Adrian uncovers new gold zone

At the Petaquilla property in Panama, stepout drilling has confirmed an additional near-surface gold zone for Adrian Resources (TSE).

Associated with the Molejon deposit, the new zone is estimated to have a resource of 3.2 million tonnes averaging 3.4 grams gold per tonne. A previous estimate of the main Molejon deposit outlined an indicated and inferred geologic resource of 7.7 million tonnes averaging 3.3 grams. The company believes resources in both zones now exceed 38.9 million grams (1.25 million oz.).

Situated 10 km from the Caribbean coast and 120 km from Panama City, the property hosts upwards of seven copper-gold deposits, as well as the Molejon gold deposit.

According to a preliminary feasibility study by Kilborn Engineering, minable reserves for two of the individual deposits — Petaquilla and Botija — are estimated at 495 million tonnes grading 0.53% copper and 0.124 grams gold at a 0.19% copper equivalent cutoff. Using a 0.5% copper-equivalent cutoff, Kilborn estimates the minable reserves at 287 million tonnes grading 0.7% copper and 0.14 grams gold.

Teck (TSE) is expected to earn half of Adrian’s 52% interest in either the Petaquilla copper deposit or the Molejon gold deposit by funding a final feasibility study of the particular deposit by Nov. 29, 1996. Teck has 90 days to elect to place the deposit in production within two years, and it is responsible for funding Adrian’s share of costs. Metall Mining (TSE) holds the remaining 48% interest of the Petaquilla property.

Teck is also required to fund Adrian’s ongoing exploration costs on the Molejon deposit and on copper deposits not evaluated in Kilborn’s feasibility study, such as the Botija Abajo, Botija Norte, Vega, Brazo and Lato. Recent drilling at the Molejon deposit on the newly identified surface zone returned 15.2 metres of 3.13 grams gold plus 1.3 grams silver for hole 94-115 and 19.8 metres of 3.34 grams gold as well as 1.8 grams silver for 94-124. Twenty-four holes have outlined the main Molejon zone, which measures 300 metres along strike and 600 metres downdip. The zone remains open to the east, northeast and west. Recent values of selected intervals include 9.1 metres of 6.94 grams gold plus 6.5 grams silver for hole 94-114, 18 metres of 2.67 grams gold as well as 2.7 grams silver for 94-117, and 16.5 metres of 1.16 grams gold plus 1.4 grams silver for 94-120.

Adrian President Chet Idziszek says crews will waste no time preparing the Molejon for development, as the shallow-lying deposit is the most accessible. In a bid to expand the reserves of the Botija copper deposit, two holes tested the eastern and western extensions. Hole B94-112, stepped out 100 metres to the northwest, returned 285 metres of 0.51% copper plus 0.08 grams gold, including an interval grading 0.73% copper and 0.11 grams gold over 106.5 metres. Previously tested by shallow drilling, hole B94-109 was stepped out 100 metres to the east, returning 253.4 metres of 0.46% copper and 0.05 grams gold, including 39 metres of 0.59% copper plus 0.06 grams gold. Two holes were drilled in the central portion of the Botija deposit, where previous drilling had ended in the mineralized zone. Hole B94-105 intersected 236.5 metres of 0.59% copper and 0.11 grams gold, including an interval of 67.5 metres grading 0.78% copper plus 0.15 grams gold. Hole B94-123 returned 208.5 metres of 0.59% copper as well as 0.18 grams gold, including 105 metres of 0.74% copper plus 0.23 grams gold.

Stepout drilling of the central portion of the Petaquilla deposit extended the zone 100 metres to the north and returned 132 metres of 0.75% copper plus 0.06 grams gold, including an interval grading 1.1% copper plus 0.09 grams gold over 52.5 metres for hole P94-113.

Hole P94-118 extended the deposit to the east by 100 metres, intersecting 111.1 metres of 0.54% copper and 0.03 grams gold, including 54 metres of 0.7% copper and 0.04 grams gold. A third hole, P94-121, tested a previously drilled hole and extended the zone by an additional 61 metres, returning 300 metres of 0.58% copper and 0.05 grams gold (including an interval grading 0.74% copper plus 0.1 grams gold over 54 metres).

Exploration drilling, consisting of two widely spaced holes at the Botija Norte deposit, returned copper values ranging from 0.35% to 0.42% over widths of 6 to 9 metres in two zones. Assay results for two holes drilled at the Vega deposit are pending.

Exploration budgets are currently being prepared for the Petaquilla property, and Idziszek notes that Teck is anxious to see five drills turning on the property in 1995.