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REA GOLD PROCEEDING WITH $3 MILLION EXPLORATION PROGRAM ON BISSETT MINE PROJECT

 VANCOUVER, British Columbia, Nov. 23 /PRNewswire/ -- W. James Hogan, president and chief executive officer of Rea Gold Corp. ("the company") announces that as a result of the Manitoba Government's decision to grant new mine status, together with the approval of the company's exploration program under Manitoba's Mineral Exploration Incentive Program (MEIP) for the Bissett Gold Project, the company now plans to proceed immediately with a $3 million exploration program.
 Hogan said that, "The new mine status together with the MEIP program, which will reimburse investors up to $735,000, prompted the company to advance their plans for the Bissett Gold Project." The work to be carried out over the next seven months will include dewatering and rehabilitation of the main mine workings necessary for the 1,050 ft. exploration drifting and 15,000 ft. diamond drilling program.
 The objectives of the program are to:
 -- Increase ore reserves along strike and down dip of the existing workings, thereby extending mineable reserves by 1 million tons to a total of 2.5 million tons grading in excess of 0.24 ounces gold per ton. Mineable reserves currently stand at 325,000 ounces of gold; and
 -- Confirm mining rates, capital and operating costs outlined by Tonto Mining and Kilborn Engineering in Rea's recently completed pre- feasibility study.
 Preproduction and capital costs to process 1,000 tons per day are projected to be between $25 and $30 million. Once in operation, the mine will employ between 150 and 200 people. Ongoing operating costs are estimated to be $25 million per year.
 Once this program is complete, the company will be in a position to make a production decision on the property by mid-1994. Annual gold production is forecasted to be between 75 and 80 thousand ounces per year.
 Rea Gold is a Canadian mining company engaged in the acquisition, exploration, development and operation of precious metal properties in Canada and the United States. The company operates the South Comstock Joint Venture near Carson City, Nev. Rea signed the joint venture agreement in March 1993 and started producing gold by November 1993. Rea is also conducting its due diligence review on the acquisition of another advanced stage property called the Mt. Hamilton Gold Project in Eastern Nevada. Target production rates for that project are estimated at 1.3 million tons per year to produce 50,140 ounces of gold and 193,000 ounces of silver.
 -0- 11/23/93
 /CONTACT: W.J. Hogan, president and CEO, or R.A. Shier, treasurer and CFO, 604-684-7527/
 (REOGF)


CO: Rea Gold Corp. ST: British Columbia IN: MNG SU:

NY-JB -- LA025 -- 7410 11/23/93 16:40 EST
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Publication:PR Newswire
Date:Nov 23, 1993
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