Rayrock, partners place Marigold into production

The Marigold property encompasses 35 sq mi held by a joint venture owned 70% by the Cordex Syndicate and 30% by Santa Fe Minerals.

The deposit was discovered during a 1986 exploration drilling program to test favorable geology projected in alluvium-covered areas several miles from known l ow grade gold zones.

Three new zones were outlined, the most significant being the 8 South zone. Initial estimates gave the 8 South reserves of more than five million t ons grading 0.073 oz gold per ton.

Current reserves, from four deposits, total about 4.3 million tons grading 0.108 oz and 7.6 million tons averaging 0.026 oz. The known ore, suffic ient for 10 years of mine life, is oxidized and mineable by open pit, Rayrock reports.

Property development began in August, 1988. A 1,250-ton-per-day mill and 730,000-ton-per-year, heap leach facility have been built. Rayrock says more than 12. 5 million tons of overburden have been removed to date from the 8 South pit.

Drilling at Marigold during the first half of 1989 continued to explore a newly-discovered gold deposit known as Stonehouse, in the northern part of the prope rty. Ten holes within an area 1,200 ft by 800 ft have encountered mineralization in two zones, one shallow and oxidized and the other deep and consisting of primary sulphide in veins, the company says.

Rayrock is hopeful of further discoveries; the company reports Marigold controls a 12-mile strike length along a major Nevada gold belt.

Within Nevada, Rayrock operates and partially owns three other producing gold mines that were discovered by the Cordex Syndicate: Pinson, Preble and Dee. (Ray rock’s share of output from the three mines in 1988 amounted to 36,253 oz.) Also in the United States, Rayrock owns 100% of a langbeinite (specialty fertilizer) mine in New Mexico.

Elsewhere, Rayrock has a 56% interest in Minera Rayrock (TSE), an exploration company active in Chile, Costa Rica and Ecuador.

Minera reports two projects at an advanced stage are being evaluated for mine development: the Ivan copper property in northern Chile where a new deposit know n as Zar was discovered, and the Bellavista/ Montezuma gold-silver property in C osta Rica where a northerly extension of the deposit was recently outlined.

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