MUSOMA, Tanzania The Australian subsidiary of PLACER DOME is poised to purchase about 98% of EAST AFRICAN GOLD MINES’ outstanding shares. EAGM’s principle asset is the North Mara gold mine, sandwiched between Lake Victoria and the Serengeti National Park, and only a few hundred kilometres from Barrick’s Bulyanhulu gold mine. If the purchase goes through, Placer Dome says about US$255 million will be paid to EAGM share- and option-holders.
The Mara project includes an open pit mine and a 2-million-tonnes/year processing plant that were commissioned in September 2002. At the end of 2002, measured and indicated resources plus reserves totaled 43.9 million tonnes grading 3.0 g/t Au. A second pit has been developed 7 km away at Nyabigena, and another high-grade deposit, the Gokona, is known 1 km along strike from Nyabigena. EAGM has forecast production of 220,000 oz annually at cash costs of US$200/oz and total costs of US$252/oz.
For the latest reports from the Mara project, go to www.eagm.com.au.