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PIEDMONT MINING COMPANY REPORTS UPDATED PRELIMINARY ECONOMIC EVALUATION AND MORE THAN 1,000,000 MINEABLE OUNCES OF GOLD FOR THE HAILE PROPERTY

PIEDMONT MINING COMPANY REPORTS UPDATED PRELIMINARY ECONOMIC EVALUATION AND MORE THAN 1,000,000 MINEABLE OUNCES OF GOLD FOR THE HAILE PROPERTY
 CHARLOTTE, N.C., June 4 /PRNewswire/ -- Piedmont Mining Company, Inc. (NASDAQ: PIED) today announced the results of an updated Preliminary Economic Evaluation for the Haile property near Kershaw, South Carolina. Piedmont retained American Mine Services, Inc. of Aurora, Colorado, to re-evaluate the Haile property with the new drilling data and analyses available through April 15, 1992. This updated preliminary evaluation shows that the proven and probable mineral inventory at the Haile property has increased to 20,380,000 tons with an average grade of 0.063 ounces of gold per ton, containing approximately 1,274,000 ounces of gold. A cutoff grade of 0.02 ounces per ton was used. This compares with a proven and probable mineral inventory of 799,000 ounces of gold in November 1991.
 Of this mineral inventory, the updated preliminary estimate of proven and probable reserves mineable by open pit mining methods is approximately 14,640,000 tons with an average grade of 0.072 ounces per ton, containing a total of about 1,055,000 mineable ounces of gold -- 65 percent higher than the 640,000 mineable ounces reported by American Mine Services, Inc. in November 1991. The stripping ratio of waste to ore is now estimated at 5.8 to 1, including waste for in-pit haulage roads. This new study is based on a facility processing approximately 5,000 tons of ore per day and producing in the range of 100,000 ounces of gold per year, with average total operating costs in the range of $200 per ounce of gold produced. Drilling, metallurgical testing and engineering and environmental studies will continue in 1992 and 1993 and these preliminary numbers will change with further study and analysis.
 On May 1, 1992 a wholly-owned subsidiary of Amax Gold Inc. (NYSE: AU) exercised its option to acquire a 62.5 percent undivided interest in the Haile property. Piedmont received $1,750,000 in cash and 1,000,000 unregistered shares of Amax Gold Inc. common stock on exercise. On June 3, 1992, the closing price of Amax Gold Inc. common stock on the New York Stock Exchange was $10.50. Piedmont now has cash and cash equivalents in excess of $3,000,000, compared with $1,376,000 at March 31, 1992 and long-term debt has been eliminated, compared with $544,000 at March 31, 1992. Piedmont retains a 37.5 percent undivided interest in the Haile property and its gold resources.
 Pursuant to the terms of the March 15, 1991 option and earn-in agreement, Piedmont and the Amax Gold subsidiary are now forming a joint venture to further explore and develop the Haile property. This joint venture will be managed by another Amax Gold subsidiary. Amax Gold has presented Piedmont with a detailed work plan and budget totalling $3,850,000 for the Haile property through December 1992, including $1,500,000 for further exploration, development and condemnation drilling. Drilling under this joint venture program commenced at the Haile property on June 2nd. The new zone of mineralization behind the maintenance facilities that was drilled in March is still open in all directions and has one of the best grades of mineralization of any area drilled on the property to date.
 The updated Preliminary Economic Evaluation by American Mine Services, Inc. was prepared for Piedmont independent of the joint venture.
 -0- 6/4/92
 /CONTACT: Thomas L. Ross, III, Piedmont Mining Company, Inc., 704-523-6866/
 (PIED) CO: Piedmont Mining Company, Inc. ST: North Carolina IN: MNG SU:


JZ -- CH001 -- 6870 06/04/92 08:31 EDT
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Publication:PR Newswire
Date:Jun 4, 1992
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