Wednesday, July 08, 2009

Roxmark plans to explore Leitch-Sand River Gold Mine, once Canada's richest RMK.v, PG.to, GG, HUI, XAU, GDX


Management of our Canada Gold M&A play has waken up finally - more appeal for Premier Gold PG.to to take it over.



Press Release
Source: Roxmark Mines Limited
On Tuesday July 7, 2009, 9:00 am EDT
TORONTO, July 7 /CNW Telbec/ - Roxmark Mines Limited (TSXV-RMK) today announced that it plans to actively explore the Leitch-Sand River Mine, including prospecting, geological mapping, mechanical stripping and diamond drilling, as part of its aggressive exploration field program in the Beardmore Camp in Northwestern Ontario.
In addition to further delineating historical resources, the current 2009 field program will assess anomalies identified by last year's High-Resolution Aeromagnetic (HRAM) airborne geophysical survey. Anomalies found on the neighbouring Northern Empire Mine have already been identified as gold bearing multi-vein parallel structures and are also being explored in the 2009 program, along with gold veins on Roxmark's Nortoba-Tyson property.
The program is being supervised by Peter Bevan, P. Eng., who is the Qualified Person for the information contained in this news release and within the meaning of NI 43-101.
Once Canada's richest gold mine, producing 847,690 oz of gold with an average grade of 0.92 oz per ton, the Leitch-Sand River Mine is 10 kilometres from Roxmark's Northern Empire Mill in Beardmore, Ontario.
The Mine, operated continuously over a period of 30 years, was shut down in 1965 as a result of $35 gold and boundary disputes which Roxmark has eliminated through consolidation. The mine, shallow by the standards of top producers in nearby camps, never ran out of gold at depth and both ore grade and vein width increased with depth. Mining records of the time record several drill assays of more than two ounces per ton over 2 feet located 100 feet below the 30th level. A non-NI 43-101 compliant historical resource estimate of 737,000 oz of gold was made by geologist Dr. Stanley Malouf in 1998 (based on a non-NI 43-101 compliant estimate of 2,336,000 tons of ore grading 0.315 oz/t Au. A qualified person has not done sufficient work to verify the historical resource, the Company is not treating the historical resource as a current resource and the historical resource should not be relied upon.)
Roxmark's current plan is to develop the eastern strike length of the Northern Empire mine by a decline and mine the area to the second level. Preliminary study indicates that production can begin within six months of completing development work. This program will be followed up by dewatering the shaft and installing a headframe, hoist and ancillary equipment on surface and underground. The Company sees the Leitch-Sand River mine as a potential contributor to subsequent expansion of production at the Northern Empire Mill.
"We are excited about prospects for the Leitch-Sand River Mine," said Monir Younan, Roxmark President. "Exploration by Premier Gold on our joint venture properties in the Geraldton Camp is reinforcing the knowledge that historical mining operations often left behind a great deal of high grade ore and was hit and miss in assessing opportunities."
"This mine was shut down because of a fixed gold price and a boundary dispute. Neither is an issue today. More importantly, historic mining records show that the operators of that time were finding the richest ore when the doors were closed," Younan added.
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 addition to the Hardrock Project in the Geraldton Camp, Roxmark is pursuing a number of initiatives in the Beardmore Camp, including re-opening the Northern Empire Mine and its onsite mill and expanding the resource base at the Leitch-Sand River Mine. In recent 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 nine formerly highly productive gold mines located on its properties. These mines previously produced nearly four million ounces of gold from high-grade ore but were closed primarily due to boundary issues and dramatically lower gold prices at the time.
Further information is available on the Company's website at http://us.lrd.yahoo.com/_ylt=Avr3JJ7FVGqW2p1Y8MVOkuyvcq9_/SIG=10s2kv6o6/**http%3A//www.roxmark.com/ and on SEDAR under the Company's profile at http://us.lrd.yahoo.com/_ylt=Av8SxLrALlYFzLikHlQ_URKvcq9_/SIG=10q41mvbm/**http%3A//www.sedar.com/."
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