Argentina Gold pulls hot values from Amable property

Argentina Gold (ARP-V) has tabled some impressive drill results from the Amable target on the Veladero project in San Juan province.

Hole 80 returned 212 metres grading 3.67 grams gold and 47.71 grams silver per tonne starting at a down-hole depth of 43 metres. It was collared 100 metres south of last season’s discovery hole 76, which returned 193 metres of 1.49 grams gold and 55.09 grams silver.

Mineralization was encountered along the entire length of hole 80, which was drilled westward at an angle of minus 75 and terminated at 300 metres down-hole. Included in the 212-metre intercept was a 144-metre interval that ran 5.08 grams gold and 59.36 grams silver starting at a down-hole depth of 43 metres. Another interval, at 117 metres down-hole, averaged 13.94 grams gold and 92.78 grams silver over 23 metres.

The 1-metre split assays between 61 and 187 metres down-hole all assayed greater than 1 gram gold per tonne, and 21 of these assayed greater than 10 grams gold.

The remaining 130 metres of assay results from hole 79 (114 metres of 1.49 grams gold and 55.2 grams silver) increased the mineralized intercept to 121 metres. The total interval now extends from 68 to 189 metres down-hole and averages 1.42 grams gold and 56.61 grams silver.

Farther down-hole, two smaller intercepts were also encountered. The first started at a depth of 241 metres and averaged 0.72 gram gold and 35.63 grams silver over 19 metres; the other started at a depth of 289 metres and averaged 0.82 gram gold and 13.71 grams silver over 7 metres.

Results form Holes 81 and 82, which were collared 200 metres north and 150 metres west of hole 76, are expected shortly.

A 10,000-metre drill program budgeted at US$4.2 million should provide continuous results through to the spring of 1999. About 6,000 metres will be focused on the Amable target.

The volcanic host at the Amable target is highly fractured and silicified. The mineralization is contained in a sub-horizontal, tabular zone where meteoric water mixed with magmatic fluids to form ideal conditions for gold and silver to precipitate, the company reports.

The Amable target is outlined by an 800-by-300-metre resistivity geophysical anomaly and a coincident geochemical anomaly. The target is on the southeastern flank of the Cerro Pelado diatreme, about 2.5 km southeast of the Filo Federico diatreme and NW target. Gradational alteration patterns in the core, which change from argillic to quartz alunite at depth, are thought to indicate a possible deep, high-grade feeder zone.

Argentina Gold has agreed to sell 2.5 million of its shares to Denver-based Newmont Mining (NEM-N) for $1.96 per share. The transaction is expected to generate gross proceeds of $5 million.

The money from the private placement will be put toward working capital to fund the drilling program now under way at Veladero.

Argentina Gold operates and owns 60% of the Veladero property. The remainder is held by Barrick Gold (ABX-T).