AFRICA — Tri-Star buys back old Minorca interests in Africa

Following its October merger with Minorca Resources, McWatters Mining (MCW-T) has moved to shed Minorca’s West African interests.

Tri-Star Gold (TSG-V) has bought back the interests Minorca held in 13 exploration concessions in Ghana. In exchange, Tri-Star will issue 3 million of its shares to McWatters and pay $540,000. McWatters cannot sell the shares until the beginning of 2000.

Tri-Star’s most advanced project, the Diaso concession in southwestern Ghana, about 50 km west of Obuasi, saw some reverse-circulation drilling in 1997. That drilling campaign located a mineralized zone about 1.8 km long, in the Adiadi area. Soil sampling in the Modaso area, about 5 km along strike to the southwest, suggests there may be more mineralization along the same structure. Tri-Star now holds a 100% interest in Diaso and the adjoining Phoenix concession.

Tri-Star’s interest in the Aaron concession also increases to 100%. In 1997, work on Aaron, about 50 km south of Diaso, turned up gold mineralization along a 600-metre strike length. Tri-Star’s stakes in the other concessions range from 51% to 100%.