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iiiuiiiiiiimiiii <br />American Metal Marko <br />TUESDAY. DECEMBER 9. 1986 <br />'newcomers Break Ground <br />.At Historic Camp Bird <br />By RASSELL BRADLEY <br />.avrr.--.aas~b~ <br />~vo Newcomers Break Ground <br />At Camp Bird Mine in Coiorado <br />DERV~R IFR51 Colo. -- Old ground Is being broken <br />at historic Camp Blyd mine Sn waste rn Colorado by <br />newcomers to U.S. exploratlon •nd production. <br />'he Camp Blyd Nlne hee Deen .In continuous <br />operation since the late IB90's ~a nd has a <br />cumulative gold production of l.a m!l11on ounces <br />o! gold. •nd !or many years, wasi converted to <br />:sad, zinc and copper. It was the source of the <br />gold tortunr of pioneer miner Thomas welsh which <br />rnabled his daughter, Evelyn, to purchase the Ropr <br />:)iamond ir. later years. The mine and mill Ss <br />:.ocaced near Ouray. Co]orado. <br />Chlpe [a MSn1 ng Corporation. a subsldlary oC <br />western Mlnlnq Co., Australia's largest gold <br />producer and a major world nickel supplier, end <br />Denver-based Royal Resources Corporation are the <br />rtia for partlcJpan[^ 1n the two-year lease of <br />operatlnq rights with option to buy [he Camp Bird <br />tac111ties. Cost o! the leu a and option was <br />approximately 5737,000 !n cuh ^nd assumed notes <br />with Chlpeta having 76 percent and Royal <br />Resources' subsldlary, Roya] Hold. Inc., havlnq 19 <br />percent. The reaaSnlnq S percent 3n owned by <br />private corporation, Ouray Venturers, Ina. <br />Chlpec• ha• Deen naaed aanagar o! the venture. <br />Royal Resource• ha• been primarily an o11 and <br />pea company whleh was eorbined from 11a3ted <br />partnerehlp• coalnq oui of R1nq Resources <br />Corporation as • result of court action which <br />a.+arded Deneflefal ownership to the partners and <br />the class Sn a secur![les fraud class ectlon. <br />"This tompnny 1• one oC the best results ever <br />caminq out Of a class ectlon suit," His heel Owen, <br />Voyal's chairman and CLO, said. <br />Owen declined to comment on estimated gold <br />reserves, bur added, 'based on reasons Dle geologic <br />expeC[atlons. 60 percent of the Camp Bird vein <br />system has not been explored. Nlth ou.r continuing <br />;:oC UCtlon and on-going exploratlon combined, It <br />..-o~!C be ..S million ounces. Over nlstory the <br />-.: ne haG produced an average grace of ore that 1s <br />'ore than onr ounce per con." Silver amounts. he <br />aCGtd. are /nconsequen[lal. <br />`..^.c operators are currently ]n thr process of <br />ac: rleratlnq production .,Ith a capability <br />. ::~lmatctl at 700 tons per daY. .. ~'c •, r•. Innta lny at <br />:t as primarily on exploratlon Vlny." Omen said. <br />'and 1['s hard to say .+hac our dall~~ cap.,r lty w171 <br />.a brcause .+e are going to be doln~ ~•etcnst~e <br />.:uratlon." Ne rstlmatcd r.0 tc'•nt nr <br />.,; ;n•ntlltures ..ould be for explorat:on. <br />(Coolleued from pa`s 61 <br />Minor modlfleatlon• will be made co t: <br />associated ^111, whfeh will have • rated cepacl'. <br />of x00 tons Der day. `We will have the capacl: <br />to custom ^111 for others,' Owen explained. <br />The lease •nd option were •cqulred from Sa: <br />Late City-based Federal Resources Corpo ratlor <br />wROae Camp Bfrd manager, ]1m Points, will re.e: <br />as manager Cor ChlDrta. <br />Royal Resources' move Into mining ventures .+az <br />initiated on July 1. 1986 here with its <br />acqufsl2fon of privately held Denver hlnlnt <br />Finance Corporation. Currently. Royal 1s 1n the <br />process o[ acquiring a ZS percent interest In cne <br />Colosseus Rlne gold property Sn San Bernerdlnc <br />County, California Eros Colosseum California, inc. <br />for Sa.Y alllllon. <br />le tf a tad produetion •t the Coloueu^ Mine S• <br />70,000 ounces of gold per year. Operato r <br />eatlnate the mine to have a ^Snlaua of seven •nd <br />ane-halt years 111• w3CR probably unezploreG <br />extensions. <br />AMERICAN METAL MARKET. DECE1.tBER 9. t<. <br />lConUnucA un Vatr 10~ <br />