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Royal Gold acquiring promising gold proper3y near Prescat?
<br />By Bill Epler
<br />Staff Reporter
<br />p, gold property near Prescott W central
<br />Arizona has been acquired by Royal Gold Inc.
<br />of Denver, which plant [ttruter development
<br />work and expects to bring It InW production.
<br />The announcement waz made tecmtly by
<br />Royal Gold President Stanley Dempsey, wefl-
<br />knawn Denver mining attorney long
<br />assxiated withA:~tA7C [nc.
<br />Dempsey said Royal Gold has entered Into
<br />an option agreement oa the property .with
<br />Resource Exploration and Development
<br />Company fREDCOI of Reno W purchase the
<br />property. The option provides (or payment of
<br />S30o,000 in various installments over two
<br />years plus a 10 percent net profits interest
<br />In addition, Royal Gold has entered IoW a
<br />(management services agi•eemmt whereby
<br />REDCO is to perform certain development
<br />activities on the property. REDCO is a well-
<br />knov,n firm offering consulting, evaiuatlon
<br />and development services W the mitaing in-
<br />dtLStry.
<br />The Arizona project is an advanced-stage
<br />;old property- REDCO has estimated there
<br />ire more than 150,000 tons of drill-indicated
<br />old ore reserves an the property, considered
<br />dequate for a production level estimated at
<br />5,000 ounces in the first year. The property 1s
<br />dly permitted for heap leaching.
<br />Royal Gold said initial plaru for fhe ex-
<br />oration and development of the property in-
<br />ude drilling, trenching and sampling to con-
<br />•m the reserve base.
<br />Geologic projections indicate the possibility
<br />expanding the ore reserves. Other nearby
<br />Id exploration targets are included in the
<br />tion agreement-
<br />loyal Gold is a wholly-owned subsidiary of
<br />yal Resources Corporation, a relatively
<br />new publicly-held company based in Denver
<br />that is engaged in exploration. development
<br />and production of oiS. gas and gold. Another
<br />wholly-owned subsidiary is Dem er Mining
<br />Finance Company, which provides merchant
<br />banking services to the mining industn~.
<br />Royal Resources Chairman hlichae! Owen
<br />recently announced the election of Dempsey
<br />as president and chief operating officer of
<br />Royal Gold and Denver Alining Finance.
<br />"Bringing Dempsey's expertise and mining
<br />background into the management of Royal is
<br />a strong asset to assure Royai's becoming a
<br />major contender in the mining industry,"
<br />Owen said- "The subsidiary companies allow
<br />Royal to continue its efforts W diversity into
<br />an economically attractive arena."
<br />Dempsey recently retired from A31AX,
<br />where his positions included general at-
<br />torney, director o[ environmental afWirs,
<br />vice president and as chairman of AMAX
<br />Australian Ventures.
<br />Royal Resources also recently announced it
<br />had made a 52.5 million profit on the sale of its
<br />interest in a California gold property that is
<br />scheduled to begin production this tall at the
<br />rate o[ ~ O,g00 ounces of gold per year.
<br />' Royal Gold sold its 25 percent interest in the
<br />Colosseum mine in San Bernardino County to
<br />Colosse~un California Inc. and Dallhold In-
<br />vestments Pty Ltd. of Perth, Australia for
<br />y1.2 million. This returns to Royal Gold the
<br />purchase price and all venture operating ex-
<br />'pensesplus apremium of f2.5 million.
<br />"The sale of Royal's interest in the
<br />Colosseum mine u~itl allow Royal to realize a
<br />handsome profit on its investment in the
<br />property," Dempsey said, "and provides
<br />capital for Royal Gold to proceed with the
<br />acquisition of other gold properties [hat are
<br />currentl}~ under consideration-"
<br />Magma names new financial chiefs
<br />By BIII Epler
<br />Staff Reponer
<br />s another of the many changes
<br />:ipitated by the spin-off of Magma Copper
<br />+pany, new financial and accounting
<br />~utives have been appointed.
<br />Bill Diggin has been named corporate
<br />surer.
<br />3ot~ Lemons has been appointed con-
<br />ar.
<br />ggin joins Magma at its San Manuel
<br />quartets from the Oilwell Division of
<br />Corporation in Dallas, where he also was
<br />urer.
<br />;gin attended the University of Steuben-
<br />in Steubenville, Ohio and earned his
<br />degree in finance at Xavier University
<br />clrtnati.
<br />will monitor the administration of the
<br />afreement and direct Magma in-
<br />entsand other financial attain. He also
<br />will conduct investor relations and work with
<br />financial analysis and the Wall Street
<br />business community.
<br />I.emom> joins Magma at San Manuel Irom
<br />Tulsa, where he was controller of the Reading
<br />& Hates (:orporation, an oil well supply com-
<br />pany. He earned his business administration
<br />degree Lt accounting at Oklahoma State
<br />Universiry in Stilhcater and is a Certified
<br />Public Accountant. .
<br />He will be responsible (or all o[ Magma's
<br />accounting, business transactions, taxes and
<br />insurance and for [he large number of reports
<br />to fhe state and federal governments,
<br />shareholders and the investment community.
<br />Lemons succeeds George O'Brien, who
<br />retired December Sts[ after 16 years as con-
<br />troller. O'Brien continues to work as a con-
<br />sultant to the company on taxes and in-
<br />suranceand directs planning for the develop-
<br />ment of San Manuel.
<br />Among its activities, Royal Gold has a 0
<br />percent interest in the Camp Bird Venture,
<br />which is currently undertaking a program of
<br />exploration, development and production of
<br />gold ores at the historic Camp Bird mine near
<br />Outay in southwestern Colorado.
<br />Royal Gold's partner in Ne venture is
<br />Chipeta Mining Corporation, a subsidiary of
<br />Western Mining Corporation of hTelbourne.
<br />Australia. Western Mining, one of Australia's
<br />largest gold producers, is making major
<br />mining investments in the Western U.S., in-
<br />cluding the recent acquisition of major por-
<br />tions of the Tintic Mining District in Utah.
<br />Of Mines And Men
<br />Robert Torrance, former Cananea
<br />mine executive, dies in Tucson
<br />Robert F. Torrance, former treasurer [or
<br />Cananea Consolidated Copper Company at
<br />Cananea in Sonora, Mexico, died March 22nd
<br />in a Tucson hospital of heart failure. He was
<br />83.
<br />A native of Ohio, Torrance moved to
<br />Phoenix as a child. In 1920 he entered the
<br />University o[ Arizona's premedicine
<br />program, but dropped out. In 19?Z he joined
<br />CCCC and worked for the company for nearly
<br />50 years, retiring az treasurer in 1969.
<br />Upon retirement, he moved to Tucson and
<br />devoted much of his time to his favorite sub-
<br />ject, history along Ne Me.¢ico-United States
<br />border. Over the years he contributed a num•
<br />ber of historical documents, records and ar-
<br />tifacts from the area to the Arizona Historical
<br />Society. His contributions included a l7th cen-
<br />tury Spanish cannon and a collection of
<br />historical photographs of Cananea and its
<br />mining operations.
<br />Torrance was a member of the Arizona Ar-
<br />chaeological and Historical Spciety, the
<br />Mining Clubof the Southwest and the Arizona
<br />Historical Society.
<br />He is survived by his daughter, Hefty ht.
<br />Torrance, of Tucson. The family asked that
<br />remembrances be made to the Minnie A1.
<br />Torrance Memorial Scholarship Fund at the
<br />University of Arizona.
<br />Hicks retires from Arizona's
<br />mines and minerals department
<br />Clifford J. Hicks, a mining engineer with
<br />the Arizona Department of Mines and
<br />hfineral Resources' Tucson office, retired in
<br />February alter nine years with the depart-
<br />ment.
<br />Hicks, a registered engineer in Montana,
<br />spent 19 years with Anaconda in Butte. He
<br />also served as western field secretary for the
<br />AIME for 16 yeah.
<br />Hicks' retirements plant include limited
<br />consulting, traveling, lapidary work, silver
<br />smilhing and mineral photography.
<br />IoA Southwestern PAY DIRT for April 1987
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