Teck to fund Petaquilla study

Vancouver-based Teck (TSE) plans to fund a final feasibility study of the Petaquilla copper deposits in Panama, which were the subject of a preliminary study by Kilborn Engineering.

A recent agreement with Adrian Resources (TSE) provides Teck rights to acquire a 26% interest in the project and assume the role of operator. Adrian would then own a similar interest, with Metall Mining holding the remaining 48%.

“We are extremely pleased to have Teck involved,” Adrian President Chet Idziszek told The Northern Miner. He added that the company will be carried through to production should mines be developed on the Petaquilla concession and outside lands.

The Kilborn study estimated minable reserves for two deposits — Petaquilla and Botija — at 495 million tonnes grading 0.53% copper and 0.124 grams gold per tonne, at a 0.19% copper-equivalent cutoff. The stripping ratio would be 1.22-to-1 over the first 15 years of mine life.

Teck also agreed to fund Adrian’s ongoing exploration costs on the copper deposits (which were not evaluated by Kilborn) — notably the Botija Abajo, Botija Norte, Vega, Brazo and Lata deposits. Further work on these deposits is expected to increase the overall mineral resource on Adrian’s land package in Panama.

In order to have its interest vested in either the Petaquilla copper deposits or the Molejon gold deposit, Teck must prepare and fund a final feasibility study for the particular deposit. The studies must be completed by Nov. 29, 1996, and Teck will then have 90 days to elect to place the deposits into production within two years.

If it makes a production decision, Teck will be responsible for funding all of the costs of Adrian (and its wholly owned Panama subsidiary, Georecursos Intrenacional) to place the property into production, or 52% of the total costs.

The agreement contemplates development of the Molejon gold deposit, which will be developed on a fast-track basis concurrently with the development of the copper project.

Teck can also elect to acquire half of Adrian’s interest in the surrounding Belencillo, Esperanza, Oro del Norte, Santa Lucia, and Oro del Sur concessions. Adrian and Teck also have an agreement relating to development of the three Aro Grande concessions, jointly held by Adrian and Madison Enterprises (VSE).