Ven`s ann. re: Becomes Largest Shareholder

Document date:  Tue 04 Aug 1998
Published:  Tue 04 Aug 1998 00:00:00
Document No:  164952
Document part:  A
Market Flag:  N

VENGOLD INC                                   1998-08-04  ASX-SIGNAL-G

HOMEX - Sydney                                                        

Vengold Inc announced today that it has purchased 61.3 million shares
of Lihir Gold Limited from Orogen Minerals Limited. This represents
6.5% of Lihir Gold and increases Vengold's interest in the project to
19%. The shares were acquired for AUD$67.5 million in cash and a non
interest bearing note payable to Orogen in the amount of AUD$78.2
million due December 31, 1999.

Financing for the AUD$67.5 million was provided by ANZ Investment
Bank in the form of a bank loan due August 4, 1999. The resources
group of ANZ Investment Bank provided financial advisory services to
Vengold for this transaction.

The Lihir mine in Papua New Guinea is expected to produce 600,000
ounces of gold in 1998 increasing to almost 800,000 ounces in 1999.
Cash costs are expected to be US$190 per ounce.

If you have any questions, please contact Ian Telfer or Robert
Gallagher at (604) 664-7050.