Log In

 
Company : Business Wire 
Monday, May 27, 2002 11:00AM IST (5:30AM GMT)
 
(BW)(PLACER-DOME)(PDG)(PDG.AX)(PDG.TO)
Placer Dome Proposes to Acquire AurionGold for A$4.51 Per AurionGold Share in All Stock Transaction
Strategic Acquisition of One of Australia's Leading Gold Producers Will Add 1 Million Ounces of Annual Production and Unique Exploration Portfolio in Australia's Gold-Rich Kalgoorlie Region
 
Sydney, Australia & Vancouver, Canada

Transaction Will Consolidate Existing JV Interests in Granny Smith and Porgera Mines

Placer Dome (TSX: PDG, NYSE: PDG, ASX: PDG) announced Sunday a proposal to acquire all of the outstanding shares of AurionGold Limited ("AurionGold") (ASX: AOR), one of Australia's leading gold producers and joint venture partner with certain of Placer Dome's Australian subsidiaries in two key existing gold mining operations.

THE OFFER

Placer Dome Asia Pacific Limited, a wholly owned subsidiary of Placer Dome, will offer AurionGold shareholders 17.5 Placer Dome shares per 100 AurionGold shares ("the Offer"). Based on the closing price of Placer Dome shares on the New York Stock Exchange ("NYSE") on 24 May 2002, the Offer implies a price of A$4.51 per AurionGold share. The Offer represents a premium of 30% to AurionGold's closing share price on the Australian Stock Exchange ("ASX") on 24 May 2002, the last trading day prior to announcement of Placer Dome's Offer. The Offer also represents a premium of 29% to AurionGold's one month weighted average share price on ASX to 24 May 2002. Placer Dome's Offer implies a value of approximately A$2.0 billion for AurionGold.

PRE-ACCEPTANCE AGREEMENT

Harmony Gold Mining Company Limited ("Harmony") has endorsed the terms of the Offer by entering into a pre-acceptance agreement with Placer Dome whereby Harmony has agreed to accept Placer Dome's Offer for all of its 9.8% interest in AurionGold (subject to certain conditions). A copy of a press release by Harmony is included as Attachment A.

A LEADING GLOBAL GOLD COMPANY

The merged group will be one of the leading global gold companies on various measures with a world-class diversified portfolio of high quality, long life, and low cost operations. The merged group will have:

-- Interests in 17 operating mines on 4 continents, and significant land positions in world class gold mining regions within Western Australia (including the Kalgoorlie and Laverton regions), Nevada, Ontario and Witwatersrand;

-- Production of 3.8 million ounces (pro forma based on year end 31 December 2001), making Placer Dome the 5th largest producer globally. Production of over 1.2 million ounces per annum (pro forma based on year end 31 December 2001) in Australia making Placer Dome the 2nd largest producer in the country;

-- Cash costs of US$175 per ounce (pro forma based on year end 31 December 2001) making Placer Dome one of the lowest cost gold producers globally;

-- A diversified portfolio with global coverage; and

-- Contained gold mineral reserves and mineral resources base of the merged group (as of December 31, 2001) would comprise:

(Contained                          Measured and         Inferred
millions of Indicated Mineral Mineral
ounces) Proven and Probable Resources Resources
Mineral Reserves (inclusive of
reserves)(1)
Placer Dome 44.5 127.6 20.6
AurionGold 6.1 16.2 5.7
Total 50.6 143.8 26.3
(1) Note: In order to compare AurionGold's and Placer Dome's measured and indicated mineral resources, Placer Dome's mineral reserves have been added to their measured and indicated mineral resources in order to be consistent with AurionGold's disclosure which includes proved and probable ore reserves within measured and indicated mineral resources. Please refer to Attachment C which contains an important note to interpretation of mineral reserve and mineral resource information due to the differences in the way in which each of AurionGold's and Placer Dome's mineral reserves and mineral resources are reported.

REASONS TO ACCEPT

The Placer Dome Board of Directors, which has unanimously approved the transaction, believes that the Offer is a compelling opportunity for AurionGold shareholders given:

-- The attractive premium to AurionGold's pre-announcement share price which the implied value represents;

-- The endorsement of the Offer terms by Harmony, one of AurionGold's major shareholders;

-- The strong strategic rationale for the acquisition of AurionGold by Placer Dome, with the companies already joint venture partners at two of AurionGold's major assets, operated by Placer Dome. AurionGold shareholders also have the opportunity to share in the resulting synergies which Placer Dome expects to realise over time of at least US$25 million in annual post tax synergies resulting from the combination of Placer Dome's and AurionGold's business activities; and

-- AurionGold's shareholders will participate in a larger, more liquid company better placed to compete in the global gold industry.

Jay Taylor, President and Chief Executive Officer of Placer Dome, said: "Placer Dome's acquisition of AurionGold is a compelling strategic transaction offering significant value and upside to the shareholders of both companies. Our Offer provides a substantial premium to AurionGold shareholders in Placer Dome's highly liquid and widely held stock and ownership in one of the world's largest and most successful gold companies with a large resource and reserve base and one of the lowest cost structures in the industry. AurionGold's shareholders will benefit from Placer Dome's operational expertise and share in the exciting upside of the merged group."

Jay Taylor added, "The acquisition of AurionGold is consistent with Placer Dome's operationally focused strategy of owning and efficiently managing world class gold assets, and simplifies and streamlines our ownership of existing assets in the region. AurionGold's asset base and exploration projects in the gold-rich Eastern Goldfields region fit well within Placer Dome's global gold mining portfolio. We believe that the enlarged Placer Dome will realise significant synergies in the areas of operation, administration, exploration and financing and will benefit from consolidation of our existing interests in the Granny Smith and Porgera mining projects."

"Placer Dome has a long and successful history of operating in the Australian mining industry and has been a significant explorer and producer in this region for 70 years. The addition of the AurionGold assets - which we know well - increases our presence and commitment to the region. The acquisition will provide AurionGold shareholders with the opportunity to participate in a leading global gold group while at the same time maintaining their interest in a number of key Australian gold operations," said Jay Taylor.

OFFER CONDITIONS

The Offer will be subject to conditions, including Placer Dome Asia Pacific Limited acquiring at least 50.1% of the outstanding AurionGold shares and the Offer receiving Australian Foreign Investment Review Board approval. The conditions are summarised in Attachment B. The Offer will not require compliance with the U.S. tender offer rules or registration requirements.

OFFER TIMINGS

An offer document ("Bidder's Statement"), which outlines the Offer in detail, will be lodged with the Australian Securities and Investments Commission and served on AurionGold today. Placer Dome intends to dispatch the Bidder's Statement to AurionGold's shareholders in approximately two weeks time and the Offer will subsequently remain open for a minimum of a month.

ABOUT PLACER DOME

Placer Dome is North America's third largest gold mining company by market capitalisation and is one of the largest gold miners in the world in terms of annual production. Placer Dome's share of gold production from its operations for 2001 was approximately 2.8 million ounces at a cash cost of US$177 per ounce.

Placer Dome is listed on the NYSE, Toronto Stock Exchange, ASX, Euronext Paris, Swiss Exchange and International Depository Receipts representing its common shares are listed on the Euronext Brussels. As at 24 May 2002, Placer Dome had 330 million shares on issue and a closing price of US$14.27 per share on the NYSE at that date gave the company a market capitalisation of US$4.7 billion.

As at 31 December 2001, Placer Dome had total assets of approximately US$2.7 billion and cashflow from operations for 2001 of approximately US$364 million.

Placer Dome management believes this transaction will be accretive for Placer Dome on a net asset value per share and cashflow per share basis.

ABOUT AURIONGOLD

AurionGold is a public company listed on the ASX incorporating the operations of Delta Gold Limited and Goldfields Limited following their 2001 merger. AurionGold is one of Australia's leading gold producers with major operations in Australia and Papua New Guinea. Based on the pro forma consolidated information for Delta Gold Limited and Goldfields Limited contained in the merger documentation, AurionGold's annual gold production for the year ending 31 December 2001 was approximately one million ounces.

AurionGold's three major operating assets are its 100% owned Kanowna Belle gold mine in Western Australia, its 40% interest in the Granny Smith gold mine in Western Australia and its 25% interest in the Porgera gold mine in Papua New Guinea. Placer Dome holds a 60% interest in, and is operator of, the Granny Smith mine. Placer Dome holds a 50% interest in, and is operator of, the Porgera mine.

INVESTOR CONFERENCE CALLS

There will be an investor conference call on Monday, May 27th at 10:30 AM AEST (Sunday, May 26th at 8:30 PM EDT; 5:30 PM PDT) for the Australian market. Due to the Memorial Day Holiday in the United States, Placer Dome will be hosting an additional conference call on Tuesday, May 28th at 9:30 AM EDT time, 6:30 AM PDT (11:30 PM AEST).

To participate in the Australian conference call:

In Australia: 1 800 00 96 96
International (for USA, Canada, NZ, South Africa, Singapore, HK,
Japan, South Korea, UK, excluding Irish Republic): 1 800 4200 0000
International (All other countries): + 61 3 9221 9755
Emergency help line: + 61 3 9221 9755

To participate the North American conference call:

In North America: 1 888 694 4768
International: + 1 973 321 1030

Placer Dome's investor conference calls will be simultaneously webcast over the Internet through Placer Dome's website, www.placerdome.com. To listen to the webcast, please log on to the website prior to the scheduled call time to register and download any necessary audio software.

AURIONGOLD SHAREHOLDER INFORMATION LINE:

In Australia: 1 800 222 212
International: + 61 2 9353 2055

This press release does not constitute an offer to sell or a solicitation of an offer to purchase any of the Placer Dome securities described herein, which offer or solicitation shall be made only pursuant to the Bidder's Statement and the accompanying Offer contained therein. The offer of Placer Dome securities described herein will be made within the United States pursuant to applicable exemptions from the registration requirements of the United States securities laws.

Placer Dome has applied to securities regulatory authorities in Canada for orders exempting this offer from certain of the disclosure and other take-over bid requirements of the applicable securities laws in Canada. Until these exemptive orders have been obtained, no acceptance of AurionGold shares from persons who at the Offer date have registered addresses in Canada as shown in AurionGold's register of members or who are in Canada will be made or solicited by or on
behalf of Placer Dome.

"Placer Dome" is used in this news release to collectively mean Placer Dome Inc., its subsidiary companies and its proportionate share of joint ventures.

Attachment A: HARMONY PRESS RELEASE

27 May 2002 - Harmony is pleased to announce that it has entered into a pre-acceptance agreement with Placer Dome whereby it has agreed to accept Placer Dome's offer for all of its interest in AurionGold (subject to certain conditions). Harmony holds 43,350,992 shares (a 9.8% interest) in AurionGold.

Bernard Swanepoel, Chief Executive of Harmony, said:

"Harmony has long been a supporter and active participant in the consolidation and rationalisation of the global gold industry. Placer Dome is by far the logical owner of AurionGold, hence this transaction represents another step towards achieving this goal. From Harmony's perspective, the terms of the offer are attractive and we look forward to becoming a Placer Dome shareholder."

CONTACT:

Bernard Swanepoel
+27(0)83-303-9922

Ferdi Dippenaar
+27(0)82-807-3684

Ted Grobicki
+27(0)83-375-4345

Issued by Harmony Gold Mining Company Limited

Contact:

Corne Bobbert
Tel +27 11 684 0146
Mobile +27(0)83-380-6614
e-mail: cbobbert@harmony.co.za
Web Site: www.harmony.co.za

DISCLAIMER

This presentation includes certain information that is based on management's reasonable expectations and assumptions. These "forward-looking statements" include, but are not limited to, statements regarding estimates, intentions and beliefs, as well as anticipated future production, mine life, market conditions and costs. While management has prepared this information using the best of their experience and judgment, and in all good faith, there are risks and uncertainties involved which could cause results to differ from projections.

Cautionary Note to US Investors - The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically ad legally extract or produce. We use certain terms in this quarterly review, such as "resources", that the SEC guidelines strictly prohibit us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our public filings with the SEC available from us at Harmony Gold Mining Company Limited, P.O. Box 2, Randfontein, 1760, South Africa, Attention: Mr. Ferdi Dippenaar. You can also obtain these filings from the SEC by calling 1-800-SEC-0330.

Attachment B: Conditions of the Offer

The Offer is subject to conditions including, the following:

-- during the Offer Period, the Bidder becomes entitled to not less than 50.1% of all AurionGold Shares;

-- the Treasurer of the Commonwealth of Australia does not object to the acquisition of AurionGold Shares contemplated by the Offer;

-- no specified event occurs that will or is reasonably likely to have a material adverse effect on AurionGold and its subsidiaries;

-- AurionGold does not dispose of or surrender any interest in any operating mines, mining tenements, material exploration licences or projects, deposits or processing plants located at or around the Porgera, Henty, Kundana, Kanowna Belle, Granny Smith and Paddington mines;

-- issuance of Placer Dome Shares pursuant to the terms of the Offer has been approved by the TSX and that such shares have received listing approval from each of the TSX and the NYSE;

-- the expiration or termination of the waiting periods with respect to any government or regulatory filings (including the U.S. Hart-Scott-Rodino Anti-Trust Improvements Act of 1976) and no action by governmental or regulatory authorities to restrain the Offer; and

-- no prescribed occurrences, within the meaning of the Australian Corporations Act, occur during the Bid Period

As described above Placer Dome's Offer is conditional on Placer Dome acquiring at least 50.1% of AurionGold's Shares. Despite this condition, the clear objective of Placer Dome's Offer is to acquire 100% of AurionGold's Shares.

Attachment C

IMPORTANT NOTE TO INTERPRETATION OF MINERAL RESERVE AND MINERAL RESOURCE INFORMATION

Placer Dome's disclosure of mineral reserve and mineral resource information is governed by Canadian law. In particular, Placer Dome reports its mineral reserve and mineral resource information according to the disclosure standards set out in National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101") which requires the use of Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions for certain terms and the TSX's "Disclosure Standards for Companies Engaged in Mineral Exploration, Development and Production" ("TSX Standards").

AurionGold's disclosure of ore reserve and mineral resource information is governed by Australian law. In particular, AurionGold's published tables of Summary Gold Resources and Summary Gold Reserves indicate that they are based on the reporting requirements of the Australasian Code for Reporting of Mineral Resources and Ore Reserves ("JORC Code").

CIM definitions of the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" (which are reproduced in notes 2 and 4 to the following tables) are substantially similar to the JORC Code corresponding definitions of the terms "ore reserve", "proved ore reserve", "probable ore reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource", respectively.

Under NI 43-101, an issuer must not add inferred mineral resources to the other categories of mineral resources in its disclosures. Due to this restriction, Placer Dome's "Inferred Mineral Resources" appear in a separate column and are not added to Placer Dome's measured and indicated mineral resources. However, this prohibition does not apply under the JORC Code and AurionGold adds its inferred mineral resources to its other categories of mineral resources. Therefore, care should be taken when comparing Placer Dome's mineral resources with AurionGold's total mineral resources.

Placer Dome's estimates of measured and indicated mineral resources do not include mineral reserves (CIM Definition). In contrast, AurionGold's estimates of measured and indicated mineral
resources as set out in AurionGold's Summary Gold Resources and Summary Gold Reserves published tables do include that portion of the mineral resources which has been converted into ore reserves (JORC Definition). Because of the way in which AurionGold's mineral resources are presented it cannot be assumed that AurionGold's mineral resources (not including ore reserves) can be determined by deducting its stated ore reserves from its stated mineral resources (which
incorporate its ore reserves). Therefore, care should be taken in comparing Placer Dome's measured and indicated mineral resources with AurionGold's measured and indicated mineral resources.

Under the TSX Standards, Placer Dome is not permitted to aggregate contained minerals from properties that are not in production with those that are in production. Therefore, Placer Dome reports its contained minerals at producing properties in a separate table to its contained minerals at its other properties. AurionGold is not subject to this requirement, and aggregates contained minerals from non-producing properties with properties in production. Therefore, care should be taken in comparing Placer Dome's contained minerals from its operating mines and other properties with AurionGold's contained minerals from all its properties.

Mineral Reserves(1)(2)

The following table sets out Placer Dome's share as at 31 December
2001 of proven and probable(2) mineral reserves.


MINE BY METAL PROVEN MINERAL PROBABLE MINERAL
RESERVES RESERVES
Tonnes Grade Contained Tonnes Grade Contained
oz oz
(000's) (g/t) (000's) (000's) (g/t) (000's)

GOLD
Canada
------
Campbell 931 17.6 526 1,010 15.9 517
Dome(7) 11,179 1.1 381 14,417 2.0 940
Musselwhite 6,954 5.7 1,281 1,820 4.8 280

United States
-------------
Bald Mountain 8,737 1.0 272 - - -
Cortez(5)(6) 44,690 1.7 2,397 59,350 1.4 2,596
Golden Sunlight 3,635 2.0 231 24 2.7 2

Australia
---------
Granny Smith(5) 3,607 1.2 137 13,669 3.2 1,390
Osborne 6,889 1.0 225 2,244 0.9 68

Papua New Guinea
----------------
Misima 9,379 0.9 262 - - -
Porgera (5) 24,059 3.4 2,652 5,172 3.9 643

South Africa
------------
South Deep(5) 6,968 8.2 1,838 100,165 8.4 27,018

Chile
-----
La Coipa 17,166 1.1 627 3,714 1.4 171

10,829 33,625

SILVER
La Coipa 17,166 57.4 31,705 3,714 53.8 6,422
Misima 9,379 9.8 2,967 - - -

34,672 6,422


Tonnes Grade Contained Tonnes Grade Contained
COPPER (000's) (%) lbs (000's) (%) lbs
(millions) (millions)

Zaldivar(5) 181,892 0.686 2,751 408,954 0.626 5,642
Osborne 6,889 2.659 404 2,244 3.094 153

3,155 5,795


TOTAL

Tonnes Grade Contained Recovery
oz
(000's) (g/t) (000's) (%)(1)

GOLD
Canada
------
Campbell 1,941 16.7 1,043 94.5
Dome(7) 25,596 1.6 1,321 91.8
Musselwhite 8,774 5.6 1,561 95.0

United States
-------------
Bald Mountain 8,737 1.0 272 70.0
Cortez(5)(6) 104,040 1.5 4,993 80.5
Golden Sunlight 3,659 2.0 233 80.0

Australia
---------
Granny Smith(5) 17,276 2.7 1,527 88.0
Osborne 9,133 1.0 293 77.5

Papua New Guinea
----------------
Misima 9,379 0.9 262 88.8
Porgera(5) 29,231 3.5 3,295 76.0

South Africa
------------
South Deep(5) 107,133 8.4 28,856 97.5

Chile
-----
La Coipa 20,880 1.2 798 78.3

44,454


SILVER
La Coipa 20,880 56.8 38,127 59.5
Misima 9,379 9.8 2,967 38.0

41,094

Tonnes Grade Contained Recovery
COPPER (000's) (%) lbs (%)(1)
(millions)

Zaldivar(5) 590,846 0.644 8,393 70.0
Osborne 9,133 2.766 557 94.2

8,950

Rounding differences may occur.

Mineral Resources(3)(4) (in addition to mineral reserves) - Properties in Production(4)

The following table sets out Placer Dome's share as at 31 December 2001 of measured, indicated and inferred(4) mineral resources (in addition to mineral reserves)(2)

 MINE BY                  MEASURED                  INDICATED
METAL MINERAL RESOURCES MINERAL RESOURCES
---------- ------------------- -------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (g/t) oz. (000's) (g/t) oz.
(000's) (000's)
-------- ------- --------- ------- ------ ---------
GOLD

Canada
------
Campbell 1,055 22.3 757 1,259 10.1 408
Dome(7) 4,635 6.1 915 18,325 2.1 1,210
Musselwhite 1,713 7.6 420 374 11.9 143

United States
-------------
Bald Mountain 41,576 1.6 2,093 - - -
Cortez (5) (6) 15,999 1.6 804 25,678 1.2 1,030
Golden Sunlight 23,892 1.7 1,336 4,912 1.5 243
Getchell (8) 5,966 17.9 3,426 6,236 17.2 3,456

Australia
---------
Granny Smith (5) - - - 16,216 2.5 1,278
Osborne 2,115 1.0 71 - - -

Papua New Guinea
----------------
Misima 2,992 0.7 63 - - -
Porgera (5) 21,079 2.5 1,725 14,344 2.0 909

South Africa
------------
South Deep (5) 2,517 9.0 729 66,819 9.0 19,279

Latin America
-------------
La Coipa 4,952 1.1 179 3,250 1.3 136
------ ------
12,518 28,092
====== ======
SILVER

La Coipa 4,952 45.4 7,227 3,250 28.6 2,988
Misima 2,992 7.0 673 - -
------ ------
7,900 2,988
====== ======

MINE BY TOTAL MEASURED INFERRED MINERAL
METAL AND INDICATED RESOURCES
--------- ---------------- ------------------
Tonnes Grade Contained Tonnes Grade Contained
(000's) (g/t) oz. (000's) (g/t) oz.
(000's) (000's)
-------- ------- ---------- ------- ------ --------
GOLD

Canada
------
Campbell 2,314 15.7 1,165 5,239 9.80 1,651
Dome(7) 22,960 2.9 2,125 5,650 2.30 418
Musselwhite 2,087 8.4 563 984 5.20 164

United States
-------------
Bald Mountain 41,576 1.6 2,093 - - -
Cortez (5) (6) 41,677 1.4 1,834 6,691 1.00 212
Golden Sunlight 28,804 1.7 1,579 6,226 1.10 220
Getchell (8) 12,202 17.5 6,882 5,331 15.80 2,708

Australia
---------
Granny Smith (5) 16,216 2.5 1,278 16,891 3.60 1,955
Osborne 2,115 1.0 71 1,553 0.40 20

Papua New Guinea
----------------
Misima 2,992 0.7 63 - - -
Porgera (5) 35,423 2.3 2,634 3,426 2.00 220

South Africa
------------
South Deep (5) 69,336 9.0 20,008 - - -

Latin America
-------------
La Coipa 8,202 1.2 315 613 1.30 26
------ -----
40,610 7,594
====== =====
SILVER

La Coipa
Misima 8,202 38.7 10,215 613 29.6 583
2,992 7.0 673 - - -
------ ----
10,888 583
====== ====


Tonnes Grade Contained Tonnes Grade Contained
COPPER (000's) (%) lbs (000's) (%) Lbs
(millions) (millions)
------------- -------- ------ --------- ------- ------ ----------
Zaldivar (5) 45,394 0.342 342 259,969 0.340 1,949
Osborne 2,115 3.597 168 - - -
510 1,949


Tonnes Grade Contained Tonnes Grade Contained
COPPER (000's) (%) lbs (000's) (%) lbs
(millions) (millions)
------------- -------- ------ --------- ------- ------ ----------
Zaldivar (5) 305,363 0.340 2,291 66,461 0.39 571
Osborne 2,115 3.597 168 1,553 3.38 116
2,459 687
Rounding differences may occur.

Mineral Resources - Other Properties

The following table sets out Placer Dome's share as at 31 December 2001 of measured, indicated and inferred(4) mineral resources for properties other than producing properties.

OTHER             MEASURED MINERAL RESOURCES    INDICATED  MINERAL
PROPERTY BY RESOURCES

METAL Tonnes Grade Contained Tonnes Grade Contained
(000's) (g/t) oz. (000's) (g/t) Oz.
(000's) (000's)
-------------- --------- ------- --------- ------- ------ --------
GOLD
Aldebaran(9)(13) 103,400 0.75 2,493 464,500 0.7 10,454
Donlin Creek(10)(13) 21,300 3.13 2,143 48,900 3.03 4,764
Mt. Milligan(11)(13) 171,000 0.48 2,639 236,000 0.42 3,187
Pueblo Viejo(12)(13) - - - 159,500 3.28 16,820
7,275 35,225
SILVER
Pueblo Viejo(12) - - - 159,500 20.2 103,584
- 103,584

TOTAL MEASURED AND INDICATED INFERRED MINERAL
RESOURCES

Tonnes Grade Contained Tonnes Grade Contained
COPPER (000's) (%) lbs (000's) (%) Lbs
(millions) (millions)
-------------- --------- ------- --------- ------- ------ --------
Aldebaran(9) 103,400 0.25 570 464,500 0.26 2,663
Mt. Milligan(11) 171,000 0.19 716 236,000 0.17 885
1,286 3,548


Tonnes Grade Contained Tonnes Grade Contained
(000's) (g/t) oz. (000's) (g/t) oz.
(000's) (000's)
-------------- -------- ------- --------- ------- ------ --------
GOLD
Aldebaran(9)(13) 567,900 0.71 12,963 87,300 0.63 1,768
Donlin Creek(10)(13) 70,100 3.06 6,896 66,200 2.83 6,023
Mt. Milligan(11)(13) 407,000 0.45 5,888 35,000 0.38 428
Pueblo Viejo(12)(13) 159,500 3.28 16,820 51,800 2.86 4,763
42,567 12,982
SILVER
Pueblo Viejo(12) 159,500 20.2 103,584 51,800 9.9 16,487
103,584 16,487


Tonnes Grade Contained Tonnes Grade Contained
COPPER (000's) (%) lbs (000's) (%) lbs
(millions) (millions)

-------------- -------- ------- --------- ------- ------ --------
Aldebaran(9) 567,900 0.26 3,233 87,300 0.33 635
Mt. Milligan(11) 407,000 0.18 1,601 35,000 0.16 123
4,834 758
Rounding differences may occur.

Notes to the Mineral Reserves and Mineral Resources Tables:

(1) Placer Dome's mineral reserves are estimated as at 31 December 2001 using an appropriate cut-off grade associated with an average long-term gold price of US$275 per ounce, silver price of US$5.25 per ounce and copper price of US$0.90 per pound (except at La Coipa Mine where a gold price of US$265 per ounce and silver price of US$4.65 per ounce were used). The estimates incorporate the current and/or expected mine plans and cost levels at each property. Recovery is stated as a percentage of contained ounces for gold and silver and contained pounds for copper. The qualified persons responsible for mineral reserve estimates are shown under note 13. Consistent with Placer Dome's normal mineral reserve estimation practices, independent data verification has not been performed.

(2) A "mineral reserve" is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined. A "proven mineral reserve" is the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified. A "probable mineral reserve" is the economically mineable part of an indicated, and in some circumstances a measured mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. The above definitions of "mineral reserve", "proven mineral reserve" and "probable mineral reserve" conform to CIM definitions of those terms as at the effective date of estimation, as required by NI 43-101.

(3) These mineral resources are in addition to gold, silver and copper mineral reserves. The qualified persons responsible for mineral resource estimates are shown under note 13. Consistent with Placer Dome's normal mineral resource estimation practices, independent data verification has not been performed except in the case of certain exploration properties.

(4) A "mineral resource" is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. A "measured mineral resource" is that part of a mineral resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity. An "indicated mineral resource" is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit.

The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. An "inferred mineral resource" is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and samplings gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The above definitions of "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" conform to CIM definitions of those terms as at the effective date of estimation, as required by NI 43-101. Mineral resources which are not mineral reserves do not have demonstrated economic viability.

(5) Economic assumptions for selected properties in production: the cut-off grades for a particular property can vary depending on the various rock types, metallurgical processes and mining methods. Cut-off grades are therefore quoted below as a range for each property to reflect the variability of these parameters.

 MINERAL MINERAL
RESERVES RESOURCES

Cut-off grade Cut-off grade
(g/t gold, % copper) (g/t gold, % copper)
Cortez 0.27 - 2.88 g/t 0.27 - 2.88 g/t
Granny Smith 0.60 -1.04 g/t 0.60 -1.04 g/t
Porgera 1.4 - 2.75 g/t 1.0 g/t
South Deep 4.0 - 6.0 g/t 5.0 g/t
Zaldivar 0.29-0.40% 0.2%
(6) There is currently a Notice of Appeal pending with the Interior Board of Appeals regarding the South Pipeline permit. The South Pipeline deposit accounts for 59% and 5% of the reported mineral reserves and mineral resources, respectively, of the Cortez Mine.

(5) Does not take into account changes to mineral reserve and mineral resource estimates that may result from the proposed Placer Dome/Kinross Gold Corporation joint venture. On 11 April 2002 Placer Dome announced the signing of a letter of understanding with Kinross Gold to form a joint venture that will combine the two companies' respective mining operations in the Porcupine camp in Ontario.

(6) Mining operations have been suspended since July 1999 and the property is under care and maintenance. Surface stockpiled ore is being sent for processing at Newmont Mining Corporation's nearby Twin Creeks Mine.

(7) As estimated by Placer Dome as at 31 December 2000 assuming 51% indirect ownership by Placer Dome, which ownership interest is subject to certain obligations of Placer Dome under the terms of a shareholders agreement. The other indirect owners of the Aldebaran property are Bema Gold (24%) and Arizona Star (25%). In the opinion of the qualified person who prepared or supervised the preparation of the mineral resource estimate (see note 13), the estimate is relevant and reliable as at 31 December 2001 and was calculated using mineral resource categories that are substantially similar to the CIM definitions set out in note 4 above.

(8) As estimated by Placer Dome as at 31 December 2001 assuming 100% ownership by Placer Dome. In April 2001 Placer Dome granted NovaGold Resources Inc. an option to acquire a 70% interest in the Donlin Creek property. Placer Dome retains a back-in right to regain a 70% interest following earn-in by NovaGold.

(9) As estimated by Placer Dome as at 31 December 1998. In the opinion of the qualified person who prepared or supervised the preparation of the mineral resource estimate (see note 13), the estimate is relevant and reliable as at 31 December 2001 and was calculated using mineral resource categories that are substantially similar to the CIM definitions set out in note 4 above.

(10) As estimated by Placer Dome as at 31 December 2001. Placer Dome has since been awarded the exclusive rights to this project and is awaiting final approval from the Dominican Republic government to proceed.

(11) Each of the mineral reserve and mineral resource estimates shown above were prepared by or under the supervision of a "qualified person", as that term is defined in NI 43-101, and those persons are listed below. All named persons are, or were at the time the estimates were prepared employees of Placer Dome unless otherwise indicated. In estimating the applicable mineral reserves and mineral resources, such persons made assumptions, and used parameters and methods, appropriate for each particular property, and verified the data disclosed, including sampling, analytical and test data underlying such estimates.

MINERAL RESERVES

BY PROPERTY Name Title

Campbell Raymond Swanson Senior Production Geologist

Dome Stephen Taylor Long Term Planning Engineer

Musselwhite Rob Usher Chief Engineer

Bald Mountain Elias Dib Mine Engineer

Cortez Britt Buhl Chief Mine Engineer

Golden Sunlight Paul Buckley Chief Mine Engineer

Getchell - -

Granny Smith Geoff Fenton Mine Superintendent

Osborne Jeff Brown Mine Engineering Team Leader

Misima Trevor Jones Independent Consultant

Porgera John Butterworth Senior Open Pit Engineer

South Deep Pierre Fourie Independent Consultant

La Coipa Juan Ochoa Chief Engineer
Andres Guaringa Mine Engineer

Zaldivar Eduardo Jofre Chief Mining Engineer

Aldebaran N/A

Donlin Creek N/A

Mt. Milligan N/A

Pueblo Viejo N/A


MINERAL RESOURCES

BY PROPERTY Name Title

Campbell Dan Gagnon Chief Geologist

Dome Mort Shannon Chief Geologist

Musselwhite Andrew Cheatle Chief Geologist

Bald Mountain Elias Dib Mine Engineer

Cortez Britt Buhl Chief Mine Engineer

Golden Sunlight Paul Buckley Chief Mine Engineer

Getchell John Porterfield Chief Geologist

Granny Smith Malcolm Titley Senior Mine

Osborne Philip Agnew Senior Geologist

Misima Trevor Jones Independent Consultant

Porgera Anthony Burgess Senior Resource Geologist

South Deep Deon Van Der Heever Independent Consultant

La Coipa Mauricio Rubio Geologist

Zaldivar Jorge Aceituno Chief Geologist

Aldebaran Marc Jutras Senior Mining
Engineer/Geostatistician

Senior Mining
Donlin Creek Marc Jutras Engineer/Geostatistician

General Manager,
Mt. Milligan Robert Pease Exploration Projects

Pueblo Viejo Chris Keech Senior Geologist/Geostatistician


 
 
 
Submit your press release
More News from Business Wire

04/10/2018 6:50PM

Corporate Social Responsibility Related News Releases and Story Ideas for Reporters, Bloggers and Media Outlets

Following are the latest Corporate Social Responsibility news releases and story ideas available from Business Wire. These recaps, curated by Business Wire, provide reporters and bloggers around the globe instant access ...

27/09/2018 6:40PM

Corporate Social Responsibility Related News Releases and Story Ideas for Reporters, Bloggers and Media Outlets

Following are the latest Corporate Social Responsibility news releases and story ideas available from Business Wire. These recaps, curated by Business Wire, provide reporters and bloggers around the globe instant access ...

20/09/2018 6:46PM

Corporate Social Responsibility Related News Releases and Story Ideas for Reporters, Bloggers and Media Outlets

Following are the latest Corporate Social Responsibility news releases and story ideas available from Business Wire. These recaps, curated by Business Wire, provide reporters and bloggers around the globe instant access ...

Similar News

12/10/2018 7:12PM

Axis Bank Focusses on Contactless Payment Solutions and Launches Axis Tap and Pay

Axis Bank, the country’s third largest private sector bank, today introduced ‘Axis Tap & Pay’, a mobile application that will allow its customers to make transactions by just tapping their NFC-enabled android mobile ...

No Image

11/10/2018 11:05PM

Prime Trust Joins the OTCXN Network

OTCXN, a blockchain-powered capital markets infrastructure company, announced that it has signed Prime Trust to serve as a neutral, third-party custodian of assets for trading entities and exchanges that use OTCXN ...