Adrian drilling three properties in Panama

Vancouver-listed Adrian Resources is drilling three properties in Panama, another Latin American nation that’s attracting renewed interest from mining companies because of its geological endowment and genuine interest to expand the role of mining in its economy.

At the most advanced of these, the Petaquilla property, the combined geological resources of two deposits, Botija and Petaquilla, already exceed 1 billion tons grading 0.6% copper (plus minor gold credits).

Adrian holds a 52% interest in the project, with Metall Mining (TSE) holding 48%. Since starting work in April, 1992, Adrian has spent more than $6 million exploring the property. Previous work was carried out by the United Nations and a consortium of Japanese copper companies.

A preliminary feasibility study, expected in March, will include new tonnage and grade calculations, as well as metallurgical data. The study will then be submitted to Teck (TSE), which can acquire half of Adrian’s interest by completing a final study and funding 32% of capital costs to place the project in production. If the major elects not to participate, Adrian will consider another strategy.

“We are looking at putting the project and our Panamanian assets up for international tender by mid-year,” said Adrian President Chet Idziszek. “We have expanded our land package to cover a mineralized district which we know has potential for many deposits.”

The junior has interests in six properties comprising 1,361 sq. km. Although porphyry-style copper-gold-silver-molybdenum deposits are better known and more defined, mineralization related to epithermal gold deposits has proved to be an increasingly important target.

“Gold deposits peripheral to the porphyry copper deposits were the main focus when the former Minnova (now part of Metall) became involved,” Idziszek said. “We are now starting to find some of those.”

Adrian’s 1994 work program will involve definition infill drilling on both Petaquilla and Botija. (Previous infill holes have revealed some pleasant surprises, such as areas showing gold enrichment and areas open to reserve expansion.) The company will also drill stepout holes on four new areas: Brazo, Botija-Abajo, West Medio and Faldalito.

Results are awaited from the first few holes of this year’s drilling, which tested the Brazo area, 2.5 km south of Botija. The company intersected copper-porphyry-style mineralization similar to that of the discovery hole. The West Medio target is 1 km north of Petaquilla, while the Faldalito anomaly is believed to represent the northwestern extension of the Petaquilla deposit.

Elsewhere on the property, prospecting and soil sampling have led to the discovery of an extensive, gold-in-soils anomaly in the Molejon area, 4 km south of Botija. Gold values of up to 8.3 grams per tonne were reported from the work program, which was focused on epithermal-style quartz veining within agglomerates, tuffs and volcanics. Prospecting and infill sampling are continuing, in preparation for drilling.

Adrian is also drilling the Belencillo concession, west of Petaquilla. The project is optioned to Madison Enterprises (VSE), which can earn a half interest. The $500,000, first-phase program will involve drill-testing the Palmilla copper-gold zone, among other areas.

Drills are also turning on La Esperanza, a property half of which has been optioned to Silverstone Resources (VSE). The first-phase, $300,000 program will focus on testing porphyry-style copper mineralization within a known zone. Other targets will also be explored further.

More recently, Adrian optioned to Ario Resources (VSE) a half interest in each of the Santa Lucia and Oro del Norte concessions. The properties are near Petaquilla, close to the eastern coast. Santa Lucia has known gold anomalies, including two past-producing sites dating from colonial times.