Anyox expands assets increasing exploration

A junior financing-exploration- development company with numerous irons in the fire, Anyox Metals has seen its assets expand rather dramatically of late. Consequently it is becoming much more active. “Our investment in Madeleine Mines appears to be a very fortunate one,” J. P. Sheridan, the company’s president and chief operating officer told shareholders who gathered here at the Canadian Lakehead for its annual meeting, a number coming from U.S.A. points.

Holdings include 1,341,900 shares (22.3%) of Madeleine Mines and 546,700 shares (14%) of Zenmac Zinc, both of which were reviewed in last week’s issue. More recently, it has acquired a 9% interest in San Paulo Explorations, a company that has just made a deal with Teck Corp. that could lead to a reopening of the highly regarded Leitch gold mine at Beardmore.

While most of Anyox’s activities and interests lie within Canada, it was announced at the meeting that the Mexican government has made a grant equivalent to $870,000(US) to bring the Promontorio silver-gold mine in a remote section of that country into production. Anyox, which manages this project, holds a 49% interest. A 200-ton mill is to be built, with production expected to commence the first quarter of 1988. “This is a first class open pit, grading 10 oz silver and 0.05 oz gold,” Mr Sheridan said.

The company has recently acquired full control and management of Duncan Gold Resources Inc. which has a small but good grade gold deposit in Ontario’s Shining Tree area. A 10,000-ton bulk sample is being mined from an open pit and shipped to the new custom mill of Diepdaume Mines at Timmins, another Sheridan company. If grade stands up, Anyox plans to either put down a ramp or shaft to explore the depth extension of this orebody.

(Diepdaume has enough ore contracted to keep its 500-ton mill operating at capacity to year-end and expects to soon announce a major new long-term custom milling contract that will call for increasing capacity to 800 tons per day, Mr Sheridan told The Northern Miner following the meeting).

With 10 separate properties, Anyox is one of the largest landholders in the Timmins area. These are currently undergoing preliminary geological and geophysical examination. At least two will see drilling programs this year. One of these, in Deloro Twp., is being incorporated into Dayton Porcupine Mines Ltd., and will be going public to raise sufficient money to fully test a known gold occurrence.

Anyox also expects to drill its 100% owned Wendigo mine property in northwestern Ontario, a former significant gold producer which it holds under a royalty deal. Very little diamond drilling was ever done on this property, which management regards highly.

Anyox also holds 1,164,500 shares (25%) of Chiboug Copper Corp. which has an interest in a producing gold-copper property being developed by the Opemiska division of Minnova Inc., the former Corp. Falconbridge Copper.

During the past year 163,230 tons were mined from this property averaging 0.128 oz gold and 0.35% copper from which Chiboug Copper received $160,000 under an arrangement that calls for 20% of the first $5-million profit and 7.5% thereafter. The current year’s return is expected to be at least as much as that for 1986.

There are 8,127,645 Anyox shares currently issued and listed on the Alberta Stock Exchange, with arrangements being made to have them traded on the nasdaq Pink Sheet as well.