NEWS RELEASE TRANSMITTED BY CCN NEWSWIRE - A SERVICE OF ITG
FOR: RIPHEAN PLATINUM CORPORATION
APRIL 11, 2001 - 17:04 EDT
Riphean To Focus On Platinum And Palladium Exploration
TORONTO, ONTARIO--Riphean Platinum Corporation today announced
that effective March 30, 2001, the corporate name of LIBRA GOLD
CORPORATION had been changed to RIPHEAN PLATINUM CORPORATION to
reflect management's decision to focus its primary efforts on the
exploration and development of platinum group metals ("PGM"),
while maintaining its current exploration holdings in gold and
other precious metals.
Riphean Platinum has entered into an agreement with Geoprospects
International, Inc. to acquire the 50% interest of Geoprospects in
licenses to explore two PGM properties, Svetloborsky and
Pavdinsky, and license applications made for two additional PGM
properties, Volkovsky and Ashkinsky, in the Urals region of
Russia. To acquire the interests in the projects, Riphean
Platinum has agreed to issue to Geoprospects 2,075,000 treasury
common shares, to be released over a three year period.
Geoprospects will be issued 1,000,000 additional common shares
when a commercial orebody is established (with a minimum reserve
of 1,000,000 oz of PGM) and a bankable feasibility study is
prepared. A further 1,000,000 common shares will be issued when
commercial production is achieved at a rate of at least 100,000 oz
PGM per year.
All of the PGM properties are located within the Platinum Belt of
the Ural Mountains in the Sverdlovsk region of Russia, north of
the City of Ekaterinburg, and north or west of the palladium-gold
and platinum Boronsky and Soloviev Hill projects being developed
by Eurasia Mining plc of London. The Ural Mountains have been a
major source of minerals for over 250 years. The Urals Platinum
Belt, extending over 1,000 miles (north-south) in central Russia,
contains more than 15 mafic-ultramafic intrusive complexes as well
as numerous high-grade platinum placer deposits. Several small
high-grade hard rock platinum operations were in production in the
early 20th century, one of which (Gospodskaya) processed 50,000
tonnes of ore at an average grade of 443 g/t platinum to produce
22.15 million grams (approximately 700,000 oz.) of platinum.
Alluvial platinum was first discovered in the Urals in 1819-1824
and total Urals production is estimated to have been about 10% of
the world's known platinum production to date. Although
overshadowed by the discovery of huge platinum deposits in the
Noril'sk area, management believes that, based in part on early
progress by Eurasia Mining in the area, the Urals hold great
potential for discovery of additional PGM deposits.
Previous geochemical sampling on the Pavdinsky property indicates
that the concession includes five layered ultramafic intrusions
which carry disseminated copper sulfide-titanomagnetite and
ferro-platinum-chromite mineralization, similar to the Boronsky
deposit, with combined platinum-palladium values of 0.2 to 1.0 ppm
coincident with strong magnetic anomalies. Grab samples of
copper-rich sulfide zones (copper greater than1%) returned
palladium values of 1 to 3 ppm. The Svetloborsky property
encompasses two major layered dunite-pyroxenite-gabbro complexes
as well as several smaller gabbroic intrusions. Chromite-rich
dunites contain visible course-grained ferro-platinum associated
with chromite. Grab samples from these zones assayed at up to 240
ppm platinum. Pyroxenitic rocks contain lower-grade platinum
mineralization, but assay at 1 to 3 ppm platinum.
The initial exploration budget for 2001-2002 for the Svetloborsky
and Pavdinsky properties is US$175,000, plus US$50,000 for
technical supervision and administration. The proposed budget
would increase when additional properties are acquired. Riphean's
50% partner in the Urals platinum projects is the Uralian
Geological Survey Expedition, majority-owned by the Sverdlovsk
regional government. Once Riphean Platinum's exploration
expenditures reach US$300,000, its interest will increase to 60%.
Riphean Platinum has the option to increase its interest to 75% by
expending an additional US$500,000 on exploration of the
properties. The geological program will be under the supervision
of Thomas Skimming, P.Eng, Dr. Pavel Kepezhinskas and John
Thompson, P.Eng. In conducting its due diligence on the
acquisition, and planning its exploration program, Riphean
Platinum has received the preliminary report of Prof. A. J.
Naldrett, Senior Associate Geologist of Watts, Griffis and McOuat
Limited, consulting geologists and engineers.
In addition to the Uralian PGM properties, Riphean Platinum
continues to maintain its interests in four permitted gold
exploration projects in China and in the Easter gold project in
Nevada. In light of the current gold price, activity on these
projects continues to be curtailed. Management currently is
considering the economic viability of establishing a small open
pit, vat leach mine at the Dafang property in Hunan Province,
China, as a means of maintaining some active presence in that
country, pending better conditions for gold exploration and
development generally.
Riphean Platinum proposes to effect an equity financing by way of
a rights issue to all current shareholders to provide the
financing for the Urals exploration program and for general
corporate purposes.
Currently, Riphean Platinum has 11,530,817 common shares
outstanding, before giving effect to the 2,075,000 common shares
to be issued for the acquisition from Geoprospects. In addition,
Riphean Platinum will issue up to an additional 2,000,000 common
shares to Geoprospects when a mining reserve is established and
commercial production is achieved. Riphean Platinum also has
granted options to management and the directors to purchase a
total of 2,400,000 common shares at $0.10 per share up to March
30, 2006, and there are options outstanding to former management
to purchase up to an additional 526,000 common shares at prices
ranging from $0.003 to $0.203 per share expiring between April 26,
2001 and September 27, 2004. |
