LONDON, Aug. 25, 2005 (PRIMEZONE) -- Crew Gold Corporation ("Crew")(TSX:CRU) (OSE:CRU) (Frankfurt:KNC) (Other OTC:CRUGF). Crew is pleased to announce that a Definitive Agreement regarding the purchase of 72.8 percent shares in Apex Mining Co. was signed on August 24, 2005. The transaction has been concluded by the transfer of the shares to Crew and its affiliated company Mapula Creek Gold Corp. (Mapula) against payment, subject to certain conditions, of US $6.6 million.
The Definitive Agreement triggers a mandatory bid on behalf of Crew and Mapula for the remaining 27.2 percent shares in Apex Mining Co. This bid will be announced soon pursuant to the rules of the Philippine Stock Exchange and Securities and Exchange Commission.
The company has started preparation for re-establishing the operation and has mobilized three drill rigs to site to initially conduct 9,000 meters of resource-definition drilling from more than 10 sites. This drilling will focus on three selected target veins and seek to establish new, independently verifiable information of the resource potential. In addition to the initial resource and production-related drilling, the company will initiate an aggressive exploration campaign on the property with the target of increasing the total resources, including a re-evaluation of the large porphyry-Cu potential.
Plans for the rehabilitation of the existing plant facility is completed and the company is aiming for an initial production of 300-550 t/d to start in 2005 and with a target of expanding production to 1,200-1,500 t/d and then to 2,000 t/d towards the end of 2006. The necessary test work to optimize the flow sheet is expected to be complete within the coming months. Initial operation will be based on existing equipment, which will be modified to meet the new flow sheet
Apex is listed on the Philippine Stock Exchange (PSE:APX). Its principal asset is the Masara Gold Mine, located in southeastern Mindanao, where the previous production was closed in 2000. The property is located in Compostela Valley, which is one of the most prolific gold belts in the Philippines.
Management is pleased to note that the acquisition of Apex, together with Nalunaq Gold Mine, on its own will assist the company in reaching its goal of becoming a mid-tier gold producer by 2007. The company believes the Philippines represent a considerable potential for additional opportunities and will, together with other projects, elsewhere in the world, contribute to Crew's long-term growth plans.
Jan A. Vestrum
President and CEO
This news release contains certain "forward-looking statements". All statements, other than statements of historical fact, included in this release, and/or statements made by company officers or directors at any given time, as well as Crew's future plans are such forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Crew does not undertake any obligation to update forward-looking statements should conditions or management's estimates or opinions change.
For more information please contact our U.K. Head Office (TEL +44 -1932 268755) or by email to enquiries@crewgold.com. For more information about Crew, additional contact information or to subscribe to future news releases, please visit our new Web site www.crewgold.com.