Aquiline sizes up Calcatreu

An independent estimate by Micon International has pegged indicated resources at Aquiline Resources‘s (AQI-V) Calcatreu gold project in Argentina’s Rio Negro Province at 1.37 million tonnes running 5 grams gold and 39 grams silver per tonne.

In addition, 4.5 million tonnes of inferred resources grade 2.8 grams gold and 26.9 grams silver. The estimate employs a cutoff grade of 0.6 gram gold, and is based on 65 diamond and reverse-circulation holes.

The resource is contained in Calcatreu’s Vein 49 and Nelson low-sulphidation gold systems, with the bulk (nearly 1.1 million tonnes of indicated resources running 5.8 grams gold and 43.4 grams silver) are found in quartz veins in the oxidized portion of Vein 49.

Infill drilling on Vein 49 and Nelson aimed at expanding the resource will begin in early November. Drilling will also target several other targets. Aquiline also plans an induce polarization survey and follow-up work on the large drainage stream sediment survey program inherited when Aquiline acquired the project from Newmont Mining (NEM-N). Newmont picked up Calcatreu via its acquisition of Normandy Mining, which managed to turn up 11 epithermal vein systems during the late 1990s..

Newmont retains a 2.5% net smelter return royalty and a back-in right for a 60% interest, though the right excludes the three claims in which the 49 vein system is found. Should it exercise its right, the company must spend three times what Aquiline had spent on exploration.

Meanwhile in Santa Cruz Province, Aquiline has agreed to acquire London-listed Xstrata‘s Cerro Negro gold project. Cerro Negro comprises 11 contiguous mining tenements covering 25 sq. km in the northwestern corner of the province in southern Argentina. The main target on the property is low sulphidation quartz vein systems.

Aquiline can acquire the project by paying US$1.5 million over 15 months, with US$500,000 due on closing. The property is subject to an option and joint venture agreement with Oroplata, which can pick up a 49% interest by spending US$2.5 million by November 2007. Oroplata can also exercise a 60-day pre-emptive right to match any cash offer on the project. Aquiline is in talks aimed at acquiring Oroplata’s interest.