PIPELINE (CORTEZ JV)

The production at the property was approximately 267,800 ounces of gold.

Placer Dome has reported that the Cortez JV has commissioned an engineering prefeasibility study comparing the viability of treating carbonaceous, preg robbing ore from the Pipeline deposit using two new competing processes. One method uses a modified cyanide-based leaching process and the other uses a thiosulphate-based heap leaching process. Assuming a positive outcome from the prefeasibility study, on-site testing of the chosen process in a full feasibility study is slated for 2003. If successful, this alternative will reduce Cortez's need for off-site processing of carbonaceous ore, thereby reducing costs and increasing the potential to add resources. The company will explore the viability of using the new technologies at other sites as appropriate. In September, at the Getchell Mine a test-mining program at Turquoise Ridge and the high-grade N zone will be initiated to determine the viability of sustained production of 300,000 ounces per year from the mine. The Nevada operations are expected to produce 948,000 ounces of gold for Placer's share, accounting for 37% of the company's forecast global gold production of more than 2.5 million ounces in 2002.

Royal Gold has reported net earnings of US$0.4 million, or $0.02 per share on royalty revenues of US$2.8 million for the three months ended September 30, 2001. For the comparable period in 2000, the company reported net earnings of US$0.6 million, or $0.04 per share on revenues of US$1.5 million. Higher revenues reflect higher production at the Pipeline Mining Complex, in Nevada, and a step-up of Royal Gold’s royalty rate, which also resulted in higher depletion, depreciation and amortization costs.