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PIEDMONT MINING REPORTS INDEPENDENT COMPUTATION OF MINEABLE RESERVES FOR THE HAILE PROPERTY

 CHARLOTTE, N.C., May 19 /PRNewswire/ -- Piedmont Mining Company, Inc. (NASDAQ: PIED), engaged in gold exploration and development in the Southeast, today announced updated independent computations of the mineralized tonnage and mineable reserves at the Haile property near Kershaw, S.C. The drilling and engineering data has been reviewed for Piedmont by American Mine Services, Inc., an independent mineral engineering and consulting firm in Denver, Colo.; David C. Jonson, an independent consulting geologist in Golden, Colo.; Herbert C. Osborne, an independent consulting metallurgist in Commerce City, Colo.; and Kelsey Engineering, independent mining consulting engineers in Lakewood, Colo.
 These consultants have reported that, based on the data furnished to them, the proven and probable mineralized tonnage at the Haile property at Dec. 31, 1992 was 13,160,000 tons with an average grade of 0.091 ounces of gold per ton, using a cutoff grade of 0.025 ounces per ton.
 Of this mineralized tonnage, the estimated proven and probable reserves mineable by open pit mining methods were approximately 7,144,000 tons with an average grade of 0.109 ounces per ton, containing a total of about 776,000 mineable ounces of gold. The stripping ratio of waste to ore was estimated at about 6.4 to 1, including waste for in-pit haulage roads. These reserves were calculated using an assumed gold price of $375 per ounce and a cutoff grade of 0.025 ounces per ton and do not reflect losses in recovery. These reserves are higher than the very conservative 689,000 ounces reported by Amax Gold Inc. in March and were also calculated with the same conservative design parameters used by Amax Gold Inc., including conservative metallurgical recoveries of approximately 72 percent and very conservative 35 degree pit slopes with 80 feet wide in-pit haulage roads. These preliminary numbers will change as additional analyses and studies are completed.
 During 1992, approximately 24,000 feet of reverse circulation drilling and 35,000 feet of diamond core drilling were completed at the Haile property. Some very encouraging intersections were obtained, including the following:
 Hole Distance from Average
 No. Top of Hole Interval Grade(A)
 204 145-175' 30' .435
 205 245-275' 30' .219
 220 425-505' 80' .509
 225 355-480' 125' .280
 227 105-170' 65' .214
 237 200-295' 95' .427
 (A) Ounces per ton including internal waste zones; fire assay.
 In 1992, a wholly owned subsidiary of Amax Gold Inc. exercised its option and acquired a 62.5 percent interest in Piedmont's Haile property. Piedmont now holds a 37.5 percent undivided interest in a joint venture (the Haile Mining Venture) managed by another wholly owned subsidiary of Amax Gold Inc. Total expenditures by the Haile Mining Venture in 1993 are expected to be in the range of $4,000,000 to $5,000,000. Drilling recommenced in February and engineering and environmental studies are continuing to complete a bankable feasibility study and, if warranted, develop and operate a gold mine producing about 100,000 ounces of gold annually.
 Piedmont pioneered the resumption of gold mining in the Southeast in early 1985 at its Haile Gold Mine near Kershaw, S.C., employing for the first time the heap leaching process in the humid, southeastern climate.
 -0- 5/19/93
 /CONTACT: Thomas L. Ross III of Piedmont Mining Company, Inc.,


704-523-6866/
 (PIED)


CO: Piedmont Mining Company, Inc. ST: North Carolina IN: MNG SU:

CM -- CH005 -- 0409 05/19/93 15:38 EDT
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Publication:PR Newswire
Date:May 19, 1993
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