Euro-Nevada enters RI

Euro-Nevada enters RI

TORONTO (Reuter): Euro-Nevada Mining Corp. Inc. said it
acquired an interest in the Mt. Muro project in Indonesia for
US$18.5 million.

It said the interest, held by a major resource company, is in
the form of a deferred purchase payment based on a sliding scale
percentage of net smelter returns of production.

Euro-Nevada said the operator of the 480-square km project
located in Kalimantan is 90 percent owned and controlled by a
subsidiary of Aurora Gold Ltd. of Australia.

Aurora's latest quarterly report to June 30, 1995 showed
production for the first six months was 55,000 ounces of gold and
1.56 million ounces of silver, Euro-Nevada said.

It said the payment rate is graduated from a three percent net
smelter return (NSR) at a gold price of US$325 per ounce to a
seven percent NSR at US$410 per ounce or more. At the current
gold price of US$383, the applicable rate is six percent NSR.

It said the rate is effective on the first 1.5 million ounces
of gold and all silver produced by the operator.

Mt. Muro proven mineral ore reserves at Dec. 31, 1994 were
reported by the operator to be in excess of 1.0 million ounces of
gold and 23.6 million ounces of silver, it said.