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SANTA FE PACIFIC EXCHANGES COAL AND QUARRY ASSETS FOR HANSON GOLD ASSETS

 SCHAUMBURG, Ill., Jan. 25 /PRNewswire/ -- Santa Fe Pacific Corporation (NYSE: SFX) and Hanson Natural Resources Company, Inc., Iselin, N.J., announced that a definitive agreement has been signed today to exchange certain mineral assets.
 As a result of this exchange, Santa Fe Pacific's mining affiliate, Santa Fe Pacific Minerals Corporation (SFPM), Albuquerque, N.M., will acquire certain gold assets of Hanson's Gold Fields Mining Company including its Nevada and California gold mines, two late stage development projects in Nevada and Montana and other gold prospects in the United States, Canada, Mexico and Chile. Hanson will acquire essentially all coal assets of SFPM including the Lee Ranch Coal Mine and undeveloped coal reserves located principally in northwest New Mexico. Hanson will also acquire the crushed stone and aggregate business of Western Rock Products, Inc., which operates six quarries in Oklahoma, Texas, New Mexico, Arizona and California. The exchange enables SFPM and Hanson to focus on their respective core mineral businesses. Closing is contingent upon receipt of approvals from government agencies and other parties.
 "Santa Fe Pacific Minerals has a proven record of finding and quickly bringing into production major low cost gold orebodies. As a result, gold production has increased rapidly since 1988. This exchange will enhance our domestic and international precious metals exploration efforts as well as significantly increase production," said Robert D. Krebs, chairman, president and chief executive officer, Santa Fe Pacific Corporation. "With an estimated combined initial annual gold production rate of more than 750,000 ounces and gold reserves estimated to be more than 11 million ounces, SFPM will become one of the top six North American gold producers."
 The two operating gold mines to be acquired by SFPM are the Mesquite Mine in Imperial County, Calif., and the Chimney Creek Mine in Humboldt County, Nev. Mesquite produced 199,000 ounces of gold and Chimney Creek produced 245,000 ounces of gold in Hanson's fiscal 1992, which ended on Sept. 30.
 SFPM anticipates that the joint operation of Chimney Creek with its adjoining Rabbit Creek Mine will produce operating efficiencies and will increase both annual gold production and recoverable reserves. In 1992, SFPM produced 295,000 ounces of gold from its Rabbit Creek and Lone Tree mines, both located in north central Nevada.
 SFPM is one of the largest private mineral land holders in the western United States, with some 7.2 million acres of fee mineral rights including extensive holdings in northern Nevada where the majority of U.S. gold production is located. The acquisition of Gold Fields' exploration properties will add to SFPM's extensive portfolio. Advanced exploration projects at Elkhorn, Mont., and Mule Canyon, Nev., have significant potential for adding to the company's gold reserves and future production pending completion of ongoing detailed geologic and engineering evaluations.
 -0- 1/25/93
 /CONTACT: Catherine Westphal for Santa Fe Pacific Corp., 708-995-6273/
 (SFX)


CO: Santa Fe Pacific Corporation; Hanson Natural Resources Company,
 Inc. ST: Illinois, New Jersey IN: MNG SU:


SM -- NY100 -- 8790 01/25/93 18:00 EST
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Publication:PR Newswire
Date:Jan 25, 1993
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