AMAX GOLD ANNOUNCES RECORD THIRD QUARTER PRODUCTION AND LOWER CA

h Costs 
DENVER, Oct. 22 /PRNewswire/ -- Amax Gold Inc. (NYSE: AU; Toronto: AXG)
today announced a third quarter 1997 net loss of $9.3 million, or $.10 per
share, on revenue of $79.6 million compared with a third quarter 1996 net loss 
of $2.5 million, or $.04 per share, on revenue of $23.4 million.  The
Company's operating income was $2.5 million for the third quarter of 1997
compared with an operating loss of $1.2 million in the 1996 third quarter.
The improved operating income was due to lower cash costs of $190 per ounce
coupled with higher production and sales during the third quarter of 1997. 
For the first nine months of 1997, the Company had a net loss of $20.1
million, or $.24 per share, on revenue of $191.3 million compared with a net
loss of $13.8 million, or $.19 per share, on revenue of $74.6 million, for the 
1996 period.  Excluding the $4.5 million cumulative effect of a first quarter
accounting change to include depreciation and depletion in inventory, the
Company's net loss for the first nine months of 1997 was $24.6 million, or
$.28 per share.  Cash flow from operations for the nine months ended September 
30, 1997 more than tripled to $41.2 million compared to the 1996 period, also
due to increased production and lower cash costs.  Significant improvements in 
costs were offset by lower realized gold prices and higher interest expense,
which resulted in the increased net loss.  Interest expense increased during
1997 due to the reduction of capitalized interest resulting from the
completion of the Company's new mines.  The third quarter and first nine
months of 1996 have been restated to reflect the effect of a LIFO to average
cost inventory accounting change, which increased the previously reported net
loss by $0.8 million, or $.01 per share, and $6.1 million, or $.06 per share,
respectively. 
Milton H. Ward, Amax Gold's Chairman and Chief Executive Officer, said,
"With our first full quarter of commercial production at Kubaka behind us, we
are extremely gratified that both Fort Knox and Kubaka now have sustainable
production that is significantly better than anticipated in the original
feasibility studies.  Fort Knox produced more than 100,000 ounces at a cash
cost of $162 per ounce in the third quarter of 1997, while Kubaka, whose
commercial production commenced three months after Fort Knox's, produced more
than 50,000 ounces at a cash cost of $182 per ounce for Amax Gold's account." 
Ward continued, "Amax Gold has now successfully completed the transition
from a company with mines nearing the end of their lives to a company with
three flagship operations spanning the globe.  We are well positioned to take
advantage of the inevitable increase in gold prices with this new increased
production profile and low cash costs.  Although Refugio has continued to be
hampered by the severe record setting winter weather in the second and third
quarter of this year and other operational inefficiencies, we expect to
achieve full production levels in the first quarter of 1998." 
Ward concluded, "We have completed the first phase of our multi-phased
drilling program at Fort Knox and expect to add proved and probable reserves.
Additionally, we are evaluating drilling results at our Kubaka project in
Russia and expect to recommence the reserve expansion drilling program at
Refugio, which has been delayed due to the weather conditions." 
Amax Gold's average realized price for the third quarter and the first
nine months of 1997 was $355 per ounce and $368 per ounce, respectively,
compared with $412 per ounce in both of the comparable 1996 periods.  This
compares with an average spot gold price of $324 per ounce and $340 per ounce
for the third quarter and first nine months of 1997.  Revenue increased
significantly during the third quarter of 1997 due to higher gold sales
attributed to commercial production at Fort Knox, Kubaka and Refugio,
partially offset by lower gold realizations caused by lower spot prices. 
Gold production was a record 217,781 ounces for the third quarter of 1997, 
nearly four times the 59,250 ounces produced in the 1996 third quarter.
Production at Fort Knox, Kubaka and Refugio totaled 164,155 ounces.  Mill
throughput and grade at both Fort Knox and Kubaka continue to exceed
expectations, which has resulted in higher than anticipated production.
Crushing operations were suspended at Refugio for nearly three months due to
record heavy snow and high winds at the mine.  As a result, the Company's 50
percent share of quarterly production decreased to 9,788 ounces.  Fourth
quarter production at Refugio is expected to improve, and full production
rates are expected to be achieved in the first quarter of 1998.  Mining was
completed at Guanaco during July 1997, which resulted in the slight decrease
in production to 21,803 ounces in the third quarter of 1997 compared with
22,456 ounces in the third quarter of 1996.  Production at Guanaco will
decline as residual leaching begins at the mine.  Hayden Hill produced a 
record 31,823 ounces in the third quarter of 1997, a 6 percent increase over
the 1996 third quarter, primarily due to record crusher throughput and higher
grade.  Hayden Hill is expected to complete mining during the fourth quarter
of 1997.  Residual leaching at both Hayden Hill and Guanaco is expected to
continue into 1998. 
The Company's third quarter 1997 cost of sales as a percentage of revenue
decreased to 59 percent compared with 67 percent for the prior year's third
quarter, reflecting significantly lower average total cash costs.
Consolidated total cash costs fell by nearly 23 percent to $190 per ounce for
the third quarter of 1997 from $246 per ounce in the third quarter of 1996.
Fort Knox's cash costs of $162 per ounce for the 1997 third quarter continue
to be lower than expected as crusher and mill throughput and grade have been
higher than anticipated.  Kubaka's cash costs of $182 per ounce for the first
full quarter of commercial operations are also lower than anticipated as a
result of higher mill throughput. Refugio's cash costs for the quarter were
$558 per ounce, primarily due to the adverse impact of the abnormal winter
weather and certain operating inefficiencies.  Cash costs at Refugio are
expected to improve significantly over the next two quarters.  Guanaco's  cash 
costs of $206 per ounce improved by $110 per ounce compared with the 1996
third quarter.  Cash costs at Hayden Hill improved slightly to $165 per ounce
as a result of the slightly higher production. 
During the third quarter of 1997, the Company borrowed $0.8 million under
the Cyprus Amax demand loan facility, increasing the total amount borrowed as
of September 30, 1997, to $73.5 million.  No additional funds have been
borrowed under the demand loan facility during October 1997.  Scheduled Fort 
Knox debt repayments of approximately $14.7 million during the third quarter
of 1997 were made with cash flow from operations.  The Company is currently
considering various options to restructure its debt and capital, which could
include accessing public debt and equity markets.  The Company is also
actively reviewing merger opportunities. 
Amax Gold Inc. produces gold in the United States, Russia and Chile and
explores for gold in the Americas, Russia, Australia and Africa.  Amax Gold is 
58.8 percent owned by Cyprus Amax Minerals Company.  Amax Gold's common stock
is listed on the New York Stock Exchange (AU) and the Toronto Stock Exchange
(AXG).  The $3.75 Series B Convertible Preferred Stock is listed on the New 
York Stock Exchange under the symbol AUPrB. 


    Actual results may vary materially from any forward-looking statements the

Company makes.  Refer to the Cautionary Statement in the Company's latest Form

10-Q.
                                AMAX GOLD INC.
                     CONSOLIDATED STATEMENT OF OPERATIONS
                    (in millions except per share amounts)
                                 (Unaudited)
                            Three Months Ended            Nine Months Ended
                                September 30,              September 30,
                              1997          1996         1997          1996
    Revenues                 $79.6         $23.4      $ 191.3         $74.6
    Costs and expenses:
    Cost of sales             46.6          15.7        115.0          56.2
    Depreciation and
     depletion                27.9           6.6         64.4          19.4
    General and
     administrative            1.8           1.4          5.7           6.4
    Exploration                0.8           0.9          3.1           2.3
    Total costs and expenses  77.1          24.6        188.2          84.3
    Income (loss) from
     operations                2.5         (1.2)          3.1         (9.7)
    Interest expense        (11.4)         (7.5)       (31.1)        (20.0)
    Capitalized interest        --           6.5          4.2          16.7
    Interest income            0.5           0.4          1.4           1.3
    Other                    (0.8)         (0.7)        (2.0)         (2.1)
    Loss before income tax
     expense and cumulative
      effect of accounting
       change                (9.2)         (2.5)       (24.4)        (13.8)
    Income tax expense       (0.1)            --        (0.2)            --
    Loss before cumulative
     effect of
      accounting change      (9.3)         (2.5)       (24.6)        (13.8)
    Cumulative effect of
     accounting change          --            --          4.5            --
    Net loss                 (9.3)         (2.5)       (20.1)        (13.8)
    Preferred stock
     dividends               (1.7)         (1.7)        (5.1)         (5.1)
    Loss attributable to
     common shares        $ (11.0)        $(4.2)     $ (25.2)      $ (18.9)
    Per common share:
     Loss before cumulative
      effect of
       accounting change    $(.10)        $(.04)       $(.28)        $(.19)
     Cumulative effect of
       accounting change        --            --          .04            --
    Loss per common share   $(.10)        $(0.4)       $(.24)        $(.19)
    Weighted average common
     shares outstanding      114.8          96.5        106.0          96.5
                                AMAX GOLD INC.
                          CONSOLIDATED BALANCE SHEET
                  (Dollars in millions except share amounts)
                              September 30,           December 31,
                                      1997                    1996
                                (Unaudited)
    ASSETS
    Cash and equivalents, including
     restricted cash of $3.5 million
     at September 30, 1997          $17.0                   $11.1
    Inventories                      55.3                    28.5
    Receivables                      31.1                     3.2
    Other                            16.6                    17.9
    Current assets                  120.0                    60.7
    Property, plant and
     equipment, net                 739.4                   667.1
    Other                            28.5                    34.4
    Total assets                   $887.9                  $762.2
    LIABILITIES AND
    SHAREHOLDERS' EQUITY
    Cyprus Amax demand loan         $73.5                  $130.0
    Current maturities of
     long-term debt                  73.2                    39.3
    Accounts payable, trade          26.9                    14.7
    Accrued and other current
     liabilities                     32.9                    23.8
    Reclamation reserve,
     current portion                  6.5                     4.5
    Current liabilities             213.0                   212.3
    Long-term debt                  368.8                   272.6
    Reclamation reserve,
     noncurrent portion              10.2                    11.2
    Other                             7.5                     6.7
      Total liabilities             599.5                   502.8
    Commitments and contingencies      --                      --
    Shareholders' equity:
      Preferred stock, par value
       $1.00 per share, authorized
       10,000,000 shares, of which
       2,000,000 shares have been
       designated as $2.25 Series A
       Convertible Preferred Stock,
       no shares issued and
       outstanding; and 1,840,000
       shares have been designated as
       $3.75 Series B Convertible
       Preferred Stock, issued and
       outstanding 1,840,000 shares   1.8                     1.8
      Common stock, par value $.01
       per share, authorized
       200,000,000 shares, issued and
       outstanding 114,798,851 shares
       in 1997 and 99,308,979 shares
       in 1996                        1.1                     1.0
    Paid-in capital                 408.5                   355.7
    Accumulated deficit           (115.7)                  (90.5)
    Unearned equity-financing
      costs                         (7.3)                   (8.6)
       Total shareholders' equity   288.4                   259.4
       Total liabilities and
        shareholders' equity       $887.9                  $762.2
                                AMAX GOLD INC.
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                            (Dollars in millions)
                                 (Unaudited)
                                                   Nine Months Ended
                                                      September 30,
                                                1997                1996
    Cash Flows from Operating
    Activities:
      Net loss                                 $ (20.1)            $ (13.8)
      Adjustments to reconcile net
       loss to cash provided by operating
       activities:
        Depreciation and depletion                 64.4                19.4
        Cumulative effect of accounting change    (4.5)                  --
        Increase in reclamation reserves            1.0                 0.2
        (Increase) decrease in working
         capital items                            (1.3)                 5.8
        Other                                       1.7                 0.6
    Net cash provided by operating activities      41.2                12.2
    Investing Activities:
      Capital expenditures                       (24.7)             (150.3)
      Capitalized interest                        (4.2)              (16.7)
      Loan to joint venture partner                  --               (2.0)
    Net cash used by investing activities        (28.9)             (169.0)
    Financing Activities:
     Proceeds from financings                     102.8               149.3
     Repayments of financings                   (108.7)               (8.1)
     Deferred financing costs                     (2.4)               (0.9)
     Cash acquired in connection with
      purchase of Kubaka investment                 7.0                  --
    Cash dividends paid                           (5.1)               (5.1)
    Net cash provided by financing activities     (6.4)               135.2
    Net increase (decrease) in cash
     and equivalents                                5.9              (21.6)
    Cash and equivalents at January 1              11.1                25.6
    Cash and equivalents at September 30          $17.0                $4.0
    Non-cash Transaction:
    Issuance of common stock for purchase of
    Kubaka investment, net of cash acquired:
     Working capital, other than cash          $ (10.3)                 $--
     Property, plant and equipment              (114.2)                  --
     Debt                                          79.5                  --
                                               $ (45.0)                 $--
                            Results of Operations


The following table sets forth the Company's gold production, production
costs, ounces of gold sold and average realized prices for the periods
indicated. 


                                  Three Months Ended    Nine Months Ended
                                     September 30,        September 30,
                                     1997      1996      1997      1996
    Gold production
     (ounces)(a)
    Fort Knox              101,630            --      225,685            --
    Kubaka                  52,737            --       70,168            --
    Refugio                  9,788            --       54,093            --
    Guanaco                 21,803        22,456       79,690        64,695
    Hayden Hill             31,823        30,116       83,870        77,547
    Sleeper                     --         6,678           --        38,199
    Total gold production  217,781        59,250      513,506       180,441
    Cash operating costs
     ($ per ounce of
      gold produced)(b)
    Fort Knox                 $162           $--         $168           $--
    Kubaka                     160            --          154            --
    Refugio                    543            --          321            --
    Guanaco                    191           302          214           316
    Hayden Hill                157           164          188           225
    Sleeper                     --           319           --           241
    Average cash
     operating costs          $181          $234         $192          $261
    Total cash costs
     ($ per ounce of
      gold produced)(b)
    Fort Knox                 $162           $--         $168           $--
    Kubaka                     182            --          177            --
    Refugio                    558            --          338            --
    Guanaco                    206           316          227           329
    Hayden Hill                165           175          196           234
    Sleeper                     --           333           --           247
    Average total cash costs  $190          $246         $201          $271
    Total production costs
     ($ per ounce of
      gold produced)(b)
    Fort Knox                 $334           $--         $340           $--
    Kubaka                     282            --          277            --
    Refugio                    658            --          434            --
    Guanaco                    320           475          358           488
    Hayden Hill                242           291          289           349
    Sleeper                     --           399           --           333
    Average total
    production costs          $321          $373         $336          $395
     Ounces of gold sold   224,314        56,790      519,363       181,133
     Average price per
      ounce sold              $355          $412         $368          $412
     (a)  Commercial production commenced at Kubaka on June 1, 1997, at Fort
     Knox on March 1, 1997 and at Refugio on October 1, 1996.  Consolidated
     total cash costs exclude the impact of the write-down of heap leach
     inventories at Guanaco in 1996.  Mining at Guanaco is expected to be
     completed during the third quarter of 1997 and mining at Hayden Hill is
     expected to be completed during the fourth quarter of 1997, with residual
     leaching at both mines continuing through mid-year 1998.  Mining at
     Sleeper was completed in September 1996.
     (b)  Cash operating costs at the mine sites including overhead, net of
     credits for silver by-products.  Total cash costs include cash operating
     costs plus royalties and applicable production taxes.  Total production
     costs include total cash costs plus reclamation and depreciation and
     depletion.



SOURCE  Amax Gold Inc. 
-0-                             10/22/97 
/CONTACT: Marj Charlier, Director, Investor Relations, 303-643-5625;
D. Michael Rounds, Director of Public Relations, 303-643-5186, both of Amax
Gold Inc./ 
(AU AXG) 
/Web site:  cyprusamax.com/ 
CO:  Amax Gold Inc.
ST:  Colorado
IN:  MNG
SU:  ERN 
-0- (PRN) Oct/22/97   07:01
EOS   (PRN)    Oct/22/97    07:01      85
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