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Mining industry

Royalstar Resources Acquires 51% Interest in Gold Capital Corp.

Strategic Insights

— 2 min read

Gold Capital Corp. (OTC BULLETIN BOARD: GOCP) has announced that Royalstar Resources Ltd. (Vancouver: RYQ) has completed the purchase of an additional 2.2 million shares of common stock, resulting in Royalstar owning 51% of Gold Capital. This investment of $2.5 million is the first step in financing the start-up of gold production at the Tonkin Springs, Nev. mine, with estimated annual production of 50,000 ounces. The Tonkin Springs mine, located on the Cortez Gold Trend, has an estimated gold resource of 650,000 ounces, with 418,000 ounces included in the proven and mineable reserve.

Key Takeaways:

  • Royalstar Resources Ltd. has acquired 51% of Gold Capital Corp. by purchasing an additional 2.2 million shares of common stock, bringing their total investment to $2.5 million.
  • The Tonkin Springs mine, operated by Gold Capital Corp., has an estimated gold resource of 650,000 ounces, with 418,000 ounces included in the proven and mineable reserve.
  • The mine is expected to produce 50,000 ounces of gold per year at planned levels, with a potential five-year project life based on current proven and probable reserves.
  • The mine's current proven and mineable reserve of 418,000 ounces includes exploration of only 2.5 miles of the 8-mile length of the Tonkin Springs property, leaving potential for additional reserves to be developed.
  • A feasibility study conducted in January 1995 by Lyntek Inc. estimated the mine could produce approximately 80,000 ounces of gold per year at full production.
  • Gold Capital Corp. holds a 100% interest in approximately 270 square miles of gold exploration claims located in the province of Salta, Argentina.

Statistics:

  • $2.5 million: Royalstar Resources Ltd.'s total investment in Gold Capital Corp.
  • 51%: Royalstar Resources Ltd.'s ownership interest in Gold Capital Corp. after the additional share purchase.
  • 2.2 million: Number of additional shares of common stock purchased by Royalstar Resources Ltd.
  • 50,000 ounces: Estimated annual gold production from the Tonkin Springs mine.
  • 650,000 ounces: Estimated gold resource of the Tonkin Springs mine.
  • 418,000 ounces: Number of ounces included in the proven and mineable reserve of the Tonkin Springs mine.
  • 5 years: Estimated project life of the Tonkin Springs mine based on current proven and probable reserves.
  • 80,000 ounces: Estimated annual gold production from the Tonkin Springs mine at full production, according to the January 1995 feasibility study by Lyntek Inc.

Sources:

  • Gold Capital Corp. press release, June 26, 1995
  • Royalstar Resources Ltd. (Vancouver: RYQ) announcement
  • Lyntek Inc. feasibility study, January 1995

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