Exploration by
About $800,000 of the $1 million spent on exploration during the 9-month period between April 1 and December 31 was spent at the Barra Grande project in Brazil. Reverse-circulation drilling at the site, in Minas Gerais state, outlined three targets, and additional drilling on two of these targets is under way. The company is still negotiating access to the property with its owners and has yet to receive a permit that will enable it to begin sample recovery and treatment. That permit is not expected for another three months, but the company is nonetheless proceeding with plans to build a rotary pan plant. Work there will determine if a larger bulk-sampling program is warranted.
In Namibia, a dispute between Trans Hex and a local farmer over access and compensation at the Northbank property continues to hold up work for the company. In October 1999, a “technical fault in the hearing of evidence” prompted an appeals court to withhold judgment until another hearing can be set.
Plans by the company to test the grade and value of 75,000 cubic metres of gravels have been on hold since 1997. Negotiations with the landowner outside of court continue, says Trans Hex.
Trans Hex says it will continue to fund exploration at Barra Grande and Northbank (once the dispute is settled), though it has not specified how much it intends to spend at either property in fiscal 2001. However, Trans Hex’s majority shareholder, Trans Hex Group, will receive a $3-million loan from an unnamed but “related party” in March. The money will be used by Trans Hex Group to buy about 750,000 shares of Trans Hex International at $4 each.
At the Skeleton Coast project, also in Namibia, the company has identified a number of targets for sampling. The targets are related to a paleo-beach.
In Botswana, Trans Hex continues to deepen an exploratory hole into the Carol anomaly on the Rainbow property.
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