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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of September, 1998 Commission File Number: 001-12003
MERIDIAN GOLD INC.
(Name of Registrant)
9670 Gateway Drive
Reno, Nevada 89511
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F /X/ Form 40-F / /
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the SEC
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes /X/ No / /
Meridian Gold Inc. [LOGO OF MERIDIAN GOLD INC.
9670 Gateway Drive APPEARS HERE]
Reno, Nevada 89511
Phone: 702-850-3777
Fax: 702-850-3733
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MERIDIAN GOLD INC.
9670 GATEWAY DRIVE
RENO, NEVADA 89511
PHONE: (702) 850-3777
FAX: (702) 850-3733
MERIDIAN GOLD/BARRICK GOLD COMPLETE JOINT VENTURE ON THE ROSSI PROPERTY
All Currency in U.S. Dollars
RENO, NEVADA, SEPTEMBER 14, 1998 - Meridian Gold Inc. is pleased to announce the
completion of a joint venture agreement with Barrick Gold Corporation on
Meridian's Rossi property.
ROSSI PROPERTY POSITION AND RESOURCE
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The Rossi property, located on the prolific Carlin Trend in Nevada, contains the
Storm resource, a high-grade, deep geologic resource of 2.8 million tonnes of
ore grading 12.7 grams/tonne, for 1,069,000 ounces of gold. The Carlin Trend
extends from the Rossi property for about ten miles south-east and hosts some of
the most profitable mines in the world.
The Storm resource was a grass-roots gold discovery by Meridian on its 28 square
kilometer Rossi property on the north end of the Carlin Trend. The resource is
open in three directions and Meridian expects underground development with a
decline will increase the potential of this project.
MERIDIAN-BARRICK JOINT VENTURE AGREEMENT ON ROSSI
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The agreement puts together an impressive operating and exploration partnership
on the Rossi property. Barrick brings proven exploration and underground
operating experience on the Carlin trend and the processing facilities that will
be needed to process Rossi ore. In order to earn a 60% interest in the project,
Barrick must spend $15 million - $10 million of which is guaranteed to be spent
over a two year period and includes an underground decline to further delineate
the Storm resource. At least $5 million will be spent by Barrick in grassroots
exploration on the large Rossi claim block.
The joint venture has the commitment of Barrick's processing facilities with a
guarantee of up to 1,000 tons (short tons) per day. Should Barrick not fulfill
the spending requirement and withdraw from the venture, Meridian will retain the
right to process up to 500 tons per day at Barrick's facilities on a custom
milling basis.
ROSSI OUTLOOK
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The development of the exploration decline into the Storm resource will begin as
soon as regulatory approval is received. Since Rossi ore would be sent to
Barrick's existing processing facilities, Meridian could potentially have
low-cost production from Rossi in the next couple of years with minimal capital
investment.
Brian Kennedy, President and CEO of Meridian Gold, commented: "I am extremely
pleased with this win-win agreement we have developed with Barrick. Rossi
represents a high potential return project for both companies. For Meridian, the
joint venture brings Barrick's processing infrastructure with no capital
investment and builds the mine with minimal capital investment. In addition, the
joint venture is structured to potentially realize production within a fairly
short time horizon. I am also pleased that we have the opportunity to combine
the two companies' exploration expertise and resources to further explore this
large property position on the Carlin Trend."
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Meridian Gold Inc. is a proven, exploration-oriented gold producer, led by a
strong management team committed to growth and possessing a healthy balance
sheet. The common shares of Meridian are traded on The Toronto Stock Exchange
(MNG) and the New York Stock Exchange (MDG).
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Safe Harbor Statement under the United States Private Securities Litigation
Reform Act of 1995: Statements in this release that are forward-looking
statements are subject to various risks and uncertainties concerning the
specific factors identified above and in the corporation's periodic filings with
the Ontario Securities Commission and the U.S. Securities and Exchange
Commission. Such information contained herein represents management's best
judgment as of the date hereof based on information currently available. The
corporation does not intend to update this information and disclaims any legal
liability to the contrary.
For further information, please visit our website at www.meridiangold.com, or
contact:
Wayne M. Hubert Tel: (702) 850-3730
Investor Relations Fax: (702) 850-3733
Meridian Gold Inc. E-mail: [email protected]
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: September 29, 1998 MERIDIAN GOLD INC.
By: /s/ Brian J. Kennedy
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Brian J. Kennedy
President and Chief Executive Officer
