Ex-Placer executives form new exploration company

A group of ex-Placer Development (now Placer Dome) executives have formed a new exploration and development company called Pan Orvana Resources. It hopes to raise from $4.5 to $11 million in an upcoming prospectus offering which will be spent on nine properties in Canada, 11 in the United States, and one in Indonesia. One of the properties has almost reached pre-feasibility.

Pan Orvana was originally conceptualized as an exploration company that would focus on large mineral deposits; but Dr Neil Hillhouse, chief operating officer, says the company is also interested in operating smaller properties which could generate a steady source of cash flow. The importance of this strategy has become even more clear since the Oct 19 market crash, he stresses.

The company’s technical staff has been involved in at least 18 properties that are, or will become, mines in the near future, he notes.

Pan Orvana can earn up to a 60% interest in the Cobb Creek project in Nevada on which a potentially economic gold deposit has been outlined. Based on 40 drill holes, a geologic reserve of 3.5 million tons grading 0.046 oz gold has been outlined, the company confirms. This is expected to be in pre-feasibility by year-end.

Echo Bay Mines (TSE) has the right to fund an extensive exploration program on Pan Orvana’s Antelope Creek property in the Carlin trend of Nevada (for a 51% interest) and Pan Orvana can earn a 44% interest in a large polymetalic property on Sumbawa Island in Indonesia. A large epithermal system of copper, zinc, lead, silver and gold has been outlined which, although erratic, has some production potential.

Hillhouse emphasizes that Pan Orvana will compete on skills rather than money and he says Pan Orvana would feel comfortable joining forces with a major company on larger projects.