A recent trenching program on Orvana Minerals’ (TSE) Central Inlier property in Jamaica has encountered high-grade gold mineralization.
A series of trenches was excavated along a strike length of 120 metres to evaluate the eastern portion of a 600-metre-long gold zone discovered by BHP Minerals in the late 1980s.
Thirty-three random channel samples, each about 1.1 metres true width, averaged 20.7 grams gold per tonne (0.60 oz. gold per ton). All high values were cut to 100 grams. The high grades are believed to be a reflection of in situ mineralization. The company says some surface enrichment could be suspected, but previous drilling by BHP demonstrated that high values also occur downdip.
Orvana’s work has demonstrated continuous but variable grade mineralization between two BHP trenches. It also indicates a more complex structure than was previously recognized.
Orvana has an option to purchase a 100% interest in the 68-sq.-km property from BHP by making payments totalling US$250,000 by July 1993, subject to a 7.5% operating profits royalty and an underlying royalty.
Orvana plans to carry out additional trenching, soil sampling, magnetometer and VLF surveys, as well as diamond drilling, upon completing a $1.3-million private placement with Toronto-based Goldcorp (TSE).
Under the placement, Goldcorp will buy two million shares of Orvana at 65 cents per share. Goldcorp currently owns 13.5% of Orvana’s outstanding shares and will own 22.6% upon completing the transaction.
Funds from the share placement, which is subject to regulatory approval, will also be used for general exploration and corporate purposes.
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