MINCO
plc
Press Release –
26th July 2004
Minco to Acquire Russian
Gold Assets
Minco, the
AIM listed precious metal explorer, has signed an exclusive option agreement to
acquire a controlling interest in Tophor, a Russian company which has a mining
and exploration licence in Buryatia, Siberia, west of Lake Baikal near the
border with Mongolia known as Vodorazdelnoye. The property contains an estimated
gold resource of 920,000 tonnes at 26 grams a tonne gold (0.84 ounces per
tonne). Minco management believe that the deposit has the potential to produce
90,000 ounces of gold a year by upgrading the resources. Two large gold mines
are producing in the area, one controlled by High River Gold of
Canada.
Exploration
between 1974 and the 1990’s resulted in the discovery of 10 high grade gold and
silver vein structures on the property. Of the estimated resource, 126,000
tonnes at 25 grams a tonne of gold, in the measured and indicated category, is
from four veins to a depth of 130 metres from surface. The majority of the gold
is in free form. Metallurgical testing shows recoveries in excess of 93 per
cent. Preliminary estimates of the cash cost of gold production indicate a range
of US $150 to US$175 an ounce.
Minco has
the option to purchase 52 percent of Tophor for US $500,000 and the right to
purchase the balance of the shares over 5 years as
follows:
·
Up to
80 per cent by spending US $3 million and granting current Tophor shareholders 1
million Minco shares on Minco achieving a 70% interest in
Tophor.
·
From
80 to 90 per cent by spending a further US $2.2 million
·
An
option to purchase the remaining 10% interest for US $4.4 million or provide the
minority shareholders with a loan to cover their 10% contribution to ongoing
development costs.
The
Chairman of Minco, Roger Turner, said “We have been evaluating opportunities in
the FSU since February of this year and have opened an office in Irkutsk,
approximately 400 kilometres from Vodorazdelnoye by road, in March. Although
several projects are under consideration, we believe that Vodorazdelnoye will,
by upgrading the resources, provide Minco with a first class low cost producing
mine in the medium term. There are many similarities to Bema’s Julietta property
in Siberia in terms of grade and vein widths. Julietta produces 120,000 ounces a
year from a 400 tonne a day mine at a cash cost of US$150 per ounce. We plan to
complete the next stage of the due diligence process as quickly as possible”
For further
information
Matthew Dorman, CEO.
Tel: +34 687 494550
mldorman@orcagoldcorp.com
Roger Turner, Chairman.
Tel +44 (0) 1273 495500 rwturner@orcagoldcorp.com
Laurence Read, Conduit
PR
Tel +44 (0)207 9369095
laurence@conduitpr.com
/(0)7979955923
MINCO is a precious
metals development and exploration company traded on the AIM market in London.
Ticker symbol (MIO),