Bre-X Minerals set to cash in on RI gold find

Bre-X Minerals set to cash in on RI gold find

HONG KONG (Reuter): Canada's Bre-X Minerals Ltd may become one
of the world's largest gold companies after the discovery of the
Busang gold deposit in Indonesia, the firm's exploration manager
Michael T. Guzman said.

Guzman, speaking at an Asian Gold Congress in Hong Kong
Tuesday, said the find in East Kalimantan on Borneo island could
also push Indonesia into the ranks of the world's top five gold
producers.

As of July this year, data gathered by the company showed
Busang contained total gold resources of 46.92 million ounces, or
29.4 percent of Indonesia's total resources, making it the second
largest gold deposit in the country, Guzman said, adding that the
company's evaluations are still underway.

Bre-X Minerals aimed to start open pit mining at Busang in the
fourth quarter of the year 2000 with an annual gold production
capacity of two million ounces, Guzman said.

Preliminary data indicated up to US$1 billion of
capitalization was needed to get the mine into production, he
told the conference.

Bre-X owns majority interests at three contiguous Contract of
Work (government allocated mining right) areas in East
Kalimantan, with minority stakes held by Indonesian joint venture
partners, he said.

The Busang mine is located in rugged mountainous terrain, 160
km (99 miles) northwest of Samarinda, the capital of East
Kalimantan.

"Regular access to the area is by boat through the Mahakam
River to Long Tesak village and onward along a gravel surfaced
road 33 km (20 miles) to the site base camp," Guzman said.

Indonesia's largest gold mine is Grasberg, in the eastern
province of Irian Jaya, which is owned by U.S. Freeport-McMoRan
Copper & Gold Inc, with 82.3 million ounces, or 51.8 percent of
the country's gold resources.