Roxmark drilling in Geraldton area

Drilling has started with two rigs on the Geraldton, Ont., holdings of Toronto-listed Roxmark Mines.

Approximately, 10,300 ft of surface drilling is scheduled for completion by Feb 28, 1987, President Stanley E. Malouf tells The Northern Miner.

This follows a recently completed financing arrangement between Roxmark and Alberta-listed Ateba Mines that sees $2,175,692 slated to be spent on the holdings.

The financing involves $675,692 of private placement arranged by Ateba at an average price of 19 cents per share. Some $462,500 is on hand including $350,000 of flow-through share funding at 20 cents per share and $112,500 of Ateba funding at 15 cents per share.

The balance is under option to Ateba mines at 20 cents per share due Jan 31, 1987, and includes the right to earn 60% interest in the Roxmark property by the expenditure of $1.5 million over a 2-year period starting April 30, 1987.

Expenditures by Roxmark to Oct 31 this year have been $3.6 million, and were largely directed to the Geraldton property.

Dr Malouf says that Ateba has an agreement to acquire a 50% interest in a private company called Norben Gold Resources which in turn has an agreement to acquire 75% of a 200-ton-per-day mill situated on the Northern Empire property at Beardmore, Ont., west of Roxmark Mines.

The mill, constructed in 1980 by Pancontinental Mining, operated until 1983. It is fully operational and contains both flotation and cyanide circuits.

Norben expects to add a pre- concentration unit capable of upgrading gold ore to four or five times its original grade.