Preliminary Boleo tests prove positive

Partners International Curator (VSE) and Coeur d’Alene Mines (NYSE) are encouraged by preliminary metallurgical results from the Boleo property in Baja California, Mexico.

Coeur d’Alene can earn a half interest from Curator by spending US$6 million or completing a feasibility study.

Curator, in turn, can acquire the property outright from the underlying Mexican owner by meeting one of three payment options. The least expensive of these includes paying $1.2 million by Feb. 15, 1995, for a 10% interest, plus $20 million for the remaining 90%.

The initial phase of metallurgical tests included the extraction of three samples weighing 20 kg each from one area of the San Guillermo section of the Boleo underground deposit. One sample was taken from the hangingwall tuff of Manto 3, one from the middle of the manto and one from the footwall of the manto. A fourth sample was generated as a composite of the middle and footwall samples.

The hangingwall sample graded 1.32% copper and 0.018% cobalt and leach tests returned recoveries ranging from 29% for copper and 0% for cobalt using an ammonia leach. Recoveries of up to 80.5% for copper and 11.7% for cobalt were obtained using agglomeration with a sulphuric acid and ferric cure. Tests on the composite sample (5.51% copper and 0.048% cobalt), using agglomeration with sulphuric acid and ferric cure, netted a 91.44% recovery for copper and 54% for cobalt.

Curator emphasizes that the results are preliminary and that the samples used cannot be considered representative of all the ore types in the deposit. All the same, President Michael McInnis said he is pleased with the results and that the relatively high recoveries for cobalt were an unexpected bonus. The joint venture has started a second phase of metallurgical testing, including: an evaluation of agglomerate pellet integrity; a review of clay content of drill core; and a determination of all the copper mineral species. McInnis said Coeur d’Alene has already spent about US$550,000 on the project and expects to spend a further US$700,000 by the end of July, including additional metallurgical work, test mining and drilling.

Ultimately, the companies hope to develop an underground mine in the San Guillermo area which is estimated to contain a flat-lying proven and probable reserve of 4.8 million tonnes grading 2.9% copper and unknown cobalt over an average width of 1.9 metres.

McInnis also noted that the joint venture plans to do some drilling on a prospective open-pit target elsewhere on the property, in the first half of this year.