Roxmark updates Premier Golds progress on Geraldton Projectadmin
Roxmark Mines Limited provided an update on the status of the joint venture agreement with Premier Gold Mines Limited (TSX- PG) in which Premier has nearly more than doubled minimum required exploration expenditures over the past 12 months.
In September 2007, a letter of intent was signed with Premier to explore and earn interest in certain gold properties (known as the Geraldton Project) held by Roxmark in the Geraldton Camp of the Beardmore-Geraldton Greenstone Belt of Northwestern Ontario.
Under the terms of the agreement, Premier, as operator of the joint venture, can earn a 51% interest in the Geraldton Project over four-year period by incurring $7 million in expenditures (including a firm commitment of $2.5 million in the first 12 months) to advance highly prospective gold properties and by making cash advances and issuing shares of Premier to Roxmark.
Over the past year, Premier has carried out an extensive drilling program using up to three drill rigs to complete 91 holes totaling more than 34,000 metres of diamond drilling, in addition to a geological and geophysical surveys. Expenditures to date on the Project are in excess of $6.1 million and Roxmark has received $200,000 in cash advances (out of the proposed $500,000) and 200,000 shares of Premier (out of proposed 250,000) valued at approximately $480,000.
Immediately after completing the earn-in period by completing $7 million in expenditures, Premier will have the right to increase its interest to 70%, carrying Roxmark at 30%, by making additional cash advances of $250,000 and issuing to Roxmark additional 150,000 shares of Premier. This would make a total $750,000 of cash advances and 400,000 shares of Premier, valued at about $960,000, based on the current share price.
The Geraldton Project is located in the heart of the Beardmore-Geraldton Greenstone Belt, a promising high-grade gold district that has seen relatively little exploration over the past several decades. The Project area covers several kilometres of some of the most strategic ground in the region and is host to past-producing mines and numerous exploration targets in a district that has more than 4.1 million ounces of historic gold production.
Drilling has been carried out on the Magnet Mine property and on the Little Long Lac Mine Property. Drilling results were announced in several news releases dated January 22, 24 and 25, March 3, April 1 and 16, May 6, 27 and 29 and June 26, 2008.
Little Long Lac Mine Property
Drilling on the Little Long Lac Property has intersected multiple, near surface, mineralized vein zones, including a minimum of six potentially important vein zones: The Kailey Zone, Main Zone, the No.9, No.10 Vein Zones and two new zones, named No.11 and No.12 Vein Zones.
The newly discovered Kailey Zones are a bulk tonnage resource proximal to the north and parallel to the historic Little Long Lac Gold Mine. Drilling in the Kailey Zone has identified parallel horizons K1 North and K2 South and has cut off the horizon to the east with mineralization remaining open primarily down plunge to the west. Intersections were previously reported in the range of 0.63 to up to 7.07 g. Au/t.
It is anticipated that a NI43-101 report will be completed shortly on the resource for this project.
In addition to the Kailey zone, high-grade gold mineralization occurring in several parallel vein zones is being tested in an area located approximately 300 metres to the southeast. The primary target of these veins is the No.9 and No.10 Vein Zones, which continue to provide consistently significant results as high as 254.8 g. Au/t (7.44 opt) over 0.3m and 60.88 g. Au/t (1.78 opt) over 1.0m.
The Little Long Lac Main Zone saw the production of more than 600,000 ounces of gold during the period 1934-53 at an average grade of 11.66 g. Au/t.
Magnet Mine Property
Drilling on the Magnet Mine was directed to test the Benedict (North and South) zone, The “Stan” Target and the newly discovered high-grade zone named the “Highway” Zone. The zones remain open in all directions. The latest results from drilling at the Magnet Gold Mine were announced on April 1, 2008 outlining a discovery of Highway Zone that has returned numerous significant intersections including 67.08 g. Au/t across 2.0m. The Highway Zone is located approximately 110 metres under the Trans-Canada Highway, immediately south of the historic Magnet Gold Mine. Drilling on the Benedict Zone intersected gold mineralization including 10.22 g. Au/t (0.30 opt) over 2.5m and 8.14 g. Au/t (0.23 opt) over 2.0m. The Magnet Mine is serviced with a shaft and winze to 2,640 feet. The property is equipped with a headframe, production hoist, compressors, generator, hydro substation and other equipment and facilities.
Stephen McGibbon, P.Geo. is the Qualified Person for information on Project drilling results contained in this news release and is a Qualified Person within the meaning of National Instrument 43-101. Core from Geraldton is sent to Accurassay Laboratories, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.
In its Beardmore Camp, Roxmark has completed its second diamond drilling program for the year, delineating gold mineralization in the Nortoba-Tyson property and plans to announce results as soon as assays are completed. A 43-101-compliant report on resources at the Northern Empire Mine is close to being completed and will also be issued soon.
The Beardmore Camp is situated near the Town of Beardmore, approximately 200 km northeast of Thunder Bay and is serviced by the Trans-Canada Highway. Accessibility of all Roxmark properties in both Beardmore and Geraldton Camps is a strong cost and logistical advantage.
Roxmark Mines Limited is the leader in gold and molybdenum exploration and development in the historically significant Geraldton-Beardmore area of Northwest Ontario. In recent years, Roxmark has generated cash flow from bulk-sampled gold and molybdenum processed at its 200 TPD (expandable to 500 TPD) fully-permitted mill and has the advantage of infrastructure from six formerly highly productive gold mines located on its properties. These mines previously produced nearly two million ounces of gold from high-grade ore but were closed primarily due to dramatically lower gold prices at the time and to boundary issues, since eliminated.
Further information is available on the Company’s website at www.roxmark.com