LATIN AMERICAN SPECIAL — Islands attract outside explorers

A trio of Caribbean island nations has attracted the attention of several Canadian mining companies.

Two of the countries, Cuba and Jamaica, are grassroots exploration plays. The third, the Dominican Republic, has supported a large ferronickel mining and smelting complex for many years.

Cuba

Cuba is intriguing because of its isolation from the Western world during the past three decades. The Cuban government of Fidel Castro aligned itself with the former Soviet Union, and the U.S. introduced a trade embargo which is still in force today.

Since the breakup of the Soviet Union and the loss of preferred trading practices with the communist world, Cuba has been looking elsewhere. The Canadian mining industry has expressed its interest; at least seven resource companies have signed exploration and/or development agreements with the Cuban government.

The first Canadian mining company to sign an exploration agreement was Joutel Resources (TSE) which, in August, 1993, acquired the rights to several concessions. Joutel plans to spend US$2 million on its island prospects by the end of August. Earlier this year, the junior entered into an agreement whereby Teck (TSE) may earn a half interest in three of Joutel’s properties. Caribgold Resources (TSE), a fairly new junior run by geologist David Bell, is working five joint-venture properties (mainly gold). It reported encouraging results from initial field work.

Joining with Cuban company Geominera S.A. to explore a 2,000-sq.-km concession in east-central Cuba is MacDonald Mines Exploration (CDN). The concession hosts the Florencia gold mine.

Other juniors active in the country are Holmer Gold Mines (ASE), Republic Goldfields (VSE) and Miramar Mining (VSE).

Alberta nickel refiner Sherritt (TSE) buys nickel-cobalt feed from state-owned Cubaniquel.

Involved in a joint venture (named Cubanex) with Geominera to provide contract exploration drilling services within the country is Heath & Sherwood International of Toronto.

Jamaica

A major world producer of bauxite, Jamaica has attracted gold explorer Orvana Minerals (TSE) of Vancouver. Work last year at the junior’s Central Inlier project, under option from BHP Minerals, was aimed in part at determining the feasibility of an open-pit mine in the property’s higher-grade area. Also active in Jamaica is Trev (ASE), which last year reported the discovery of high-grade copper mineralization at its Golden Spring project. Trev has an option to acquire the property and has applied to the government to acquire additional ground.

Dominican Republic

Ferronickel is the Dominican Republic’s major mineral commodity but the country, which shares the island of Hispaniola with Haiti, also produces gold, silver, bauxite, limestone, gypsum and marble.

Ferronickel producer Falconbridge was in the news earlier this year because of a protest by farmers in the Bonao area who are concerned about the environmental impact of a company mine on their crops. The mine has been the object of area protests since it was opened in 1971.

In the central part of the Dominican Republic, Minera Hispaniola, 60% owned by Battle Mountain Gold (NYSE) and 40% by Canyon Resources (NASDAQ), is exploring El Higo, a gold concession. A Canyon representative said the company is hoping to announce some noteworthy results from the 1994 exploration campaign.