Plexus’ Rawhide project to produce in April ’90

Plexus Resources Corp. (TSE), which holds a 24.01% interest in the property, says construction began after the signing of several project-related agreements amongst the participants.

Hosting reserves of 29.4 million tons grading 0.04 oz gold per ton, the Rawhide mine will be capable of producing 81,000 oz of gold and 377,000 oz of silver per year. The mine will have a 15-year operating life. A larger, lower grading reserve of 29.9 million tons of 0.015 oz gold is also on the property.

Kiewit Mining, which has an equity interest in the project, will be the project construction contractor. Kennecott will be the mine operator.

Plexus is earning its interest by providing 49% of the pre-production capital. Financing has been arranged with Elders Resource Finance, an Australian merchant bank, which is providing a credit facility of $26 million. This currency loan can be converted, at Plexus option, to a gold loan amortized over a 5-year period. The company has also purchased a 2.45% royalty interest in the mine.

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