U.S. REPORT (February 03, 1992)

With plans to raise in the order of $1 million through a secondary public offering, Manhattan Minerals (VSE) will have the funds to explore two recently acquired properties.

The company can earn an 80% interest in the Mount Royal property in Liberty Cty., Mont., by making expenditures of US$1 million by Oct. 1, 1996. Manhattan can earn a 60% interest in the Harquahala property in La Paz Cty., Ariz., by spending a total of US$1.2 million by Sept. 30, 1994. The company can earn an additional 20% interest by spending a further US$550,000 by Sept. 30, 1995.

Peter Tegart, president of Manhattan, said the company’s initial focus will be on the Arizona property. He noted that it had the greatest potential for production in the shortest time at a low capital cost.

The Harquahala project is a heap-leach gold target which Tegart said is currently in production on a small scale. He said the vendor is permitted for the mining of 30,000 tons, which should make future permitting relatively easy.

Originally staked in 1888, the property produced a reported 130,000 oz. of gold from 150,000 tons of ore to 1937. The early operation concentrated on high-grade shear zones. The shear zones are surrounded by highly fractured mineralized areas ranging up to 100 ft. in width.

Previous operators reported assays of 0.10 oz. gold over 120 ft. in near-surface underground crosscuts and the mineralization is reported to be oxidized to a depth of 300 ft.

Manhattan has outlined four separate drill targets on the property and Tegart said he hoped to start a drilling program in late March or early April. Tegart does not expect to begin work on the Mount Royal property until June. The property covers about 1,200 acres and was originally worked for placer gold before the turn of the century.

Surface programs by previous owners identified a number of gold anomalies. Small-core drilling is reported to have returned gold values, including 364 ft. grading 0.013 oz. gold in syenite intrusive rocks and 85 ft. grading 0.056 oz. gold in an oxidized brecciated marble.

Manhattan currently has 3.3 million shares outstanding and about $235,000 in working capital.