ST. GEORGE METALS POURS FIRST DORE FROM DEAN MINE
ST. GEORGE METALS POURS FIRST DORE FROM DEAN MINE HOUSTON, Aug. 18 /PRNewswire/ -- St. George Metals, Inc.
(Vancouver Stock Exchange symbol: SGE.V; OTC: SGGM) a Houston based company with mining operations in Battle Mountain, Nev., pours initial dore from the Dean Mine.
St. George Metals, Inc. commenced dore production, a combination of gold and silver in its Battle Mountain, Nev., facilities on Aug. 12, 1992. Initial production resulted from processing high grade concentrate through a cyanide leaching circuit, a Merrill Crow facility and refinery. The company's original program called for pilot plant dore production to commence about the first of July. However, due to crushing facility delays, St. George arranged to concentrate some 2,000 tons of its Dean ore through Precious Metals, Inc.'s facilities in Kingston, Nev. Utilizing this concentrate as an interim alternative to in-plant crushing, St. George expects to meet its year-end processing target of the permitted 20,000 tons. The delayed facilities should be operational within several weeks. St. George is proceeding with permitting so as to move into permanent production in early 1993. Underground production from the Dean's Pittsburg and Morning Star veins delivered to the plant site through the end of June averaged about 0.844 ounces Au per ton, well above earlier estimates. Production from level four of the Pittsburg vein averaged about 1.2 ounces Au per ton vs. an estimated 0.9 ounces Au per ton. The company will commence development of the recently identified D- 21 area this fall. When earlier exploratory drilling identified a possible new target in the area of D-21, subsequent drilling results looked promising, particularly in holes D-45 and D-56 which had five foot intercepts of 3.150 ounces Au per ton and 7.820 ounces Au per ton, respectively. The new portal entrance will be located east of the Dean's existing portals near the Cumberland elevation, and about three- fourths of a mile from the Crum Canyon county road. Development will take about five months after permitting and will cost about $700,000. Dr. Ralph Roberts, a member of the St. George Exploration Committee, commenting on the D-21 area, said, "An exciting new discovery in the Dean mine is the high-grade ore intercept in the Pittsburg vein in drill hole D-21 on the Cumberland level. The easiest access to this area will be by a crosscut on the Cumberland level from the east side of the property. This area is especially important because exploratory work by the St. George staff has shown that ore shoots in the vein on the numbers four and six levels plunge southwestward and continue down to the D-21 level. The D-21 discovery may thus lead to the development of several new mineralized zones." Financing for the pilot plant construction and D-21 area development will be accommodated from the 1991 sale of "units", a combination of convertible preferred stock and three-year loan commitments with attached warrants, and from pilot production. St. George's maximum loan balance is expected to be between $3.5 and $4 million. Neal O. Wade Jr., St. George chairman and CEO, commented that bringing the pilot facilities on-stream has been a trying experience, particularly for a small company such as St. George. He said, however, with processing facilities in place, with ore grades exceeding initial estimates, and with the new D-21 area possibilities, St. George continues to move toward it commercial production goal. With 77.6 percent of the common shareholders and 100 percent of the convertible preferred shareholders represented at the meeting, the following nominees were elected to the board of directors: Neal O. Wade Jr., Frank R. Barry, Harrison Nesbit II, Ralph D. Rooney, Carlton M. Henson Jr., William E. Gipson, C.B. Robertson III, and Fred G. Pollard. At a meeting of the new board of directors after the annual meeting, the board reappointed Steele and Company of Vancouver, British Columbia, as auditors for the current fiscal year. The Vancouver Stock Exchange has neither approved or disapproved the content of this release. -0- 8/18/92 /CONTACT: William H. Hoffman III, vice president - finance of St. George Metals, 713-977-4471/ (SGGM) CO: St. George Metals, Inc. ST: Texas IN: MNG SU:
LR -- NY038 -- 0962 08/18/92 12:34 EDT
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|Date:||Aug 18, 1992|
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