Adrian plans to explore Petaquilla

Junior Adrian Resources (TSE) is heading off to the jungles of north-central Panama to begin exploring the Petaquilla porphyry copper property under the terms of a recent option agreement with Minnova (TSE).

The property contains two copper deposits, Petaquilla and Botija, situated 4 km apart, which together contain preliminary reserves of 180 million tonnes averaging 0.76% copper.

The deposits were discovered in 1969 as part of a United Nations development program survey. But this discovery was overshadowed by Cerro Colorado in western Panama, one of the world’s largest unexploited porphyry copper deposits (more than 2 billion tonnes grading in excess of 0.6% copper). This deposit was never developed (companies with interests included Canadian Javelin and Rio Tinto Zinc) because of its rugged and tropical location, and a lack of access, power and port facilities.

Minnova acquired an option to earn 80% of the Petaquilla property in late 1990, not only because of its potential as a copper producer, but also to explore for related gold mineralization. After outlining a number of large gold anomalies within and around the known porphyry copper deposits, Minnova sought a minority partner to share costs of further exploration. Adrian’s recent agreement allows it to earn 40% of Minnova’s interest in the deposits and accompanying land package by making annual cash payments of $100,000, spending $6 million on exploration and development, issuing 200,000 shares to Minnova and completing a detailed economic feasibility study, all within five years.

Adrian will operate the project up to and including feasibility, and then issue a final 100,000 shares to Minnova, which will then become operator. Minnova will also hold an option to buy up to one million Adrian shares during the term of the option.

“We hope to start our work as soon as possible in order to get equipment to the site before the rains start,” says Adrian President Chet Idziszek. “We plan to do infill and stepout drilling on both deposits to confirm and expand the known reserves and establish the average gold content, as well as test several outside targets.”

Because the previous operators focused on copper, only one hole was analyzed for gold. It returned an average from nine samples of 0.658 grams gold per tonne (0.019 oz. per ton).

Previous work on the copper deposits included geological and geochemical surveying, test pitting and 51 diamond drill holes totalling 12,000 metres, which led to a minable reserve estimate of 128 million tonnes grading 0.74% copper. This preliminary estimate is based on a 0.6% copper cutoff grade, and a strip ratio of 1.8-to-1.

The deposits are open at depth and along strike. Infill drilling will be required because the majority of previous drilling was at 200-metre spacings. Both deposits are hosted by tonalite porphyry, granodiorite and Tertiary volcanics. The principal minerals are chalcopyrite, pyrite, magnetite and molybdenite found as disseminations, networks and stringers. Two significant outside geochemical targets located several kilometres from the copper deposits will be drilled for the first time. Adrian reports that Minnova’s sampling program confirmed the gold potential of the area and “suggests further promise for epithermal gold deposits as well as porphyry gold deposits.”

The Petaquilla property is located about 18 km from the town of Colclesito. There is road access to this town, and to within 3 km of the deposits. The topography is hilly with jungle vegetation, and the climate is hot and wet. Panama is considered to have a favorable climate for foreign investment, particularly since former president Manuel Noriega was deposed several years ago. The U.S. dollar is legal tender, and new mining legislation introduced in 1988 amended regulations and offered a new range of incentives to attract foreign investment.