Placer Dome Inc.

Placer Dome Inc.

July 08, 2005 18:06 ET

Placer Dome Provides Update on Strike at Zaldivar

VANCOUVER, July 8 - Unionized workers at Placer Dome Inc.'s (NYSE,
TSX, ASX: PDG) Zaldivar copper mine in Chile began strike action on July 4,
2005. The local authorities have now completed their initial inspections and
review of the mine's operational contingency plans. The plans have been
accepted subject to a temporary restriction limiting production to 120 tonnes
(265,000 pounds) of copper per day, or approximately one third of typical
daily production, until further site training of contract workers is
completed. Once the training is complete, the mine will request removal of the
restriction on production.

Discussions between the mine and the union re-commenced today.

Placer Dome employs 13,000 people at 17 mines in seven countries. The
Vancouver-based company's shares trade on the Toronto, New York, Swiss and
Australian stock exchanges and Euronext-Paris under the symbol PDG.

FORWARD-LOOKING STATEMENTS

This news release contains "forward-looking statements" that were based
on Placer Dome's expectations, estimates and projections as of the dates as of
which those statements were made. These forward-looking statements include,
among other things, statements with respect to Placer Dome's business
strategy, plans, outlook, long-term growth in cash flow, earnings per share
and shareholder value, projections, targets and expectations as to reserves,
resources, results of exploration (including targets) and related expenses,
property acquisitions, mine development, mine operations, mine production
costs, drilling activity, sampling and other data, recovery improvements,
future production levels, capital costs, costs savings, cash and total costs
of production of gold, copper and other minerals, expenditures for
environmental matters and technology, projected life of our mines, reclamation
and other post closure obligations and estimated future expenditures for those
matters, completion dates for the various development stages of mines, future
gold and other mineral prices (including the long-term estimated prices used
in calculating Placer Dome's mineral reserves), the percentage of production
derived from mechanized mining, currency exchange rates, debt reductions, and
the percentage of anticipated production covered by forward sale and other
option contracts or agreements. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
"anticipate", "project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause Placer
Dome's actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such forward-looking
statements, including:
- uncertainties and costs related to Placer Dome's exploration and
development activities, such as those associated with determining
whether gold or other mineral reserves exist on a property;
- uncertainties related to feasibility studies that provide estimates
of expected or anticipated economic returns from a mining project;
- uncertainties related to expected production rates, timing of
production and the cash and total costs of production and milling;
- uncertainties related to the future development or implementation of
new technologies, research and development and, in each case, related
initiatives and the effect of those on our operating performance;
- uncertainties related to the accuracy of our reserve and resource
estimates and our estimates of future production and future cash and
total costs of production;
- uncertainties related to unexpected judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and government
policies affecting our mining operations, particularly laws,
regulations and policies relating to:
- mine expansions, environmental protection and associated compliance
costs arising from exploration, mine development, mine operations and
mine closures;
- expected effective future tax rates in jurisdictions in which our
operations are located;
- the protection of the health and safety of mine workers; and
- mineral rights ownership in countries where our mineral deposits are
located, including the effect of the Mineral and Petroleum Resources
Development Act (South Africa);
- changes in general economic conditions, the financial markets and in
the demand and market price for gold, copper and other minerals and
commodities, such as diesel fuel, electricity and other forms of
energy, and fluctuations in exchange rates, particularly with respect
to the value of the U.S. dollar, Canadian dollar, Australian dollar,
Papua New Guinean kina, South African rand and Chilean peso
- the effects of forward selling instruments to protect against
fluctuations in gold and copper prices and exchange rate movements
and the risks of counterparty defaults;
- changes in accounting policies and methods we use to report our
financial condition, including uncertainties associated with critical
accounting assumptions and estimates;
- geopolitical uncertainty and political and economic instability in
countries which we operate; and
- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which we
operate mines, or environmental hazards, industrial accidents or
other events or occurrences that interrupt the production of minerals
in our mines.

A discussion of these and other factors that may affect Placer Dome's
actual results, performance, achievements or financial position is contained
in the filings by Placer Dome with the U.S. Securities and Exchange Commission
and Canadian provincial securities regulatory authorities. This list is not
exhaustive of the factors that may affect our forward-looking statements.
These and other factors should be considered carefully and readers should not
place undue reliance on such forward-looking statements. Placer Dome does not
undertake to update any forward-looking statements that are incorporated by
reference herein, except in accordance with applicable securities laws.

%SEDAR: 00002304E

Contact Information

  • Investor Relations:
    Greg Martin
    (604) 661-3795

    Meghan Brown
    (604) 661-1577

    Media Relations:
    South America:
    Felipe Ruiz
    + 56 2 370 5502

    North America:
    Gayle Stewart
    (604) 661-1911

    Toll-free within North America:
    1-800-565-5815

    Head office:
    Suite 1600, Bentall IV,
    1055 Dunsmuir Street
    (PO Box 49330, Bentall Postal Station)
    Vancouver, B.C.
    Canada, V7X 1P1
    Tel: (604) 682-7082

    On the internet:
    www.placerdome.com