Recommence Gold Mining at Ref

RNS Number:0025T
Bema Gold Corporation
08 December 2003


                                  News Release

           Bema and Kinross Plan to Recommence Gold Mining at Refugio

Vancouver, British Columbia, December 4, 2003... Bema Gold Corporation (TSX,
AMEX-BGO, AIM-BAU) ("Bema") and Kinross Gold Corporation (TSX-K; NYSE-KGC)
("Kinross") are pleased to announce that their respective boards of directors
have approved the recommencement of gold operations at the Refugio heap leach
mine located near Copiapo, Chile.

Compania Minera Maricunga ("CMM") owns the Refugio mine and is owned 50% by Bema
and 50% by Kinross. The Refugio mine had been placed on care and maintenance in
May 2001 due to low gold prices and has produced declining amounts of gold from
residual leaching of existing heaps since that time. During the past year, a
56,000 metre drill program was successful in expanding reserves to justify a
greater than 25% expansion of daily throughput compared to historic production
levels. Initially the Verde pits are scheduled to produce 40,000 tonnes of ore
per day which will be crushed and placed on the leach pads. Subsequently the new
Pancho pit, expected to be mined at 35,000 tonnes of ore per day, will extend
the mine-life to approximately 10 years at an assumed gold price $350 per ounce.
Life-of-mine annual gold production is expected to range from 230,000 to 260,000
ounces on a 100% basis at total cash costs averaging approximately $225 per
ounce.

Production is expected to recommence late in the fourth quarter of 2004. Initial
capital costs on a 100% basis for the expanded project are estimated at
approximately $71 million to repair and replace critical components of the
existing infrastructure, increase reliability, improve serviceability and
provide a safe and efficient work environment. In addition, a new mining fleet
will be purchased and is anticipated to be financed through a capital lease of
approximately $30 million. Major capital items include plant modifications and
upgrades, a modest pre-stripping program and 110-kilometre power line, connected
to the Chilean grid, which will replace the previous diesel generated power.
Bema is currently evaluating various financing options including project debt
and convertible debentures for its 50% of capital requirements.

The combination of improved gold prices and expanded reserves have resulted in
robust economics for the expanded project. At the base case gold price of $350
per ounce, the proven and probable reserves (100% basis) are estimated at
124,054,000 tonnes at a grade of 0.86 grams of gold per tonne for 3,433,000
ounces of gold. The base case project economics indicate a pre-tax internal rate
of return ("IRR") of almost 22% and a payback of approximately 3.8 years. The
sensitivity analysis of the project economics yields an IRR of approximately 34%
and a payback of 2.6 years at the current gold price of $400 per ounce.

The Qualified Persons under National Mining Instrument 43-101 are W. Hanson,
P.Geo and R. Cooper, P.Eng, both of Kinross. For further information on Bema
please email [e-mail] or visit our web site at www.bema.com. To
speak to a representative of the Company please contact:

Ian MacLean                               Derek Iwanaka
Manager, Investor Relations               Investor Relations
[phone]                            [phone]

The Toronto Stock Exchange neither approves nor disapproves the information
contained in this News Release. Some of the statements contained in this release
are forward-looking statements, such as estimates and statements that describe
the Company's future plans, objectives or goals, including words to the effect
that the Company or management expects a stated condition or result to occur.
Since forward-looking statements address future events and conditions, by their
very nature, they involve inherent risks and uncertainties. Actual results in
each case could differ materially from those currently anticipated in such
statements.




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

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