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Fluor Daniel Awarded Cerro Vanguardia Project

Wednesday, May 28, 1997 08:08 AM

Fluor Daniel and SADE, an Argentine construction company, have been jointly selected by Cerro Vanguardia S.A., an Argentine company, to provide basic engineering, project management, engineering, procurement and contracting, and construction services for Cerro Vanguardia, a $237 million grassroots gold and silver mine and processing plant in the province of Santa Cruz, Argentina. The joint venture’s scope of work on the project is worth approximately $120 million.

A feasibility study of the area, completed in 1996, estimates mining reserves to be at 9.3 million tons, containing 2.7 million ounces of gold and 27.2 million ounces of silver. Production is scheduled to commence in mid-1998, with full production levels being reached by year-end. Employment levels for operations will peak at approximately 300 persons.

Fluor Daniel’s Mining & Minerals operating company, in conjunction with SADE, has begun design of the processing facilities and support infrastructure, which include auxiliary buildings, roads and services. "This is Fluor Daniel’s second major undertaking in Argentina, and we are extremely pleased to have been chosen to work on this project," said Phil Asherman, president of Fluor Daniel’s Mining & Minerals operating company. "Our continuing relationship with SADE and current work on the Minera Alumbrera project have provided Fluor Daniel with a strong platform for success, and we look forward to continuing to contribute to the economic strength and growth of this country as we take on more projects."

Cerro Vanguardia S.A. is a company with ownership shared by Fomicruz (Fomento Minero de Santa Cruz S.E.) with 7.5 percent, and the Minorco and Perez Companc Groups equally sharing the balance.

Fluor Daniel Inc., the principal subsidiary of Fluor Corporation, is a global engineering construction and diversified services company with more than 60 offices worldwide.

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