Gold Mines of Sardinia Limited
A.C.N. 009 234 851
Gold Mines of Sardinia Reports Third Quarter Results For 2000
Perth/London, 31 October 2000
Gold Mines of Sardinia today announced operating results for third quarter 2000 (ended 30 September). Exploration at Furtei is yielding promising results, while site yields remain above target.
Peter Hambro, Executive Chairman, commented:
"With the US$ gold price so firmly in the doldrums, in spite of the turmoil in so many other markets, it is a pleasure to be one of the few gold mining companies operating in the €uro zone. The €uro gold price has held up well against our €uro denominated costs. It is cold comfort, but Chancellor Brown’s decision to exchange the UK’s precious gold reserves for the weak €uro looks more inept by the day.
We have continued to find, and produce from, new oxide deposits at Furtei – in spite of initial predictions that we would already have run out – and this has been a much happier quarter for the company from a production point of view with higher than expected production levels and substantially lower cash operating costs.
Exploration continues at a number of sites on the island and has shown some marked success. I am well pleased with the results of the drill intercepts at Furtei and the recent re-evaluation of the data on the Scano Monte Ferru discovery is most encouraging. Also, the fifty-metre intercept of epithermal mineralisation at Siliqua could prove significant and I look forward to receiving the assay results. We look forward working with Homestake’s geologists on these new developments in the very near future.
Scaled-up trials of bio-leaching on the sulphide ores at Furtei continue to be encouraging and the 12 week trial period has shown that the bacteria can reach well into, and oxidise, run-of-mine ore on the trial pads. The next step will be to crush and treat this material to test the recoverability of gold.
The value of the company’s investment in Navan Mining, almost doubling in value, has benefited from speculative interest but I have maintained my policy of not commenting on market rumours. Navan’s recently announced gold find in Bulgaria is very welcome and GMS
geologists, who were on-site some time ago, are very impressed by the possibilities that this offers.
Indications are that the potential for Platinum group metals is not significant and the previously announced Soprintendenza’s injunction against our Osilo operations was as unexpected as it was unwelcome. This decision is under appeal and the result is expected within a month to six weeks. Our legal advisers remain confident of a satisfactory outcome.
Plans to move GMS to Europe are progressing and we hope shortly to be able to announce proposals to move the domicile of the group holding company from Australia to the UK."
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