22.11.2000, MEDIAMAX, YEREVAN. The Canadian First Dynasty Mines (FDM) reported that the revised mining plan for the Armenian Zod and Meghradzor gold mines will be submitted this December.
The Company previously reported on May 11, 2000 that a topographic survey had been conducted by the Egis/Kilborn joint venture. A preliminary review has been completed by SRK Consultants, and preparation of the revised mining plan is under way and expected to be completed by December 2000.
The Company also reported at that time that it was engaging an independent consulting group to review a revised mining plan for Zod based on the new information derived from the topographic survey. Snowden Associates, Australia, has been retained for the whittling process which is complete, and revised pit design based on the whittling data and the preliminary review have been completed. SRK Consultants have been further retained to complete the review and confirm the mining plans which is expected to occur by year end.
Management has effectively completed a restructuring of the Company’s operations whereby substantially all of First Dynasty’s activities are now focused on the operating plant in Armenia which has generated operating profit for the Company in recent months. Net profit before interest and depreciation has improved substantially to US$914,000 for the nine month period ended September 30, 2000 as against a loss of US$1.9 million last year. Net profit after interest but before depreciation is US$465,000 for the same nine-month period even after providing for an increased interest cost of US$200,000, compared to a loss of US$2.2 million in 1999. The improved results are attributable to more streamlined management practices as well as a more focused approach on core operations. The Company’s complete third quarter results for the period ended September 30, 2000 have been publicly filed and will be delivered to shareholders.
The Company has been advised that a drill rig in which it has a one-half interest in the proceeds of sale, has been sold yielding proceeds of approximately $217,000 for the Company. This will improve further the Company’s financial position. -0–
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