Arc Minerals Regulatory News (ARCM)

11 Oct 2007 07:00

Templar Minerals Limited11 October 2007 For immediate release 11 October 2007 Templar Minerals Limited ("Templar Minerals" or the "Company") Templar Minerals acquired 24.8 per cent interest in River Diamonds Plc Templar is pleased to announce that it has today acquired 250,000,000 ordinaryshares in AIM-traded River Diamonds Plc ("River Diamonds") pursuant to a privateplacement conducted by River Diamonds (the "Placement Shares"). Together withTemplar's existing holding of 20 million ordinary shares in River Diamonds,Templar owns in aggregate 270 million River Diamonds ordinary sharesrepresenting 24.8 per cent. of River Diamonds' issued share capital. Templar subscribed for the Placement Shares at a price of 1.5p per RiverDiamonds ordinary share, for a total consideration of £3,750,000, which wasfinanced from the Company's existing cash balances. River Diamonds (AIM: Symbol "RVD") is an AIM traded diamond and gold explorationand development company and on the basis of the enlarged share capital of RiverDiamonds following completion of the placement, is capitalised at approximately£24.8 million. River Diamonds recently announced that it had increased its ownership from 12.5per cent. to 19 per cent. of the Emperor Gold Mine in Fiji. The Emperor Gold Mine is one of the longest continuously operating high grademines in the world with an operational history that extends over 70 years. Themine commenced production in 1936 and has produced approximately 7 million ounces of gold. The mine was placed on care and maintenance in December lastyear due to corporate problems with its previous owner's gold hedging book andnon related issues. The Directors believe that these issues no longer impact theEmperor mining operations and the expected re-commissioning of the mine laterthis year. As announced by River Diamonds on 4 October 2007, the Emperor Gold Mine had aJORC approved underground delineated gold reserve as at December 2006 of858,000 ounces within a total gold resource of 4.76 million ounces. There are anadditional 250,000 ounces of gold in mine tailings. On 4 October 2007, RiverDiamonds further announced that Vatukoula would probably re-commence oreextraction over the coming weeks resulting in a planned start-up of theprocessing plant towards year end and gold output early next calendar year. David Lenigas, Chairman of Templar Minerals and a former Manager of the EmperorGold Mine (1989-1992) said: "Emperor has the capacity to produce in excess of 100,000 ounces per year andfollowing a streamlining exercise will be far more cost efficient than thesituation that has prevailed over the past decade once it re-enters production." "Templar looks forward to participating in the management expertise and capitalfunding of Emperor as the mine and ownership progress." In the year ended 31 August 2006, River Diamonds turnover and loss beforetaxation amounted to £67,429 and £(924,783) respectively. As at the same date,River Diamonds net assets amounted to £1,138,606. The acquisition is notexpected to have a material impact on Templar's earnings in the current year. NOTES TO THE EDITOR Background on the Emperor Gold Mine. As of December 2006, the Emperor Gold Mine had a JORC approved undergrounddelineated gold reserve of 2.34million tonnes grading 11.4 g/tonne for 858,000ounces within a total resource of 16.2 million tonnes grading 9.1g/tonne for4.76 million ounces underground. There are an additional 250,000 ounces gold inmine tailings from 5.18 million tonnes grading 1.5g/tonne. These reserves havebeen calculated using a US$447 per ounce gold price. At the mine site there is a one-million tonne process facility, which includescrushing, grinding, flotation, roaster, CIP and two tailings dams. Equipment atthe mine several Toro load-haul-dump vehicles, jumbo rigs, support trucks andall the other associated equipment. Infrastructure includes a 20 Mega-watt powerstation, freehold land, and over 100 houses and buildings with appropriateamenities. Other assets in Fiji include a deep water port of entry and a tankfarm. The Emperor Gold Mine assets include four mining areas with three shaftsserviced by recently refurbished mine winders, pumps, hoists and associatedequipment necessary to operate a 140,000 ounce per year underground miningoperation. On surface there is an estimated A$6 million in stores stock, A$3million in new mining machines still in stock, five diamond drills, workshops,housing, offices, laboratories and all the associated infrastructure to operatethe mining operation. Additionally there is an extensive exploration portfolio. The Emperor Gold Mine is one of the longest continuously operating high grademines in the world with an operational history that extends over 70 years. Themine commenced production in 1936 and has produced over 7 million ounces. Qualified Person Kiran Morzaria B.Eng (ACSM), (FGS), MBA, the Finance Director of River Diamonds,has reviewed the information contained in this announcement which relates toRiver Diamonds. Kiran holds a Bachelor of Engineering (Industrial Geology) fromthe Camborne School of Mines and an MBA (Finance) from CASS Business School.Kiran is the Finance Director of River Diamonds. This information is provided by RNS The company news service from the London Stock Exchange