Placer Dome announces updated mineral reserves and resources at South Deep All amounts in U.S. dollars VANCOUVER, July 29 /PRNewswire-FirstCall/ -- Placer Dome Inc. (NYSE, TSX, ASX: PDG) today announced updated mineral resource and mineral reserve estimates at the South Deep mine in South Africa. A qualified person employed by the Placer Dome Western Areas Joint Venture (PDWAJV), which is 50% owned by Placer Dome, prepared the mineral resource estimate. Steffen, Robertson and Kirsten (South Africa) (Pty) Ltd. ("SRK Consulting") were retained by the PDWAJV to review the mine's mineral reserve estimation process and a representative of SRK Consulting has acted as the Qualified Person for the updated mineral reserve estimate. At June 30, 2004, Placer Dome's share of proven and probable gold mineral reserves is estimated at 27.9 million ounces. This estimate is largely unchanged from the proven and probable gold mineral reserves reported at December 31, 2003. Placer Dome's share of measured and indicated gold mineral resources, based on a 5g/t cut-off, is estimated at 37.5 million ounces, inclusive of mineral reserves. This is a reduction of approximately 22% from measured and indicated gold mineral resources, inclusive of mineral reserves, at December 31, 2003. The updated estimates were prepared using a gold price of $325 per ounce, an exchange rate of 8.75 rand per U.S. dollar and include a cost for the South African government's proposed royalty. In completing its review, SRK Consulting has determined that additional geological modeling at South Deep is advisable, and the mineral reserve estimate has been qualified accordingly. SRK Consulting is of the view that additional geological modeling would improve the understanding of the Phase 1 mine mineral resource estimate and thus reduce the risks associated with applying this interpretation to the Phase 2 area. It would also improve the confidence in the various mining methods selected for Phase 2 and associated production schedules. Accordingly, the mine will continue work to improve the mineral resource and mineral reserve estimation to address the qualifying issues raised by SRK Consulting. This is consistent with the ongoing mineral resource estimation process of the mine and its strategy to optimize the operation. Additional geological modeling, changes in economic assumptions and the long-term cost structure of the mine may impact future mineral reserve and mineral resource estimates. It is expected that this work will be completed for Placer Dome's year-end 2005 disclosure. The mine continues to complete its near-term mine plan taking into consideration the current cost environment, the completion of the shaft system and the impacts of the newly enacted Mineral and Petroleum Resources Development Act. It is expected that production rates over the next two years will be similar to those of 2004. ------------------------------------------------------------------------- Proven Probable mineral reserves mineral reserves ------------------------------------------------------------------------- Contained Contained Tonnes Grade oz. Tonnes Grade oz. (000s) (g/t) (000s) (000s) (g/t) (000s) ------------------------------------------------------------------------- South Deep (50%) 6,517 9.5 1,989 104,683 7.7 25,919 ------------------------------------------------------------------------- ------------------------------------------------------------------------- -------------------------------------------------------------- Total proven and probable mineral reserves -------------------------------------------------------------- Contained Tonnes Grade oz. Recovery (000s) (g/t) (000s) (%)(1) -------------------------------------------------------------- South Deep (50%) 111,200 7.8 27,908 97% -------------------------------------------------------------- -------------------------------------------------------------- ------------------------------------------------------------------------- Measured Indicated mineral resources mineral resources ------------------------------------------------------------------------- Contained Contained Tonnes Grade oz. Tonnes Grade oz. (000s) (g/t) (000s) (000s) (g/t) (000s) ------------------------------------------------------------------------- South Deep (50%) 8,403 10.8 2,925 109,544 9.8 34,620 ------------------------------------------------------------------------- ------------------------------------------------------------------------- -------------------------------------------------------------- Total measured and indicated mineral resources -------------------------------------------------------------- Contained Tonnes Grade oz. (000s) (g/t) (000s) -------------------------------------------------------------- South Deep (50%) 117,947 9.9 37,546 -------------------------------------------------------------- -------------------------------------------------------------- (1) The mineral reserves and mineral resources are estimated as at June 30, 2004 using appropriate cut-off grades associated with an average long-term gold price of $325 per ounce. The mineral resources are inclusive of mineral reserves. (2) The mineral reserve and mineral resource estimates are based on information prepared by or under the supervision of H.G. Waldeck, Partner and Principal Mining Engineer of SRK Consulting and Adrian Adams, Chief Geologist of the PDWAJV, respectively, who are Qualified Persons as that term is defined in National Instrument 43-101 of the Canadian Securities Administrators. H.G. Waldeck and Adrian Adams have verified the underlying data as appropriate in their professional opinions (including sampling, analytical and test data). (3) Cut-off grades can vary depending on rock types, metallurgical processes and mining methods. Cut-off grades are therefore quoted as a range to reflect the variability of these parameters. The range of cut-off grades for South Deep is 5.00 to 7.40 grams per tonne for mineral reserve estimates. A cut-off grade of 5.00 grams per tonne was used for mineral resource estimates. (4) For further information regarding Placer Dome's mineral reserve and mineral resource estimations, refer to the notes to the Mineral Reserves, Reconciliation of Mineral Reserves, Mineral Resources and Mineral Resources - Exploration Properties tables included in Placer Dome's Annual Report and Annual Information Form/Form 40-F for the year ended December 31, 2003. Vancouver-based Placer Dome Inc. operates 17 mines on five continents. The company's shares trade on the Toronto, New York, Swiss and Australian stock exchanges and Euronext-Paris under the symbol PDG. For further information please contact: Investor Relations: Greg Martin (604) 661-3795 Media Relations: Theresa Coles (604) 661-1911 For enquiries related to shares, transfers and dividends please contact: CIBC Mellon Trust Company Toll-free within North America (800) 387-0825 Collect calls accepted from outside North America (416) 643-5500 Head Office Suite 1600, Bentall IV 1055 Dunsmuir Street (PO Box 49330, Bentall Postal Station) Vancouver, British Columbia Canada V7X 1P1 Tel: (604) 682-7082 Fax: (604) 682-7092 On the internet: http://www.placerdome.com/ CAUTIONARY NOTE Some of the statements contained in this report are forward-looking statements, such as estimates and statements that describe Placer Dome's future plans, expectations, objectives or goals, including words to the effect that Placer Dome or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "intends", "expects", "estimates", "may", "could", "would", "will" or "plan". Such forward-looking statements are made pursuant to the safe harbour provisions of the United States Private Securities Litigation Reform Act of 1995. 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 relating to, among other things, mineral reserves, resources, results of exploration, reclamation and other post-closure costs, capital costs, mine production costs, and Placer Dome's financial condition and prospects, could differ materially from those currently anticipated in such statements by reason of factors such as the productivity of Placer Dome's mining properties, changes in general economic conditions and conditions in the financial markets, changes in demand and prices for the minerals Placer Dome produces, litigation, environmental, legislative and other judicial, regulatory, political and competitive developments in domestic and foreign areas in which Placer Dome operates, technological and operational difficulties encountered in connection with Placer Dome's mining activities, labour relations matters, costs and changing foreign exchange rates and other matters discussed under "Management's Discussion and Analysis" or detailed in Placer Dome's filings with securities regulatory authorities. This list is not exhaustive of the factors that may affect any of Placer Dome's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Placer Dome's forward-looking statements. Further information regarding these and other factors which may cause results to differ materially from those projected in forward-looking statements are included in the filings by Placer Dome with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Placer Dome does not undertake to update any forward-looking statement that may be made from time to time by Placer Dome or on its behalf, except in accordance with applicable securities laws. DATASOURCE: Placer Dome Inc. CONTACT: Investor Relations: Greg Martin (604) 661-3795; Media Relations: Theresa Coles (604) 661-1911; For enquiries related to shares, transfers and dividends please contact: CIBC Mellon Trust Company, Toll-free within North America (800) 387-0825, Collect calls accepted from outside North America (416) 643-5500; Head Office, Suite 1600, Bentall IV, 1055 Dunsmuir Street, (PO Box 49330, Bentall Postal Station), Vancouver, British Columbia, Canada V7X 1P1, Tel: (604) 682-7082, Fax: (604) 682-7092; On the internet: http://www.placerdome.com/

Copyright