Goldex agrees to expand Dubuisson Twp. interests

The Goldex Extension and Thompson River properties, which Goldex has optioned from Val d’Or- based Ormico, are contiguous to the east and west of the former company’s Dubuisson Twp. gold property.

After running a 37,000-ton bulk sample through the Joutel, Que., mill of associate Angico-Eagle Mines (TSE), Goldex decided that Dubuisson grades were insufficient to support a viable mining operation.

With 857,851 tons grading 0.073 gold per ton of proven reserves in the Main zone, the company has opted to concentrate on further exploration rather than development at Dubuisson, according to spokesman Barry Landen.

Under the Ormico agreement, Goldex can earn a 60% management agreement by making a single $50,000 cash payment and spending $400,000 on exploration over five years. The agreement also allows Ormico to retain a 40% interest or be diluted down to a minimum 20% net profits stake.

With $2 million budgeted for exploration this year, Goldex is focusing on the down plunge extension of three known mineralized areas of the Goldex Main zone which lie above the 1,250 level.

According to Goldex, a new environment of mineralization where the Main zone trend intersects two major shears was encountered during recent drilling. Values encountered in shear zones so far include 40 ft of grade 0.04 oz, 8 ft of 0.25 oz and 22 ft of 0.05 oz.

Additional exploration from surface and underground will also focus on an area north of the mine workings on Goldex and Ormico’s ground, Landen said. “This area is currently being reviewed after gold values have been intersected in shear zones up to 1,000 ft from the mine workings,” he said.

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