Juniors eye precious metals in Argentina

Argentina’s recent financial woes have not deterred two juniors from inking separate deals to explore for precious metals there.

Silver Standard Resources (SSO-V) has purchased a 43% interest in the Pirquitas silver project in the northern province of Jujuy. The property had been owned by Sunshine Mining & Refining (SSMRE-O), which was recently forced to abandon it because of financial troubles.

From 1993 to 1990, Pirquitas produced tin and silver. A resource of 28 million tonnes grading 161 grams silver per tonne was subsequently outlined by Sunshine.

In 1999, a feasibility study found the resource, plus tailings and additional material around the proposed pit, to be minable at a capital cost of US$133 million. Production would average 11 million oz. annually.

Cash costs were projected at US$1.33 per oz., including tin and zinc byproduct credits. Base metal production was projected at 3,200 tonnes tin and 16,300 tonnes zinc annually.

Silver Standard must pay US$4.3 million upon the deal’s closing, currently scheduled for June 14. Of that amount, the vendors will receive US$3 million in the form of cash and the rest as a note bearing interest of 10% and convertible to Silver Standard shares at C$5.80 apiece.

Meanwhile, Intrepid Minerals (IAU-V) has grabbed an option on the Casposo gold-silver property in nearby San Juan province. The junior must pay US$300,000 over two years and another US$450,000 in advance royalties before it will be converted into a full interest.

Casposo holds a resource of 1.1 million tonnes grading 14.1 grams gold and 192 grams silver per tonne. The resource will form the basis of a preliminary feasibility study, which will follow metallurgical tests and 2,500 metres of drilling.

As part of the deal, Intrepid is committed to spend US$300,000 on exploration in each of the next two years.