Idaho Cons. breaks pact with Crystallex

Under a mutual agreement, Crystallex International (KRY-T) will no longer be providing technical support services to Idaho Consolidated Mines (IDO-V) at the Stillwater complex in Montana.

The original agreement, signed in January 2000, was to have lasted five years.

In return for its services, Crystallex was receiving $15,000 per month and had a 5-year option to acquire 2.25 million shares at $1.08 apiece.

The end of the deal follows the appointment of several new directors and officers to Idaho Consolidated, including John Andrews as president and chief executive officer.

Crystallex’s option on Idaho shares will expire Nov. 15, 2002, after which time Idaho will have no further obligations to Crystallex.

This past summer, a 7-hole drill program by Idaho Consolidated failed to cut any significant platinum-palladium mineralization at the Stillwater property. Five of the holes were collared in the Iron Creek area of the property. Two holes confirmed the stratigraphic sequences but returned only elevated platinum-palladium values, while a third cut two zones of gold mineralization running up to 1.16 grams per tonne over 7.3 metres.

At the Fishtail Creek prospect, a hole that was designed to test a geophysical conductor cut 92 metres of overburden but failed to identify the source of the anomaly. A second hole, 1.8 km to the west, cut the contact between the ultramafics and sediments but failed to return any significant mineralization.

Idaho Consolidated is targeting a possible extension to the high-grade, producing J-M reef, which hosts Stillwater Mining‘s (SWC-N) namesake mine 1.3 km to the northwest. Stillwater Mining has outlined the reef with a proven and probable reserve of 36 million tonnes grading 22 grams combined platinum-palladium.

In September, Idaho Consolidated announced a private placement for total proceeds of $3 million. One unit, priced at 35, will comprise one share plus half a non-transferable warrant. One whole warrant allows the holder to buy an additional share for 70 for one year.

Proceeds are earmarked for a second round of drilling later in the year. The program will include 10 holes totalling 2,134 metres. Two holes will target the Iron Creek area, four will target the Lost Mountain and Crescent Creek areas, and another four will be collared on the platinum-group-metal-bearing A and B chromite horizons. Previous surface sampling in the area returned between 1.16 and 15 grams combined platinum group metals per tonne. The average value of all the samples was 3.9 grams.