SAM buys stake in Caber property

Toronto-based Southern Africa Minerals (SAF-T) has signed an agreement-in-principle to acquire a half-interest in the Caber copper-zinc property in northern Quebec from BHP Minerals International, the U.S.

subsidiary of Broken Hill Proprietary (BHP-N).

Situated 25 km west of the town of Matagami, the property was subjected to diamond drilling in 1997. Highlights included 3.3% copper over 6.6 metres and 7.9% zinc over 9.3 metres.

Earlier drilling, in 1994 and 1995, had outlined a resource of 1.3 million tonnes grading 1.3% copper and 5.54% zinc, as well as 0.26 gram gold and 10.2 grams silver per tonne.

Southern Africa believes the property holds potential for hosting a large-tonnage, copper-zinc deposit. Exploration plans are being formulated.

The agreement, which is subject to regulatory approval, will see Southern Africa issue 2.5 million shares to BHP.