Newmont Farmin for Gold
AKD LIMITED 2002-08-01 ASX-SIGNAL-G
HOMEX - Perth
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Newmont Peru Limited ("Newmont"), a wholly owned subsidiary of
Newmont Mining Corporation (NYSE, ASX: NEM, TSX: NMC) has entered
into an agreement with AKD's subsidiary, Terrace Gold NL, over
Terrace's 100% owned gold project in northern Peru called
"Chinguela".
Newmont has the right to earn up to 70% interest in Chinguela by
spending US$4 million (AUD$8 million) over 6 years and paying
Terrace US$65,000 cash (AUD$130,000 cash) within the first two years,
Newmont also has the right to earn an additional 10% interest in
Chinguela by bringing the project to completion of mine feasibility.
Terrace's Chinguela gold project adjoins Newmont's Laumache gold
project which is currently the subject of an exploration program.
Chinguela is located 40 kilometres south of the Peru - Ecuador border
in the relatively unexplored far north of Peru. The main target
identified by Terrace to date at Chinguela is a large quartz-filled
structure which can be traced on the ground for up to 2km in length.
Exploration work completed by Terrace between 1994 - 1996 included
limited rock-chip sampling returning values by fire assay between
0.65g/t Au and 14.5g/t Au over a width of approximately 120 metres
from very poor outcrop in a predominantly soil covered area.
Soil sampling was also completed by Terrace over an area located 1 km
further south of this zone, returning anomalous gold-in-soil results
over a width of approximately 320 metres. Significant fire assay
results from this traverse included 100 metres at 141 ppb Au and 80
metres at 169 ppb Au with best single gold-in-soil assay result of
524 ppb Au over 20 metres.
Field work by Newmont has already commenced over Chinguela.
Z A Sas
MANAGING DIRECTOR
AKD
akd limited