Wednesday, 16th June 2004 (2959 views)

Australian metal producer View Resources has announced it is to purchase the Bronzewing gold mine in Western Australia state from US-based Newmont Mining Corp.

Reportedly the miner has agreed to pay $9 million in cash for the site and hopes to restart production at the site in mid 2005.

If View manages to produce the gold at its proposed rate of 100,000 to 120,000 ounces a year for at least four years, it would earn a place in the top ten gold producers whose primary listings are in Australia.

Managing director Derek Lenartowicz explained to Dow Jones: "It will be subject to our final feasibility study, but it's not going to cost that much, simply because the infrastructure that (Newmont) have left behind is in fantastic condition."

The company hopes to increase the mine's resource base and covert it into reserves with a re-evaluation involving extensional drilling.

At present View operates the Carnilya Hill and Zone 29 nickel mines near Kambalda.

 

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