<PAGE>
FORM 6-K
SECURITIES EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
COMMISSION FILE NUMBER 0-15577
FOR THE MONTH OF JUNE 1998
REAL DEL MONTE MINING CORPORATION
(Translation of registrant's name into English)
1801 BROADWAY, SUITE 1620
DENVER, COLORADO 80202
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual
reports under cover 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
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
-------- --------
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82- .
ENCLOSED IS 1) THE FIRST QUARTER REPORT WITH FINANCIAL STATEMENTS AND
CONFIRMATION OF ITS MAILING; 2) PRESS RELEASE #98-010; BOTH FOR REAL DEL MONTE
MINING CORPORATION, FORMERLY KNOWN AS CONSOLIDATED NEVADA GOLDFIELDS
CORPORATION.
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.
REAL DEL MONTE MINING CORPORATION
(Registrant)
Date: June 1, 1998 /s/ K.M. Kolin
--------------------------------------------------------
By: K.M. Kolin, Vice President and Chief Operating Officer
<PAGE>
REAL DEL MONTE MINING CORPORATION
FIRST QUARTER REPORT 1998
SUMMARY
In a special shareholder meeting held on May 12, 1998, in Toronto, Consolidated
Nevada Goldfields Corporation changed its name to Real del Monte Mining
Corporation (the Company). The new name and logo symbolize the restructuring of
the Company and a closer relationship with Grupo Acerero del Norte, S.A. de C.V.
(GAN), the Company's major shareholder.
During the first quarter of 1998, Real del Monte Mining Corporation continued to
improve operations at the Pachuca mine in the state of Hidalgo, Mexico, while
achieving record production at the Nixon Fork mine in Alaska. Production was
also obtained from El Baztan, as well as Aurora before it was placed on care and
maintenance in March.
Although the gold price has continued to hover just above $300 per ounce, silver
fundamentals are strong, and many analysts forecast prices in excess of $6 per
ounce during the whole of 1998 and beyond. Bolstered by these market forecasts,
the Company's restructuring plan is focused on investment in its world-class
Pachuca silver mine. New equipment, improved underground haulage, and
development of higher grade mining areas should result in greater silver
production and reduced operating costs by the end of 1998.
RESULTS OF OPERATIONS
During the quarter, Company operations produced 16,412 ounces of gold, 557,665
ounces of silver, and 1.527 million pounds of copper. This production
represents about 32,000 gold-equivalent ounces, or alternatively, 1.64 million
silver-equivalent ounces based on market prices as of March 31, 1998.
The Company reports a net loss of $1.03 million on revenues of $9.22 million for
the quarter compared to a net loss of $4.24 million on revenues of $7.33 million
for the same period last year. Included in the quarter's net loss are non-cash
charges for depreciation in addition to depletion and amortization of $1.40
million and $2.47 million for the three months ended March 31, 1998 and 1997,
respectively.
The Aurora gold mine in Nevada has been placed on care-and-maintenance status
because of low gold prices and the need for significant capital expenditures for
prestripping, equipment replacement, and tailings impoundment expansion.
Magistral del Oro, a tailings retreatment project and gold exploration property
in the state of Durango, continues to be on standby. The assets of Barita de
Sonora were sold for $4.5 million during the quarter (announcement released
April 6, 1998), and the Company's 49 percent ownership in Baroid, S. A. de C. V.
(Baromex) was sold for $1.5 million. Company efforts will be concentrated on
continued improvement of operations during 1998 at Pachuca and El Baztan in
Mexico and Nixon Fork in the United States.
<PAGE>
REVIEW OF OPERATIONS
PACHUCA
The Company owns 100 percent of the Pachuca underground mine complex, processing
plant, refinery, and mining concessions covering the entire Pachuca district in
the state of Hidalgo, Mexico (approximately 62,000 hectares). The process plant
includes flotation and cyanidation circuits, which are rated at 2,400 tonnes per
day.
For the first quarter of 1998, the Pachuca complex mined and processed 116,569
tonnes of ore and produced 532,719 ounces of silver and 2,174 ounces of gold.
Planned development of the 2000 level, which will access ore immediately below
the bottom mine level and streamline mine haulage, is advancing at a reduced
pace with other proposed capital expenditures until financing can be arranged.
Discussions continue with Standard New York, Inc. to arrange an $18 million loan
facility which will contribute to proposed 1998 capital expenditures at Pachuca.
Emphasis on development of the 2000 level will continue so that production could
increase to over 5 million ounces per year in 2000.
A positive prefeasibility study completed during this quarter confirms that
reprocessing the tailings at Pachuca may be economic at current silver prices.
Pilot plant testing and a feasibility study will be completed during 1998 which,
if positive, could increase reserves by more than 50 million ounces.
Proven and probable reserves at Pachuca as of December 31, 1997, total 7.8
million tonnes with an average grade of 264 grams silver and 1.4 grams gold per
tonne for a contained total of 66.2 million ounces of silver and 350,000 ounces
of gold.
EXPLORATION AT PACHUCA
Although Pachuca has operated without interruption for almost five centuries,
excellent exploration potential remains. The down-faulted Dos Carlos area,
located immediately south of the existing mine, presents an outstanding
exploration target with potential for the discovery of significant silver
resources with attractive gold grades. There is also excellent potential to the
north between Pachuca and the historically productive El Chico district.
NIXON FORK
The Nixon Fork mine, located near McGrath, Alaska, mined 10,500 tonnes of ore
and produced 12,259 ounces of gold during the quarter.
Nixon Fork has continued to establish production records during the first
quarter of 1998. The Crystal mine C-3000 ore shoot is the only producing ore
stope and will be the main source of ore into the second quarter. The Mystery
mine is on standby until gold prices improve. Proposed capital improvements,
including a new drill jumbo, renovation of the escape/ventilation raise,
tailings impoundment expansion, and miscellaneous mill, plant, and camp
improvements, are on hold.
2
<PAGE>
Proven and probable reserves at Nixon Fork as of December 31, 1997, total 41,200
tonnes averaging 28.5 grams gold per tonne (37,700 contained ounces of gold).
EXPLORATION AT NIXON FORK
Underground exploration drilling in seven diamond drill holes has found several
significant ore-grade intercepts in chimney bodies adjacent to the present
Crystal/Garnet mine. Drilling below the C-3300 orebody indicates that
mineralization extends at least 150 meters beneath the previously defined
orebody, making it accessible from the bottom of the present Crystal/Garnet
mine. Underground exploration drilling continues, and planning is underway for
a summer surface exploration program in the mine area.
EL BAZTAN
Copper ore is mined at two underground sites at El Baztan in the state of
Michoacan, Mexico. Skarn ore is mined from an andesite host at the Vista
Hermosa mine, and ore is produced from vein deposits at the El Arroyo mine.
Ore from both deposits is processed by conventional flotation in a
450-tonne-per-day plant. The operation produces copper concentrate with
minor gold credits.
Low copper prices combined with high transportation and smelting costs continue
to make profitable operation of the El Baztan mine difficult. Total production
from the Vista Hermosa and El Arroyo mines was 33,000 tonnes of ore, 1.2 million
pounds of copper, and 68 ounces of gold for the first quarter of 1998.
Proven and probable reserves at El Baztan as of December 31, 1997, total 1.3
million tonnes with an average grade of 1.80 percent copper (53.8 million
contained pounds of copper).
EXPLORATION AT EL BAZTAN
Compilation of existing data continues to define a large area of anomalous gold
and copper at the edge of a granodioritic pluton in the mine area. Work in this
area is proceeding with the objective of discovering a large, bulk-minable,
gold-copper orebody.
AURORA
The Aurora mine, located southwest of Hawthorne, Nevada, mined 25,000 tonnes of
ore and produced 1,911 ounces of gold during the quarter. The mine was placed
on care-and-maintenance status in March because of high prestripping
requirements and lack of capacity in the tailings impoundment combined with low
gold prices. The property will remain on care and maintenance until higher gold
prices are realized or a joint-venture partner is identified. Ore reserves at
Aurora total 2 million tonnes averaging 3.2 grams gold per tonne (205,000
contained gold ounces).
3
<PAGE>
EXPLORATION AT AURORA
Although mining operations have been suspended, the Aurora district still offers
attractive exploration potential for the discovery of additional bulk-minable as
well as smaller, high-grade orebodies. Discussions with several joint-venture
exploration candidates are underway.
BARITA DE SONORA
The decision was made during 1997 to place Barita de Sonora on standby because
of its poor economic performance. The Barita de Sonora mining assets were sold
to a Mexican mining company for approximately $4.5 million.
MAGISTRAL DEL ORO
The Magistral del Oro operation in the state of Durango, Mexico, had been
reprocessing tailings from a gold mine which closed in 1962. These gold-bearing
tailings had been agglomerated and stacked for heap leaching. With the current
price of gold, the operation could no longer support the cost of handling,
agglomerating, and stacking these tailings. During 1997, gold production
diminished to a point that the property could no longer support the cost, and
the decision was made to place it on standby.
EXPLORATION AT MAGISTRAL DEL ORO
With a historical production of over 600,000 ounces of gold, Magistral del Oro
represents a significant gold district. As such, the attractive possibility of
discovering additional orebodies has prompted discussions with several companies
regarding possible joint-venture exploration programs.
MANAGEMENT
During the first quarter, the Company accepted resignations from Alex Bissett,
President and Chief Executive Officer; Jack Haptonstall, Senior Vice President
of Operations; and James Stirbis, Corporate Secretary/Treasurer. Jorge E.
Ordonez C. of Mexico City has agreed to serve as Acting President and Chief
Executive Officer for an interim period. Mike Kolin was promoted from
Engineering Manager to the position of Vice President and Chief Operating
Officer. Guillermo Alvarez was promoted from Assistant Controller to
Controller.
The Company also announced a reduction in the size of its Board of Directors to
six directors: Xavier Autrey Maza, Chairman of the Board; Alonso Ancira
Elizondo; Manuel Ancira Elizondo; James Bishop; William Braithwaite, Corporate
Secretary; and Donald Worth.
On March 6, 1998, the Company issued a $26,000,000 convertible debenture to GAN.
The Company received $4,000,000 in cash from GAN and applied $16,000,000 of
demand loans and other amounts payable to GAN and approximately $6,000,000 of
10% Unsecured Debentures held by GAN, toward the purchase of the $26,000,000
convertible debenture. The debenture was simultaneously converted into
208,000,000 common shares and 26,998,400 common share
4
<PAGE>
purchase warrants of the Company. The debenture bears interest at 10% per
annum and was convertible at $0.125 per share. GAN also received 0.1298
common share purchase warrant of the Company for each share received in the
debenture conversion. The common share purchase warrants are exercisable
until February 24, 2003 at $0.125 per common share. Immediately following
conversion, GAN held 264,026,559 shares of common stock or approximately 73%
of the outstanding common shares of the Company.
5
<PAGE>
CONSOLIDATED BALANCE SHEETS
Real del Monte Mining Corporation and Subsidiaries
(Amounts Stated in Thousands of U.S. Dollars and Shares)
(Unaudited)
<TABLE>
<CAPTION>
As at March 31, 1998 December 31, 1997
------------------------------------------
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 1,576 $ 1,639
Accounts receivable:
Production 2,901 2,767
Other 1,765 1,347
Affiliated companies and related parties 4,990 696
Inventories
Ore in stockpiles and ore in process 4,173 3,511
Supplies and materials, net 2,085 2,163
Prepaid expenses and other 517 584
------------- -------------
Total current assets 18,007 12,707
Restricted cash 186 123
Mineral properties at cost, net of accumulated depletion
and allowance for impairment 23,450 26,118
Plants, buildings and equipment at cost, net of accumulated
depreciation, amortization, and allowance for impairment 36,139 38,776
Deferred loan costs and other assets at cost, net of amortization 75 189
------------- -------------
Total assets $ 77,857 $ 77,913
------------- -------------
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable:
Suppliers and contractors $ 3,784 $ 5,267
Other 3,562 3,749
Related parties 378 13,291
Accrued interest payable 1,066 1,364
Accrued liabilities 2,664 3,473
Current portion of accrued mine reclamation costs 2,000 1,600
Current portion of long-term debt 12,266 14,763
------------- -------------
Total current liabilities 25,720 43,507
Long-term debt, less current portion 14,874 15,828
Accrued mine reclamation costs 1,809 2,164
Accrued interest payable 49 61
Convertible subordinated debentures 2,055 2,123
Convertible unsecured debentures 1,500 7,500
Due to related party 60 60
Deferred foreign exchange gain 658 590
Other 1,323 1,241
------------- -------------
Total liabilities 48,048 73,074
Shareholders' equity:
Common shares, without par value, unlimited shares authorized,
360,957 and 152,957 shares issued and outstanding at March 31, 135,922 109,922
1998 and December 31, 1997
Accumulated deficit (106,113) (105,083)
------------- -------------
Total shareholders' equity 29,809 4,839
Total liabilities and shareholders' equity $ 77,857 $ 77,913
------------- -------------
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</TABLE>
6
<PAGE>
CONSOLIDATED STATEMENT OF OPERATIONS
Real del Monte Mining Corporation and Subsidiaries
(Amounts Stated in Thousands of U.S. Dollars and Shares)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
Period Ended: MARCH 31, 1998 MARCH 31, 1997
---------------- ----------------
<S> <C> <C>
Revenue:
Net sales of precious metals and mineral products $ 9,484 $ 7,032
Forward and futures contract gains (losses), net (265) 295
---------------- ----------------
9,219 7,327
Operating costs and expenses:
Production costs 6,879 6,553
Depreciation, depletion and amortization 1,400 2,467
General and administrative costs 1,748 1,642
Exploration costs 51 21
---------------- ----------------
10,078 10,683
---------------- ----------------
Operating loss (859) (3,356)
Other income (expense):
Interest expense, net (1,341) (1,445)
Cumulative translation adjustment 66 787
Other, net 1,204 (136)
---------------- ----------------
(71) (794)
---------------- ----------------
Loss before income tax expense (930) (4,150)
---------------- ----------------
Income tax expense (100) (88)
---------------- ----------------
Net loss $ (1,030) $ (4,238)
---------------- ----------------
---------------- ----------------
Loss per common share $ (0.01) $ (0.03)
---------------- ----------------
---------------- ----------------
Weighted average number of common shares outstanding 210,735 129,851
---------------- ----------------
---------------- ----------------
</TABLE>
7
<PAGE>
CONSOLIDATED STATEMENT OF CASH FLOWS
Real del Monte Mining Corporation and Subsidiaries
(Amounts Stated in Thousands of U.S. Dollars)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
Period Ended: MARCH 31, 1998 MARCH 31, 1997
---------------- ----------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (1,030) $ (4,238)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Amortization of deferred gain or loss on hedged sales
and gold loan conversion, net 182 255
Depreciation, depletion, and amortization 1,400 2,462
Mine reclamation costs accrued, net 185 (126)
Amortization of deferred loan costs, net 8 117
and related parties - 2
Increase (decrease) in amounts due to related companies (4,025) (25)
Decrease (increase) in current assets, net (1,069) (2,525)
Increase (decrease) in current liabilities, net (2,479) (1,252)
Change in accrued interest payable (310) (239)
Other (134) 38
---------------- ----------------
Net cash used in operations (7,272) (5,531)
---------------- ----------------
Cash flows from investing activities:
Capital expended for mineral properties and plants, buildings,
and equipment (595) 622
Proceeds from sales of property, plant and equipment 4,500 -
Increase (decrease) in other assets - (863)
---------------- ----------------
Net cash used in investing activities 3,905 (241)
---------------- ----------------
Cash flows from financing activities:
Borrowings 3,052 3,542
Repayments of debt (3,185) (2,819)
Proceeds from issuance of convertible unsecured debentures 3,500 -
---------------- ----------------
Net cash provided by financing activities 3,367 723
---------------- ----------------
Net increase (decrease) in cash and cash equivalents - (5,049)
Cash and cash equivalents at beginning of period 1,762 7,764
---------------- ----------------
Cash and cash equivalents at end of period $ 1,762 $ 2,715
---------------- ----------------
</TABLE>
* Includes restricted cash of $186 and $457 at March 31, 1998 and 1997,
respectively.
<PAGE>
8
<PAGE>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' Equity
REAL DEL MONTE MINING CORPORATION AND Subsidiaries
(AMOUNTS STATED IN THOUSANDS OF U.S. DOLLARS)
<TABLE>
<CAPTION>
(UNAUDITED) NUMBER OF TOTAL
NUMBER TOTAL
OF SHARES COMMON COMMON SHAREHOLDERS'
COMMON WITHOUT SHARES SHARES ACCUMULATED EQUITY
SHARES PAR VALUE SUBSCRIBED SUBSCRIBED DEFICIT (DEFICIT)
<S> <C> <C> <C> <C> <C> <C>
----------------------------------------------------------------------
Balances at June 30, 1993 21,921 $ 13,303 14,976 $ 9,730 $ (11,233) $ 11,800
----------------------------------------------------------------------
Common shares subscribed for:
Cash 12,903 8,000 (12,903) (8,000) - -
Conversion of preferred shares 546 300 (546) (300) - -
Conversion of convertible subordinated debentures 833 1,000 (833) (1,000) - -
Conversion of amounts due to a related party 694 430 (694) (430) - -
Issuance of common shares for cash 4,435 2,710 - - - 2,710
Net loss - - - - (11,638) (11,638)
----------------------------------------------------------------------
Balances at June 30, 1994 41,332 $ 25,743 - $ - $ (22,871) $ 2,872
----------------------------------------------------------------------
Issuance of common shares for cash 39 24 - - - 24
Issuance of common shares as payment of interest on
3% convertible subordinated debentures 188 240 - - - 240
Net loss - - - - (5,763) (5,763)
----------------------------------------------------------------------
Balances at June 30, 1995 41,559 $ 26,007 - $ - $ (28,634) $ (2,627)
----------------------------------------------------------------------
Issuance of common shares for cash 8,095 6,574 - - - 6,574
Issuance of common shares as payment of interest on
3% Convertible subordinated debentures 244 259 - - - 259
Issuance of common shares upon conversion of
3% convertible subordinated debentures 3,750 3,295 - - - 3,295
Issuance of common shares for a mining lease 537 445 1,073 889 - 1,334
Net loss - - - - (6,666) (6,666)
----------------------------------------------------------------------
Balances at June 30, 1996 54,185 $ 36,580 1,073 $ 889 $ (35,300) $ 2,169
----------------------------------------------------------------------
Issuance of common shares for cash 22,493 18,350 - - - 18,350
Issuance of common shares as payment of interest on
3% convertible subordinated debentures 119 104 - - - 104
Issuance of common shares upon conversion of
3% convertible subordinated debentures 750 664 - - - 664
Issuance of common shares in exchange for acquisition
of subsidiaries 52,290 42,576 - - - 42,576
Net loss - - - - (10,991) (10,991)
----------------------------------------------------------------------
Balances at December 31, 1996 129,837 $ 98,274 1,073 $ 889 $ (46,291) $ 52,872
----------------------------------------------------------------------
Issuance of common shares for cash 53 (29) - - - (29)
Issuance of common shares as payment of interest on
3% convertible subordinated debentures 273 236 - - - 236
Issuance of common shares upon conversion of 3%
convertible subordinated debentures 18,913 9,603 - - - 9,603
Issuance of common shares in exchange for
acquisition of mineral properties 2,788 445 - - - 445
Issuance of common shares for a mining lease 537 445 (537) (445) - -
Issuance of common shares in exchange for services
related to acquisition of subsidiaries 556 504 - - - 504
Net loss - - - - (58,792) (58,792)
----------------------------------------------------------------------
Balances at December 31, 1997 152,957 $ 109,478 536 $ 444 $ (105,083) $ 4,839
----------------------------------------------------------------------
Issuance of common shares upon conversion of 10%
convertible subordinated debentures 208,000 26,000 - - - 26,000
Net loss - - - - (1,030) (1,030)
----------------------------------------------------------------------
Balances at March 31, 1998 360,957 $135,478 536 $ 444 $ (106,113) $ 29,809
----------------------------------------------------------------------
</TABLE>
9
<PAGE>
REAL DEL MONTE MINING CORPORATION
1801 BROADWAY, SUITE 1620
DENVER, COLORADO 80202
(303) 296-3200
May 29, 1998
VIA: SEDAR, EDGAR
To All Canadian Provinces and the United States Securities and Exchange
Commission:
Re: 1998 FIRST QUARTER REPORT TO SHAREHOLDERS for Real del Monte Mining
Corporation, formerly known as Consolidated Nevada Goldfields Corporation.
Dear Sir:
This is written confirmation that the referenced material was mailed to our
shareholders and debenture holders who request this supplemental mailing. Call
(303) 296-3200 with questions. Thank you.
Sincerely,
/s/ Shelley Thompson
Shelley Thompson
cc: Toronto Stock Exchange
Stikeman & Elliott
<PAGE>
DENVER, CO - MAY 29, 1998
#98 - 010
1:30 PM MST
REAL DEL MONTE MINING CORPORATION ANNOUNCES
1997 YEAR-END AND 1998 FIRST QUARTER RESULTS
Real del Monte Mining Corporation (RDM) announces the following financial
results in United States dollars for the fiscal and calendar year ended December
31, 1997, as well as the six months ended December 31, 1996. The Company
previously announced the change in its fiscal year end from June 30 to December
31; this change became effective at the end of 1996.
<TABLE>
<CAPTION>
Year Ended Six Months Ended
December 31, December 31,
1997 1996
-------------- -----------------
<S> <C> <C>
Ounces of Gold Sold 53,720 20,603
Ounces of Silver Sold 2,460,981 598,097
Copper Pounds Sold 3,762,464 1,620,626
Revenue ($000s) 34,228 11,456
Net Loss ($000s) (58,792) (10,991)
Net Loss per Share ($) (0.44) (0.14)
</TABLE>
Real del Monte reported a net loss of $58.8 million or $0.44 per share on
revenues of $34.2 million for the year ending December 31, 1997, compared to a
net loss of $11 million or $0.14 per share on revenues of $11.5 million for the
six months ended December 31, 1996. The increase in the 1997 loss compared to
1996 reflects impairment provisions related to the carrying value of mineral
properties and mining plant and equipment totaling $32.1 million, increased
operating costs, and lower realized gold prices.
Real del Monte Mining Corporation further announces its financial results for
the first quarter ended March 31, 1998, as well as the three-month period ended
March 31, 1997.
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
March 31, March 31,
1998 1997
-------------------- --------------------
<S> <C> <C>
Ounces of Gold Sold 17,181 10,518
Ounces of Silver Sold 566,516 425,178
Copper Pounds Sold 1,236,326 1,002,339
Revenue ($000s) 9,219 7,327
Net Loss ($000s) (1,030) (4,238)
Net Loss per Share ($) (0.01) (0.03)
</TABLE>
<PAGE>
Real del Monte Mining Corporation
Press Release # 98-010
Page 2
During the first quarter ended March 31, 1998, RDM reported a net loss of $1.03
million or $0.01 per share on revenues of $9.22 million from the sale of 17,181
ounces of gold, 566,516 ounces of silver, and 1.2 million pounds of copper,
compared to a net loss of $4.24 million or $0.03 per share on revenues of $7.33
million from the sale of 10,518 ounces of gold, 425,178 ounces of silver, and 1
million pounds of copper for the comparable period last year.
OPERATIONS
PACHUCA
Silver production was 1,876,600 ounces and 532,719 ounces for 1997 and the first
quarter of 1998, respectively. Ore is being produced from San Juan Pachuca (48
percent), La Rica (28 percent), and La Purisima Concepcin (24 percent).
Planned development of the 2000 level, which will access ore immediately below
the bottom mine level and streamline mine haulage, is advancing at a reduced
pace (as are other capital programs) until financing arrangements are completed.
A recent prefeasibility study confirms that reprocessing of more than 90 million
tonnes of Pachuca tailings is economic. A pilot plant is being constructed at
the Loreto plant to confirm bench test results before a planned feasibility
study is completed during the second half of 1998.
NIXON FORK
Gold production was 39,666 ounces and 12,259 ounces for 1997 and the first
quarter of 1998, respectively. Mill head grades from the Crystal/Garnet mine
have ranged between 1.3 and 1.7 ounces per tonne for January through April 1998.
Underground exploration results from seven diamond drill holes discovered
several significant high-grade intercepts in chimney bodies adjacent to
Crystal/Garnet.
EL BAZTAN
Copper production was 3.872 million pounds and 1.2 million pounds for 1997 and
the first quarter of 1998, respectively. Low copper prices combined with the
high transportation and smelting costs continue to trouble El Baztn.
AURORA
Gold production was 13,210 ounces and 1,911 ounces for 1997 and the first
quarter of 1998, respectively. The mine was placed on care and maintenance in
March because of the low gold price and needed capital improvements. With a
large land position in the historic Aurora gold district, excellent exploration
potential exists and discussions with joint-venture candidates are in progress.
MAGISTRAL DEL ORO
This gold tailings reprocessing operation in Mexico was placed on care and
maintenance during 1997. Magistral has an excellent land position with good
exploration potential, and RDM is discussing joint-venture exploration programs
with several interested parties.
<PAGE>
Real del Monte Mining Corporation
Press Release # 98-010
Page 3
Real del Monte Mining Corporation (formerly Consolidated Nevada Goldfields
Corporation) is a Denver-based, international mining company producing silver,
gold, and copper from three operating properties in the U.S.A. and Mexico.
Total Company reserves include 66.2 million ounces of silver and 594,000 ounces
of gold as of December 31, 1997. The Company's principal property is the
Pachuca silver mine (resources of 86.5 million ounces of silver and 457,000
ounces of gold), which has continuously produced silver for five centuries, in
central Mexico north of Mexico City. The Company shares trade on the Toronto
Stock Exchange under the symbol RMM; on NASDAQ under the symbol RDMMF; and on
the Stuttgart, Frankfurt, and Berlin exchanges under the symbol RMI.
Statements in this release which are not historical data are forward looking and
involve a number of risks and uncertainties, including but not limited to the
price of commodities, currencies, production, construction, and permitting or
regulatory delays, reserve estimation of tonnage, grade and metallurgical
recoveries, exploration success and reserve growth, litigation, capital costs,
and other risks that are detailed in the Company's SEC filings.
CONTACT: Real del Monte Mining Corporation, Denver, Colorado
Phone (303) 296-3200 Fax (303) 296-9130
WWW.REALDELMONTE.COM
