Agreement involves cash, shares, $7 million in expenditures ----------------------------------------------------------- TORONTO, Sept. 24 /CNW Telbec/ - Roxmark Mines Limited (TSXV - RMK) today announced that it has signed a letter of intent with Premier Gold Mines Limited (TSX - PG) for a joint venture to actively explore and earn interest in certain gold properties owned by Roxmark in the Geraldton Camp of the Beardmore-Geraldton Greenstone Belt of Northwestern Ontario.
Under the terms of the agreement which is subject to due diligence by Premier, Premier has the option to earn a 51% interest in the properties over a four-year period by making cash payments of $500,000, issuing 250,000 shares of Premier to Roxmark and carrying out, as operator, $7 million in expenditures to advance the highly prospective high-grade gold properties to a production decision. Premier also makes a firm commitment to $2.5 million in exploration expenditures in the first 12 months and to pay $100,000 in cash and issue 100,000 shares of Premier to Roxmark on signing. Premier's extensive program, including diamond drilling is expected to begin immediately.
** *12 properties in the Beardmore-Geraldton Greenstone Belt covering 14,700 acres and including, in addition to the Northern Empire, five other formerly highly productive mines which produced nearly two million oz. of gold from high grade ore, but were closed primarily due to a $35 gold price and boundary issues which Roxmark has eliminated by consolidating land holdings.
* The mines offer extensions and parallel occurrences to previous veins as well as existing infrastructure above and below ground which will significantly advance the speed and reduce the cost of mining. In 1998, the resource potential of these holdings was estimated at approximately 1.5 million ounces of gold by consulting geologist Dr. S. E. Malouf (not NI43-101 compliant).
* Diamond drilling at The Northern Empire Mine indicates resources grading 0.4 oz of Au/T. 150,000 oz. of gold was previously produced and milled at The Northern Empire.
* Premier Gold has committed to conduct up to $7 million in exploration on Roxmark’s Geraldton properties over the next four years. Exploration momentum in both camps is increasing.
* Roxmark’s Nortoba-Tyson property is an important new high grade molybdenum /gold prospect with rich resources.
* Roxmark has generated cash flow from bulk-sampled gold and moly processed at the 200-TPD Northern Empire Mill, digitized historical data and completed an extensive program of 3-D mapping of gold bearing structures on its properties.
* Shares are listed on the Toronto Stock Exchange Venture Exchange (TSX-V) under the symbol RMK and in the U.S. on the Pink Sheets under RMKMF.
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