Reefton Gold Project - GRD McRaes Release

MEDIA STATEMENT

21 August 2001

Reefton Gold Project

The Company was pleased to see that the New Zealand Prime Minister, Helen Clark, yesterday in a television interview outlined the courses of action available to GRD in relation to the development of the Reefton Gold Project. Those options were as set out in the Company’s announcement on Friday 17th of August

The Company can proceed with the smaller sized mine which it has had permission for, for the last seven years. GRD will review this option.

An early priority is to arrange a meeting with the Minister and her officials to determine the reasons for the decision and to understand the nature and extent of her concerns. Subsequently. GRD will re-apply for a variation that modifies the overall impact of the project.

The Company could appeal the decision, and that means the whole decision making process would be open to scrutiny. The Company would look at the trail of advice and see if Minister Sandra Lee has made any procedural error. The Company will seek advice on the judicial review process to ascertain whether any action should be considered.

The project variation will include transporting concentrate from Reefton to the processing facility at Macraes thereby eliminating a substantial portion of the process plant and the need for additional tailings capacity. The Company also intends to work with any technical or scientific consultants from any relevant local or national government department or authority in progressing the Reefton Gold Project.

GRD is clear in its view that this project is environmentally, economically and socially positive for New Zealand.

ENDS

For further information contact :
Angus Kennedy-Perkins
Telephone : Australia (08) 9278 1888 or New Zealand (03) 474 8237
E-mail : grd@grd.com.au

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