paragraph 9 gives the game away

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    Kanowna Consolidated eyes Argentine gold

    Michael Quinn

    Wednesday, December 10, 2003
    BORN again resources outfit Kanowna Consolidated Gold Mines is to acquire a 620,000 ounce gold project in Argentina called Cerro Negro from Xstrata.

    Kanowna will acquire the project via the acquisition of unlisted Queensland company Oroplata, which has a 49% stake in the project, and pre-emptive rights over the 51% being divested by Xstrata.

    That 51% was the subject of a US$1.5 million bid from Canadian company Aquiline Resources.

    Kanowna will issue 56 million shares (at 2 cents) to acquire Oroplata, with 10 million of those shares to be used to purchase a company called Attfield.

    Attfield holds an option to acquire 51% of Oroplata, which features directors Neil Stuart, Paul Crawford and Greig King.

    Kanowna says Cerro Negro consists of 11 contiguous mining tenements with the principal geological target being a low sulphidation quartz vein gold-silver system similar to that found at AngloGold's 3.5 million ounce Cerro Vanguardia mine.

    MIM, which was taken over by Xstrata mid-year, reportedly spent more than US$3 million at the project, and Kanowna says nine areas have been identified as prospective for epithermal mineralisation.

    Oroplata's Neil Stuart estimated the Vein zone - 450m long by 150m wide - contains 6 million tonnes grading 3.2gpt, with the mineralisation open in several directions.

    Kanowna plans a fund raising before Christmas, and the introduction onto its board of three "mining" directors, a managing director and one Oroplata representative. They will join current director Warren Gilmour.

    Kanowna is currently carrying out a pro rata, in-specie distribution of its technology subsidiary.

    The company has 83.7 million shares and 34.4 million options currently on offer, with the options exerciseable at 20 cents before November 30, 2004.

    The shares have had a 52-week high/low of 12 cents and 1c respectively.

    Interest in Kanowna has been increasing since July, and the stock was up 3.3 cents (or 50%) at 9.9 cents in midday trade.

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