Chesbar buys into Intrepid’s projects

Chesbar Resources (CBI-M) is joining forces with Intrepid Minerals (IAU-A) to explore and develop silver and gold properties in Guatemala.

Chesbar has paid US$200,000 for a 25% interest in Intrepid’s Guatemalan subsidiary, Minera Mayamerica. Chesbar can spend another US$225,000 to acquire a further 25% interest. Intrepid will continue as operator of Mayamerica.

Mayamerica’s chief asset is the historic Mataquesquintla silver mine in southeastern Guatemala. The mine exploited an oxide cap containing silver chlorides and copper. The orebody is hosted by a siliceous breccia and is 180 ft. wide, at least 700 ft. long and at least 600 ft. deep. However, only a hangingwall and footwall have been subjected to mining, with each side averaging 20 oz. silver per ton over 5 to 8 ft., plus copper values.

Also, Intreped has sampled about 50,000 tons of waste rock from Mataquesquintla, returning silver grades ranging from 4 to 20 oz. per ton.

A geological mapping and sampling program is under way, to be followed by an induced-polarization study and surface and underground drilling. A 100-metre drift driven into the base of the ore zone in the late 1950s remains accessible.

Mayamerica also has applied to explore 13 other properties in the country, comprising 817 sq. km of epithermal silver-gold targets.

In other news, Intrepid has optioned its La Labor silver-zinc-lead property in southwestern Honduras to Denver-based silver explorer Apex Silver Mines (SIL-X). Apex can earn a half interest by spending US$250,000 on the property before September 1999. Once Apex’s earn-in is completed, a joint venture will be created, with Apex as the operator.

The property is contiguous with Apex’s El Ocote silver-copper property, allowing the company to integrate about 71,000 acres of mineral rights in Honduras’s Coloal district.

Mineralization at La Labor occurs in felsic tuffs associated with a monzonite porphyry intrusion. The intrusion also hosts stockwork silver and base metal mineralization.

The partners plan to begin a geological mapping and sampling program in March, to be followed by drilling.