Rayrock to expand mines in Nevada

Toronto-based Rayrock Yellowknife Mines (RAY-T) plans to expand two of its gold mines in Nevada.

The expansions at Dee and Marigold, combined with the start of production at its 35%-owned Daisy mine, are expected to boost Rayrock’s production to 123,000 oz. in 1997 from the 105,000 oz. projected for this year.

At the wholly owned Dee mine, Rayrock will deepen and expand the pit northward, following an agreement with its neighbour, Meridian Minerals.

Under the agreement, Rayrock will pay Meridian a 5% royalty for any gold mineralization found on Meridian’s property.

The pit expansion, to take place in two phases, would increase annual production to 60,000 oz. gold over a mine life of seven years.

At the 66.7%-owned Marigold mine, Rayrock will expand the East Hill pit after a recent drill program extended deep mineralization between the East Hill and Ridge zones. Mostly as a result of this program, Rayrock has increased its reserve estimate for Marigold to 648,000 from 528,000 ounces of contained gold.