Mineral Ridge Mine Feasibility Study

Business Wire, Jan 10, 1996

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 10, 1996-- --/ISDN/--The Directors of Cornucopia Resources Ltd. are pleased to announce that a positive feasibility study for the Mineral Ridge Mine, located near Silver Peak, Nevada, has been received from Behre Dolbear & Company Inc., one of the leading consulting firms in the mining industry.

A decision has therefore been made to proceed immediately with developing the project to production during the first quarter of 1997.

Ore reserves were calculated by Mineral Resource Development Inc., while Kilborn International Inc. designed the metallurgical plant and ancillary facilities and H,A. Simons Ltd. completed the pit designs. All of the above firms are well known in the mining industry for their integrity and conservative approach to mine development.

The Mineral Ridge project contains proven plus probable mineable reserves of 5,176,000 tons of ore at an average grade of 0.068 ounces gold per ton contained within several deposits. These deposits will be mined by open-pit methods with an overall stripping ratio of 4.32 tons waste to each ton of ore. Ore will be crushed to 100 percent minus 8 mesh in a 4-stage crushing circuit and will then be agglomerated and stacked on a permanent pad where gold will be recovered by standard heap leach methods. Gold recovery, based on extensive metallurgical testwork, is estimated to be 80.8% on a life-of-mine basis.

Processing facilities are designed for a production rate of 2,700 tons per day for 350 days per year. At this rate, the project has a 5 1/2 year project life given the current estimate of mineable reserves. On an annualized basis, gold production will range between 45,000 to 56,000 ounces per year. Further exploration and drilling will be initiated with a view to expanding reserves and extending the life of the mine.

Cash flow analysis over the mine life shows an estimated internal rate of return of 18.9% based on a gold price of $385 per ounce. The initial estimated capital cost is $16.4 million which includes preproduction operating expenses (pre-stripping, road-building, etc.), process facilities, and support facilities. Cash operating costs before income taxes, royalties, and refining costs are estimated at $222 per ounce over the mine life.

The Plan of Operations for the Mineral Ridge Project has been submitted to the Bureau of Land Management (BLM) as a first step in receiving operating permits for the project.

The Company also announces that it has retained the London Taylor Group to conduct a further market awareness program.

Cornucopia's common shares are listed on The Toronto Stock Exchange (CNP) and are quoted on the Nasdaq Small Cap Issuers Market (CNPGF).

Andrew F.B. Milligan President

CONTACT: Cornucopia Resources

Richard Roy or Dale Paruk, 1-800/436-4404 (IR)

or

Shareholder Hotline, 1-800/558-9035