Drilling at the Manantial Espejo project in southern Argentina has intersected bonanza silver grades for partners
Silver Standard can earn half of Black Hawk’s 80% interest in the property by paying US$1.5 million and spending US$4.5 million on exploration by the 2002 (extendable to 2003 under certain conditions). Barrick holds the remaining 20% interest and, upon completion of a feasibility study, must elect either to sell its interest to Black Hawk or increase it to 40%. Underlying vendors retain two royalties, one of which is tied to production but not exceeding $600,000, and the other a 0.5% net smelter return.
Discovered in 1989, Manantial Espejo has an estimated resource of 7.9 million tonnes averaging 179 grams silver and 2.9 grams gold per tonne. The Maria deposit constitues roughly two-thirds of this resource, with the Conception and Karina-Union vein systems making up the rest. The calculation excludes recent results but includes 200 core and reverse-circulation holes drilled previously.
The latest program consisted of 17 holes sunk on seven veins, six of which represent new discoveries. Overall, silver values ranged from 91 to 9,350 grams per tonne; gold values, between 0.2 and 73.1 grams but mostly less than 8.6 grams. Mineralized intervals varied widely as well, from 0.7 to 8.6 metres (true width).
Veta Karina is one of two veins that comprise the Karina-Union deposit and that lie due east of Maria. Six holes confirmed the continuation of this vein at depth. Hole 123 returned 2 metres of 902 grams silver and 8.6 grams gold, whereas hole 124 cut 3.3 metres of 557 grams silver and 8.2 grams gold. Collared along strike to the west, holes 125 and 126 intersected low grades at shallow depths. Nonetheless, the partners say these holes confirm the continuation of mineralization in that direction and that higher grades could lie at depth.
Nearer to surface, hole 124 also intersected one of the new veins, dubbed K9, returning 0.5 metre of 9,350 grams silver and 61.3 grams gold within 5.9 metres (31.1-37 metres) grading 913 grams silver and 5.83 grams gold. The vein runs parallel to Veta Karina and remains open at depth. Two holes were collared 30 metres on either side of hole 124 to test for strike extensions, and both intersected leached material. However, hole 138 averaged 315 grams silver and 3.1 grams gold over 0.7 metre.
Veta Marta, situated near the Maria vein, was tested by hole 131 and averaged 1,160 grams silver and 32.7 grams gold over 4.1 metres (56.5-60.6 metres). Within that intersection, 1.3 metres graded 2,566 and 73.1 grams silver and gold, respectively. Surface mapping has traced the vein several hundred metres along strike, with veinlet and quartz-filled breccia indicating potential for 1 km of mineralization.
The Candelaria Extension, in the western region of the property, returned an impressive 1,537 grams over 1.2 metres (15.6-16.8 metres) in hole 132. Another hole collared there failed to return any significant results, though further work is planned.
Silver grades from the Candelaria, Veta Sol and Maria Este veins were moderate compared with the other newly discovered veins. However, Cadelaria did return the widest interval of any: 8.6 metres averaging 111 grams silver and 0.2 gram gold. The vein lies southwest of the Candelaria Extension and will be studied further to see if it flattens and widens at depth.
Since 1996, Silver Standard and Black Hawk have together spent more than $4.6 million exploring the property.
Future programs will attempt to delineate the above veins and find new targets.
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