Ennex, the Irish exploration company, has entered into two new joint ventures to explore for lead and zinc. The first alliance is with Billiton, the British metals and mining group, to explore the Moate Block, an area in the midlands which consists of eight licences covering an area of 304 sq kms.

By spending $3.5 million (£2.48 million) over four years, Billiton will earn a 50.1 per cent interest in the block. The block is currently owned by Ennex and Irish Marine Oil and both of their holdings will be reduced under the arrangement.

The other alliance is with Arcon Exploration, which is to spend £450,000 over five years on Ennex's prospecting licence 1653, which will give it a 51 per cent interest. The licence is situated five kilometres to the east of the Galmoy zinc-lead mine.

A number of drill-holes in this area have encountered mineralisation which "warrants follow-up", according to both companies.

Together with its existing joint venture with Ascarco in Co Kildare, a total of $700,000 will be spent on areas currently owned by Ennex over the next year. The company is currently negotiating two further joint ventures with unnamed parties. The company says both sites look promising and the main reason for the two joint ventures is that the Ennex was "not prepared to undertake the work on its own as a small company".

Speaking at the company's annual general meeting in Dublin, managing director, Mr Christian Schaffalitzky, said the main focus of the company "continues to be on the Shaimerden project in Kazakhstan".

"Good progress is being made on all aspects of the feasibility study with a number of subjects ahead of schedule," he said.

"An exploration drilling programme around the deposit has commenced and results will be obtained during the summer," he added.

At its Morocco site, geological work has begun on the main area of interest and will continue through the summer, he stated.