LATIN AMERICA — Anglo’s Aripuana deal to go ahead

Following a due-diligence investigation, the Brazilian subsidiary of Anglo American (AAUK-Q) is going ahead with a joint-venture deal with Karmin Exploration (KARM-C) on the Aripuana property in northern Mato Grosso state, Brazil.

The deal, which gives Anglo a 70% interest in the deposit, combines the two companies’ properties in the area: a 90-sq.-km parcel held by Anglo and a 20-sq.-km parcel held by Mineracao Rio Aripuana, a subsidiary of Karmin.

Exploration between 1995 and 1998, including a joint-venture with Noranda (NOR-T), outlined a massive sulphide deposit on the Karmin ground with a resource estimated at 11.6 million tonnes with an average grade of 6.29% zinc, 2.25% lead and 0.07% copper, plus 65 grams silver and 0.25 gram gold per tonne. Noranda dropped its option on the project in April 1998.

Anglo has outlined a massive sulphide deposit, called Arex, on its own property, immediately to the west, and says this deposit is similar in size to Aripuana. Neither Arex nor Aripuana has been drilled off at depth or along strike.

In addition to its 30% interest, Minera Rio Aripuana has received US$180,000 in cash and will get another US$70,000 once land titles have been legally transferred to the joint venture.

Anglo will own 70% of the new joint venture; Karmin, 18.9%; Thistle Mining (THT-T), 7.2%; and SGV Merchant Bank, a unit of St. Genevieve Resources (SGVE-C), the other 3.9%.

Karmin, formerly called Ambrex Mining, also announced it had raised $500,000 in a private placement for general working capital. In total, 2.5 million shares were issued at 20 cents.