Compania Minera Casale provides update on Cerro Casale project SANTIAGO, Chile, April 6 /PRNewswire-FirstCall/ -- Compania Minera Casale ("CMC"), a Chilean mining company indirectly owned 51% by Placer Dome Inc. ("Placer Dome"), 24% by Bema Gold Corporation ("Bema") and 25% by Arizona Star Resource Corp. ("Arizona Star") has received the results of updating the capital and operating costs for the feasibility study originally prepared in January 2000. Placer Dome Technical Services completed the update. The update indicates an increase in project capital from $1.43 billion to $1.65 billion. The project capital estimate in the update of the feasibility study includes a contingency of $150 million. Site operating costs increasedmarginally from $4.70 to $4.90 per tonne milled. Assuming a copper price of $0.95 per pound, Cerro Casale's cash costs are projected at approximately $115 per ounce (net of copper credits) and total costs including amortization and depreciation of capital are projected at approximately $225 per ounce. Technical aspects of the January 2000 feasibility study were not updated so they remain unchanged from the original study that outlined estimated measured and indicated mineral resources of approximately 25.4 million ounces of gold and 6.4 billion pounds of copper(1) and contemplated a large-scale open pit gold and copper mine that could produce approximately 975,000 ounces of gold and 130,000 tonnes of copper per year over an 18-year mine life. Opportunities to optimize technical aspects of the project were identified during the update and these will be evaluated over the coming months. It is expected that the joint venture will meet shortly to approve a budget to carry out these activities. Based on positive discussions with potential lenders, CMC is continuing to evaluate a range of financing options to identify terms and conditions that would produce an acceptable financing structure and enable a decision on project development. In parallel,this work includes advancing discussions on key commercial contracts and long-term marketing off-take arrangements. Bema, Arizona Star, Placer Dome and certain of their affiliates have agreed to a deferral of Placer Dome's quarterly obligation to deliver a certificate respecting the financeability of Cerro Casale to on or before June 30, 2004. Once Placer Dome determines that the project is financeable on the terms contemplated by the Shareholders Agreement, Placer Dome is required to arrange $1.3 billion in financing, including contributing $200 million in equity on behalf of all shareholders, and provide a pre-completion guarantee for an amount not greater than $1.1 billion in senior loans. The senior loans are required to be an amount that is not less than 50% of the initial project capital requirements. Any capital requirements exceeding $1.3 billion of the financing provided or arranged by Placer Dome are funded pro-rata by the joint venture participants. William Hayes, President of CMC commented, "Cerro Casale is one of the largest undeveloped gold projects in the world and the joint venture participants continue to work to put together commercial arrangements that allow this project to move forward. In the current market environment I remain confident we can achieve that objective." ---------------------------------- (1) Cerro Casale Mineral Resource Estimate (100% basis). Gold mineral resources consist of approximately 4.9 million ounces measured and 20.5 million ounces indicated. Copper mineral resources consist of approximately 1.1 billion pounds measured and 5.2 billion pounds indicated. The gold and copper estimates are expressed at 0.4 grams per tonne cut-off. The qualified person for the existing Cerro Casale mineral resource estimate is Marc Jutras, Placer Dome Senior Geostatistician For further information please contact: Placer Dome Bema and Arizona Star Investor Relations Investor Relations Greg Martin (604) 661-3795 (604) 681-8371 Media Relations - North America Meghan Brown, (604) 661-1577 Media Relations - South America Felipe Ruiz 56-2-370-5502 Further information on the companies can be obtained at http://www.placerdome.com/ or http://www.bema.com/. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward- looking statements may be identified by such terms as "believes", "expects", "intends", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws. DATASOURCE: Placer Dome Inc. CONTACT: Placer Dome, Investor Relations, Greg Martin, (604) 661-3795; Media Relations - North America, Meghan Brown, (604) 661-1577; Media Relations - South America, Felipe Ruiz 56-2-370-5502; Bema and Arizona Star, Investor Relations, (604) 681-8371; Further information on the companies can be obtained at http://www.placerdome.com/ or http://www.bema.com/.

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