18,200,000 tons with an average grade of 0.052 ounces of gold per ton, containing approximately 949,000 ounces of gold. A cutoff grade of 0.02 ounces per ton was used.
Of this mineral inventory, the preliminary estimate of proven and probable reserves which may be mineable by open pit mining methods is approximately 10,533,000 tons with an average grade of 0.061 ounces of gold per ton, containing a total of about 640,000 ounces of gold. The stripping ratio of waste to ore is estimated at 4.3 to 1, including additional waste for in-pit haulage roads. Additional drilling, metallurgical testing, and engineering studies are underway and these preliminary numbers will change with further study and analysis.
On March 15, 1991 Piedmont entered into an option and earn-in agreement with AGEI, a wholly-owned subsidiary of Amax Gold Inc. (NYSE: AU), pursuant to which AGEI was granted an option until May 1, 1992 to earn a 62.5 percent interest in the Haile property. AGEI has agreed to prepare a preliminary feasibility study for the Haile property prior to May 1, 1992 and to fund all the exploration costs during this option period. The updated Preliminary Economic Evaluation by American Mine Services was prepared for Piedmont, independent of AGEI and the preliminary feasibility study being conducted by AGEI. AGEI has not yet completed its preliminary analysis and its results could differ materially from those of American Mine Sevices.
/CONTACT: Thomas L. Ross, III, Piedmont Mining Company, Inc., 704-523-6866/
(PIED AU) CO: Piedmont Mining Company, Inc.; American Mine Services, Inc.;
Amax Gold Inc. ST: North Carolina IN: MNG SU: CM -- CH009 -- 4500 11/14/91 14:09 EST