Gold Mines of Sardinia Limited
A.C.N. 009 234 851
January 31, 2000
The Gold Mines of Sardinia Quarterly Report shows further extensions to the oxide ore resource at Furtei, which is still producing strongly nearly a year after the exhaustion date indicated by the initial feasibility study. Gold production for the quarter at 5,652 Tr. Oz. is above budget and the cash operating Surplus for the Quarter is US$69 per ounce.
Recent drilling at Furtei has produced intercepts including 13 metres at 5.29 grams of gold per tonne, 9m at 8.39g/t and 7.5m at 5.16g/t. These are part of significant extensions to a shallow oxide resource at Fuertei.
Test-work has been commissioned in South Africa on a project to recover gold using a "bio-heap-leach" process on the sulphides ore identified at Fuertei.
Chairman, Peter Hambro comments "We are encouraged by the results of work done on similar ores in other parts of the world and expect to have further news for shareholders during the next quarter".
At Osilo, in the north of Sardinia, drilling is due to start on the encouraging Bunnari prospect ahead of the trial mining announced in October.
Following the appointment of Peter Hambro, as Executive Chairman, Gold Mines of Sardinia, which is Australian incorporated and is the operator of Italy’s only gold mine, is expanding its presence in European securities markets.
The company, whose subsidiary produces gold at Furtei in the south of Sardinia and has exclusive exploration rights over the whole of Sardinia, says in its December quarter report today that it intends to list in Milan this year and move to the Official List of the London Stock Exchange.
GMS managing director, Mr John Morris, said the company had appointed SG Securities (London) Ltd, a division of Société Générale, as its sponsor, stockbroker and financial adviser to progress the listings.
"The move is intended to reflect the increasing European interest in GMS shares" Mr Morris said.
GMS is already listed on the Alternative Investment Market in London and the Luxembourg Stock Exchange.
San Martino Litigation.