Orex considering production start-up near access ramp

The area recommended for mining is 450 ft long, 160 ft wide and 170 ft high, Michel Roy, vice- president exploration, reports. This block is intersected by two crosscuts, levels 125 and 250, and numerous drill holes.

The block, Roy says, contains probable reserves of 1.15 million tons grading 0.18 oz gold per ton. It is the portion of the deposit from which most of the project data has been collected.

Orex, which bought out project partner Onitap Resources earlier this year, hired a consulting engineering firm to produce a feasibility study. Objective of the study was to define the first phase of the production start-up.

Project costs have been based on a 1,000-tonne-per-day operation. An Aug, 1990, start-up is suggested. Construction of a mill and installation of tailings ponds will cost an estimated $10 million. An additional $4.6 million would be needed for stopes preparation.

A longhole mining method is planned, at an estimated maximum production cost of $40 per tonne.

Roy says Orex is considering a $6 million public offering to cover development costs. Money for the mill and tailings ponds would have to be borrowed.

The second phase of the project would involve an open-pit operation. A new feasibility study is planned for this autumn, the study to focus initially on the reserve potential west of the access ramp.

Shares of Orex traded heavily on the stock market in July following release of new assay results from previously tested core samples from the Goldboro property.

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