looking very good, page-3

article MIC

Yes I would think the s/p of MIC will steadily strengthen towards the AGM date on 12 Nov ,
Hopefully all negotations are completed and the remaining approvals from the Chinese authorities are granted.

read below

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Michelago Ltd to become major gold producer in China

7/5/04:


Australian gold junior Michelago Ltd will rate among the major foreign gold producers operating in China after getting the go-ahead to acquire the BioGold facility in Shandong Province.



Shareholders approved the acquisition of an 82 per cent stake in the plant on the country's eastern seaboard, which is scheduled to produce more than 280,000 ounces of gold this year.

The acquisition will generate Michelago's maiden production revenue, with first entitlements expected in the September 2004 quarter.

Subject to remaining approvals from Chinese authorities, Michelago will join Australian resources group Sino Gold as the only Australian and international company to have reached producer status in China's deregulating gold sector.

The acquisition will allow Michelago to move forward with its strategy of becoming one of the largest gold producers operating in China, Michelago managing director Peter Secker said on Thursday.

"(It) will deliver Michelago's first cash flows from next quarter, providing opportunity to further grow the BioGold facility and the company's other projects in China." Secker said.

The acquisition will be funded from a combination of existing cash reserves, the exercise of existing share options, a proposed debt facility and a proposed share placement to the Canadian-based Bactech Corporation.*

Bactech is a joint developer of the BACOX bioleaching process used in the BioGold plant.

Michelago's future operations in China were expected to be fully funded out of the profits to be generated by the BioGold facility.

The acquisition also entitles Michelago to the exclusive licence for BACOX for up to 10 years in China, Mongolia, Siberia and Korea.

The BioGold assets are being acquired from Shandong Tarzan BioGold Co Ltd and include a Bactech bacterial oxidation processing plant, gold smelter and a 51 per cent interest in a gold refinery.

Secker said Michelago would initially buy in concentrates to process through the Shandong plant as a large number of the country's small-scale mining operations required downstream processing.

Michelago is targeting production of 287,000 ounces in 2004 from the BioGold plant, building to 322,000 ounces by 2006.

All gold production will be sold to the Shanghai Gold Exchange.

Michelago's 18 per cent partner in the BioGold venture, the Laizhou Gold Group, said in Sydney on Thursday that the sale to Michelago showed China "was certainly open for business".

"There will be a strong continuation of the current de-regulation of China's resources and mining industry," Laizhou Gold Group chairman Angkang Zhang said.

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