Idaho Cons, Crystallex break management pact

Idaho Consolidated Metals (IDO-V) and Crystallex International (KRY-T) have mutually agreed to terminate a five-year management services agreement effective November 15, 2001.

Under the agreement, signed in mid-January, Crystallex was providing technical support services for Idaho’s exploration efforts at the Stillwater complex properties in Montana. Crystallex also aided Idaho Consolidated raise funds for its exploration and development plans.

In return for its services, Crystallex received $15,000 per month, and was granted a five-year option to acquire 2.25 million shares at $1.08 apiece.

The end of the deal follows the recent addition of several new directors and officers to Idaho Consolidated, including John Andrews assuming the roles of president and CEO.

Crystallex’s option on Idaho shares will now expire on November 15, 2002, and Idaho will have no further obligations to Crystallex after that date.

The termination has received regulatory approval.

This summer, a seven-hole drill program by Idaho Consolidated failed to cut any significant platinum-palladium mineralization at the Stillwater property in Montana. Five of the holes were collared in the Iron Creek area of the property. Holes 4 and 5 confirmed the stratigraphic sequences but returned only elevated platinum-palladium values. Hole 1 cut two zones of gold mineralization running up to 1.16 grams gold per tonne over 7.3 metres.

At the Fishtail Creek prospect, a hole sunk to test a geophysical conductor, cut 92 metres of overburden, but failed to identify the source of the anomaly. A second hole 1.8 km to the west cut the contact between the ultramafics and sediments but failed to return any significant mineralization.

Idaho Consolidate is targeting a possible extension to the high-grade, producing J-M reef that hosts Stillwater Mining‘s (SWC-X) namesake mine about 1.3 km to the northwest. Stillwater Mining has outlined the reef with a proven and probable reserve of 36 million tonnes grading 22 grams combined platinum-palladium.

In September, Idaho Consolidated announced a private placement for total proceeds of $3 million. One unit, priced at 35 apiece, will comprise one share plus half a non-transferable warrant. One whole warrant allows the holder to buy an additional share for 70 for one year.

The proceeds are earmarked for a second round of drilling later in the year. The program will include 10 holes totalling 2,134 metres. Two holes will target the Iron Creek area. Four holes will target the Lost Mountain and Crescent Creek areas. Another four holes will be collared on the platinum-group-metal-bearing A and B chromite horizons. Previous surface sampling in the area returned between 1.16 and 15 grams combined platinum group metals per tonne. The average value of all the samples was 3.9 grams.