March 3, 2000
(Mines and Energy)

Minister pleased with new mining development

Mines and Energy Minister Paul Dicks welcomed today�s announcement by Major General Resources Limited that it has completed its sale of the Hammerdown deposit to Abiting Inc., a Quebec company which plans to proceed with the development of this centrally located mine.

"This will be the province�s second gold mine," said Mr. Dicks. "It is exceptionally good news for Newfoundland and Labrador, particularly the people of the central area in terms of direct employment and spin off jobs."

The minister said the new mining development will make a new contribution to the provincial economy. He added that it demonstrates the very positive and exceptionally good results that can flow from an aggressive mineral exploration program.

The Hammerdown Gold Project is located in the Springdale-King�s Point region of the province, an area with a rich mining history and experienced mining people. Development is expected within 12 months.

Government contributed $100,000 to the Hammerdown project and the money was used for the detailed drilling necessary to make a production decision. Some 47 holes have been drilled totaling 4,426 metres to determine the continuity of the deposit. To date, drilling indicated reserves of 614,000 tons at 18 grams/gold/tonne (356,000 ounces) have been identified by Major General Resources in two separate mineralized zones.

Minister Dicks will be in Toronto next week to meet with the companies involved in the Hammerdown Gold Project. "The purpose of this meeting is to discuss development plans and obtain more details as they relate to employment and other matters."

The minister said he hopes to be in a position to announce further details following his meeting with company officials.

The project will need to be assessed under the province�s Environmental Assessment Act prior to development. The minister said he is confident that the Hammerdown project will be given very careful treatment in the planning and environmental permitting processes.

Media contact: Gary Callahan (709) 729-4890.

2000 03 03                                             10:05 a.m.