THE GLOBAL SEARCH FOR GOLD SPECIAL — Recent gold discoveries shed light on Honduras

Since entering Honduras almost two years ago, Vancouver-based Mar-West Resources (MSR-V) has amassed one of the largest packages of exploration properties in the country.

Mar-West began positioning itself in Honduras after Tombstone Explorations (TSO-T) took over the company in late 1994.

The company’s first acquisition was a 20% working interest in the Minoro gold-copper project, 140 km north of the capital city of Tegucigalpa. Tombstone, which holds the other 80% interest in the 9,700-ha concession, has since optioned half its interest to Champion Resources (CHL-V).

Champion must spend at least US$4.5 million over three years and make certain cash and share payments. A planned $2.9-million exploration program, including a 6,500-metre drill program, began this past March. The first 16 holes tested the Tatanacho gold-copper skarn zone, returning values of up to 1.05 grams gold and 0.63% copper over 77 metres.

About 2 km northwest of the Tatanacho zone is the sediment-hosted gold zone known as San Antonio, which was tested with 10 holes. Results from the first five holes included a 34-metre interval grading 2.07 grams gold.

In the southeastern part of the country, along the border of Nicaragua, Mar-West acquired 37,000 ha in the Choluteca gold belt and formed a joint venture with Battle Mountain Gold (BMG-N). Mar-West is required to fund the first US$350,000, at which point Battle Mountain can increase its interest to 60% by completing the next US$1 million in exploration expenditures.

Previous work had centred on the Potosi concession, where limited drilling returned a 42-ft. intersection grading 0.69 oz. gold and 1.93 oz. silver in the Tajo zone and a 45-ft. section grading 0.1 oz. gold and 3.7 oz. silver in the San Antonio zone.

Recent work by Mar-West on the Pantaleon zone yielded chip samples of up to 0.11 oz. gold over 39.3 metres and grab samples of as high as 0.55 oz. gold.

Lately, the Choluteca area has been the focus of some attention, following the release by Battle Mountain of some early drill results from the Cacamuya project. That company holds an option to earn a 70% interest in the property from Breakwater Resources (BWR-T).

Drilling by Battle Mountain intersected multiple intervals of mineralization in hole 96-6, including a 26-ft. section beginning at a depth of 475 ft. grading 5.46 oz. gold and 29.69 oz. silver per ton and a 4-ft. interval at a depth of 528 ft. grading 13.27 oz. gold and 128.48 oz. silver. A second hole 1,837 ft. away intersected 14 ft. starting at a depth of 467 ft. grading 0.25 oz. gold and 8.67 oz. silver. Core recovery for the 14-ft. section in hole 96-7 was only 18%.

Mar-West has a 100% interest in ground adjoining the Cacamuya project, both to the east and west.

A preliminary 5-hole drill program was recently completed on the San Martin concession, southeast of the Minoro project. The 14,000-ha concession is under option to Curion Ventures (CUV-V), which can earn a 50% interest from Mar-West by spending US$500,000.

The drilling focused on the Palo Ralo prospect, where three anomalies were outlined and rock sampling returned values of up to 0.15 oz. gold. Results are pending.

Mar-West’s Honduran holdings also include the wholly owned, 23,500-ha Sabana Grande group of properties, as well as the 2,500-ha Fortuna, 9,200-ha Las Vegas and 17,600-ha Mapulaca concessions. In all, Mar-West holds interests in more than 120,000 ha in Honduras.

The company has $3.6 million in cash and about 10.5 million shares outstanding, or 14.5 million fully diluted.