Roxmark Updates Drilling Programs, Gold Resources at Northern Empire Mine
Toronto, Ontario, October 2, 2008. Roxmark Mines Limited (TSXV � RMK) today provided an updated assessment of the 2007 and 2008 drilling programs at the Northern Empire Gold Mine as well as a resource calculation, as per NI 43-101, establishing just under 30,000 ounces of indicated and 20,000 ounces of inferred gold resources at shallow depths over a limited drilled strike length of the Contact and Power Zones.
The 2008 program drilled 77 holes totalling 8,385 metres. The program, which followed up on a successful 2007 drilling program of 26 holes, intersected high grade gold mineralization in several holes. The mine has historical resources calculated in 1988 by Dr. S. E. Malouf, then consulting geologist, at 562,274 tons grading 0.22 oz Au/t. The Company is not treating the historical estimate as current NI 43-101-defined resources and the historical estimate should not be relied upon.
The economics of Roxmark�s future plans to reopen the Northern Empire to produce gold and carry out underground exploratory drilling will benefit from the availability of existing underground workings and of an upgraded, fully permitted onsite mill.
Peter Bevan, consulting geologist and a qualified person under NI 43-101, has calculated the resources of the Power and Contact Zones above the diabase sill to the second level (300 feet) only, as per NI 43-101, utilizing 2007 and 2008 drilling results obtained on selected strike lengths of the mine. Based on a cut-off grade of 3g/t and a minimum horizontal width of 0.92 metres, indicated and inferred resources for the limited drilled areas of strike length of the Contact and Power Zones are as follows:
|
Tonnes |
Gold
g/t. |
Gold
oz/t. |
Ounces
of gold |
|
|
|
|
|
Power (Indicated) - East Ext. |
12,457 |
16.72 |
0.49 |
6,697 |
Contact (Indicated) - East Ext |
32,544 |
12.24 |
0.35 |
12,808 |
Mine workings (Indicated) |
41,651 |
7.69 |
0.22 |
10,298 |
|
|
|
|
|
Power (Inferred) - East Ext |
4,347 |
19.79 |
0.58 |
2,766 |
Contact (Inferred) - East Ext |
6,829 |
14.13 |
0.41 |
3,102 |
Mine workings (Inferred) |
53,572 |
8.62 |
0.25 |
14,847 |
|
|
|
|
|
Total Indicated |
86,652 |
10.70 |
0.31 |
29,803 |
Total Inferred |
64,748 |
9.95 |
0.29 |
20,715 |
The full NI 43-101 Technical Report will be available within 45 days of this news release, outlining the resources and confirming Bevan�s previous recommendation to dewater the mine and extract a 3,600-ton bulk sample following rehabilitation of the underground workings above the second level. The next step is to prepare a scoping study using external engineering consultants and leading to large scale underground production.
�We are highly encouraged by the increase in resources which reaffirms our belief in the commercial viability of re-opening the Northern Empire Mine,� said Monir Younan, Roxmark President. �We are confident that the current resources will take the project over the threshold for commercial development,� he added.
The Northern Empire Mine was operated successfully by Newmont Mines from 1934 to 1941. The mine was serviced by a shaft to a depth of 2,460 feet and produced 149,000 ounces of gold from 426,000 tons of ore at a recovered grade of 0.35 oz Au/t. The on-site 200TPD mill (expandable to 500TPD) was built in 1982 and upgraded and permitted by Roxmark. It processed gold and molybdenum ores in 2005 and 2006, respectively.
The Northern Empire Mine is located in the Town of Beardmore, approximately 200 km northeast of Thunder Bay and serviced by the Trans-Canada Highway. Accessibility of all Roxmark properties including the Leitch Gold Mine and the Nortoba-Tyson (a new source of gold and molybdenum) is a strong advantage. Certain Roxmark holdings in the Geraldton Camp are under option agreement to Premier Gold Mines Limited (TSX-PG) which has incurred more than $6.1 million in exploration expenditures since September 2007 (for more details see Roxmark�s news release dated September 24, 2008).
About Roxmark Mines
Roxmark Mines Limited is the leader in gold and molybdenum exploration and development in the historically significant Geraldton-Beardmore area of Northwest Ontario. In the last two years, Roxmark has generated cash flow from bulk-sampled gold and molybdenum processed at its fully-permitted mill and has the advantage of infrastructure from six formerly highly productive gold mines located on its properties. These mines previously produced nearly two million ounces of gold from high grade ore but were closed primarily due to dramatically lower gold prices at the time and to boundary issues, since eliminated.
Further information is available on the Company's website at www.roxmark.com and on SEDAR under the Company's profile at www.sedar.com.
Forward-Looking Statements
This news release includes certain �forward-looking statements�. Such forward-looking statements involve risks and uncertainties. The results or events predicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
Monir Younan, President
Roxmark Mines Limited
801- 80 Richmond St. West
Toronto, Ontario M5H 2A4
Tel.: (416) 860-1636
Fax: (416) 360-7355
E-mail: roxmark@on.aibn.com
Website: www.roxmark.com
Renmark Financial Communications Inc.
Christine Stewart : cstewart@renmarkfinancial.com
Barbara Komorowski : bkomorowski@renmarkfinancial.com
Tel. : (514) 939-3989
Fax : (514) 939-3717
www.renmarkfinancial.com
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