Almaden, Santoy find little sun at Tropico

An initial drill program at the Tropico polymetallic property in western Mexico has cut wide swaths of low-grade sulphide mineralization for partners Almaden Minerals (AMM-T) and Santoy Resources (SAN-V).

The 15-hole, 2,845-metre program tested the Maricela, Santa Fe and El Capule areas. Each overlies the same layered intrusive complex and has yielded promising copper, platinum, palladium and gold values at surface.

At Maricela, seven of eight holes cut feldspathic pyroxenite running up to 0.63 gram palladium, 0.53 gram platinum and 0.95 gram gold per tonne, plus 0.95% copper, over 11-128 metres. Selected results include:

– hole 1, which averaged 0.79% copper, 0.63 gram palladium, 0.29 gram platinum and 0.24 gram gold over 21 metres;

– hole 2, which averaged 0.36% copper, 0.19 gram palladium, 0.14 gram platinum and 0.09 gram gold over 12 metres;

– hole 3, which ran 0.46% copper, 0.27 gram palladium, 0.19 gram platinum and 0.17 gram gold over 80.5 metres; and

– hole 8, which ran 0.95% copper, 0.68 gram palladium, 0.53 gram platinum and 0.31 gram gold over 10.9 metres.

These intervals represent neither the upper nor the lower contact of the pyroxenite, which is believed to be at least 300 metres thick in the Maricela area. Where mineralized, the pyroxenite displays chalcopyrite, cubanite, bornite, pyrrhotite and pentlandite.

About 7 km to the east, at the Santa Fe showing, two holes were sunk in each of a soil and rock geochemical anomaly. The holes are roughly 100 metres apart. Three of them came back positive, running up to 0.09 gram platinum, 0.15 gram palladium, 0.11 gram gold and 0.43% copper over as much as 70 metres.

Another 3 km to the east, at the Capule area, three holes failed to intersect mineralization beneath surface trenches. However, further drilling may be warranted, as three newly dug trenches yielded between 0.29 and 0.61 gram combined platinum, palladium and gold over 9-136 metres.

Similarly, four trenches dug at the nearby Las Palmitas area and six more at Las Delicias yielded between 0.15 and 0.71 gram combined platinum, palladium and gold over as much as 141 metres. As at El Capule, none of the trenches ran more than 0.5% copper.

Meanwhile, Almaden and Santoy have expanded the property by acquiring the San Pablo concession via a public auction. The concession, priced at US$150,000, is adjacent to the Maricela area and thus doubles the size, to 3 km, of the prospective trend of surface mineralization.

Santoy holds a 60% stake and Almaden a 40% stake in Tropico. The pair have dealt Sumitomo Metals of Japan an option whereby the major can earn a 51% stake by spending US$3 million over three years and completing a prefeasibility study. The miner can nab another 19% by funding a bankable feasibility study and arranging development financing.

In related news, Noranda (NRD-T) has begun a 2,100-metre diamond drill program at Almaden’s Caballo Blanco property on the eastern coast of Mexico, near Veracruz. The bulk of the holes will be sunk in the Central Grid area, where past drilling and geophysical surveys indicate the presence of a copper-gold porphyry deposit.

A few holes will also be drilled at the Highway showing, an area of hydrothermal alteration spatially associated with porphyry-style stockworking. Like Central Grid, the area hosts a coincident chargeability anomaly.

Caballo Blanco is also considered prospective for high-sulphidation epithermal gold mineralization. A float sample from the Northern area ran up to 11 grams gold per tonne.

Noranda can earn a 75% interest in the project by completing a positive feasibility study, paying Almaden US$2 million in cash and subscribing for US$1 million worth of treasury shares. The major is responsible for pre-existing work obligations as well.

Meanwhile, at the MacKay Lake property, in the Northwest Territories, Almaden and its partners are drill-testing a series of geophysical anomalies thought to represent kimberlite bodies. An indicator mineral train is spatially associated with the anomalies.

The Mackay Lake property lies near the developing Diavik and advanced Snap Lake diamond projects. The former is shared between Rio Tinto (RTP-N) and Aber Diamond (ABZ-T), whereas Snap Lake is held entirely by De Beers.

Ownership at MacKay Lake is shared among Almaden, Williams Creek Exploration (WCX-V), Troymin Resources (TYR-V), Aber and SouthernEra Resources (SUF-T). Kennecott, a subsidiary of Rio, will receive a small interest if a significant diamond discovery is made.

Almaden was recently created through the amalgamation of sister companies Almaden Resources and Fairfield Minerals. One share of Almaden Resources was exchanged for 0.77 of a new share and one share of Fairfield was exchanged for one new share to give the newly created company a public float of 17.1 million shares.

Almaden Minerals has $2 million in working capital and is debt-free.