THE GLOBAL SEARCH FOR GOLD SPECIAL — Daisy on track for 1997 opening

With all key permits and approvals in hand, construction of the Daisy gold mine in Nevada is well under way and startup is projected for early 1997.

Inter-Rock Gold (IRO-T) owns 65% of the operation, with the remaining 35% held by operator Rayrock Yellowknife Resources (RAY-T).

In April, Inter-Rock announced it had raised $4.3 million for development through the issue of 4.8 million units priced at 90 cents each. A unit consisted of one common share and half a common share purchase warrant. The company also arranged a US$3.5-million loan facility with Rayrock.

The open-pit, heap-leach mine is expected to produce 30,000 oz. gold annually over a mine life projected to last at least six years. Direct cash operating costs are estimated at US$258 per oz.

In July, exploration resumed at the Daisy property, situated 1.5 miles east of Beatty. The program is testing new target areas and exploring for the eastern extension of the West zone deposit. Also, infill and shallow drilling will be carried out at the Sunday Night oxide gold deposit to establish a reserve, along with definition drilling of the Mother Lode deposit.

A bio-oxidation pilot program is under way in an attempt to test the feasibility of oxidizing and leaching sulphide gold mineralization from several of the five deposits known to occur on the property. If the program proves successful, overall reserves could increase significantly, Inter-Rock says.