Inter-Rock funds development at Daisy

Montreal-listed Inter-Rock Gold will raise $3.5 million to finance development at the Daisy gold project near Beatty, Nev.

The funds will be raised by offering units, the price of which will be established prior to the filing of the final prospectus. Each unit will consist of one common share and half a common share purchase warrant. A whole warrant will enable the holder to buy one Inter-Rock common share for an 18-month period at 25% above the unit price.

In addition to the offering, Inter-Rock and its wholly owned subsidiary, Secret Pass Gold, will use a US$3.5 million loan facility, made available to Secret Pass by the Rayrock Mines. Rayrock Mines is a wholly owned, U.S.-based subsidiary of Rayrock Yellowknife Resources (TSE).

Expenditures for the first stage of development are estimated at US$6.7 million.

Ownership of the project is split 65-35 between Inter-Rock and operator Rayrock Mines. The property covers 13.7 sq. miles of favorable geology, with five known deposits and minable reserves totalling 11.9 million tons at 0.018 oz. gold per ton.

The partners are completing a bio-leaching test on sulphide ores, results from which should be available in April. The process could boost minable reserves.

Permitting is expected to be completed this April, with construction of an open-pit, heap-leach mine scheduled to start shortly thereafter. Production is anticipated before the end of 1996 at an annual rate of 30,000 oz. The average cost is estimated at US$259 per oz.