Roman buying Exall interest

Stephen Roman, president of Exall Resources (TSE), has acquired an option to purchase Denison Mines’ (TSE) interest in Exall.

In a separate agreement, Exall has arranged a private placement of shares and warrants worth $600,000 to finance a pilot operation at its diamond and gold project on the Mazaruni River in Guyana.

If Roman buys 1.4 million Exall shares, the maximum amount available under the option, he will own 1.6 million shares, or 32%, of the junior. Roman Corp. holds 29.4% of Exall.

Roman said the company has recently drawn up a flow sheet and equipment list for a 1,000-cubic-metre-per-day pilot plant on the banks of the Mazaruni, and plans to begin construction later this month. The pilot operation will be used to determine the grade of gold and diamonds in the river bed. “We feel that we should be in production by the first quarter of 1993.” Several small dredges are currently operating on the Mazaruni River, but the local operators only recover about 5% to 10% of the diamonds, Roman said. Exall expects to realize recoveries of 80%.

The 14.5-km-long concession hosts an estimated 20-40 million cubic metres of mineralized gravels and is expected to produce gross operating revenues of US$100,000-200,000 per month during the pilot phase of the operation.