A net loss of $606,922 has been recorded by Calgary-based Royal Oak Resources for the 6-month period July 1-Dec 31, 1986. The company, which is changing its fiscal year to correspond to the calendar year, recorded a net loss of $38,929 for the first six months of 1986.
The company, President G. W. Oughtred reports, is focusing its 1987 exploration activities on the Maylac Option gold prospect located four miles north of Geraldton in northern Ontario and comprising 19 claims. Royal Oak may earn up to an 80% interest in the property, which has been worked previously, by spending $300,000 over three years.
The Maylac Option workings were dewatered earlier this year to the 225-ft level and programs of detailed geological mapping and chip sampling carried out. Initial results indicate that at present gold prices it would be uneconomic to mine above the 225-ft level; the company reports a surface drilling program will explore below that level.
At the Caviar Lake prospect located 35 miles southeast of Kenora, Ont., and comprising 32 claims, Royal Oak may earn a 75% interest by spending $100,000 over three years. The company reports the property is located five miles northwest of the Cameron-Dogpaw lakes area where Echo Bay Mines has decided to proceed with development of the Nuinsco Cameron Lake gold deposit.
The company is also involved in a grassroots exploration gold play, the Jem prospect, located in northern Ontario near Longlac.
The current price of silver is keeping the company from re- opening the Sandon, B.C., silver mine. Royal Oak management believes a price above $10(US) per oz would make the mine operation economical again.
In addition to its mineral division holdings, Royal Oak holds 27 producing and non-producing hydrocarbon properties in Alberta and Saskatchewan. Royal Oak is 49% owned by Commercial Oil and Gas.
Royal Oak raised $350,000 this year in a flow-through private placement.
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