Joint Venture

RNS Number:7160K
Monterrico Metals PLC
06 May 2003







                             Monterrico Metals plc

              Newmont to drill Monterrico's Conaviri gold project


LONDON: 06 May 2003 - Monterrico Metals plc ("Monterrico") announces that it has
reached agreement with Newmont Peru Limited ("Newmont"), a subsidiary of the
world's largest gold producer Newmont Mining Corporation. Monterrico will grant
Newmont the right and option to acquire up to a 75% interest in Monterrico's
wholly-owned Conaviri gold project located in the Ocurviri district of the Puno
region in southern Peru (the "Property").

Under the general terms of a Letter of Intent, Newmont may earn an initial 60%
interest in the Property by spending a minimum of US$4,000,000 during the
initial four years. Newmont may elect to acquire a further 15% interest, and
increase its participation to 75%, by spending an additional US$6,000,000 over
the following two years for a total cumulative investment of US$10,000,000
before the sixth anniversary of this agreement.

The parties intend to negotiate a buy-out clause in the definitive Joint Venture
agreement for Newmont to purchase the entire Project for a fixed cash lump sum
based on a mutually acceptable valuation method and a royalty payment.

Conaviri consists of a 7,700 hectare contiguous block of exploration tenements
surrounded on all four sides by AngloGold's large land consolidation known as La
Rescatada project which is currently being drilled. Conaviri is a high-
sulphidation epithermal system interpreted as the south-east extension of the
gold mineralisation discovered by AngloGold. Newmont is committed to test the
resource potential at Conaviri with a minimum of 1,500 meters during the initial
12 months.

Substantial benefits for Monterrico include evaluation of a high priority
project at no cost to the company plus significant returns if a major deposit is
discovered. This arrangement will allow the company to concentrate its efforts
on its flagship project, the Rio Blanco enriched copper deposit in northern
Peru.

Mr Ray Angus, Chief Operating Officer, said "We are delighted to welcome Newmont
to participate in exploring the Conaviri property. The favorable geological
setting at Conaviri offers an opportunity for Newmont to apply their proprietary
expertise derived from the discovery, understanding, and mining of epithermal
vein and disseminated gold deposits. Monterrico will retain an interest in the
project through direct equity or a modest royalty. This arrangement unlocks
value at Conaviri without additional investment by Monterrico." 




                                      Ends

For further information:

Chris Eager, Chief Executive,
Monterrico Metals plc                        Tel: [phone]/ 
                                             Mobile: [phone]

Keith Irons, Bankside Consultants            Tel: [phone]/ 
                                             Mobile: [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

JVEAAMJTMMAMBAJ