LONDON, Feb. 11, 2005 (PRIMEZONE) -- Crew Gold Corporation ("Crew") (TSE:CRU) (OSE:CRU) (Frankfurt:KNC) (Other OTC:CRUGF).
The U.K.-based mining group is pleased to report that it has reached agreement, in a joint venture with local companies, to acquire 72.5% of the issued capital of the Philippine- based Apex Mining Company for a total consideration of US$7 million in cash.
It is anticipated that the acquisition will be concluded within a maximum period of four months subject to the completion of satisfactory due diligence by Crew.
Apex (AMCI) is listed on the Manila stock exchange. Its principal asset is the Masara Gold Mine ("Masara") in the south of Mindanao Island, which ceased production in March 2000. The mine was previously operated as a small-scale underground operation and has a treatment plant with the capacity to process 1,200 tonnes of ore per day. The processing plant is said by the Bureau of Mines and Geosciences (MGB), a government agency, to be in 'good working condition' although Crew has plans to rehabilitate it and expand its capacity.
According to the MGB, Masara has a gold reserve in the range of 500-600.000 tonnes at 9-10.grams/tonne (JORC) and an inferred resource of 1.7-1.9 million ounces at similar grades. As a part of the due diligence Crew will include an independent resource evaluation according to the Canadian standard NI 43-101 to confirm the MGB estimates.
The mineralization is contained within a series of epithermal gold veins, which have been mined to shallow depth. The mining licence extends over an area of approximately 5,000 hectares and exploration below and outside the current underground development has been limited. The mineralized system is open at depth and along strike and Crew believes it has the potential to host a much larger gold resource, which can be mined through both open pit and underground operations.
Crew expects to bring the original mine and the treatment plant back into operation relatively quickly. It will also undertake a major exploration programme in the surrounding area with a view to defining a significantly increased resource.
The Apex property also contains a copper-gold porphyry mineralization with promising potential. Drilling has revealed several open pittable deposits in a geological setting, which may lead to more discoveries. Independent studies conducted by the MGB have suggested a potential (Indicated-JORC) resource of approximately 85 million tonnes grading approximately 0.4 % copper and 0.4 g/t in these porphyry deposits.
Mr Jan Vestrum, President and CEO of Crew Gold, said today, "The acquisition of a majority stake in Apex will further strengthen Crew's presence in the Philippines, a country which the company believes is one of the world's most promising mineral provinces with significant development potential. The Philippine government is now actively promoting the development of the mining industry as a key driver of the economy, which provides Crew with the framework and potential to create considerable shareholder value from its projects in the country."
Jan A. Vestrum
President & CEO
This news release contains certain "Forward-Looking Statements". All statements, other than statements of historical fact, included in this release, and/or statements made by company officers or directors at any given time, as well as Crew's future plans are such forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Crew does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change.
For more information please contact our U.K. Head Office (Tel: +44 -1932 268755) or by email to enquiries@crewgold.com. For more information about Crew, additional contact information or to subscribe to future news releases, please visit our new website www.crewgold.com.