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Gold/Mining/Energy : Chesbar Resources- CBI Montreal -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (940)	5/11/1999 10:12:00 AM
From: Enigma	Read Replies (1) \| Respond to of 980

Canadian Company Press Release CBI 1999-05-10 (provided courtesy of BCE Emergis E-News Services.) register to receive future releases by email from BCE Emergis E-News Services 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 -------------------------------------------------------------------------------- Legal Notices -------------------------------------------------------------------------------- New User Français Corporate Links Basic Plus Industry Watch About Carlson Online Basic About Carlson Online Plus About Carlson Online industry watch Today's Headlines Equity Search Canadian Company information Compare Equities US company information Insider Trades Short Positions © Copyright Carlson Online Services Inc, 1996-1999. All rights reserved.