VenturesTrident ups stake in Eastmaque

In addition to the 1.39 million common shares, VenturesTrident also owns 1.02 million preference shares of Eastmaque, or about 33.8% of its outstanding preference shares.

The company said the shares were acquired for investment purposes and it may increase or decrease its holdings.

Lukas Lundin, president of Eastmaque, said he is not aware of any intent on VenturesTrident’s part to seek control of Eastmaque and replace management.

“We are not worried at this point because we have a control position of 22% ourselves,” he said, although he added that Eastmaque planned to discuss the situation with VenturesTrident.

Eastmaque’s key assets are a producing open pit gold mine in southeastern California and a tailings recovery operation in Kirkland Lake, Ont.

Total gold production for the fiscal year ended June 1989 was reported as 35,500 oz, comprising 17,850 oz from Kirkland Lake and 17,650 oz from the Cargo Muchacho mine.

Production in June reached a record 3,978 oz, with 2,498 oz of this from the Kirkland Lake tailings project after modifications to the thickener were implemented. Eastmaque projects production will continue to exceed 2,000 oz a month on average.

Production from the Cargo Muchacho project for the month of June was 1,480 oz, but Eastmaque expects to increase this to a monthly rate of 3,500 oz by year-end.

This will be accomplished by a second mining operation, the American Girl Canyon, which is expected to begin initial production in September and eventually replace production from the existing Padre Madre facilities. Both the American Girl Canyon and the Padre Madre pits are located within the Cargo Muchacho property.

Total heap leach reserves at the property are reported as six million tons grading 0.049 oz gold per ton. The property also has an underground reserve o a additiona 1. millio ton gradin 0.23 o gol pe ton.

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