NEWS ROUNDUP — Deak to reopen Kerr mine

Underground mining at the Kerr gold mine in Virginiatown, Ont., will be reactivated immediately, reports owner Deak Resources (TSE).

Although mining has been suspended since February, ore has nevertheless been custom-milled on a continuous basis. Ore from the mine will supplement mill feed from the adjacent Cheminis mine of Northfield Minerals (ASE) and from Deak’s Astoria mine near Rouyn-Noranda, Que.

Financing for the new start-up was arranged through a private placement of one million treasury shares at 27 cents each with 24-month warrants at 30 cents per share. A second private placement of one million shares at 30 cents each is scheduled for August.

Since 1938, more than 38 million tons of ore averaging 0.27 oz. gold per ton have been mined from the Kerr deposit, resulting in more than 10 million oz. gold.