SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
November 20, 1995
THE PITTSTON COMPANY
(Exact Name of registrant as specified in its charter)
Virginia 1-9148 54-1317776
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of Incorporation)
100 First Stamford Place
P. O. Box 120070
Stamford, Connecticut 06912-0070
(Address of principal (Zip Code)
executive offices)
(203)978-5300
(Registrant's telephone number, including area code)
Item 5. Other Events
Pittston Mineral Ventures Company ("PMV"), a
wholly owned subsidiary of the Registrant, announced today
that a joint venture of its Australian affiliate, Mining
Project Investors, Pty Ltd, has discovered a high-grade
deposit of nickel sulphide in Western Australia. Details of
the discovery are contained in PMV's press release dated
November 20, 1995, filed as an exhibit to this report and
incorporated herein by reference.
EXHIBIT
PMV's press release dated November 20, 1995
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
THE PITTSTON COMPANY
(Registrant)
/s/ Austin F. Reed
By____________________________
Vice President
Date: November 20, 1995
EXHIBIT INDEX
Exhibit
99 Press release dated November 20,
1995, of Pittston Mineral Ventures
Company
November 20, 1995
PITTSTON MINERAL VENTURES ANNOUNCES EXPLORATION SUCCESS
Stamford, CT - November 20, 1995 - Pittston Mineral Ventures
Company, ("PMV") a wholly owned subsidiary of Pittston Minerals
Group (NYSE-PZM), announced that a joint venture of its
Australian affiliate, Mining Project Investors Pty Ltd ("MPI"),
has discovered a high-grade deposit of nickel sulphide in Western
Australia. The deposit (named "Silver Swan"), owned 50% by MPI
and 50% by Outokumpu Metals and Resources Oy, has been estimated
at 440,000 metric tons grading 14% nickel with minor copper,
cobalt and arsenic values. The high-grade zone is open at depth.
In addition, the MPI/Outokumpu joint venture holds an extensive
land position where exploration is continuing in search of
additional high-grade zones, as well as to further define a
disseminated nickel zone adjacent to the high-grade zone.
A feasibility study on the Silver Swan shoot is expected to
be completed in the first half of 1996. Mining is planned to
commence in mid-1997 dependent on the results. Preliminary
studies are promising and suggest a production rate of some
10,000 metric tons per annum of nickel in concentrate to be
produced. Initial estimated capital requirements are in the
order of U.S.$35 million, while production costs are presently
estimated in terms of cost per pound of nickel to be among the
world's most competitive. Further details of the discovery are
contained in the attached announcement from MPI.
PMV owns a 34% equity interest in MPI (31% fully diluted)
and, consequently, has approximately a one-sixth net equity
interest in the deposit. MPI's share of capital costs are
expected to be funded from internal MPI sources.
Commenting on today's announcement, PMV's President, Karl
Kindig, said that "the discovery of this nickel deposit is
another milestone in Pittston Minerals' diversification strategy.
Coupled with the success of our Stawell Gold Mine, which has
increased its proven/probable recoverable reserves and inferred
recoverable resource from 236,000 ounces and 282,000 ounces,
respectively, in December of 1992 to 462,000 ounces and 312,000
ounces as of June 30 1995. The Silver Swan nickel discovery
provides further momentum to our strategy of becoming a
diversified minerals company with an increasing proportion of
growth coming outside the coal business."
Attachment
****************************
Pittston Minerals Group Common Stock (NYSE-PZM) and Pittston
Services Group Common Stock (NYSE-PZS) represent the two classes
of common stock of The Pittston Company, a diversified firm with
interests in coal and gold mining through Pittston Minerals
Group, security services through Brink's, Incorporated and
Brink's Home Security, Inc. and global freight transportation and
logistics management services through Burlington Air Express Inc.
ATTACHMENT
November 20, 1995
NEW HIGH GRADE MASSIVE NICKEL SULPHIDE MINERALIZATION
NEAR BLACK SWAN - WESTERN AUSTRALIA
Mining Project Investors Pty Ltd ("MPI") and Outokumpu Metals &
Resources Oy ("OMR"), through a 50:50 Joint Venture have
discovered a high grade massive nickel sulphide shoot on Mining
Lease 27/200 near Black Swan, 45km north-east of Kalgoorlie in
Western Australia.
The massive sulphide shoot has been named Silver Swan. It is a
steeply plunging body that commences 200 metres below ground
level and has so far been outlined to a vertical depth of 500
metres. To date 35 diamond drill intersections have been made
within the shoot on a grid of approximately 20 metres horizontal
by 50 metres vertical. The grade is remarkably uniform varying
between 12% and 16% nickel. The best drill hole achieved to date
intersected 24.5 metres and assayed 15.9% nickel.
A massive sulphide Indicated Mineral Resource has been estimated
at approximately 440,000 tonnes at 14% nickel with minor copper,
cobalt and arsenic values.
Drilling is continuing to explore the depth extension of the
Silver Swan Shoot.
The discovery is the result of an exploration initiative set up
in 1992 when MPI formed a strategic alliance with Outokumpu. The
Exploration Joint Venture is managed by MPI.
The strategic alliance will facilitate a fast-track development
of Silver Swan. Outokumpu's technical and marketing capacity and
MPI's Australian mine development and operating experience have
been brought together to ensure sound development.
Access to the mineralization will be by way of decline. Planning
for this decline is underway. The high nickel grade dictates a
high recovery selective mining method.
Initial metallurgical testing of drill core has demonstrated that
an attractive high grade nickel concentrate with very low
magnesia content can be produced. Further testing and discussion
with customers is required to develop an optimum product and
processing route.
Preliminary studies suggest a production rate of about 10,000
tonnes of nickel contained in concentrate per year would be
possible.
A decision on product and scale of operation will be made
following completion of the Feasibility Study in the first half
of 1996. Detailed mine design, as well as design and construction
of a processing facility, will then commence and the facility is
planned to be completed in time to commence processing ore in
mid-1997.
The capital cost of developing the project is likely to be in the
range of A$45-50 million and operating costs are likely to be in
the lowest quartile of world production costs.
The Manager of the project will be Black Swan Nickel Mines Pty
Ltd, a wholly owned subsidiary of MPI. The Marketing Agent will
be a wholly owned subsidiary of Outokumpu.
In addition to the work on the Silver Swan Shoot, the Joint
Venture has drilled twelve diamond holes into a disseminated
nickel sulphide zone which is adjacent to but separate from the
Silver Swan Shoot (on ML 27/200). Drilling to date indicates
that this disseminated sulphide zone extends over a vertical
interval of approximately 250 metres; a strike length of at least
100 metres (open to the south) and a horizontal width of
approximately 40 metres. Nickel grades over the full horizontal
width of the mineralization vary from 0.9 - 1.5% Ni. Exploration
and evaluation drilling of this zone is currently in progress.
The Joint Venture has a major land position and will continue its
aggressive exploration programme.
The Joint Venture also recently purchased the adjacent ML 27/39
which contains a disseminated nickel sulphide resource discovered
in 1970. This resource is known as Black Swan and has previously
been assessed by Australian Anglo American at 3,500,000 tons
grading 0.85% nickel and 0.04% copper.
Additional Information
1) The Silver Swan Shoot and adjacent medium grade
disseminated mineralization are located on Mining Lease
27/200.
2) Fodina Minerals Pty Ltd (a wholly owned subsidiary of MPI)
and Outokumpu Exploration Ventures have a right to acquire
a 100% beneficial interest in Mining Lease 27/200 by
completing a level of project expenditure and completing a
Feasibility Study. The first condition has been satisfied
and the Feasibility Study is expected to be completed
within the next six months. A royalty of 1.75% of Net
Smelter Return will be payable by Fodina and Outokumpu to
the current Silver Swan tenement holders.
3) Mining Project Investors Pty Ltd was established in 1992
as a private Australian company, owned on a fully diluted
basis:
- by Outokumpu Resources and Exploration Pty Ltd - 31%
- by Pittston Mineral Ventures Australia Pty Ltd - 31%
- by Private Investors and Management - 38%
MPI participates in a 50:50 Base Metals Joint Venture
with Outokumpu. The Base Metals Joint Venture is
focussed on nickel exploration in Western Australia.
Silver Swan is the Joint Ventures first success.
MPI also participates in a 50:50 Gold Joint Venture
with Pittston Mineral Ventures. This Joint Venture
owns the Stawell Gold Mine in Victoria and explores for
gold in Australia and the USA.
MPI is manager of both the Gold and Base Metals Joint
Ventures.
4) Outokumpu Oy of Finland is a world-wide, diversified
multi-metals company, with a total annual turnover of
about US$4.0 billion. Outokumpu's main business areas are
Base Metals, Stainless Steel, Copper Products and
Technology. Outokumpu Metals & Resources Oy is
responsible for the Company's base metals business area.
The Company operates world-wide in exploration, mining,
smelting and refining.