Irish Marine Oil (IMO) is looking at the possibility of making a bid for the Bula ore body at Navan. IMO's chairman, Dr John Teeling, says his company, in conjunction with Anglesey Mining, a British listed group, has carried out a feasibility study at a cost of 100,000 Canadian dollars (#63,000).

This has arisen "with the decision of the Bula liquidator to put the property on the market". The ore body, he tells shareholders in his annual review, "is well known to our board, three members of which were actively involved for many years with Tara Mines, which mines part of the [Navan] deposit".

A study shows a stand-alone mine is "feasible". However, "ongoing work is examining ways of financing both a mine and the purchase price".

Tara Mines is considered the favourite to buy the mine, which is still the subject of litigation. However, Dr Teeling points to Tara's high running costs and stressed "we have got to be there if Tara doesn't [make a bid]".

IMO is continuing to have discussions with an unnamed listed mining company, which may lead to a merger/takeover, Dr Teeling says. While the name of the company has not been revealed, it is understood to be Anglesey Mining, which owns the Parys Mountain lead/zinc ore body in Wales.

"Benefits would include a better listing, more liquidity, exposure to other exploration opportunities and exploration skill," Dr Teeling says. "The downside is a dilution of our mine potential."

Dr Teeling says he hopes to be in a position to give further details at the annual general meeting next month.

Because of the discussions, IMO has decided to postpone the company's name change to Minco. Dr Teeling says IMO is one of the most active explorers in Ireland. "We need more of the 25 holes being drilled this year to discover commercial grade zinc/lead," he adds. The drill results this year have been described as "very good".

IMO's latest results show a slight fall in the loss before tax, to £43,095 (#54,719) in the year to April 30th, 1999, from £45,621.