Adrian commissions Petaquilla study

Adrian Resources (VSE) has retained Kilborn Engineering to carry out a study of the Cerro Petaquilla concession in Panama.

The study will enable Teck (TSE) to decide whether or not to participate in the copper project. The major can earn 16% of the concession, according to a production financing agreement with Adrian.

Adrian holds an option to earn 32% from a unit of Metall Mining (TSE). It also has a 20% indirect interest through a wholly owned Panamanian subsidiary. At last report, the concession contained two deposits collectively hosting 875.6 million tons. Grade is reported to be 0.6% copper at a 0.3% cutoff. Recent drilling outside the main Botija and Petaquilla deposits has increased the geological resource to more than 1.1 billion tons.

Adrian is exploring the adjacent La Esperanza and Belencillo concessions, respectively optioned (50%) to Silverstone Resources (VSE) and Madison Enterprises (VSE). In a separate development, Adrian has agreed to acquire half of the Chorcha concession, a copper-gold porphyry prospect near the Cerro Colorado deposit in central Panama.

Closer to home, in British Columbia’s Stewart camp, Adrian holds a portion of the Eskay Creek deposit being advanced to production by a unit of Homestake Mining (NYSE). This part of the deposit is estimated to contain 310,000 oz. gold equivalent within the “claim gap” covered by Adrian’s IKS 1 claim. However, ownership of this claim is the subject of a complaint under Section 35 of the province’s Mineral Tenure Act. Earlier court decisions have upheld Adrian’s title to the claims, and the final hearing is expected next spring. The owners of Eskay Creek, Prime Resources Group (TSE) and Stikine Resources, can collectively earn half of Adrian’s IKS 1 claim. Homestake’s 54% interest is held through its equity interests in both Prime and Stikine.