Canada's Bre-X looks for Busang gold partner<\/p>\n
TORONTO (Reuter): Red hot Bre-X Minerals Ltd said Thursday it
\nwill start looking this summer for a joint venture partner for
\nits spectacular Busang gold deposit in Indonesia, which it now
\nbelieves holds more than 30 million ounces.<\/p>\n
\"People keep on asking how many million ounces do you think
\n(is there) and I've stuck my foot in it a couple of times and
\nfortunately I've been right so far, but I think it is 30 million
\nplus, plus, plus,\" senior vice president John Felderhof told Bre-
\nX shareholders at the company's annual meeting in Toronto.<\/p>\n
Felderhof, who helped discover the OK Tedi mine in Papua New
\nGuinea and three mines going into production in Indonesia, said
\nthere are strong signs that just one area of the Busang property
\nholds 30 million ounces, and there are three separate areas at
\nBusang that show gold mineralization.<\/p>\n
Busang's gold resource of more than 30 million ounces, if
\nconfirmed, could qualify it as one of the largest gold finds
\noutside South Africa and Nevada.<\/p>\n
Bre-X's discovery of the site pushed shares in tiny Bre-X
\nMinerals into the stratosphere, rising to a recent high of C$170
\n(US$124) from a low of C$1.825 ($1.33) less than one year ago.<\/p>\n
Canada's hottest and most volatile gold stock closed C$7.75
\n($5.66) weaker on Thursday at C$153.75 ($112.23).<\/p>\n
Felderhof hopes to confirm a resource of at least 30 million
\nounces by the summer, at which point company president David
\nWalsh said Bre-X will start negotiating with a partner.<\/p>\n
\"We intend in the second half of this year to commence
\nnegotiations with a company capable in size and stature of
\nbringing the Busang deposit into production,\" Walsh told
\nshareholders.<\/p>\n
Cash payment<\/p>\n
Up to 25 percent of the property would be made available for a
\ncash payment by the joint venture partner, who would also be
\noperator at the site, he said. Further bonus payments would
\nfollow confirmation of increased reserves.<\/p>\n
Financial advisers will be hired within one month to assess
\nthe value of the property and help launch the discussions, Walsh
\nsaid.<\/p>\n
Bre-X wants a partner that has experience operating in
\nIndonesia as well as the financial resources to fund its share of
\nproject financing, now estimated at about $800 million.<\/p>\n
When pressed, Walsh mentioned the South African gold giants,
\nAustralia's Broken Hill Proprietary Company Ltd and RTZ Corp Plc
\nas possible partners.<\/p>\n
\"There are only a few companies in the world that can deal
\nwith this size of deposit,\" Walsh said.<\/p>\n
Canadian gold miner Barrick Gold Corp has little experience of
\nIndonesia but Placer Dome Inc. owns part of the Porgera mine in
\nPapua New Guinea, he added.<\/p>\n
Alberta-listed Bre-X also hopes to end a plague of poor share
\nliquidity next week by listing on the Nasdaq market, and said a
\nToronto Stock Exchange listing should be approved within a month.<\/p>\n
However, it delayed for up to 60 days shareholder votes on a
\nproposed 10-for-one stock split and a poison pill plan to resist
\na hostile takeover after receiving numerous requests for more
\ninformation from shareholders.<\/p>\n
\"We want our shareholders to be comfortable with what we are
\nasking them to ratify,\" Walsh said. \"The proxies we have received
\nhave shown overwhelming support for all the special resolutions.\"<\/p>",
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"sponsor": "Okusi Associates",
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