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Gold/Mining/Energy : JABA INC.(c.jba) -- Ignore unavailable to you. Want to Upgrade?

To: EGC who wrote (515)	7/25/1998 7:09:00 AM
From: bconard	Read Replies (1) \| Respond to of 1044

To all, --------------------------------------------------------------------- Friday July 24, 9:01 pm Eastern Time Company Press Release Jaba Acquires 4 Billion Pound Copper Resource and Plans Southwestern United States in Situ Copper Leach Mine TUCSON, Ariz.--(BUSINESS WIRE)--July 24, 1998--JABA (Alberta Stock Exchange:JBA. - news) is pleased to announce that it has executed a binding letter agreement for a lease with option to purchase a skarn-hosted porphyry copper project in southeastern Arizona from Delta Exploration Group LLC of Scottsdale, Arizona. The acquisition price consists of one million shares of JABA Inc., US$7.5 million in cash paid substantially out of operating profits of the planned mine, a royalty of 5 percent of profits in perpetuity commencing after payment of the US$7.5 million and other non-material considerations. The agreement is subject to Alberta Stock Exchange approval. James Briscoe, Chief Executive Officer of JABA and a Registered Geologist in the states of Arizona and California, has reviewed the data and provides the following description of the project. The project consists of two drill indicated zones in which four billion pounds of oxide copper have been delimited. JABA proposes to install an in situ leach mine with solvent extraction - electro winning (SXEW) to produce electrolytic (wire grade) copper. Favorable geology, geophysics and geochemistry reveals potential for substantial expansion of the oxide copper resource in all directions from the drilled areas. New geochemical exploration technology can pinpoint additional high grade zones for leaching. Computer models completed in December 1996 show a high grade oxide copper core. More than 150 holes have been drilled in the area over the past 30 years, primarily by the minerals division of a large oil company. In the northern zone, 64 holes have recently been computer modeled, with a resulting resource estimate of 440 million tons grading 0.39 percent oxide copper at a 0.1 percent cut off, or approximately 3.4 billion pounds of copper. In the southern zone, cross sectional calculations show 105 million tons grading 0.26 percent oxide copper at a 0.1 percent cut off or 546 million pounds of copper. High-grade core zones exceeding 1 percent copper exist within surrounding lower average grades so that perhaps 2 billion pounds of copper may be available in these higher grade areas. Both deposits contain significant potential for discovery of additional adjacent oxide resources. The copper oxide is contained in a garnet-pyroxene skarn surrounded by marble and limestone. At depth, the oxide, which has a thickness of 600 to 850 feet, merges into primary chalcopyrite mineralization. Alluvial cover above mineralization ranges from 250 feet to 600 feet. The water table is essentially static at a 400 foot depth. Infrastructure is ideal with power, water, transportation including major highways and local roads, lodging and a nearby skilled labor force as well as mild year around weather. The southern zone has already undergone permitting followed by a successful in situ leach test conducted approximately 15 years ago. The test was terminated and the property relinquished for reasons unrelated to economics. Recent property consolidation and technological advances have now made implementation of the project practical. Geological conditions make the properties particularly suited to in situ leaching with no possibility of escape of leach solutions. Carbonate rocks surrounding the oxide copper will react with any potentially escaping leach solution to immediately form an impermeable gypsum barrier, encapsulating the leachant and preventing any pollution or loss of copper. Shallow depth and static water table will combine to keep costs low. Within the same mining district and same mineral type, some 106 million pounds of electrolytic grade copper has been produced from a now exhausted open pit heap leach with solvent extraction electro-winning (OPHL SXEW) proving the leachability of the contained oxide copper. JABA has commenced a 90 day due diligence period for confirmation of data and further testing. JABA expects the due diligence to be rapid as Delta Exploration has done a superlative job of retaining intact core and other primary data from previous exploration, spanning a period of 30 years, which was done in a professional and detailed manner. Guilbert and Briscoe are already quite familiar with the project and one of Dr. Guilbert's students did a master's thesis on the northern resource zone under his direction at the University of Arizona. Many of the consultants who have previously worked on the project are available to form the core of the development team. As the project advances, JABA, in line with previous joint ventures, may seek a partner with the financial resources to ensure its development to its full potential. Potential JV partners continue to examine and consider several of JABA's other exploration projects. On behalf of the Board, James A. Briscoe, C.E.O.