LATIN AMERICA SPECIAL — Canadian-led exploration boom under

Long known for its vast reserves of nickel laterite ore, Cuba is now undergoing an exploration boom for precious and base metals.

Although several multinational firms are involved in the hunt (including Gencor of South Africa and Australian-based Western Mining), it is largely Canadian juniors who are leading the way.

One of the earliest Canadian companies to enter the Cuban fray was Joutel Resources (TSE) which, in 1993, negotiated for three large exploration concessions totalling 4,662 sq. km.

On the Sierra Maestra concession, near Santiago de Cuba, detailed work is under way on several of the 182 known mineral occurrences.

One of the more advanced projects is La Zona Barita, in the western portion of the concession. Drilling and trenching here have outlined a preliminary geological resource of 9.1 million tonnes averaging 1.63 grams gold and 3.66 grams silver per tonne, for 476,900 contained ounces of gold and almost 1.1 million oz. silver.

The zone, which measures 400 metres in length and remains open in all directions, will undergo further metallurgical testing.

On the Camaguey concession, drilling at El Jaguey intersected an impressive 20 metres of true width averaging 4.84 grams gold and 2.44 grams silver, as well as 6.14% zinc and 0.42% copper. Stripping and trenching will further evaluate the discovery.

Joutel is also encouraged by results from the Santa Clara area’s Los Pasos Formation. This property hosts some 15 base metal occurrences, and drilling is under way at its Los Cerros occurrence, which yielded some 104,000 tonnes of mineralization grading 4.2% copper and 13.5% zinc.

During the current exploration period, which ends in August, Joutel has budgeted US$2.8 million for drilling, ground geophysics and mapping on its various projects.

In addition, the company has formed an alliance with Teck (TSE) whereby the latter can earn half of Joutel’s 50% interest in three Cuban properties in return for purchasing $5.5 million in Joutel shares.

Domestic gold producer Miramar Mining (TSE) hopes to be one of the first Canadian mining companies to bring a Cuban deposit into production. Late last fall, Miramar’s wholly owned subsidiary, Minera Mantua, filed a prospectus to complete an initial public offering of shares to fund completion of feasibility studies on the Mantua copper project in western Cuba, and on the Delita gold project on the Isle of Youth.

The Mantua is a high-grade, secondary, enriched deposit amenable to open-pit mining and grading 3.5% copper. Just last month, the company reported it had discovered significant gold values in the gossan overlying, and adjacent to, the deposit. Resources are estimated at 6.3 million tonnes grading 1.27 grams gold and 7.26 grams silver. Additional drilling is under way. The Delita ranks as Cuba’s largest known deposit of the yellow metal, containing an estimated geological resource of 1.6 million oz. gold and 22 million oz. silver. In addition, Minera Mantua holds more than 450 sq. km of exploration rights surrounding the deposit.

Also hoping to fast-track a deposit into production is Holmer Gold Mines (ASE), which, together with partner Caledonia Mining (TSE), is exploring the Loma Hierro silver deposit in the Pinar del Rio mining camp of western Cuba. Caledonia is earning up to a half interest in Holmer’s Cuban properties by spending $5 million over five years.

Partially exposed on surface and tested by 18 holes, the Loma Hierro contains about 313 million grams (10 million oz.) silver, with an average grade of 343 grams over a thickness of 8.2 metres.

The oxidized deposit is flat-lying and amenable to open-pit mining. A pitting program is under way, and it is hoped drilling will double, or possibly even triple, existing reserves. “With financial aid from Caledonia, we hope to accelerate the project,” Holmer President Sethu Raman told The Northern Miner. The partners are also excited about a drill intersection on their San Fernando concession near Santa Clara. A hole, drilled to test an airborne geophysical conductor, intersected 3 metres of massive sulphide along with 37 metres of stringer mineralization. Assays are pending.

One of the largest land-holders on the island is CaribGold Resources, (TSE) which holds seven concessions totalling more than 6,800 sq. km. In the Camaguey concession, diamond drilling is planned for the Laura sector where previous samples returned values of up to 13.7 grams gold. Also in Camaguey, trenching is being carried out in the Lumy sector, where an oxidized altered zone in volcanics has been followed for more than 400 metres. At Santa Elena, a drill program will test electromagnetic targets associated with a new gold discovery where silicified rocks yielded values of up to 24 grams.

And in the Santa Clara region, ground and airborne geophysical surveys are being carried out in an effort to evaluate several target areas. An induced-polarization survey, for determining the priority of drill targets, was conducted in the Sigua sector of CaribGold’s Sierra Maestra Oriental concession. The Sigua alteration zone, which measures about 100 metres wide by 1,000 metres long, has yielded several high-grade gold and silver values.

The most recent company to strike a deal with the Cubans is MacDonald Mines Exploration (CDN), which holds the 2,000-sq.-km Florencia-Jobabo region concession. Another junior, Mill City Gold Mining (VSE), can earn up to a 25% non-operating interest by spending US$850,000.

An airborne geophysical survey has just been completed over the region, and field work is under way on several prospects.

At Golden Hill, which is believed to be a high-level epithermal gold deposit, sampling has yielded values of up to 29.9 grams gold.

Elsewhere, the partners have finished rehabilitating an underground ramp at Maclama Hill, and underground sampling is in progress. Initial examinations have returned grab samples up to 27.44 grams gold from a magnetite-rich skarn. Within the Florencia sector, ore reserves are being calculated in preparation for a prefeasibility study. Highlights from earlier drilling include 33.6 grams over 2.1 metres, 55.6 grams over 1.3 metres and 16.1 grams over 3.3 metres.

Republic Goldfields (VSE) is seeking partners to help it explore its Jicotea concession (near Camaguey) and the Puriales property (near Santiago de Cuba). On the latter, drilling will soon begin at the Elexcion copper deposit in an effort to verify reserves of about 10 million tonnes grading 2% copper, which were previously outlined by the Russians. And on the Jicotea play, shallow drilling is in progress at the Gaspar occurrence.

Other companies active in Cuba include MinAmerica, a private Panamanian company which owns 24.8% of Adrian Resources (TSE); Minera Siboney, which is controlled by Bolivar Goldfields (TSE); Metall Mining (TSE); and Sherritt (TSE).

All mining joint ventures come under the auspices of GeoMinera S.A., a state-owned entity which holds a half interest in all mining concessions granted to foreign companies.