Giant Pacific seeks funds for projects in Nevada and Mexico

Australian financier Chrisilios Kyriakou, who was ousted three years ago from the board of Pamour Inc., is making a comeback in the gold mining business.

Kyriakou’s private firm Walhalla Mining is planning to develop two low-grade gold projects in Nevada and Mexico after acquiring control of Vancouver oil and gas company Giant Pacific Petroleums (VSE). With Kyriakou as chairman, Giant Pacific will change its name to Red Rock Mining, sell the oil and gas interests, and file a prospectus for a $6-million offering. Giant Pacific is also looking for an experienced mining executive to run the day-to-day operations of the new company. Proceeds to the offering will finance exploration on the Amelia project in Mexico where Giant Pacific can earn a 70% project interest from Toronto-based Chutine Resources (TSE). After Giant Pacific has spent $1.2 million, Chutine can later back in for 50%.

While American Barrick Resources (TSE) dropped an option on Amelia earlier this year, Giant Pacific is hoping to prove up enough ore to support a heap leach mine capable of producing 80,000 oz. annually for less than US$200 per oz.

With about one million tons of proven reserves grading 0.12 oz. outlined, Giant Pacific hopes to complete a feasibility report and move toward recommissioning by mid-1992.

Before then, Giant Pacific expects to be in production at the Goldfield project in Nevada where private San Francisco company American Reserves can earn 50% by bringing the project on stream at 40,000 tons per month. Previous owner Forsayth Group of Australia ran into financial difficulties after spending US$11 million on the property and outlining proven reserves of 1.2 million tons grading 0.05 oz. gold per ton.

Kyriakou, who secured the Goldfield property from creditors of Forsayth, is looking for an initial production rate of 20,000 oz. annually, building up to 40,000 oz. within three years. He said the joint venture owns ore leases on 11,500 acres in the area and will spend US$1 million to expand reserves.