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ALTA GOLD REDUCES MAJOR INDEBTEDNESS

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Using depressed gold prices and income from forward gold sales to its advantage, Alta Gold Co., 2319 Foothill Drive, has reduced its major indebtedness from $29.7 million to $15.7 million.

Dan S. Bushnell, chairman and chief executive officer, said the company paid off a high-priced gold loan by using low-priced gold purchased on the open market.Bushnell said the strategy results in the elimination of gold loans by converting them to cash loans. Alta Gold had borrowed 72,325 ounces as gold loans, and the equivalent ounces now under the cash loan would be 43,709.

As announced earlier, the depressed gold market prompted company officials to implement various cost-cutting measures, such as a reduction of manpower, and curtailment of mining operation in lower grade deposits.