A subsidiary of Rayrock Yellowknife Mines (TSE) has signed an agreement concerning a joint venture on part of the Gold Bar claim block, owned by Atlas (NYSE).
Rayrock can earn a 60% undivided interest in 1,000 claims on the Gold Bar property by spending US$1.5 million on exploration and development within three years. In addition, it will provide an independent engineering report. After completing the earn-in requirements, Rayrock and Atlas will split additional costs on a 60-40 basis. The agreement is subject to property title, due diligence and definitive agreements expected by mid-October. Rayrock has also elected to participate in the development of the Daisy-Mother Lode property near Beatty, Nev. Affiliated company Inter-Rock Gold (ME) stated that Rayrock will participate at the 25% level. Inter-Rock is completing a mine evaluation of the Secret Pass on the Daisy property. A preliminary minable reserve for this oxidized gold deposit is 4.8 million tons averaging 0.023 oz. per ton. This would support a 4-year heap-leach operation yielding annual production of 20,000-25,000 oz. Inter-Rock is expected to complete the evaluation in September. Rayrock will then become operator of the Daisy-Mother Lode project and will reimburse Inter-Rock for 25% of the US$1.1 million in expenditures.
Meanwhile, Inter-Rock has started a 5,000-ft., 43-hole reverse circulation drill program at its Jefferson project in South Carolina. Drilling will be performed on several areas underlain by silicified and pyritic, altered volcanics and associated with soil and rock chip anomalies.
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