Rayrock boosts gold reserves (January 11, 1999)

Nevada gold miner Rayrock Resources (RAY-T) has substantially increased reserves at its three open-pit operations.

Total reserves at the wholly owned Dee and Daisy mines and 66.6%-held Marigold mine now stand at 15.56 million tonnes averaging 1.44 grams gold per tonne. The calculation is based on a gold price of US$300 per oz., is 73% more than that tallied at the end of 1997 and excludes ongoing calculations for Marigold, where another 4 to 4.3 million tonnes (based on the average grade for all three) are expected to be outlined from additional drilling results.

Currently, Rayrock cranks out 90,000 oz. annually from the three mines. At current production rates, the new reserves increase Daisy’s and Dee’s life expectancy to 2002, and Marigold’s to 2007. (Mining at Dee was scheduled to end in May, though production was expected to continue for another three years.)

Meanwhile, year-end reserve and resource calculations are continuing for the company’s Ivan copper mine in Chile. The company acquired that mine last summer through a merger with then-affiliated Minera Rayrock.

Exploration at Marigold is continuing, with further reserves expected to be outlined by mid-year. The remaining interest in that project is held by Homestake Mining (HM-N).