Xstrata Technology’s first Albion Process licence

Xstrata Technology, together with Highlands Pacific and OMRD Frieda (a Japanese consortium), have signed the first Albion Process Technology licence agreement with Dominicana Gold Proprietary, a 100% owned subsidiary of EnviroGold. It will be used at Las Lagunas tailings dam in the Domincian Republic where testwork on samples has demonstrated that the Albion Process can achieve high gold and silver recoveries on a cost competitive basis and has given EnviroGold the confidence to select the technology for its proposed project to retreat tailings material.

Core Resources, the global marketing agent for the Albion Process technology, has facilitated discussions on the licence terms over the last few months and is looking forward now to supporting Xstrata and EnviroGold on the feasibility study and project development. The Albion Process (IM, September 2005, pp23-24 - www.albionprocess.com) uses atmospheric leaching after ultrafine grinding to recover base and precious metals from refractory ores. It was developed over 12 years of research and piloting.

EnviroGold’s Chairman Brian Johnson commented on Las Lagunas: “We are looking forward to taking the project through the final feasibility study and into production”. EnviroGold intends to spend approximately $1.5 million on final metallurgical testwork and plant and tailings dam design, between December 2005 and June 2006. Subject to financing, the company should be in a position to commence construction at the beginning of the dry season in the Dominican Republic around October 2006, with commissioning of the plant in May 2007.