Rayrock awaits results from Marigold discovery

The company owns a 23.3% interest in the project along with joint venture partners Corona Corp. (TSE) and Placer Dome (TSE).

Earlier this year, Rayrock announced the discovery of a new gold zone known as the Stonehouse deposit at the northern end of the 30-sq-mile property. “Early indications are that this deposit could be considerably larger than the 8-south deposit being mined at Marigold,” said David Hutton, Rayrock’s vice-president of exploration.

A major follow-up core and reverse circulation drilling program is being planned, he said.

To the end of October, 50 vertical holes were completed with economic grade mineralization encountered in 90% of the holes, according to Rayrock. The holes tested an area of roughly 1,800×1,200 ft which is still open in all directions.

Elsewhere on the property, the company began production at the 60,000-oz-per-year Marigold mine in September.

From all operations, Rayrock’s total share of gold production for the first nine months of this year amounted to 23,914 oz, compared with 26,947 for the same period a year ago.

Gold production was lower than expected due to a start-up delay at the Marigold mine and decreased grades and recoveries at the Dee and Preble open pit gold mines in northern Nevada. Operating costs increased to $208(US) per oz, compared with $183(US) per oz last year as a result of the lower production.

Net earnings for the 9-month period were $2.85 million or 29 cents per share, compared with $4.40 million or 45 cents per share last year. The decrease in earnings resulted from lower gold production and depressed bullion prices, combined with operating losses from the company’s ammonium sulphate operations.

]]>