IGM Group eyeing stake in Newmont's North Sulawesi mine
Friday, April 20 2001 - 05:00 AM WIB
Perth, Australia-based miner IGM Group Limited, said Thursday it was seriously reviewing the possibility to acquire the North Lanut gold prospect in North Sulawesi, owned by PT Newmont Mongondow Mining, a unit of American mining giant Newmont Mining Corp.
In a statement made available to Petromindo.Com on Friday, IGM said it had lodged a proposal with in principal details of its offer to acquire the Heap Leach Project, which involves a Contract of Work (COW) covering 119,300 hectares on which US$6.9 million has been spent by Newmont to the end of September 2000.
The company said the proposal had been received and acknowledged by Newmont, and it anticipated the commencement of formal negotiations imminently.
Exploration in the Mongondow Contract of Work has identified thirty-seven gold targets, the most significant of which is the Lanut hydrothermal system where Newmont has identified a mineral inventory of 800,000 ounces of gold.
The potential remained below Newmont's target threshold, it said.
IGM said it was hopeful that it could progress the proposed acquisition with a view to establishing production from the establishment of mining and heap leaching of the resultant ore within the current year.
It remains unclear the percentage of the interest IGM wants to acquire. (alex)