LONDON, May 3, 2004 (PRIMEZONE) -- Crew Gold Corporation ("Crew") (TSE:CRU) (OSE:CRU) (Frankfurt:KNC) (Other OTC:CRUGF) Minelco AB ("Minelco") has, based on the preliminary evaluations of the Seqi feasibility study, requested Crew to advance the Seqi Olivine project under the terms of the existing agreement between Crew Minerals AS and Minelco AB. The agreement grants Minelco an option to buy 51% of the Seqi project, through carrying all capital expenditures related to the development of a mining operation as defined by a feasibility study currently being completed by Crew at Minelco's cost. Minelco is a subsidiary of leading iron ore producer LKAB of Sweden.
Most mining and engineering alternatives of the project have been completed to enable cost estimates to be undertaken. On-going work includes the environmental base-line study and formal applications to the Greenland authorities are being prepared for construction permits for this year's industrial testing programme, and for the full-scale quarrying operation and shipping licence.
Crew acquired 100% of the mineral rights to the Seqi olivine deposit in early 2003. Seqi is a large, homogenous olivine deposit made up of 97% olivine, and is located 90 km North of Greenland's capital city Nuuk. The high purity and favourable chemical composition contribute to a clear commercial potential for this deposit. The deposit is located only 600 m from tidewater in a protected fjord, which provides all-year access. The location and relatively simple nature of the operation allows for a short lead-time to production.
Due to the commercially sensitive nature of the market for industrial minerals, Crew will apply a lower degree of transparency to Seqi than to its other projects and mines, with regards to the details of the feasibility study and to the cost structure of a future mining operation. Details of the partnership agreement between Crew and Minelco remains to be negotiated, and Crew will provide more information to the market at such time when all agreements are in place and a jointly owned operating company has been established in Greenland.
JAN A. VESTRUM President & 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 UK Head Office (TEL +44 1932 268 755), or Crew's Oslo Office (TEL +47 2212 1650), or send an email to IR@crew.no. For more information about Crew, additional contact information or to subscribe to future news releases, please visit our website www.crewgold.com