LATIN AMERICA SPECIAL — Caribbean mineral hunt focuses on

In the past few years, several junior and senior Canadian mining companies have turned to the Caribbean in search of copper and gold. Most of the current exploration activity is being focused in Cuba and Jamaica.

In Cuba, Joutel Resources (TSE) is concluding negotiations with the government for the right to explore three mineral concessions totalling more than 1,900 square miles in the eastern and central portions of the island. The company hopes to sign an agreement in early March and begin exploration in the Santa Clara, Kamaguey and Sierra Maestra areas this summer. All of the areas are underlain by island arc volcanic terranes which have the potential to host volcanogenic massive sulphide mineralization, copper and/or copper-gold porphyry systems and epithermal gold deposits.

Each of the concessions contains a variety of mineral occurrences, and in the Santa Clara area several small deposits are known to exist. One such deposit, the San Antonio, has reserves of 2.7 million tons at 1.64% copper, 3.64% zinc and 0.6 oz. silver per ton. At the Arimao project, also in the Santa Clara area, the Cubans have identified a copper-gold porphyry system with preliminary reserves of 80 million tons grading 0.3% copper and 0.03 oz. gold. Joutel is planning a summer program of airborne geophysical surveys and regional prospecting to outline specific target areas within each concession. The company will finance the initial reconnaissance work and after that the projects will become 50-50 joint ventures with the Cuban government.

Joutel President Charles Page told The Northern Miner that up until now, exploration in Cuba has focused primarily on nickel laterite deposits. Page feels that the potential for finding “elephant-sized” polymetallic deposits is excellent.

Minnova (TSE) has signed a letter of intent with Joutel, allowing it the right to earn a 25% interest in one of Joutel’s polymetallic projects. Minnova’s project selection will probably occur after Joutel has delineated specific target areas.

Also active in Cuba is Toronto-based junior Holmer Gold Mines (ASE). The company is negotiating a joint venture agreement with the Cuban government for the right to earn a 50% interest in two large permit areas, the San Fernando and Francisco. The permit areas, each 30 square miles in size, contain a number of polymetallic mineral occurrences and past-producing mines. Holmer also has the right to explore and develop several chromite deposits in central and eastern Cuba.

Miramar Mining (VSE) has recently become involved in Cuba through an agreement with Australian-listed Matlock Mining. Miramar has an option to acquire a 25% interest in the Hierro copper project where Matlock has outlined reserves of 3.9 million tons grading 3.47% copper.

Mineral exploration in Jamaica was kick-started in 1988 after the release of a geochemical survey, sponsored by the Canadian International Development Agency (CIDA), which covered about 18% of the island. The stream sediment survey outlined several gold and copper anomalies in areas underlain by Cretaceous inliers and lower Eocene graben sediments.

Although the initial activity has somewhat subsided, several companies are still active on the island.

Orvana Minerals (VSE) has an option to purchase the Central Inlier gold deposit from BHP Minerals International Exploration for payments totalling US$250,000 due by July.

Mineralization on the 26-square-mile property occurs in a shallowly dipping (22) fracture zone up to 33 ft. thick with the top 6-13 ft. marked by a fragmented quartz vein. Minor pyrite occurs in the fresh rock, but the gold does not appear to be associated with the sulphides. Drilling and trenching have outlined a zone almost 2,000 ft. long with preliminary reserves of 700,000 tons grading 0.16 oz. gold. Orvana President Neil Hillhouse says that soil sampling and limited drilling have traced the mineralized structure for an additional 1.7 miles.

Orvana is carrying out trenching and soil sampling to further delineate the mineralized zone.

BHP is also working on eight additional projects in Jamaica. Calgary junior Trev (ASE) is currently exploring six copper-gold properties in Jamaica. Most of the mineralization

appears to be skarn- or porphyry-related. Drilling on the company’s Bellas Gate property has returned values of up to 0.42% copper and 0.008 oz. gold over 150 ft.

Noranda (TSE) has an option to acquire a 61% interest in four of Trev’s properties on the eastern part of the island. To earn its interest, Noranda must make payments to Trev totalling $795,000 and spend $3.34 million on exploration over a 4-year period.

Elsewhere in the Caribbean, Monte Carlo Gold Mines (ASE) has decided to drop its Aruba gold property this fall. The property contains a number of gold showings that have been worked intermittently since the turn of the century. The company has been unable to secure additional financing for the project.