Chase boosts interest in Taysan

The recent purchase of an option on a further 7.5% interest in Taysan Copper, a Philippine company, gives Chase Resources (VSE) control over 67.4% of the Taysan project.

On assignment of the 7.5% interest, Chase will issue one million treasury shares plus one million share-purchase warrants exercisable at $2 in the first year, $2.50 in second year and $3 in third year of the agreement. The issued shares as well as any exercised warrants are restricted from sale during the first 12 months of the agreement.

In addition to the treasury shares and warrants, Chase will also pay the vendor a total

of US$600,000 over a 2-year period.

The deal is subject to the execution of formal agreements and regulatory approvals.

Taysan Copper holds a 100% interest in the Taysan copper-gold project near Batangas City, Philippines.

Chase currently holds an option to purchase a 59.9% interest in Taysan Copper by making a cash payment of US$2.1 million by May 10, 1993, or US$2.9 million by May 10, 1994.

Engineering Consultant, Fluor Daniel Wright, estimates reserves in the main Taysan zone at about 600 million tons grading 0.3% copper and 0.009 oz. gold per ton with a strip ratio of less than 0.8-to-1.

The company based the estimate on previous drilling totalling about 88,000 ft. in more than 70 holes. Included in the estimate are proven and probable reserves of about 370 million tons grading 0.31% copper and 0.01 oz. gold at a 0.2% cutoff.

Chase is now conducting a 4-month drilling program through to the end of February. Objectives of the program include delineating a near-surface higher-grade zone, confirming higher gold grades indicated by metallurgical testing, and expanding the size of the deposit which remains open in all directions.

Chase recently obtained drill logs and assays from several diamond drill holes completed in the early 1980s by Newmont Mining and Benguet, former operators of the property.

Referring to a preliminary interpretation of the new information as well as the company’s current drilling program, Ian Rozier, president of Chase, said the starter pit appears to be significantly larger than originally anticipated.

The company estimates that the starter-pit zone extends to greater depths than previously thought with copper grades of 0.4-0.5% and possible gold grades in the order of 0.012-0.015 oz.

Drilling on the property is continuing with two rigs, and Rozier said a third drill rig will be added shortly.

The first two holes of the program are reported to have intersected 1,150 ft. and 820 ft. respectively of highly mineralized material in the starter-pit area.

Rozier said he expects to release assay results from the first batch of holes by the end of November.