NEWS:
From netnews@cdn-news.com Wed May 28 14:51:03 1997
Date: 28 May 1997 16:00:08 -0000
From: netnews@cdn-news.com
To: netnews@cdn-news.com
Subject: Hot Off The Wire: JABA INC
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Canadian Corporate News --- Hot Off The Wire
News Release for "JABA INC"
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: JABA INC.
ASE SYMBOL: JBA
MAY 28, 1997
Jaba Inc. - Acquisition of Robbers Roost and Downey
Projects, Cochise County, Arizona, Commencement of
Drilling at Downey Project, Cochise County, Arizona
VANCOUVER, BRITISH COLUMBIA--JABA Inc. (ASE - JBA) announced today the acquisition of two large scale projects in southwestern Arizona. Extensive exploration work has been completed on both projects and Phase 1 drilling commenced on the Downey Project on
May 27, 1997.
ROBBERS ROOST PROJECT
Robbers Roost is an in-house project developed by JABA's exploration team. In this area, a deep seated porphyry copper target has been confirmed by drilling done by ASARCO in the early 1970s. Three holes unequivocally confirm a porphyry copper system; they intersected a subsurface porphyry intrusive with characteristic phyllic alteration grading downward into a classic potassic zone including secondary K feldspar, purple anhydrite chalcophyrite and molybdenite. Reinterpretation of ASARCO drill logs and core by JABA suggests the potential for an as yet undrilled ore grade contact zone, which will be tested by future drilling.
DOWNEY PROJECT
JABA acquired the Downey property from Tombstone South Minerals Inc. under a ten year exploration lease with option to purchase. Under the terms of the lease, JABA will make yearly payments of US$60,000 for three years and US$225,000 for the next seven years,and will complete 2,000 feet of reverse circulation drilling by July 1, 1997. All lease payments will form part of the purchase price of US$2.25 million if prior to January 1, 1999, US$3.0 million if prior to March 31, 1997 and US$5.0 million thereafter.
Adjacent and part of the more distal polymetallic halo around the main Robbers Roost porphyry copper target is the Downey Project, thought to be similar in nature to the main Tombstone district precious metal-copper-lead-zinc zone. CSAMT (Controlled Source Audio Magnetotellurics) shows strong anomalies indicative of potential polymetallic mineralization over two major zones of more than a 1000 feet in width each. This will be the target of JABA's Phase 1 drill program, comprising 2000 feet of reverse circulation drilling. The mineral target will be sediment hosted silver-gold-lead-zinc-copper in high grade replacement ore in limestone at the base of the Bisbee formation or in the underlying Paleozoic limestones. The Downey Project potential is for more than a billion dollars in contained metal value.
The acquisition of the Robbers Roost and Downey Projects follows extensive work done previously by JABA in the general area of the Tombstone Caldera. Other JABA projects in this region include the Zebra (disseminated submicron gold in Paleozoic limestone with potential in the 1 million ounce plus range), Walnut Creek (porphyry copper/molybdenum, one billion pounds copper potential), and Johnson Ranch (porphyry copper). Exploration programs are underway on all of these projects and drilling is expected before year end.
JABA Inc. is a pure exploration company focusing on the southwestern US and northern Mexico, where it holds a portfolio of over 30 high quality projects.
Donald A. Sharpe, President
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FOR FURTHER INFORMATION PLEASE CONTACT:
Jaba Inc.
Donald A. Sharpe
President
(604) 602-9002
(604) 602-9007 (FAX)
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
INDUSTRY: NFR
SUBJECT: TMN
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