Re-activated just over one year ago, Exall Resources (TSE) now has more than 20 employees operating out of its Mexican office, Vice-president of Exploration Peter Holmes told shareholders at the annual meeting.
An agreement whereby Exall acts as an agent for American Barrick Resources (TSE) has allowed the junior to increase its technical staff and will add about US$480,000 to its coffers this year, he said.
Under the agreement, which runs until the end of 1993 but can be extended, Barrick pays Exall to seek out large gold deposits in Mexico. If a property is accepted, Exall is carried through to completion of a feasibility study. The junior can retain a 25% working interest or opt for a 15% net profits interest after feasibility.
Alfonso Rosas, president of Exall’s Mexican subsidiary, said that, of the 14 projects under review, Barrick has so far selected one for joint venture. The partners will explore the “Alpha” project in the northeastern state of Zacatecas this year, he said. Previous work outlined low-grade gold mineralization within a quartz-monzonite porphyry.
To generate early cash flow, Exall will begin production at its Rio Yaqui placer gold deposit in Sonora this August. Using a gravity concentrator specifically designed for the “flaky” Yaqui gold, Exall expects to produce about 15,000 oz. per year for three years at an average cash cost of less than US$100 per oz.
The company also plans to begin production at its Mazaruni alluvial gold-diamond deposit in Guyana by year-end and at its Santo Tomas porphyry copper deposit in Mexico by 1995.
“We are a technical group,” Rosas told shareholders. “We concentrate on the economic potental of a project — you might not believe this, but this is something new in Mexico.”
Be the first to comment on "Exall increases technical staff in Mexico"