Pegasus Increases Gold Mining Reserves

Spokane-based Pegasus Gold Inc. said Tuesday that it has discovered 14 percent more gold reserves at its mines in Australia and around the world than it had at the end of 1994.

The company now has 5.3 million proven ounces of gold at its mines. Most of the new reserves came from the Australian Mount Todd mine owned by Pegasus subsidiary Zapopan N.L.

Proven reserves increased by 900,000 ounces since the end of 1994, the company said. The mine alone accounts for 3.6 million ounces of proven gold reserves. Pegasus owns 58 percent of Zapopan and the mine.

Pegasus also reported higher gold reserve estimates at its Florida Canyon Mine near Winnemucca, Nev., and at its Diamond Hill project in Montana.

The new reserves will help Pegasus grow and establishes the Mount Todd mine as a potential cornerstone for the future of Pegasus, said Werner Nennecker, president and chief executive.