News release:
Abacus Minerals Corporation AMC
Shares issued 17815405 1997-04-25 close $0.85
Monday Apr 28 1997 News Release
Mr Steve Todoruk reports Field exploration crews have been mobilized to the company's Niblack project in southeast Alaska where a $4,000,000 exploration program is planned for the 1997 season. Two diamond drills will arrive on the property on or about April 29 with the first drill to start up immediately. The diamond drilling will be directed at expanding the previously announced resource of 1,800,000 tons grading 0.117 oz/t gold, 1.37 oz/t silver, 1.50% copper and 2.64% zinc. The company's geological consultants rate the chances of substantially increasing this resource to be extremely high. Results will be announced in a timely fashion.
A recently announced private placement with Salman Partners reported in Stockwatch February 27 1997 was closed on March 13 1997 for gross proceeds of $3,675,000. Twenty five per cent of the net proceeds were paid to the company at the closing of the deal. The remainder of the net proceeds is being held in escrow until the earlier of the clearance date for the final prospectus (estimated to be less than 120 days from February 27 1997) or March 13 1998. In conjunction with the March 13 1997 financing proceeds, the company has approximately $1,500,000 in the treasury for a total working capital of $5,500,000.
In a news release in Stockwatch March 6 1997, Abacus announced the acquisition of six gold properties in southern Argentina from Barrick Gold. The properties are near Anglo American's Cerro Vanguardia deposit, which is reported to host at least 3,800,000 ounces of gold. The most advanced of the six properties acquired by the company is the La Manchuria property where in 1996 Barrick excavated trenches which yielded values of 1.48 g/t gold and 57.7 g/t silver over 110m in trench No. 1 and 1.37 g/t gold and 14.8 g/t silver over 180m in trench No. 2. Trench No. 2 is 125m south of trench No. 1.
A 3-6 week reconnaissance exploration program is planned for La Manchuria in either August or September of this year and will be followed by a drilling program in late 1997. In the first year of this agreement with Barrick, Abacus must spend US$500,000 on all six properties with at least US$350,000 directed towards La Manchuria. The company has $1,500,000 available for exploration which is enough to meet the first and second year work commitments. Other companies active in this exciting area include Northern Orion Resources and Yamana Resources, both listed on the TSE. Yamana has entered into a joint venture agreement with Rio Algom whereby Rio is required to spend US$20,000 over the next four years to earn its interest. The Abacus properties were acquired by Barrick in the LAC Minerals takeover in 1994 and were staked before many of the other competitor claims in this district.
Good luck to all,
Leonard |
