Nine U.S. mines in RTZ-BP deal

The U.S. interests to be acquired in the proposed $4.32 billion(US) asset purchase by RTZ are as follows:

* Bingham Canyon — Utah (BP held 100% interest). A $400-million modernization program was completed in September and the mine is expected to produce annually in excess of 190,000 tonnes of copper, 350,000 oz of gold, 2.5 million oz of silver and eight million lb of molybdenum over the next five years of its estimated remaining 25-year life.

* Rawhide — Nevada (BP 100% interest, to be reduced to 51% at the start of production during the first quarter of 1989). This gold and silver orebody is amenable to open- pit mining and heap leach processing. BP’s share of annual production will average 40,000 oz of gold and 180,000 oz of silver in the early years of the mine’s life.

* Barney’s Canyon — Utah (BP 100% interest), is a gold deposit, four miles north of Bingham Canyon. Production is due to begin in 1989 with an expected mine life of seven years, and average annual production of 79,000 oz.

* Ridgeway — South Carolina (BP 52% interest) is a new open pit gold mine and milling facility expected to go into production early this year. BP Minerals’ share of annual production should average 70,000 oz of gold and 42,000 oz of silver over the 11-year life of the mine.

* Alligator Ridge — Nevada (BP 50% interest). Production has averaged 60,000 oz of gold and 15,000 oz of silver a year since 1980. Mining of the orebody ceased in 1987. A new carbon-in-leach plant, commissioned in 1987, will give BP Minerals 22,000 oz of gold a year over the next five years.

* Cortez — Nevada (BP 28.6% interest) is a joint venture open pit gold mine. Reserves of oxidized ore treatable in existing facilities are expected to be depleted during 1989. New facilities are being installed to process remaining unoxidized reserves, thereby extending operations for a further five years. BP Minerals’ share of this extended gold production will average 17,000 oz a year.

* Star Pointer — Nevada (BP 7% interest). BP holds a 7% net smelter royalty return interest in the open pit gold mine.

* Green’s Creek — Alaska (BP 53.1% interest) is an underground polymetallic mine and concentrator scheduled to begin operations by the first quarter of this year. BP Minerals’ share of expected annual production will average 3.2 million oz of silver, 19,000 oz of gold, 11,500 tonnes of zinc and 4,250 tonnes of lead, all in concentrate.

* Troy Mine — Montana (BP 25% interest). BP Minerals has a 25% royalty interest in this silver-copper property in northwestern Montana, where their share of annual production since 1982 has averaged over one million oz of silver and 4,000 tonnes of copper.

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