Roddy hopeful of increasing Bighorn reserves

A $500,000(US) exploration program designed to increase reserves at or near the Bighorn property in Arizona has been approved by the board of directors of Roddy Resources (TSE).

Current reserves stand at one million tons grading 0.06 oz gold per ton. Ore from these reserves is being mined and placed on a second heap-leach pad, preparatory to resumption of production at the property. The Bighorn project is capable of producing 1,000 oz gold per month.

The exploration program will focus on the zone south of the existing open pit, that zone to undergo stripping, mapping and sampling. Other targets include a zone north of the open pit, the Contact claims located further to the northwest where the mineralized extension of the Roddy ore zone was previously identified, a group of 113 claims known as the Black Pearl, and the recently-acquired 900 acres at the Cherry Hill property located 50 miles north-northwest of Wickenburg.

Operator of the Bighorn project is Belmoral Mines (TSE), which, under an agreement with Roddy, may acquire up to a 51% equity interest in the latter.

To finance the Bighorn exploration program, a private placement has been arranged between the companies involving the purchase by Belmoral of up to 467,640 shares of Roddy at $1.32(C) per share. The financing is subject to approval by Belmoral directors and regulatory authorities. .N6

** New U.S. mines being developed **

A research organization in the United States says there are 127 gold projects in that country in advanced stages of development, capable of turning out about 3.2 million oz of new production annually during the next few years.

Of that project total, 59 are in the reserves development stage, 32 in the feasibility stage and 36 in the pre-production stage, reports Metals Economic Group. The state of Nevada leads in the number of projects, amount of total contained gold and amount of expected new production.

Reported reserves at the 127 projects total 45 million oz (719.9 million tons ore averaging 0.063 oz gold per ton). Of the projects, 101 are open pit, 21 are underground, three are placers and two involve tailings.

The research company reports that in Canada, there are 156 projects at the advanced stage representing 45 million oz gold and capable of producing about 3 million oz gold per year. Of the 156 projects, 134 are underground, 17 are open pit and five involve tailings.

Metals Economic Group also reports a 1988 or 1989 startup date has been announced for 57 U.S. projects, with 29 of the projects coming onstream this year and representing combined annual output of 955,400 oz gold. The 28 mines scheduled for startup in 1989 represent total annual output of 1.56 million oz. Seven of the 57 mines will produce 100,000 oz or more annually.

Metals Economic Group is moving its administrative headquarters to Halifax, N.S., effective July 18. The company will retain its U.S. office in Boulder, Colo.