Tethyan Resources Plc said Oct. 6 that it has decided to pull out of its joint venture with Balkan Minerals Corp. d.o.o. over the latter's Cadinje polymetallic project in Serbia after recent drill results returned low gold assays and did not improve on historical assays from area.
According to Tethyan, the geological interpretation of the project has changed with the recognition of two thrust faults cutting the project's mineralization off at depth. The company's technical personnel said the potential to increase the known size of Cadinje's mineralized resource is now limited.
"Tethyan is committed to exploring for gold and base metals within the Balkans and we plan to focus our resources on projects which can deliver the highest return to shareholders," CEO Peter Mullens said.
The company also noted that its decision to back out of the venture will not incur any penalty and that it has no further liabilities related to the project.
Tethyan recently secured an option to acquire an 87-square-kilometer exploration license over the Suva Ruda porphyry copper-gold project in Serbia.