Prime Resources to trade in February

While Colossus will continue to be listed on the Vancouver Stock Exchange while existing warrants and options remain outstanding or unexercised, Delaware will trade under its new name, Prime Resources, which is expected to be in effect in early February.

Prime Resources can count among its assets a 40% interest in the Snip property in northwestern British Columbia, 2.43% of Corona Corp.’s Class A non-voting shares and 16.88% of its multiple voting Class B shares. The company also holds equity positions in and manages the affairs of more than of 50 junior exploration companies listed on the VSE which are expected to spend in excess of $50 million on over 70 exploration programs in the 1989 season.

The Snip project is the most advanced and is operated by Cominco Ltd. which will have earned a 60% interest in the property once it is put into production. Cominco has informed Prime that a feasibility study on the property is nearing completion and that it anticipates developing the property and producing by the fourth quarter of 1989 at an initial rate of 300 tonnes per day (subject to the issuance of necessary permits).

Capital costs have been estimated at $50-$55 million and facilities are to be readily expandable to produce at a rate of 500 tonnes per day at minimal additional capital cost if the orebody during the first year of production proves to be amenable to that rate of production.

Watts, Griffis and McOuat have reviewed for Prime ore reserves at the Snip property and have estimated ore reserves in all categories to be 2,446,000 tons averaging 0.648 oz gold per ton, after taking into account dilution of 30% and cutting of high grade assays. Exploration is continuing, and the latest reserve figures do not reflect all work completed in the last quarter of 1988.

Prime Capital Corporation, the wholly-owned subsidiary of Prime Resources, will continue to operate as the investment division of the Prime Group, while Prime Management Ltd. and Prime Explorations Ltd. will continue to provide management, consulting and exploration activities for public companies associated with the group.

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