KMR Kenmare Resources Plc

RNS No 423f
KENMARE RESOURCES PLC
7th July 1997

Kenmare Resources plc (Kenmare)

NEW AGREEMENT CREATES UNRIVALLED POSITION FOR KENMARE
IN YUGOSLAV GOLD EXPLORATION

Kenmare has signed a second Joint Venture for gold exploration and 
development in Yugoslavia.  Kenmare's partner is Geoinstitut, a 
geological institute with minerals licences.  This contract 
establishes a JV company to explore for deposits and operate mines 
in Yugoslavia.  Kenmare will be the operator and control the JV 
company board.

Geoinstitut will contribute title to the Deli Jovan and Ruplje 
projects.  Deli Jovan is on a major gold and copper bearing belt 
running through the Balkans, which in Bulgaria hosts the Chelopech 
mine, Europe's largest gold resource, plus several other deposits.  
Deli Jovan is near the massive Bor and Midanpec open pit mines.  
These mines produced 23% of Europe's gold in 1990, as a by product 
of their main mineral, copper.

Parts of the Balkan belt have already been targeted by major mining 
companies in Bulgaria, with the most prospective areas already 
licensed.  By contrast, the Yugoslav portion has been neglected 
until now.  Kenmare has monitored this opportunity for some years.  
The lifting of sanctions, following the Dayton accords, allowed 
Kenmare to enter Yugoslavia and acquire very prospective acreage.  
Kenmare is the first international mining company to explore in 
post-sanctions Yugoslavia.

Deli Jovan has been mined intermittently since Roman times.  There 
are extensive ancient gold workings along an 8km zone.  Early 20th 
century production records give an average grade of 15 grams per 
tonne.

At Ruplje, old records show mining in 4 adits, with later 
Geoinstitut drilling indicating gold, silver and copper 
mineralisation.  Kenmare will immediately start exploring both 
mineralised zones.

The Joint Venture company will act in parallel with the arrangement 
already negotiated with Gemini-IMS (a Yugoslav semi-state geological 
services group), for the exploration and development of other gold 
properties.  Gemini was Kenmare's original partner in the Congolone 
Titanium project in Mozambique which is now Joint Ventured with BHP.

For information contact: 

David Horgan
Kenmare Resources Plc
Telephone : 353 1 6710411
or 087 487400




END

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