Casmyn ups gold resources to 5m oz.

Junior Casmyn (USOTC) is preparing to expand its mining and milling operations in Africa.

The company, which owns the Turk mines in Zimbabwe, was able to close a US$9.7-million private placement, arranged by IBK Capital.

A recent discovery at the Turk mine, situated north of Bulawayo, has increased overall gold resources there to 5 million from 3.7 million oz., and the company plans to continue exploration there with additional drilling.

Mineralization remains open on strike and at depth.

Casmyn, as a result of the discovery, has increased its yearly production target and now expects to produce 30,000 oz. this year, 50,000 oz. in 1997, and 100,000 oz. in 1998. Cash production costs are expected to be between US$225-250 per ounce.

Though the mill is working at only 20% capacity, the company produced almost 500 oz. during the first week of April.