NO HEADLINE (September 26, 1994)

enver-based USMX (NASDAQ) says its reserve and resource inventory now exceeds 1.1 million oz. gold and 238,000 tons copper.

The new estimates, which are based on a US$375-400 per oz. gold and US$1 per lb. copper, are subject to the acquisition of permits and leases. They are also subject to adjustments that may be required during ongoing feasibility work at three major projects.

Proven and probable recoverable reserves are estimated at more than 800,000 oz. gold in three deposits: Thunder Mountain in Idaho, Cala Abajo in Puerto Rico and Illinois Creek in Alaska.

Initial production from the projects is expected between 1995 and 1997, with Illinois Creek most likely to be the first to start up (in late 1995). The wholly owned Illinois Creek project contains an estimated proven and probable reserve of 3.9 million tons grading 0.088 oz. gold and 1.7 oz. silver per ton.

Thunder Mountain, also wholly owned, contains about 4.7 million tons grading 0.05 oz. gold.

And Cala Abajo, which is 65% owned, contains about 42.8 million tons grading 0.857% copper and 0.015 oz. gold.

If feasibility work pans out, USMX expects yearly production to reach 30,000-35,000 oz. gold at Thunder Mountain, 24,000 oz. gold plus 15,000 tons copper at Cala Abajo and 50,000 oz. gold at Illinois Creek.

As of March 31, USMX had about US$16 million in working capital, no long-term debt and about 14.7 million shares outstanding.

John Haigh, a spokesman for the company, said USMX plans to proceed on its own on all three of the projects: “We are operators, we’re structured to operate and we have no plans to seek a major joint-venture partner for funding.”

Haigh added that Illinois Creek will likely be financed internally while some combination of debt and equity financing will be required to fund the other two projects.