EnviroGold Limited: Media Release

 

  9 October 2007

Emerging Australian resources development company EnviroGold Limited (ASX: EVG) (“the Company”, “EnviroGold”) advises that after evaluating the strong level of market support for its business strategy and the potential of its Xstrata Technology Albion Process Technology to treat treat ores and tailings, it has expanded and refined its development strategy.

EnviroGold executive chairman Mr Brian Johnson said that after evaluating the business potential for the application of Xstrata Technology’s Albion Process Technology for extraction of gold and silver from sulphidic ores, particularly in Latin America and China, the Company was now in a position to expand its development strategy.

“We now have a three-phase development strategy that will see us quickly generate cash flow from our current core projects, and then expand to acquire wider resources in regions capable of providing potential long term earnings,” Mr Johnson said.

EnviroGold’s highly experienced Latin American Business Development Manager Peter Symons has assisted the directors in formulating the development strategy, based on  business opportunities he has identified in South America over the last two years. 

The Company is now able to articulate its corporate development strategy as follows:

Phase I - Early cash flow from current core projects

• the development of gold extraction projects from third party resources including; the 70% owned Las Lagunas tailings retreatment project in the Dominican Republic (commissioning planned for end 2008), and the 50% joint venture Trujillo gold project in Peru which will treat high grade float concentrate from refractory ore (commissioning planned for end 2009).
  

Phase II - Mining and gold extraction from joint ventures with experienced mining companies

• the application of Albion Process Technology to established resources of sulphidic ore in joint venture with an experienced local mining company.
  

Phase III - Mining and gold extraction operations from owned and managed by EnviroGold

• consolidation on a regional basis of medium scale sulphidic ore bodies which cannot justify stand alone plants to treat refractory ore, or advanced exploration targets.

With the commissioning of its first project, Las Lagunas in the Dominican Republic, expected within the next year, EnviroGold will now accelerate its business dealings and project reviews in Latin America and China to implement its strategy of controlling resources in those regions capable of providing potential long term earnings, as well as in other locations where the Company has been approached in relation to specific projects.

EnviroGold is expected to evolve as an integrated mining group within a few years and will soon appoint a Chief Metallurgist and Exploration Manager in Latin America, and a Business Development Manager with a mining background in China, to increase its momentum.

A technical office is being established in Sydney under the control of the Company’s Director of Operations from which the Group Metallurgist, Environmental Manager and Construction Manager will operate on a global basis.