A production decision could come in the new year for the Simkar gold project near Val d’Or, Que., Ronrico Explorations’ (VSE) President Donald Kemp told shareholders at the company’s annual meeting in Toronto.
Based on in-house calculations, the company says reserves at the Simkar property are currently estimated at 500,000 tons grading 0.20 oz gold per ton.
Ronrico’s consulting geologist, Nelson Baker, says drifting is continuing in the property’s east zone at the 375-ft level. Encouraging results have been encountered and the company is planning a crosscut to intersect the east zone below the 375-ft level. Raising will also be carried out soon to further test mineralization in the zone, Baker said.
Ronrico has earned a 50% interest in Simkar property by spending $7 million on exploration over the past year. Future costs are to be shared equally with joint venture partner, Louvicourt Gold Mines (COATS).
Kemp said Ronrico is not currently planning any additional flow- through share financings. The company is forecasting revenue of about 8 per share next year from natural gas sales alone. In July, Ronrico reached an out-of-court settlement on its Freestone Cty. oil and gas wells in Texas.
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