Exall hits more gold at Glimmer mine — Glimmer Resources poised to take over as operator

Efforts to expand reserves at the Glimmer mine near Matheson, Ont., have borne fruit.

In an underground drill hole, Exall Resources (EXL-T) hit an interval assaying 159.09 grams gold per tonne over 8 metres. The hole was collared 25 metres from hole 218, where Exall had intersected 29.84 grams gold per tonne over 21 metres.

When cut to 34.2 grams gold per tonne, the above two intersections average 24.49 grams gold over 8 metres and 9.94 grams gold over 21 metres.

Says Exall Chairman Stephen Roman: “Cutting high-grade assays to this degree gives Exall a very conservative reserve base.”

Nonetheless, he expects the ongoing exploration program to increase minable reserves, which were recently pegged at 731,169 tonnes grading 12.9 grams gold. The deposit remains open at depth and along strike.

Since the mine began producing at its rated capacity of 65,000 oz. per year in August, cash production costs have averaged below the budgeted US$220 per oz. The total amount of gold poured in July, August and September was 30% above Exall’s forecast, Roman says.

The Glimmer mine, which first poured gold in April, is a joint venture of Exall and Glimmer Resources (GME-V). In accordance with the companies’ joint-venture agreement, Exall’s majority interest had enabled it to assume operatorship of the mine. However, a recent Ontario Court (General Division) decision on a dispute over the parties’ contributions to the joint venture came down in favor of Glimmer.

According to Glimmer President Richard McCloskey, that decision means that Exall’s position in the joint venture will be considered diluted to such a degree that Glimmer will have majority ownership and the right to take over as operator. Before that happens, however, several issues related to the court case must be decided.