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USMX, INC. ANNOUNCES 1995 FINANCIAL RESULTS

DENVER, March 8 /PRNewswire/ -- USMX, INC. (Nasdaq: USMX) today reported a 1995 net loss of $6.9 million ($0.47 per share), compared with 1994 net earnings of $0.20 million ($0.01 per share).

The loss reflects sharply reduced production from 34,486 ounces of gold in 1994 to 6,266 ounces of gold in 1995, the result of depletion of reserves at the Company's sole operating unit, the Goldstrike Mine in Utah. In addition, mineral property abandonments and impairments increased to $4.4 million in 1995 from $0.26 million in 1994 and were largely composed of Cala Abajo, Puerto Rico, $1.2 million; Amargosa, Mexico, $1.0 million; and an impairment charge at Goldstrike, Utah of $1.6 million.

As a result of an amendment to the mining law by the Commonwealth of Puerto Rico which outlaws open pit mining of metallic minerals, the Company recorded a provision in the amount of $1.2 million for impairment in the value of its investment in the Cala Abajo property. While the exploration potential at the Company's Amargosa polymetallic prospect in Chihuahua, Mexico remains significant, exploration efforts to date have not yet yielded an economic deposit. Accordingly, management determined in the fourth quarter of 1995 to record a $1.0 million provision for impairment in the value of the Company's investment in the property. Gold production at the Company's Goldstrike Mine in Utah declined sharply in August and September of 1995. This unexpected decline in gold recovery triggered a reevaluation of the estimated remaining recoverable gold ounces in the heaps. As a result, the carrying value of deferred mining and processing costs was reduced to the fair market value of the remaining gold bullion and dore at the refinery and the Company recorded an impairment loss of $1.6 million.

Revenues for 1995 were $3.9 million, compared with $14.9 million a year ago. Cash production costs were $233 per ounce compared to $229 per ounce last year, not including mining taxes and royalties.

At the beginning of the fourth quarter, USMX determined that the Goldstrike, Utah mine was no longer economically viable and ceased leaching. Rinsing of the heaps and reclamation activities are in progress and will continue into 1997 at an estimated total cost of $1.7 million.

More than $6.3 million has been expended during the past two years, much of it in 1995, for the exploration and development of the Illinois Creek, Alaska and Thunder Mountain, Idaho gold properties. The Company is proceeding with plans for development of both of these properties.

James A. Knox, President, stated, "As previously announced, we are proceeding with the development of the Illinois Creek, Alaska property which is an important step in the transition of USMX from a business based on relatively short-lived production units to more substantial opportunities with extended lives and better profit potential."

USMX is in the business of exploring, acquiring, developing and operating mineral properties in North and Latin America. USMX has recently completed the feasibility study and is awaiting permit approvals, expected in April 1996, with respect to its Illinois Creek gold property in Alaska and is in the process of conducting a feasibility study at its Thunder Mountain gold property in Idaho. The Company's stock trades on The Nasdaq Stock Market under the symbol "USMX" and on the Toronto Stock Exchange under the symbol "USM."
 -0- 3/8/96


/CONTACT: John Haigh, Manager - Investor Relations, 303-985-4665/

(USMX USM.)

CO: USMX, INC. ST: Colorado IN: MTL SU: ERN

DM-MO -- LAF016 -- 1546 03/08/96 11:00 EST
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Publication:PR Newswire
Date:Mar 8, 1996
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