JABA and Cyprus Metals Reach Agreement for a Joint Venture on Mammoth Wash Project, Silver Bell District, Arizona
VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Feb. 5, 1998-- JABA Inc.(Alberta Stock Exchange:JBA.) JABA Inc. (ASE-JBA) is pleased to announce they have reached agreement for a joint venture with Cyprus Metals Exploration Corporation of Denver, Colorado
("Cyprus") on JABA's Mammoth Wash project in the Silver Bell Mining District in southern Arizona. Cyprus is one of the largest copper mining companies in the world and currently operates four open pit copper porphyry mines in Arizona. It is also the world's largest molybdenum producer and the largest US based mining company.
The Silver Bell district has a combined past production and estimated reserve of 2.8 billion pounds of copper. Asarco Inc. (formerly American Smelting and Refining Company) has been continuously producing copper from this district for more than 45 years and recently invested with partner Mitsui Inc. approximately US$70 million to construct a new mine and extraction plant for their North Silver Bell deposit. This state-of-the-art facility is scheduled to produce 36 million pounds of high-grade copper annually for the next 30 years.
JABA and Cyprus will test the concept that the Mammoth Wash project hosts the fault-displaced western half of the north Silver Bell deposit hidden under a thin gravel cover (see attached map).
The Mammoth Wash project, 100 percent held by JABA, comprises 4 properties totaling 4,586 acres (7.2 square miles or 18.6 square kilometers). Cyprus can earn a 50 percent interest in the project by spending US$2 million in exploration and paying JABA US$200,000 over 4 years payable in quarterly increments. The Agreement includes a firm commitment for Cyprus to complete 6,000 feet of reverse circulation drilling within the first 4 months. Upon completion of the terms of the earn-in, Cyprus may earn an additional 20 percent interest (for a total of 70 percent) by completing a bankable feasibility study and paying JABA US$1 million, if completed within 5 years of the date of the Agreement, or US$2 million if completed no later than 6 years from the date of the Agreement.
The potential for the Mammoth Wash project to host a major copper porphyry was first recognized by JABA's John Guilbert and Jim Briscoe. This project is an example of the large mineral potential thought to exist on many of JABA's 20 properties that are available for joint venture. The Company is in various stages of negotiation with several major mining companies and expects to complete additional joint venture agreements in the near future.
James A. Briscoe, Chief Executive Officer
John M. Guilbert, Chairman of the Board
Note: Location map available from the Company at the phone number listed below.
The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.
CONTACT:
JABA Inc., 604/602-9002
604/602-9007 (FAX)
1-800/863-1551 Toll Free
jaba.com
Mr Metals |
