Queries Rayrock drills Rembrandt’s Bellevista

My mother had 1,000 shares of Rembrandt Gold Mines (formerly 5,000 New Taku Mines) certificates dated Nov 10, 1981.

While Rembrandt was apparently delisted and written off as having no value, the issue has reappeared on The Northern Miner’s Alberta Stock Exchange tables. Could you give me the name of the present transfer agent and any information you have on this company? J.H., Lincoln, Neb.

Although the Rembrandt Gold issue is trading on the Alberta Stock Exchange at around $1.50, The Northern Miner hasn’t reported on this company since December, 1982.

At that time, Rembrandt was operating a 2,500-ac Bella Vista- Montezuma gold prospect 130 km southwest of San Jose, Costa Rica. Containing two separate mines, the Bella Vista and Montezuma, the property lies along a major fault line and was said to host 200,000 tons of possible reserves averaging 0.2 oz to 0.4 oz gold per ton.

However, after running into financial difficulties, Rembrandt vended a 10% interest in the property to American Energy for $375,847. As part of an agreement, American Energy was entitled to earn a 56% interest for bringing the property to production.

But American Energy couldn’t get the necessary financing and it was succeeded by New Horizon Resources which also ran out of money. While the property is still 87%-owned by Rembrant (Montezuma Gold holds 10% and Midland Energy 3%), a subsequent deal would have given Westlake Industries 40%, Midland Energy a 60% interest when the property is brought to production.

Under the terms of a more recent yet-to-be-approved agreement, Westlake will acquire Rembrandt’s 24% carried interest plus Montezuma’s 10% carried interest when production begins.

In return Rembrandt will slowly acquire a controlling interest in Westlake over the next 18 months.

If all of that sounds complicated, Rayrock Yellowknife Resources is adding more confusion to the issue by spending $1.5 million to prove up indicated reserves of seven million tons grading 0.10 oz gold per ton. In return for 5.2 million Midland shares, Rayrock is completing a fill- in drilling program and an independent report will follow in February.

According to Rembrandt President Vas Rotgans, proven reserves are sufficient for an output of 1 million tons annually and a notice of production is expected in the spring. With a 3,000-tpd production target, Rotgans says he is anticipating a minimum 7-year life span.

While Rembrandt’s share of the Montezuma/Bellavista prospect will remain at 87% if Rayrock fails to elicit production there, the former company still holds its 60-claim Tulsequah River gold property in northern British Columbia.

The 250-tpd operation closed in 1956 but with 150,000 tons of 0.4 oz to 0.5 oz gold still remaining, Rotgans said his company is looking for a joint venture partner to open what he hopes will be an open pit operation.

Following a deal with Nolan Mines, Rembrandt also has an option to earn a 50% interest in a Cassiar mining district gold property near Atlin, B.C.

Central Trust is currently operating as Rembrandt’s transfer agent. For more information write to Suite 708, Central Trust, 750 West Pender St., Vancouver, B.C. V6C 2B2.