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NDY`s ann: Sale of Big Bell

Document date:  Fri 08 Oct 1999
Published:  Fri 08 Oct 1999 00:00:00
Document No:  123300
Document part:  A
Market Flag:  N
Classification: 

NORMANDY MINING LIMITED                       1999-10-08  ASX-SIGNAL-G

HOMEX - Adelaide                                                      

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Agreement has been reached to sell the Big Bell Consolidated gold
operations, near Cue in the Murchison Province of Western Australia.

The agreement, with New Hampton Goldfields Limited ("New Hampton"),
is on a walk-in-walk-out basis and includes all assets relating to
the Big Bell gold mine, treatment plant0
 and associated properties.
The total consideration, $12 million plus a minimum 50 million New
Hampton shares (current market value approximately $17 million), is
expected to result in a modest gain on the written-down book value.

The transaction, which also includes Normandy's residual 40 percent
interest in two exploration joint ventures with New Hampton on the
Hampton Locations, south of Kalgoorlie, is conditional upon approval
by New Hampton shareholders. 

A major restr0
ucture of Big Bell Consolidated has been ongoing for the
past six months with operational performance for the September 1999
Quarter (49,789 ounces at a total cash cost of $350 per ounce,
unaudited) a marked improvement on the previous year. However, the
efficient use of capital dictates a priority resource allocation to
properties with superior expansion or development opportunities
(Pajingo, Tanami, Wandoo, Yamfo-Sefwi and Perama).

The sale of Big Bell Consolidated continu0
es the process of
rationalisation and simplification which has seen ten Normandy mines
sold or closed in the past eighteen months - including, recently,
Kaltails and White Devil - with the focus firmly on building a
portfolio of stronger, larger, longer life operations.


I G Gould 
GROUP MANAGING DIRECTOR

Enquiries concerning this report may be directed to: 
C G Jackson - Executive General Manager - Corporate 
Telephone: +6 1 8 8303 703 Facsimile: +61 8 8303 1994

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