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May 25, 1999
(Mines and Energy)


The following statement was issued today by Roger Grimes, Minister of Mines and Energy. It was also read in the House of Assembly:

Deer Cove talc/gold deposit

In March of this year, the Department of Mines and Energy issued a call for proposals under the Mineral Act respecting the mineral rights to 250 hectares at Deer Cove near the town of Ming's Bight on the Baie Verte Peninsula. The 250 hectares covered a previously discovered deposit of talc, as well as a small gold deposit. The call for proposals was advertised internationally with a deadline of May 15, 1999 for the receipt of proposals.

Today I am pleased to announce that I have accepted a proposal from WMC International Ltd. for the further exploration and evaluation of the talc and gold deposits at Deer Cove. WMC International Limited is a Canadian subsidiary of the Australian-based corporation WMC Limited, one of the world's largest resource companies and a significant producer of both gold and talc. It is also the world's third largest nickel producer and has major interests in copper, aluminum, uranium, silver and fertilizer with total assets valued at $9 billion (Australian) in 1998.

WMC has proposed a multi-phased approach to evaluating the mineral deposits at Deer Cove with an initial focus on the talc potential of this property. This will result in the expenditure of approximately $300,000 and will lead to test mining and a prefeasibility study for the project. The initial work will begin this summer, and if successful will move to the next phase.

WMC currently owns 50 per cent of Europe's second largest talc producer, Mondo Minerals Oy, and also operates a major talc mine in Australia. I am confident that WMC has the technical and marketing expertise to properly evaluate the true potential of the talc resources at Deer Cove as well as the small gold deposit located adjacent to the talc deposit.

It gives me great pleasure to announce the awarding of the mineral rights at Deer Cove to WMC International and to welcome WMC, one of the world's largest mineral and metal producers, to its first project in Newfoundland and Labrador. I wish WMC every success in this project, which, if successful, could lead to another important mining development for our province.

1999 05 25     2:30 p.m.


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