Madsen Mine Now in Pre-Commercial Production Further Positive Drill Results.TORONTO--(BUSINESS WIRE)--June 4, 1997--(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). MGF MGF In currencies, this is the abbreviation for the Malagasy Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. .) Madsen Gold Corp. announces that milling at the Company's Madsen mine in Red Lake, Ontario Red Lake is a municipality and census subdivision 535 km north-west of Thunder Bay, Ontario, Canada. The municipality consists of 6 small towns ( Balmertown, Cochenour, Madsen, McKenzie Island, Red Lake and Staratt-Olsen) and has a local population of approximately 8,500 people. , has commenced at the projected rate of 500 tons per day at an initial start up grade of approximately 0.150 ounces of gold per ton (OPT). The grade will increase to 0.234 OPT following bedding of the mill circuit. Proven and probable ore reserves stand at 1,173,655 tons at 0.276 OPT, being 323,531 ounces of gold. This equates to over 6.5 years production. Estimated cash costs based on production of 40,000 ounces in year 1 and 50,000 ounces in year 2 and a $0.73 Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents are projected to be US$255 per ounce and US$230 per ounce, respectively. Total production cost per ounce is forecasted to be US$300 per ounce in year 1 and US$275 per ounce in year 2. Capital costs to date per ounce of mineable reserves are less than US$50. Underground diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral with four drills continues to prove up ore reserves. Ore reserve increases have to date averaged 7.4 tons per foot of diamond drilling and the drilling target for the next year is 50,000 feet with two additional drills to be added shortly. In the McVeigh zone near the shaft area, recent confirmation drilling of an expanding ore block between the fourth and fifth levels (650 to 800 feet) has shown unusually wide ore widths. Two holes drilled into this structure have shown grades of 0.190 OPT over 62.0 feet horizontal width, including a 12-foot horizontal section at 0.387 OPT which includes 0.855 OPT over 5 feet. The second drill hole, 45 feet updip, returned 0.267 OPT over 43.5 feet horizontal width with the highest grade section being 0.585 OPT over 10.0 feet horizontal width. All assays were cut to 1 ounce. Drifting on the second level in the new North Tuff zone is proceeding on ore with higher than expected ore grades Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly . Currently a 58-foot strike length has been exposed showing an average ore width of 6.5 feet with muck samples averaging 0.70 OPT. This ore zone is expected to continue a further 200 feet to the west and updip to near surface. Based on current drilling information it is expected that this block will yield in excess of 50,000 tons at above average reserve grades. Drifting will continue beyond this zone to the west in order to confirm other drilled indications of ore grade zones. In conjunction with the production financing facility of CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $5M and a standby standby Medtalk adjective Referring to the immediate availability of a certain specialist–anesthesiologist, surgeon, who can be deployed in a medical emergency. Cf Concurrent. facility of $1M, Madsen has implemented a gold hedging program. The objective is to ensure cash flow to repay these three-year term facilities. Madsen has sold forward and purchased put options covering 85 percent of its projected initial year's production. The result is that Madsen will receive US$362 for 10,000 ounces and US$377.60 for 24,000 ounces, or on average US$373 (CDN$511) per ounce. Hedging of 48,000 ounces to cover the second and third years debt service requirements has also been put in place at similar prices. As part of its plan to continue strengthening the management team, the Company announces the appointment of A. (Paddy) Broughton, formerly a senior executive with Echo Bay Mines, as Vice-President, Corporate Affairs and a Director of Madsen. Mr. Broughton's primary responsibility will be investor relations Investor relations The process by which the corporation communicates with its investors. . Visit us on our website at: http://www.madsengold.com CONTACT: Madsen Gold Corp. A. (Paddy) Broughton, 416/ 862-0583 |
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