At the annual meeting of Exall Resources (TSE), held recently in Toronto, President Stephen G. Roman said the company is now in a secure financial position to actively seek opportunities in the mineral resource sector.
Exall has a cash balance of nearly $2.5 million and modest revenue from royalties on oil and gas producing properties. The company is currently looking at various new projects. Announcements regarding these will be made at sometime in the future, Roman said.
Exall recently received a favorable geological report from the firm Derry, Michener, Booth and Wahl on the potential of its Gold Eagle project adjacent to the Cochenour- Wilmar orebody in the Red Lake mining camp.
The Cochenour-Wilmar ground to the east of Exall’s claims was the site of a major exploration program by Esso Minerals, and a decision was recently announced by Inco Gold to go underground with an $8-$10 million exploration program. Exall owns 100% of the Gold Eagle property and is actively seeking a major partner to carry out a recommended 20,000 ft drilling program there.
The former Gold Eagle mine produced about 40,000 oz of gold between 1938 and 1941. The shaft had reached a depth of 1,000 ft when known ore was exhausted and the mine closed down. The property was briefly re-examined again in 1959, but about 10,000 ft of surface diamond drilling done at that time failed to produce any significant results.
Earlier this year, Exall and its parent company Denison Mines (TSE) sold their combined 41.5% interest in Sikaman Resources’ (TSE) Bogosu gold concession located in southwestern Ghana on the gold coast of Africa.
Roman said the company decided to take an early profit on its share of the Ghana project to concentrate on more easily accessible reserves.
“Our initial plan in Ghana had been to develop an early production from tailings retreatment and alluvials at the old Marlu workings. But after starting exploration, we found there wasn’t much gold in the tailings and the alluvials didn’t pan out either. The oxide ore had been largely mined out by previous operators. What started out as a $5 million project had turned into a much larger $50 to $60 million program to develop a deposit of a sulphide nature,” he said.
Exall realized a net gain of $929,731 from the sale of its 13.5% interest in Canadian Bogosu Resources a company incorporated under the laws of the Republic of Ghana to develop the Bogosu gold concessions.
Be the first to comment on "Exall seeking opportunities"