Nevada Goldfields, Minerex discussing rationalization (February 06, 1989)

The two companies have had their differences over the years but with Canada Tungsten Mining (TSE) now holding a control position in Minerex (46%), things appear to be changing. (CanTung has warrants to increase its equity position to over 50%).

Wayne Lenton, CanTung’s president, told The Northern Miner his company “looks at Minerex as our gold arm” and he said he could see CanTung’s placer gold mining operation in the Yukon eventually being rolled into Minerex. Last year the project yielded about 4,400 oz, he noted.

Lenton couldn’t say too much about the proposed rationalization other than to say, “It makes good sense in a small operation where you have so many actors and property holders that there may be some interest in rationalization.” (Incidentally, each operation is called the Aurora mine so agreeing on a name shouldn’t be a problem).

“Nevada Goldfields sits almost next door and has a cyanide mill. We have a heap leach operation and there are variations in our respective orebodies such that when we get high grades we would be better off to mill it, and when they get low grades they would be better off to leach it.”

Lenton confirmed that Jack Devitt, CanTung’s vice-president operations, has taken a similar position with Minerex. Elaborating on his appointment Lenton said: “What we are trying to do is bring in some good solid operating expertise and make it a better company.”

Contacted at his Denver office about the proposed rationalization, Alan Bell, Nevada Goldfield’s president, said he thought they were “there at least in principal.” He said parties involved in the two properties are trying to see “whether they can bring it down to some unit value for each other’s holdings.”

]]>