NO HEADLINE (June 20, 1994)

Monk increases Argentine property holdings

Alberta-listed Monk Gold & Resources has agreed to acquire a 39% interest in the Neuquen River gold project in west-central Argentina from privately owned DSE Resources.

Sikaman Gold Resources (TSE) has a 39% interest in the project with Aldermines International, another private company, holding the balance. Test pitting has outlined a potential resource in excess of 1 billion cubic metres of alluvial gravels containing an estimated 12 million oz. gold (373.2 million grams). Bulk sampling is under way in an attempt to confirm reserves. To earn its interest, Monk must pay US$500,000 cash to DSE over the next eight months as well as an additional C$250,000 through a private placement. The placement will consist of 500,000 treasury shares valued at 50 cents each, 250,000 warrants exercisable at 60 cents and 250,000 warrants exercisable at $1; both groups of warrants are exercisable over an 18-month period.

In addition, DSE retains the right to buy up to 15% of Monk’s share of annual gold production for the first 36 months of production. The purchase price per ounce will be discounted 15% from the London Metals Exchange afternoon price fix on the last trading day of each month.

This acquisition, when completed, will make Monk a significant gold producer in Neuquen province. The company currently has a 27% interest in the Cerro Mayal project, which started up in early May. Cerro Mayal has proven and probable reserves of 360,000 oz. and possible reserves of 900,000 oz. It is expected to yield 25,000 oz. in its first full year of production, at an estimated cash operating cost of US$150-175 per oz.