Roxmark expands its landholdings in Geraldton area

Toronto junior Roxmark Mines (TSE) has recently concluded agreements on two gold properties near Geraldton, Ont.

In one deal, Roxmark, through its subsidiary Beaurox Mines, has purchased Ateba Mines’ (TSE) interest in the former producing Magnet mine in Errington Twp., Ont. Ateba acquired an interest in the Magnet mine through a joint venture with Roxmark in the late 1980s. Under the agreement, Beaurox will discharge Ateba’s debt to Roxmark and the private European Mining Finance Company for a 1% NSR on the first 350,000 tons of ore processed from the mine. From 1938 to 1951, the Magnet mine processed 395,910 tons grading 0.42 oz. gold per ton. Current preliminary reserves at the mine are about 678,000 tons at 0.24 oz. gold.

In the other agreement, Roxmark has purchased the mining rights on the Bankfield mine property from Golden Trio Minerals (VSE) for one million Roxmark shares and a 3% net smelter return (NSR) royalty. During the first year of commercial production Roxmark can reduce the NSR to 1.5% with a $500,000 cash payment.

The Bankfield property, which adjoins the Magnet mine property to the west, produced about 67,000 oz. during 1937-42. Previous exploration carried out by the Roxmark-Ateba joint venture encountered Bankfield style mineralization grading 1.32 oz. gold over 4.4 ft., 1,700 ft. south of the Magnet mine shaft at a depth of 1,720 ft.

Beaurox also reports that it has expended $320,000 on acquisition, sampling and metallurgical studies on gold mine tailings in the Geraldton area. The company has also reviewed the ore reserves on Roxmark’s Geraldton properties. Beaurox is currently negotiating a 3-year contract to process 200 tons per day of mine ore and tailings at the government-sponsored GOMILL in Beardmore, Ont.