Roxmark encouraged at Geraldton bet

Results of the winter exploration program at the company’s Geraldton, Ont. property are encouraging, reports Roxmark Mines’ President Stanley E. Malouf.

Located in Errington Twp., the property includes the old Magnet mine shaft and underground workings. The Magnet operated from 1938 to 1951 during which time it processed 359,912 tons of ore grading 0.42 oz gold per ton.

Preliminary exploration was attempted on an open pattern of an area 1,000 ft north of the shaft. Here the offset portion of New zone encountered at depth below a major cross structure was expected to outcrop.

The New zone has been outlined by deepening the internal winze 2,400 ft west of the main shaft to 2,630 ft and by drifting after the mining operation at the Magnet had ceased in 1951.

Results of the drifting exposed widths of 10-25 ft for an explored length of 300 ft grading 0.30 oz with appreciable associated tungsten mineralization. In 1951 the net grade at the prevailing price was considered too low to reopen the mine.

Down drilling by Roxmark from the 11th level or 1,730 ft encountered this zone, but rake indications were steeper than anticipated, explains Dr Malouf. The current program was designed to locate the ore above the cross structure near surface.

Results from the program include:

Footage Feet Oz

777.0-778 1 0.23

150.5-152.5 2 0.28

672.9-673.8 1.1 0.103 2467.0-249.0 3.0 0.22

431.3-435.4 4.1 0.08

275.0-280.0 5 0.09

Exploration also included a series of holes below the Benedict diorite zone, about 1,000 ft north of the mine workings. The zone had been explored in the early mine history by nine shallow holes over a length of 875 ft with an average width of 7.4 ft. The indicated grade was 0.15 oz.

The east end of the explored zone is exposed in a crosscut on the second level or at 330 ft, about 1,200 ft west of the shaft.

Holes that encountered the zone in the current drilling program showed what may prove to be an improvement of grade with depth, says Dr Malouf.

Results from this program included:

Footage Feet Oz 211.7-225.0 13.1 0.34 275.0-282.0 7 0.24 618.6-626.7 8.1 0.34 229.6-323.1 2.5 0.16 348.0-354.1 6.1 1.38

(uncut) 348.0-354.1 6.1 0.68

(cut to 2 oz) 266.0-271.5 5.0 0.07 300.5-306.6 6.1 0.10

Dr Malouf anticipates that the east end of the Benedict zone will be defined from the Wells vein, 400 ft to the south on the second level. It will also be reached by long holes from the ninth and 11th levels, he says.

Roxmark has entered into an agreement with Alberta-listed Ateba Mines whereby Ateba can earn a 60% interest in Roxmark’s Geraldton property by spending $1.5 million on exploration. Expenditures contemplated involve dewatering the mine with hydro power, a surface and underground hoist and compressors together with 16,700 ft of underground drilling.

Ateba, with property at Beardmore, Ont., and milling facilities, arranged a flow-through share financing of $350,000 on surface exploration on the Roxmark property. It also completed $182,500 of Roxmark common share financing with a further take down of 715,961 shares at $143,192 following shareholders’ approval at the recent Roxmark annual meeting.

For the year ended Dec 31, tse- listed Roxmark posted a net deficit of $3.5 million, the same as in the year-earlier period. Cash and short- term deposits at year-end stood at $107,766 up from $582 in 1985.