Ennex still needs permits at Scotland-based gold bet

Encouraging results have been reported from a number of international exploration projects held by Ennex International.

A loss of $341,000 or 41 cents per share was recorded by Ennex during the six months ended June 30 compared to a loss of $120,000 or 22 cents per share at the same time last year.

Gold production from Ennex’s 20%-owned Tower Hill mine operation in Western Australia and 21%-owned Little Bald Mountain mine in Nevada was 7,581 oz during the recent second quarter and 12,207 oz for the first six months of 1988.

The company’s working capital position declined to $9.1 million at June 30 compared to $13.2 million at the same time last year.

An increase in first half revenues to $1.6 million compared to $431,000 last year was due to increased gold production in Nevada and oil and gas production from the company’s 50.4%-owned New Mexico subsidiary.

Ennex said initial underground development and a 412-m exploration adit at the company’s Curraghinalt gold property in the Sperrin Mountains of Northern Ireland was recently completed.

The high grade T17 structure was intersected and is represented by a 2.07-m section which averaged 0.67 oz gold per ton and indicates a significantly higher grade then surface drill holes in this area.

Ennex is currently drifting laterally on the main ore bearing structures.

After outlining 525,000 tons of grade 0.22 oz gold and 1.67 oz silver at the Cononish project in Scotland, Ennex has submitted planning applications for two adits. The first is for carrying out underground exploration to develop additional ore reserves.

The other is designed for tunnelling along the main gold-bearing structure to confirm continuity of the ore zone and provide bulk samples for metallurgical and engineering studies.

A feasibility study is also under way at Ennex’s 30%-owned South Mercur property in Utah where 1.4 million tons of mineable reserves is under development.