Crew Development: Nalunaq Gold Mine Granted 30-Year
VANCOUVER, British Columbia, April 7, 2003 (PRIMEZONE) -- Crew
Development Corporation (Crew) (TSE:CRU) (OSLO:CRU) (Frankfurt:KNC)
(Other OTC:CRWVF) is pleased to announce that the Governments of
Greenland and Denmark have granted Nalunaq Gold Mine A/S (NGM) a
30-year mineral exploitation license for its Nalunaq gold deposit,
located in Kirkespirdalen valley in southern Greenland. This is the
first new mine in Greenland in over 30 years and is the country's first
gold mine. Nalunaq Gold Mine A/S is owned 82.5% by Crew and 17.5% by
its Greenlandic partner, Nunaminerals A/S, whose largest shareholder is
the Government of Greenland.
The company has commenced preparations for early production development
and shipping of the existing stockpile. The on-site construction is
scheduled to commence in May 2003, and engineering work and other
project preparations are well underway. A purchase agreement has been
signed for a 300-foot, deck-cargo (low) barge, which will be brought to
Nalunaq to form the basis for a ship loading arrangement and to provide
a tide-independent harbour facility for loading and unloading of
equipment and supplies. A conveyor system will deliver ore from the
beach-stockpile pad, across the barge, to a bulk carrier scheduled for
the transportation of ore. NGM already has an agreement with Richmont
Mines Inc. (Richmont) regarding the processing of high-grade Nalunaq
ore at Richmont's Nugget Pond Mill facility in Newfoundland, Canada.
Mining contracts, camp facilities, laboratories, workshops and other
procurements are currently being finalized.
The application for the exploitation license was based on a full
feasibility study comparing the option of mining and then processing
the ore at an offshore facility with the option of mining and
processing the ore at a facility on site. The offshore processing
option demonstrated superior economics for the project and will allow
for an early cash flow and further expansion of the ore resources at
minimal capital investments.
The initial shipment of stockpile ore, containing approximately 23,000
oz of gold, is scheduled for late fall 2003, and the mine is expected
to reach a production of 350 tonnes per day within the first half of
2004. The initial mining rate at 350 tonnes per day represents an
average gold production of approximately 90,000 oz per year.
The current mine plan is based on measured and indicated resources of
approximately 400,000 oz gold, but the deposit has imminent upside
potential and a resource expansion program will be conducted in
parallel with mining operations. Outcropping gold mineralization has
been sampled along more than 2,000 m of the surface of the mountain
(over nearly 1,000 m vertical elevation), of which the current resource
development represents only about 350 m (over 200 m vertical
elevation). Independent consultants have recognized the large upside
potential for Nalunaq.
The financial model demonstrates robust economics and the project is
expected to generate substantial revenues over the years to come, which
will contribute to the company's further growth.
The exploitation permit for Nalunaq represents a major milestone for
Crew as it takes the Company from being an exploration company to an
emerging gold producer with significant cash flow. Including our recent
acquisition of 20% ownership in Eastern Transvaal Consolidated (ETC) in
South Africa, Crew is now staged to produce in excess of 100.000 ounces
of gold per year.
In Greenland, within the remaining 1,065 sq km concession area, the
company has made some remarkable discoveries of several, 10-20 km long
and over 200 m wide, consistently gold mineralized belts, which will
now be aggressively explored. This recognition makes the South
Greenland concession area, which is fully controlled by the company, a
potential new gold province.
Management fully recognizes the potential of generating substantial
shareholder value through new discoveries, yet is very conscious to
establish a balanced project portfolio and to maintain focus on cash
generating assets. We will shortly introduce a new website that will be
used actively to update our shareholders on the status of project
developments and the management's views and visions for the future.
This news release contains certain "Forward-Looking Statements." All
statements, other than statements of historical fact, included in this
release, and/or statements made by company officers or directors at any
given time, as well as Crew's future plans are such forward-looking
statements that involve various risks and uncertainties. There can be
no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are based on
the estimates and opinions of management on the date the statements are
made, and Crew does not undertake any obligation to update
forward-looking statements should conditions or management's estimates
or opinions change.
For more information or to be put on our email list, please contact the
Vancouver Office, (604) 683 7585 or US/Canada Toll Free:
1-866-818-2211, email: email@example.com or the Oslo Office at +47 67 59
2424, email firstname.lastname@example.org. Visit our website at http://www.crewdev.com.
CONTACT: Crew Development Corporation
Jan A. Vestrum, President and CEO
(604) 683 7585, (866) 818-2211 toll free
Provider ID: 00038730
-0- Apr/07/2003 17:32 GMT
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