A plan to bring Rhyolite Resources back to life should result in gold production in the new year. The company plans to bring its gold-copper property on Texada Island in British Columbia back into production. The existing mill, rated at 50 tons per day, is presently being upgraded to 200 tons per day.
Robert and Anthony Papalia have been appointed to the board of directors of the company. The two earned a 50% interest in the property and mill by expending $200,000 in 1989 and have provided the company with additional funds to bring the property into production.
The funds, totalling $449,000 to date, will be paid back out of production revenues.
Commissioning of the mill is scheduled for February, 1991, with mill feed expected to grade about 0.5 oz. gold per ton and 2% copper.
The company uncovered two vertical shear zones on surface, about 10 ft. and 75 ft. wide respectively over a strike length of about 200 ft. Drilling is planned for mid-January to test the zones at depth and along strike.
The Vancouver Stock Exchange ceased trading in Rhyolite on November 10, 1989; it last traded at the 10 cents level. The company plans to reactivate the listing. A shareholder meeting on July 11, 1990, approved a 1-for-5 consolidation of Rhyolite’s outstanding capital resulting in 2.9 million shares outstanding. The company also plans to change its name to Consolidated Rhyolite Resources.
Rhyolite recently negotiated a private placement with Metals Research of 700,000 units at 35 cents each. The units include a share plus a warrant which gives the holder the right to buy an additional share at 35 cents in the first year, increasing to 40 cents in the second year.
On a fully diluted basis the placement will give Metals Research a 44% interest in the company.
Rhyolite is also seeking approval from the Vancouver Stock Exchange for an additional private placement of 1.3 million units on the same terms with Metals Research.
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