Rayrock Resources (RAY-T) has acquired the remaining 65% stake in the Daisy gold mine owned by sister company Inter-Rock Gold (IRO-T).
The property was purchased for a total of about US$1 million cash plus the cancellation of some US$2.8 million in associated debt.
Situated near Beatty, Nev., Daisy is projected to produce 32,000 oz. in 1998, of which Rayrock’s share will be 22,000 oz. The total estimated gold production attributable to Rayrock for 1998 will thus rise to more than 100,000 oz.
Drilling on the Reward orebody, adjacent to the Daisy mine, has increased reserves by 50%, to 1.8 million tons grading 0.042 oz. gold per ton (77,600 contained ounces gold), thus extending the life of the Daisy operations to at least 2002. The Reward structure remains open in both directions along strike.
Regarding the attempted takeover and liquidation of the company by Vancouver-based investment-company Quest Ventures, the Rayrock board has set aside Nov. 20 for a special meeting in which shareholders will vote on Quest’s plan to remove the existing directors and replace them with Quest nominees.
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