huge undeveloped gold and copper project.

This is a massive project that looks like it is moving ahead.

Cerro Casale feasibility study to be updated by Compania Minera Casale Partners agree to initiate discussions with lenders
Wednesday November 19, 10:39 am ET
all figures in US dollars


SANTIAGO, Chile, Nov. 19 /PRNewswire-FirstCall/ - Compania Minera Casale ("CMC"), a Chilean contractual mining company owned indirectly by Placer Dome Inc. ("Placer Dome"), Bema Gold Corporation ("Bema") and Arizona Star Resource Corp. ("Arizona Star") announced today that it plans to update the feasibility study and initiate discussions with lenders regarding potential financing for the Cerro Casale gold and copper development project in northern Chile.

The Cerro Casale deposit, one of the world's largest undeveloped gold and copper projects, is held by CMC and owned indirectly by Placer Dome (51%), Bema (24%) and Arizona Star (25%). A feasibility study completed by Placer Dome Technical Services Limited in January 2000 outlined estimated measured and indicated mineral resources of approximately 25.4 million ounces of gold and 6.4 billion pounds of copper(1). The feasibility study contemplated a large-scale open pit gold and copper mine assuming certain parameters, including a life-of -mine gold price of $350 per ounce and a copper price of $0.95 per pound. According to the feasibility study, Cerro Casale could produce 975,000 ounces of gold and 130,000 tonnes of copper per year over an 18-year mine life.

Cash production costs are estimated to be less than $100(2) per ounce of gold with total costs estimated at $203 per ounce of gold (assuming credits for copper at $0.95 per pound).

During 2001, CMC secured sufficient water rights to build and operate a plant as envisioned in the feasibility study. In March 2002, CMC received formal approval of an Environmental Impact Study from the Chilean regulatory authorities.

Given the recent improvement of both gold and copper prices, CMC will update the feasibility study in order to determine if there have been technological or other advancements since the completion of the study that could improve the project economics. The partners have agreed to update the feasibility study by March 1, 2004.

CMC also intends to initiate discussions with lenders regarding the financing of the project. Upon making a positive production decision, Placer Dome would arrange up to $1.3 billion of project financing and commence construction of the mine.