In what may be the start of an area play, Tantalus Resources (VSE) has reached an agreement in principle with a subsidiary of Citadel Gold Mines (TSE) to acquire a 100% interest in that company’s prospecting licence in eastern Jamaica.
The licence covers about 15 square miles of ground about 20 miles north of Kingston.
In order to earn the interest, Tantalus must make cash payments totalling $180,000 and spend a minimum of $1.2 million on exploration over a 3-year period. Citadel retains a 3% net smelter return on the property. The deal by Tantalus marks the second Jamaican property agreement in recent months by a company managed by Prime Equities International (VSE). Prime-managed Golden Ring recently announced an agreement with ASE-listed Trev to acquire a 100% interest in Trev’s Belas Gate property in Jamaica. Recent prospecting on the Tantalus option by Citadel
confirmed the presence of widespread copper mineralization plus associated gold values over an area measuring 2,000×600 ft.
Shallow diamond drilling in the area returned up to 34 ft. grading 0.56% copper while sampling in an old adit returned 53 ft. grading 0.88% copper. Gold values were not determined during the work.
On completion of the transaction, Tantalus plans to proceed with a property-wide exploration program to define targets for diamond drilling in 1992.
Tantalus has about 4.5 million shares outstanding and is well funded with more than $1 million in working capital.
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