Canadian Company Press Release
CBI 1999-05-10 (provided courtesy of BCE Emergis E-News Services.)
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CHESBAR RESOURCES INC. - NICKEL PROJECT FOR CHESBAR IN GUATEMALA/ DRILLING FOR GOLD RESUMES IN VENEZUELA
TORONTO, ONTARIO--
Chesbar Resources Inc. is undertaking a systematic investigation
of a laterite-type nickel deposit in Guatemala. The project is a
result of the Company's joint venture exploration program with
Intrepid Minerals Corporation (ASE:IAU) in that country.
Exploration was initially focused on a search for precious metal
deposits and this work continued throughout 1998 and the first
part of 1999. As sometimes happens in exploration, being in the
right place at the right time led to an opportunity of a
different sort. The participants, operating through a
jointly-owned Guatemalan company, Minera Mayamerica S.A., became
aware of an opportunity to apply for an exploration licence on a
property in eastern Guatemala, which contains a known deposit of
nickel. This was done, and the exploration licence has now been
granted.
The joint venture partners' decision was based on recent
developments in the metallurgy of the type of nickel deposits in
question, which occur in a weathered rock formation known as
laterite. Previously this type of deposit was relatively
expensive to exploit and highly energy intensive. The new
technology, known as pressure acid leaching, is a
hydrometallurgical process, which is much more economical and
effective and allows for the production of nickel metal rather
than concentrates which must be sent to a smelter for expensive
further processing. Developments in this field of metallurgy are
moving forward rapidly and three operations of this type are
currently being brought into production in Australia while others
are planned or contemplated in other areas in which laterite
nickel deposits occur.
Guatemala is, in the opinion of the Company's management, ideally
situated for operations of this type. It is a tropical country,
a condition necessary for the formation of laterite deposits, and
now has a stable, democratic government and a very practical and
workable new mining law in place. The new property, which is
called "Sechol" and covers an area of 3090 hectares (30.9 square
kilometres), is in the eastern part of the country within easy
access of ports and the Caribbean coast. The property is
accessible by road and electrical power is available, with a new
large hydroelectric development underway in the area.
Work on the property by previous owners consisted mainly of
geological mapping and over 100 test pits in the laterite and
saprolite weathered material overlying the ultrabasic basement
rocks.
This work was oriented towards older, traditional types of
operation involving smelting, and not the pressure acid leaching
technology which is currently in favour. The work did, however,
confirm the presence of extensive near surface deposits that were
estimated to average approximately 2% nickel.
A preliminary property examination by senior officials of Chesbar
confirmed the potential of the property to the Company's
satisfaction.
A program of investigation has been laid out, which involves
systematic sampling and assaying to outline resources of the type
amenable to hydrometallurgical extraction, as well as
metallurgical research and test work to determine the best method
of extracting nickel from this property. Because the lateritic
material occurs at or near surface and is relatively soft, the
sampling will be done by means of numerous test pits to be dug by
locally available labour.
Minera Mayamerica S.A., which holds the exploration licence on
Sechol, is presently owned 50% by Chesbar and 50% by Intrepid.
While Intrepid will continue to focus on gold and silver
exploration on behalf of Mayamerica in Guatemala, an agreement
has been signed between the two companies which allows Chesbar to
assume management and direction of the nickel program and to
provide funding up to a maximum of US $300,000. The initial
program is budgeted at US $100,000 and, if the total of US
$300,000 is spent by Chesbar, the Company will see its interest
in the project increased to 70%. Results of this program will be
analyzed and combined into a scoping study, which will determine
the future course of action on this project.
IN VENEZUELA, preparations are being made to resume drilling on
the Company's holdings in the Anacoco area. The work of compiling
and analyzing the results to date and conducting additional
magnetometer surveys referred to in News Release No. 99-05 dated
April 23, 1999 has now been completed and a new program of
drilling has been laid out, beginning on the Anacoco II property
to follow up on favourable results of drilling in the vicinity of
Line 6100 North, as reported in News Release No. 99-05. It is
expected that this work will get underway within the next week or
two.
Chesbar Resources Inc. is a public company whose shares are
listed on the Montreal Exchange: Symbol "CBI"
for additional information, contact:
Chesbar Resources Inc. Tel: (416) 363-1124/Fax: (416) 360-0728
Website: www.chesbar.com E-mail: chesbar@istar.ca
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