Hebron buys Mazarin’s exploration projects

As part of a plan unveiled in January to withdraw from the exploration scene and renew its focus on industrial mineral production in Quebec, Mazarin Mining (MAZ-T) has sold its overseas gold and copper prospects to Montreal-based junior Hebron Fjord Resources (HEF-M).

Hebron is acquiring all Mazarin’s international exploration projects in exchange for 500,000 Hebron shares and a 3-year option for another 500,000 shares at 40cents.

The key prospects in the portfolio are the Torrecillas gold property in Peru, copper-gold exploration permits in Haiti and the Tandyr gold property in Uzbekistan.

The 32-sq.-km Torrecillas property is situated 700 km south of Lima, near Hebron’s Salaverry-Copara gold property. Gold mineralization is associated with silicified and argilitized fracture zones.

Mazarin has spent about $200,000 on work at Torrecillas, including mapping, soil sampling and assays. In a deal signed last September, Mazarin was required to spend US$1.6 million over three years, including US$1 million on exploration, to acquire a 100% interest in Torrecillas.

In Haiti, Hebron is acquiring Mazarin’s 10 exploration permits covering 950 sq. km in the Meme, Boisneuf and Jean-Rabel areas, where Mazarin identified two potential porphyry copper systems.

At the Tandyr gold property in Uzbekistan’s portion of the Tian Shan range, Hebron has acquired a 620-sq.-km exploration permit. The junior says it is currently reviewing data obtained from the Uzbekistani government.

Marc Boisvert, formerly Mazarin’s vice-president of exploration, has moved over to Hebron to serve as vice-president of exploration.

Meanwhile, Hebron has privately placed $150,000 in order to relaunch its exploration projects. The financing was made at 20cents per unit, with each unit consisting of one share plus one share-purchase warrant exercisable at 26cents for 18 months.

For its part, Mazarin reports net losses of $5.5 million (or 16cents per share) for the nine months ended Dec. 31, 1997, compared with net income of $6.1 million (20cents per share) for the corresponding period of 1996. Total revenues decreased to $6.2 million for last nine months of 1997, down from $10.9 million a year earlier. The drop is explained by the activities of Mazarin’s subsidiaries, including: lower sales of asbestos fibers at LAB Chrysotile due to reduced Asian demand; the withdrawal of some of Dolomex’s fixed assets; and operating losses by Dolomex and AlumiCa.

Mazarin has been upgrading facilities at Dolomex since September, and expects to boost dolomite production capacity to more than 125,000 tonnes a year during 1998.

Startup operations at the AlumiCa plant produced 2,001 tonnes of calcium aluminate to the end of January, and some production has already been shipped to Canadian and American customers.