James, For those of you long on EXL/GME, the following is a copy of the start of the good news for the property. Exall did take the pains to give an excellent update of company/JV operations. While most of the information was contained in the recently published 6 month review, there are a lot of numbers put in this PR. The last paragraph (re Exall's litigation status) is drawn to your attention:
"Legal Disputes
Management continues to push for resolution of the legal disputes with Glimmer Resources, the company's joint venture partner, and Battle Mountain Gold, the original vendor of the interest now being disputed. Negotiations are continuing."
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Exall Resources Limited - Company Review
6mo results
Exall Resources Limited EXL
Shares issued 28,360,919 Sep 1 close $0.25
Wed 2 Sept 98 Company Review
Mr. Stephen Roman reviews the company
HIGHLIGHTS
Six months ended June 30
Ounces gold produced 30,340
Tonnes milled 146,620
Daily average (tonnes) 844
Gold grade (g/t) 6.59
Cash costs per oz (U.S.$) 286.43
Gold price received (U.S.$) $297.45
Operations and results from the Glimmer gold mine, which commenced commercial production on Jan. 1, 1998, were influenced by several key factors in the second quarter.
All ore shipped for custom milling continued to come from development headings. At an average grade of 7.17 g/t versus 5.97 g/t in the first quarter, development ore, as expected, runs below the average reserve grade of 10.25 g/t.
As development increases the known size of mineralized structures, average daily ore milled reached 950 tonnes/day in June with an 880 tonne/day average in the second quarter. This compared with an average of 800 tonnes/day in the first quarter. The original feasibility study forecast production at 600 tonnes/day.
The custom mill was unable to treat Exall ore for an eight-day period during the second quarter which resulted in less bullion produced and sold than expected.
A total of 16,379 ounces of gold was produced in the second quarter, compared with 13,961 ounces in the first three months of commercial production. The gold price received of $298.96 (U.S.) compares with $295.66 (U.S.) in the first quarter, with an added benefit of a low Canadian dollar enhancing profitability.
Second quarter cash flow from mine operations was $1,363,144 and the company recorded net income of $659,383 (2.3 cents per share), a significant improvement from a net loss of $325,726 for the first quarter. As a result, Exall had $333,657 of consolidated net income (1.2 cents per share), for the first six months of 1998, compared with a consolidated net loss of $636,279 for the same period in 1997.
The positive results of the underground development program and exploration success are being reflected in a continuing expansion of the ore reserve base. At May 31, 1998 the mine geology department calculated mineable reserves (unaudited) of 1,319,252 tonnes grading 10.25 g/t (0.329 ounces/ton) for a total of 434,558 ounces. At the projected annual production rate of 65,000 ounces, this reserve is almost seven years of
mine life.
Even though development mining produced 120,149 tonnes of ore in the first five months of 1998, the new mineable ore reserve contains 8.1 per cent more ounces and 5.4 per cent more tonnes than the Dec. 31, 1997 audited reserves.
Tonnage in the resource category increased 5.81 per cent to over 600,000 tonnes containing 166,900 ounces, a 3.5 per cent improvement. The resource grade was 2.2 per cent lower than the year end calculation. The increase in mineable reserves and resources reflects the development of both previously known gold zones and discovery of a new ore body earlier this year during the underground development program. As mining continues, both the size and potential of the principal ore zones are increasing. Levels are presently being developed down to 150 metres with the structures proving to be strong and well-mineralized.
While the development program is expected to continue for another 12 months, the transition to a normal mix of stope and development ore will begin in the fourth quarter. This is expected to improve the grade of ore going to the mill. At the same time, tonnage milled will increase to 1,000 tonnes/day.
Looking ahead, the expanding potential of the Glimmer mine raises prospects for a major increase in production. Ore is presently being trucked 33 kilometres for processing. A scoping study examining the potential of milling at the Glimmer mine is under way. Also, St. Andrew Goldfields has indicated it will modify its mill to handle 1,200 tonnes daily The Glimmer gold mine has made excellent progress in a relatively short time. The project broke ground in a farmer's field 22 months ago. At that time, the mineable reserve was 180,000 ounces of gold for a mine life of 2-3/4 years. Mine life now has been increased to nearly seven years with 434,500 ounces of mineable reserves over and above the 65,322 ounces produced to May 31, 1998. With the resource base increasing through ore
bodies that continue to grow both along strike and down dip, the potential for this project to continue increasing its mine life and remaining a profitable producer is a realistic goal.
Wakadanawa, Guyana
With partner MacMillan Gold Corp., Exall has recently completed the third phase of exploration on this 24,000 hectare concession in the Southern Guyanese greenstone belt. Results are being compiled to determine possible drilling targets for the next stage of activity on this high potential property.
Legal Disputes
Management continues to push for resolution of the legal disputes with Glimmer Resources, the company's joint venture partner, and Battle Mountain Gold, the original vendor of the interest now being disputed. Negotiations are continuing.
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