Autumn testing date set for Goldex bulk sample

A bulk sample of 45,000 tons of stockpiled development muck from the Dubuisson Twp. gold property in northwestern Quebec will be tested this fall by Goldex Mines of Toronto.

President Paul Penna told the annual meeting the sample will be shipped to the new 2,000-ton-per- day milling complex of an associated company, Dumagami Mines, which is being prepared for operation in July. The Dumagami project is located in Bousquet Twp., 38 miles northwest of the Goldex property.

Cost of Goldex’s phase 2 exploration program now in progress is $6.5 million. Penna said a production decision is expected this fall following treatment of the muck sample. “We’ll have a better idea by Labor Day,” he said. Goldex’s future milling and refining requirements may or may not be met by Dumagami, Penna said, indicating Goldex has a number of options it could pursue.

The phase 2 program was started in March, 1987, and according to Penna, the property remains a “jigsaw puzzle” in its geology. “There’s just no pattern to it,” he said of the mineralization, adding that there are changes every 50 ft and at depth.

The program calls for further lateral development of the 1,100-ft and 1,250-ft levels, new development on the 800-ft level to explore the west zone and development to explore the vertical extension of the main zone. Drilling to the west and east of the main zone, and to depth, is also planned. Shaft in place The phase 1 exploration program undertaken between 1985 and 1987, at a cost of $6.9 million, included the sinking of a shaft to 1,5 00 ft.

Last October (prior to the stock market collapse), Goldex completed an offering of 1.2 million units, each unit consisting of one common share and one warrant, which netted the company about $5 million.

At the end of its fiscal year on Sept 30, 1987, Goldex recorded a deficit of $1.85 million.

Goldex has about 8.64 million shares outstanding. Agnico-Eagle Mines holds a 5-6% interest in the company, while an Agnico-associated company, Mentor Exploration & Development, holds a 3-4% interest in Goldex.