EXPLORATION ’94 — Exploration enhancing Petaquilla project

Exploration programs carried out by Adrian Resources (TSE) are continuing to enhance the potential of the company’s land package in Panama.

Teck (TSE) recently agreed to fund a feasibility study on the advanced Petaquilla and Botija copper deposits, and plans to fund exploration on outside lands. The major has an agreement with Adrian allowing it to acquire a 26% interest in the project (T.N.M. Nov. 14/94). Adrian would then hold a 26% interest, with the remaining 48% interest held by Metall Mining (TSE). The project consists chiefly of two potentially open-pit deposits, Petaquilla and Botija. A preliminary feasibility by Kilborn Engineering estimated minable reserves for the combined deposits at 495 million tonnes grading 0.53% copper and 0.124 grams gold per tonne, using a 0.19% copper-equivalent cutoff. For the first 15 years, the stripping ratio will be 1.22-to-1. The geological resource for the entire property is estimated to exceed 1.6 billion tonnes of 0.48% copper and 0.126 grams gold.

The Kilborn study did not evaluate results of the Molejon gold deposit nor other copper deposits occurring within the property, such as the Botija Abajo, Botija Norte, Vega, Brazo and Lato. Teck will fund Adrian’s ongoing exploration costs on these deposits and undertake a preliminary feasibility of the Molejon within four months of completing the current Adrian-Metall exploration program.

Prior drilling of the Molejon deposit outlined a geological resource of 8.5 million tonnes grading 3.3 grams gold. Adrian believes results from recent drilling will add to these reserves as drilling extends the gold-silver mineralization by 60 metres along strike to the southwest and 400 metres to the northwest.

Values from recent drilling of the Main zone at Molejon include 24 metres of 1.74 grams gold and 4.5 grams silver for hole 94-106, 18 metres of 0.65 grams gold and 1.1 grams silver for 94-99, plus four separate intervals in 94-98, which included 2.9 metres of 1.29 grams gold and 1.4 grams silver. An additional near-surface zone is identified in holes 94-98, 94-110 and 94-111, returning (respectively) 10.7 metres of 1.17 grams gold plus 1.6 grams silver, 6.1 metres of 1.63 grams gold as well as 2.8 grams silver, and 23.5 metres of 4.08 grams gold and 2.5 grams silver.

Infill drilling of the central portion of the Botija deposit encountered blocky ground, preventing the completion of the holes, all of which ended in strong copper mineralization. Hole 94-103 returned 124.3 metres of 0.84% copper, 0.15 grams gold and 1.5 grams silver, while hole 94-105 intersected 43.8 metres grading 0.51% copper, 0.06 grams gold and 1.2 grams silver. A third hole, 94-107, intersected 32.9 metres averaging 0.45% copper, 0.10 grams gold and 0.6 grams silver. Further work will involve using a larger core drill.

The company expects holes drilled within the western half of the Petaquilla deposit to increase not only the indicated reserves, but the grade as well. Hole 94-102 returned 323.2 metres of 0.6% copper, 0.17 grams gold and 2.1 grams silver, while hole 94-104 (stopping short in the copper mineralization) returned 105 metres of 0.53% copper, 0.14 grams gold and 1.4 grams silver. Two holes drilled at the Vega deposit confirm previous drilling. Holes 94-100 and 94-101 intersected multiple intervals of copper mineralization, which included 15.8 metres of 0.81% copper, 0.05 grams gold and 3.5 grams silver, as well as 40.5 metres of 0.41% copper, 0.04 grams gold and 1.1 grams silver. The Botija Norte is a geochemical anomaly measuring 1,400 by 1,400 metres. Drill targets are being selected.

Exploration is continuing on Adrian’s neighboring properties. Three holes drilled on the Esperanza concession — one at Rio Turbe and two at Orca — failed to intersect any significant values, although favorable porphyry-style alteration was encountered at Orca. Silverstone Enterprises (VSE) is earning a half interest in the property.

On the Belencillo concession, half of which is owned by Madison Enterprises (VSE), two holes intersected mineralization. Hole 94-12, stepped out 75 metres to the west of previous drilling, returned 9 metres of 0.25% copper and 0.33 grams gold. Hole 94-13, with a stepout of 100 metres to the east, returned 17.5 metres of 0.07% copper and 1.27 grams gold.