Under an option agreement, Adex Mining (TSE) can acquire up to a 60% interest in the Potts Falls gold concession in Guyana.
Adex can earn the interest from Giddings Industrial Development Co., a private Guyanese company, by spendng $US1.7 million on exploration. In addition, it would have to pay $100,000 and issue 750,000 Adex common shares by 1997.
The concession resembles the nearby Omai mine — 65%-owned by Cambior (TSE) and 35% by Golden Star Resources (TSE) — in that it contains a significant alteration zone with numerous quartz veins and anomalous gold values in eluvial and alluvial material. Exploration work will begin soon in an effort to define the potential for large-tonnage, low-grade gold zones. In other news, Adex has started a field program on the Asia Pacific project in the Philippines. The property, jointly owned with Starmin Mining (TSE), will be drill-tested for large-tonnage, copper-gold-molybdenum porphyry deposits. Last year, a trench assayed 1.5% copper across 450 ft.; the trench is adjacent to the Hinobaan orebody, which contains 150 million tons averaging 0.45% copper.
Meanwhile, in British Columbia, the company has agreed to sell its 4-claim Tarn property to the provincial government. Details are pending.
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