A wholly owned subsidiary of Orvana Minerals (TSE) recently entered into a letter of intent with BHP Minerals International to acquire a 100% interest in that company’s Central Inlier prospect in Jamaica.
Previous exploration by BHP, including sampling, trenching and 38 drill holes, identified a preliminary resource of about 2 million tonnes grading 3 grams gold per tonne.
Thomas Beattie, vice-president of Orvana, said the company plans to complete a small 6-hole confirmatory infill drill program on the resource before completing the agreement.
Beattie said the company already has an exploration team in Jamaica and if a rig can be lined up, drilling could start shortly.
Preliminary metallurgical test work indicates good recoveries can be obtained through direct cyanidation or column leaching.
Orvana notes that only about a 10th of the length of a gold-in-soil anomaly has been tested by trenching and drilling. The company plans to commence a detailed evaluation of the property on completion of a final agreement. The agreement calls for an initial payment of US$10,000 plus US$250,000 by July 1, 1993. BHP retains a 7.5% net operating proceeds interest and the purchase is subject to final approval by senior management of both parties. The acquisition is also subject to approval by the Jamaican government for the transfer of prospecting licences.
As well, the Central Inlier project is subject to 5% net smelter return to the underlying owner, although Beattie noted that the company is now negotiating to lower the royalty.
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