Waseco Resources Inc V.WRI

Interesting Read 1997

[hockeytown]

Tewah Project Update

Business Wire, Jan 20, 1997

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SCARBOROUGH, Ontario--(BUSINESS WIRE)--Jan. 20, 1997-- Diadem Resources Ltd(ME DIR. ) Waseco Resources Inc(CANADIAN DEALING NETWORK WSCO. ) Diadem Resources Ltd. (DIR-ME) and Waseco Resources Inc. (WSCO-CDN) are pleased to provide an update on the Feasibility Study being carried out on Tewah Alluvial Gold Project on the Kahayan River, Kalimantan, Indonesia.

In-fill drilling on the central portion of the Kahayan River has now increased the in-situ river resource to over 1,000,000 ounces of gold. This is in addition to the previously drilled terraces, which contain an in-situ resource of 2,400,000 ounces of gold.

The current drilling program being completed is confirming a resource of 50,000,000 cubic meters at a grade of 160 milligrams of gold per ton in the central zone. This resource, when added to the southern zone (see News Release September 25, 1996) plus the inferred volume of alluvials in point bars and old channels, which remain to be fully tested fro dry land, provide an in-situ river resource which exceeds the 1 million ounce threshold.

Alcon Ltd., the project consultants, under the supervision of Ken Connell, an alluvial-placer engineer of international repute, have estimated the operating cost of the first dredge at U.S.
.64 per cubic metre (equal to U.S. $123/ounce). Based upon the drilling results, Alcon have recommended the use of bucket ladder dredges with 18 metre (60 feet) digging depth capacity with an annual throughput of 5.5 million cubic metres per year to produce 30,000 ounces of gold per dredge year. Initial production using one dredge will be increased in year two by the addition of a second dredge. The capital cost of a dredge is approximately U.S. $12 million. Production will reach the 100,000 ounce per year level in year three, once terrace mining is initiated. Installation of the first dredge requires the completion of the plant process design and an environmental impact assessment, which will be completed in the first half of 1997.

Upon completion of the feasibility study, Waseco will have earned a 60 percent interest in the project. The remaining 40 percent will be held by its Indonesian partner, PT Mercu Buana Raya Contractors.

Waseco Resources Inc. is a Canadian exploration company with five gold prospects in Indonesia. The company is affiliated with Diadem Resources Ltd. which holds approximately 41 percent of the outstanding shares and is the operator of the exploration program. -0-

DIADEM RESOURCES LTD. 110 MEADOWVALE ROAD, SCARBOROUGH, ONTARIO M1C 1S1 PHONE: [phone] FAX: [phone] Web:   www.diademresources.com/ E-Mail: [e-mail] Toll Free: 1-888-4-DIADEM (434-2336) and WASECO RESOURCES INC. 110 MEADOWVALE ROAD, SCARBOROUGH, ONTARIO M1C 1S1 PHONE: [phone] FAX: [phone] E-Mail: [e-mail]

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