News release
ADRIAN RESOURCES LTD. ANNOUNCES MOLEJON STUDY COMPLETED
VANCOUVER, July 10 /CNW/ - Adrian Resources Ltd.
Trading Symbol: TSE/VSE-ADL, NASDAQ-ADLRF
Adrian Resources Ltd. (``Adrian'') is pleased to report that it has
received from Teck Corporation (``Teck'') the Molejon Trade-Off Study (the
``Study'') prepared by H.A. Simons Ltd. Mining Group (``Simons''). In
preparing the Study, Simons carried out a detailed assessment of the Molejon
deposit to determine the most effective means of processing the gold ore from
that deposit.
The Molejon gold deposit is located on Adrian's Petaquilla property,
approximately 3 km south of the proposed site of the Botija pit. The diluted
mineable resources contained in the Molejon deposit were estimated by the firm
of Steffen, Robertson & Kirsten to be approximately 570,000 ounces of gold in
approximately 8 million tonnes averaging 2.2 g/t gold, 5.1 g/t silver and
minimal copper (0.006%) at a 2.3:1 strip ratio.
Simons evaluated four different scenarios for treatment of the Molejon
ore:
1. Stand alone operation, assuming that the development of the Petaquilla
property copper deposits do not proceed at the same time as the
development of Molejon;
2. Stand alone operation, assuming that the development of the Petaquilla
property copper deposits do proceed at the same time as the
development of Molejon, with a separate mill at the main Petaquilla
mill site for the Molejon gold ore;
3. Combined operation involving the blending of Petaquilla and Botija
deposit copper ore with Molejon gold ore; and
4. Heap leach operation at the Molejon mine site and sharing
infrastructure with the Petaquilla property copper development.
After taking into account estimated metallurgical recoveries, capital
costs and operating costs, Simons concluded that Scenario 2, the separate mill
option, would generate net cash flow of US$70.4 million and yield the highest
net present value (``NPV''), approximately US$24.7 million, using a 10%
discount rate or US$42.9 million using a 5% discount rate. Simons states that
``the blending option'' would provide a higher NPV if gold recovery could be
increased to 70% or greater from the current estimate of 60%. It goes on to
say that the separate mill option provides the greatest opportunity to
increase the NPV with higher gold prices.
The Study is part of the work presently being carried out by Simons on
behalf of Teck to permit Teck to complete a final bankable feasibility study
on Adrian's Petaquilla property. The Petaquilla property is owned by Adrian
as to 52% and by Inmet Mining Corporation as to 48%. Teck can acquire one
half of Adrian's interest in Petaquilla by preparing and delivering a final
bankable feasibility study by January 21, 1998 and funding Adrian's share of
the cost of placing Petaquilla into production.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ADRIAN RESOURCES LTD.
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Chet Idziszek, President |
