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Indochina Goldfields begins S&K ear



Subject: Indochina Goldfields begins S&K earnings

Thursday February 4, 6:39 pm Eastern Time
Indochina Goldfields begins S&K earnings
NEW YORK, Feb 4 (Reuters) - Indochina Goldfields Ltd. said on Thursday it
should earn $400,000 per month, beginning this month, from its 50-percent
interest in the new S&K Mine at Monywa in Myanmar.

In a statement released in New York, the company said the mine achieved a
cash production cost of US$0.279 per pound of copper for the month of
January. The operation continued to exceed the facility's design rate,
producing 2,140 metric tonnes (4.72 million pounds) of copper cathode during
the month.

``The low cost of production at the S&K Mine is due to a number of
operational initiatives together with the overall inherent efficiencies in
the ore deposit geometry and the state-of-the-art plant,'' said Edward
Flood, Indochina's president.

``With our depreciation and amortization cost of approximately US$0.20 per
pound, and given current copper prices, Indochina's share of the project
should earn operating income of about US$400,000 per month, beginning this
month,'' he added. The company's partner is Mining Enterprise No. 1.

Since the start-up of copper production in early November, 1998, a total of
5,304 tonnes (11.7 million pounds) of copper cathode have been produced for
a total mine site cash cost of US$0.30 per pound.

The costs of in-country freight, shipping, discounts and marketing are an
additional US$0.05 per pound, the statement added.




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