Petaquilla gets dusted off (December 14, 2004)

Vancouver – Revitalized copper and gold prices has prompted Petaquilla Minerals (PTQ-T) (previously Adrian Resources) to reactivate its namesake copper-gold porphyry project near the Caribbean coast in central Panama.

The company has signed a Letter of Intent (LOI) with partners Inmet Mining (IMN-T) and Teck Cominco (TEK-T) to resume activity on the project that has largely sat stagnant since 1998.

The LOI outlines an agreement in principal whereby Petaquilla Minerals can acquire 100% interest in the Molejon gold project, which sits within the main Petaquilla project area. The deal is subject to the Panamanian Government approving a multi-phase mine development plan developed by the three partners.

The company will be focusing on Molejon through exploration and development programs enroute towards developing a feasibility study.

In a 1995 resource study, SRK Consulting reported a (non NI43-101 compliant) probable resource of 5 million tonnes grading 2.81 grams gold per tonne plus 956,000 tonnes of possible resource at 3.72 grams gold at Molejon.

Petaquilla Minerals has a 52% interest in the large Minera Petaquilla project area, with Inmet holding 48%. Teck Cominco has an option to earn half of Petaquilla’s interest by completing a final feasibility study (done in 1998) and funding the company’s entire share of costs to place the main project into production.

In 1998, a bankable feasibility study by AMEC (formerly H.A. Simons) was completed on the Minera Petaquilla project. The study reviewed three of the porphyry deposits on the project and outlined a non-NI43-101 compliant mineable reserve of 1.115 billion tonnes grading 0.5% copper, 0.09 grams gold and 0.015% molybdenum. The report estimated a 120,000 tonne-per-day throughput and a 23-year mine life with a relatively low stripping ratio of 0.97:1. An initial capital expenditure of US$1.12 billion was outlined in the study to place the operation into production.

Metals prices have improved significantly since the 1998 feasibility study. At the time, gold was sub-US$300 per ounce and copper traded in the US70-80 per pound level.

Petaquilla Minerals has 50.6 million shares outstanding and has recently traded in the 40 per share range, giving the company a market capitalization of about $20 million.