Toronto-based Citadel Gold Mines (TSE) is attempting to prove that Jamaica has more to offer than just sunshine and sandy beaches after securing a portfolio of mining licences on the Caribbean island.
Citadel has acquired three licences from Lake Ponask Gold (TSE) in exchange for 300,000 shares of Citadel and the cancellation of $18,000 in debt. Subject to approval by the Jamaican government, the transaction includes two grassroots projects known as the Trinityville and Zion Hill licences, and 18% of a former lead-zinc producer known as the Hope Mine property. Lake Ponask has already defined a number of gold targets on the Hope Mine licence which is 82% owned by Citadel Gold subsidiary Jam-Can Resources. Previous exploration, including trenching and drilling, has outlined 50,000 tons of grade 4% zinc, 1.7% lead and 0.06 oz. gold per ton.
Magnetite-quartz veins, assaying up to 3.45% copper, have been reported on ground adjacent to the Zion Hill licence, although gold values of up to 0.12 oz. per ton have not been reproduced at the new discovery site. These newest acquisitions bring the number of licences controlled by Citadel and Jam-Can Resources to five. Jam-Can recently optioned its Croft’s Hill licence in central Jamaica to Trev Corp. (ASE) of Calgary which in turn has recruited Golden Ring Resources (VSE), a company controlled by Vancouver promoter Murray Pezim to fund exploration. Pezim company Tantalus Resources (VSE) is currently earning 100% interest, subject to a 10% net profits interest to Citadel in the Jobs Hill licence adjoining Zion Hill. To exercise the option, Tantalus must pay Citadel $180,000 cash and spend $1.2 million on exploration.
While Cominco (TSE) and Minnova (TSE) have previously entered into licencing agreements with the Jamaican government, BHP-Utah Inter-
national is currently drilling a polymetallic anomaly. But BHP has yet to release any
official results.
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