Junior Adrian Resources (ADL-T) and Teck (TEK-T) have resolved their differences over further feasibility work at the former’s Petaquilla property in Panama.
The major has agreed to complete a final feasibility study by Jan. 15, 1998, which will entail metallurgical tests, environmental studies, and other obligations.
The resource is estimated at 1.5 billion tonnes grading 0.49% copper and 0.015% molybdenite, plus 0.11 gram gold per tonne.
In December 1996, Adrian called Teck’s original feasibility study incomplete, and not in compliance with an agreement between the two companies. Teck denies that charge.
Teck’s previous study included a reserve estimate of 850 million tonnes, whereas Adrian’s consultants placed the figure at 1.2 billion tonnes.
As part of the new study, Teck will conduct bulk sampling and metallurgical tests in at least two areas of the open pit, as well as definition drilling.
The company will also assess the Molejon deposit, both as part of the copper mining operations and as a stand-alone gold operation.
The revised report will include conclusions from Adrian’s consultants as well as Teck’s.
In return for completing the study and funding Adrian’s share of production costs, Teck can acquire half of Adrian’s 52% interest in the 2,086-sq.-km property.
The remaining 48% of Petaquilla is held by Inmet Mining (IMN-T).
In related news, Teck and Australian partner Camelot Resources have made a $173-million offer for all outstanding shares of Mount Edon Gold Mines, a Western Australian gold producer.
Mount Edon produces some 100,000 oz. per year from its Tarmoola open-pit mine in the Leonora district. Reserves stand at 14 million tonnes grading 2.3 grams gold (equivalent to 1 million contained ounces), with an additional resource pegged at 1.1 million oz.
Teck, which purchased a 14.5% interest in Camelot in June 1996, hopes to identify projects with potential for hosting deposits that can be mined at a rate of 100,000 oz. per year.
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