EXPLORATION – Xemac gains copper project

Val d’Or, Que.-based Xemac Resources (XEM-M) has acquired the Arenoso porphyry-copper project in Baja California, Mexico.

In return, Xemac must pay Idaho-based Fischer Watt Gold, the vendor, a total of US$35,000, with the latter retaining a 2% net smelter return royalty.

An winter exploration program will attempt to outline what Xemac believes may be a significant copper deposit beneath a surface leach cap. Previous operators carried out surface geophysical and geochemical surveys over a strike length exceeding 5 km.

Within the 6,800-ha Arenoso concession are four small claim blocks, totalling 369 ha, that are not part of the Arenoso acquisition. Xemac has acquired an interest in two of these blocks, covering 260 ha, through the purchase of a one-third interest in Vancouver- and Tijuana-based Minera Seville. Gem-quality turquoise is being mined on a limited basis on some of these claims.

Xemac has privately placed 1.1 million units priced at 15 cents apiece for total proceeds of $165,000. Each unit consists of one share and one warrant to buy another share at 20 cents until Aug. 6, 1999. A portion of the proceeds will be used to complete the Seville purchase.