Northern Orion Explorations (VSE) reports encouraging drill results from a 5,000-metre program at its San Jorge copper-gold porphyry deposit in west-central Argentina.
The first seven holes, spaced 92-137 metres apart, extended the depth of mineralization to more than 300 metres, doubling the previously defined depth.
Results include: 303 metres grading 0.36% copper and 0.11 gram gold per tonne (including an interval grading 0.42% copper and 0.14 gram gold over 189 metres) for hole 1; 258 metres grading 0.52% copper and 0.17 gram gold for hole 2; 278 metres grading 0.49% copper and 0.17 gram gold for hole 3; and 298 metres grading 0.42% copper and 0.2 gram gold for hole 7.
The geological resource was previously estimated at 146 million tonnes grading 0.5% copper and 0.2 gram gold. The upper third of the deposit occurs as an oxide or secondary enriched zone, while the remainder is unaltered, primary copper mineralization.
The project lies 90 km northwest of the provincial capital of Mendoza, in flat terrain east of the Andes, at an elevation of 2,500 metres.
Northern Orion expects to complete a prefeasibility study in 1996. Its holdings in the country comprise about 30 properties, including a 30% stake in the joint-ventured Aqua Rica copper-gold project in the Catamarca province and a half interest in the Los Petisos sulphur project.
BHP Minerals holds a 70% interest in the Aqua Rica project and, through exploration drilling, is targeting a resource greater than 100 million tonnes containing copper, gold and molybdenum with a grade exceeding 1% copper-equivalent.
South of Mendoza lies the Petisos sulphur project, a 50-50 joint venture with Yamana Resources (TSE).
Meanwhile, a final feasibility study is being prepared for the 50%-held Mantua copper-gold project in Cuba. The Mantua, along with the 50%-held Delita gold-silver property, was obtained from Miramar Mining (TSE) in exchange for 24 million Northern Orion shares. The Cuban government controls the other half interest in both properties.
The Mantua property hosts a shallow gold zone contained in a leached, gossanous cap. A minable reserve is calculated at 2 million tonnes grading 1.44 grams gold and 11.5 grams silver.
An underlying copper zone contains 15.2 million tonnes grading 1.35% copper, within a geologic resource of 22.6 million tonnes averaging 1.01% copper.
A preliminary feasibility study of the Delita property, situated on the Isle of Youth, 85 km from the Cuban mainland, estimates an open-pit, minable reserve of 4.7 million tonnes grading 4.1 grams gold plus 22 grams silver. An additional, underground reserve is estimated at 1.9 million tonnes grading 5.4 grams gold and 25 grams silver.
The Delita contains a total geological resource of 18.9 million tonnes grading 2.87 grams gold and 22.7 grams silver.
Northern Orion has 68 million shares outstanding; Miramar Mining, its largest shareholder, has a 53% share.
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