Anyox interests widespread in exploration and production

In addition to an interest in four producing mines Anyox Metals (ASE), a junior mining-exploration- development company in the J. P. Sheridan fold, will be working on as many as 20 properties this year, shareholders were told at the annual meeting here.

The company has a 49% interest in a silver-gold property in Mexico where it recently completed a 200-ton mill from which concentrates are now being shipped. Millheads are averaging 10 oz silver and 0.05 oz gold, with the concentrate itself containing about 50% lead.

“We hope to achieve mining and milling costs of $14 per ton, which should prove quite profitable,” Sheridan said, adding that there is about a 10-year open pit ore supply on hand at the current mill rate.

But the company’s main interests remain its 1,258,592 shares (16.6%) of Madeleine Mines and 550,000 shares (13.9%) of Zenmac Zinc, both of which were reviewed in last week’s issue.

Anyox also holds 1,164,500 shares (25%) of Chiboug Copper Corp. (ASE) which owns a gold- copper property under active development by Minnova Inc. (TSE) adjoining that company’s Opemiska mine in Quebec. During the past year it produced 78,865 tons averaging 0.42% copper, 0.120 oz gold and 0.30 oz silver.

“The present management of Minnova has been unco-operative in providing us details of production, projections, etc., as did the former management of Corp. Falconbridge Copper. In addition, in a letter dated March 16, 1988, they informed us that the $160,000 paid to Chiboug Copper as its share of profits for 1986 was in fact paid in error and that the mine operated at a substantial loss in 1987. It is seeking repayment of the 1986 payout,” Sheridan told the meeting.

At Duncan Gold Resources’ (VSE) gold property in the Shining Tree area, an 8,000-ton bulk sample taken from an open pit last year averaged a disappointing 0.11 oz gold. Deeper drilling is now under way to determine if the grade of this breccia pipe improves with depth, in which case a decline will be put down.

Subject to a royalty interest, Anyox holds a 100% interest in the Wendigo mine property which was the largest gold producer in the Kenora area. A geophysical survey has indicated “excellent targets” which will be drilled this fall including probing for the extension of the main Wendigo ore zone, the meeting was told.

The company has also optioned the former Straw Lake Beach mine south of Dryden on which there is a 1,000-ft shaft and which produced some 45,000 oz gold in former operations. Exploratory drilling here is scheduled to commence shortly.

But the company’s main exploration efforts are being concentrated on the Timmins area where it holds 14 separate properties on which extensive drilling is to be carried out this fall. One of these, in Deloro Twp., has been incorporated under a wholly-owned subsidiary called Dayton Porcupine Gold Mines which is going public shortly. Anyox, as vendor, will retain 750,000 shares, with a planned offering of one million flow- through shares to finance a substantial drill program.