November 6, 2002 TRADING SYMBOLS: Crew Development Corporation (Crew) is pleased to announce that based on testing of samples submitted and metallurgical reports a Memorandum of Understanding with Richmont Mines Inc. (Richmont) has been signed for the treatment of high-grade ore shipped from Crew's Nalunaq Gold Mine in southern Greenland, which is conditional to the signature of a formal custom milling agreement. The processing will take place at Richmont's Nugget Pond Mill facility in Newfoundland. Crew is, together with Nuna Minerals A/S, in the final stages of planning the commencement of production at Nalunaq Gold Mine. Relevant authorities are currently reviewing the feasibility and the environmental impact studies, and a mining permit is pending. Nalunaq has an existing stockpile, including this year's summer program, containing approx 28,000 oz of gold. Mine construction is expected to start in the first half of 2003. The average annual production is projected to be 90.000 oz at a cash operating cost of US$168 per oz. The Memorandum of Understanding outlines the general terms and conditions for a custom milling agreement between Crew and Richmont where ore from Nalunaq will be processed in batches of 10,000 dry tonnes minimum, at a fixed unit cost per dry tonne for Crew. Crew will provide and have ownership of a modular gravity circuit to be integrated at the front end of the processing circuit, as well as delivering the ore to an ore pad at the mill site. Independent consultants Strathcona Minerals will represent Crew in all matters related to tonnage, grade control and gold inventory. After the processing of the stockpile, Crew will the option to use excess capacity at the Nugget Pond Mill for the period of 2004 to 2007. Crew has experienced a very effective and professional negotiation with Richmont Mines and is looking forward to the future cooperation. "Jan A. Vestrum" |
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