BREAKING NEW GROUND BEAUCHASTEL

Current reserves (including a 15% dilution factor) stand at 202,348 tons of proven ore grading 0.23 oz gold per ton, and almost 1.3 million tons in the probable category averaging 0.15 oz. In addition, possible and inferred reserves are estimated to be about 1.7 million tons grading 0.17 oz.

While the above results have been gathered from the Main zone, Brewster says good exploration potential exists on the North zone, located 1,400 ft to the north. A 3-compartment shaft on the property, which is to be sunk to an initial depth of 1,350 ft, will allow development of the Main zone below the decline levels and provide access for exploration of the North zone. The decline ramp will reach a vertical depth of 570 ft, with a haulageway to reach to the 600-ft level.

Budgeted capital cost of the mine is $22 million. (At the time of the interview, Augmitto had raised $18 million and was about to make a $6- million offering to cover the balance.) The projected cash operating cost is $57.25 per ton. Helping to pay the pre-production costs is a $10-million gold loan arranged through Rothschild Australia. Augmitto has agreed to sell forward most of its projected 1989 gold production; more than 21,000 oz have been sold forward at an average price of $550(c) per oz and 11,000 oz at $440(us).

To process its ore, Augmitto bought the mothballed Langmuir mill for $1.6 million. Dismantled and re-erected at the Beauchastel property, the mill has been newly outfitted with a number of equipment items. A standard cyanide dissolution process will be used, with gold recovery by way of a carbon- in-pulp circuit. A production rate of 1,000 tons per day is planned. Beauchastel Fact Sheet Location: ……… 7 km southwest of Rouyn/Noranda, Que. Major owners: ……… Augmitto Explorations Operator: ……… Augmitto Reserves and category: ……… 1.5 million proven and probable tons grading 0.165 oz gold per ton and 1.7 million possible tons grading 0.166 oz per ton. Both figures include 15% dilution. Metal to be produced: ……… Gold Discovery date: ……… 1936 Production decision: ……… January, 1988 Start-up date: ……… April, 1989 (commercial production) Budgeted capital costs: ……… $22 million Actual capital costs: ……… N/A Cash operating costs: ……… $57.25 per ton milled (projected) Means of access: ……… 3-compartment shaft to 1,000 ft and four compartments from 1,000 to 1,375 ft. Ramp access to depth of 600 ft. Extent of horizontal workings: ……… Shaft-sinking in progress at presstime. Several levels opened up and stopes being developed. Mining method: ……… Shrinkage stoping Mining equipment: ……… Initially, trackless using 13-ton haulage trucks and 2- and 2 1/2 cu-yd LHDs. On lower levels served by shaft battery locos and Granby cars. Production rate: ……… 1,000 tons per day. Pre-production stoping proceeding at 400-ton-per-day rate. Milling: ……… 3-stage crushing, followed by ball mill, cyanide leaching, carbon-in-pulp recovery. Mill on-site Major contractors: ……… Mining Corp. (shaft sinking), Brewbac (underground development), Tallson Construction (mill civil construction) Current status: ……… Pre-production

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