Fairfield in hands of Almaden management

Management of Fairfield Minerals (FFD-T) is now in the hands of Almaden Resources (AMH-V).

Fairfield has been searching for a group to take over management of the company ever since John Stollery resigned as president, owing to health reasons.

Duane Poliquin, president of Almaden, replaced Stollery, and at the recent annual meeting, Fairfield shareholders elected Poliquin, James McInnis, Jack McCleary and Pascal Renerdet to form the new board of directors.

Fairfield’s major shareholder, Socit Generale of Paris, has agreed to sell 710,000 shares of Fairfield in an off-market transaction to Almaden at a price of $2 per share.

Fairfield has 7 million shares outstanding, of which Socit Generale controls roughly 40% (before the sale).

Poliquin plans to pursue advanced-stage projects for Fairfield, while Almaden continues to concentrate on grassroots exploration. There are no immediate plans to combine the two companies.

Fairfield’s principal asset is its wholly owned Elk property in southern British Columbia.

A 20,000-ft. diamond drilling program at the Elk project is attempting to firm up a minable reserve at the Siwash deposit and test other gold targets on the property. Initial assay results are expected in July.

The program is outlining additional open-pit reserves in the vicinity of the existing pit. Deep drilling will be carried out in an effort to expand the underground resource below the open pit.

At last report, the probable and possible resource was estimated at 135,000 tons grading 0.74 oz. gold based on an average underground mining width of 4 ft. and a dilution factor of 15%.

>From 1992 to 1994, Fairfield produced 47,500 oz. gold from open-pit mining, the average grade being 2.78 oz. gold. The company produced a further 3,800 oz. gold from underground test mining below the pit. Ore was shipped off-site for direct smelting.

The company is well-funded, with no debt and about $4 million in the bank.

The company also has ore stockpiles of 2,600 tons containing an estimated 8,500 oz. gold.