Abacus hits hot values at La Manchuria

Abacus Minerals (AMC-T) has received results from the first two holes of its recently completed first-phase drill program at the La Manchuria property in Argentina’s Santa Cruz province.

Both holes encountered anomalous gold values over their entire length and ended in felsic volcanics containing quartz stockwork veining. Highlights include hole LM-1, which intersected 11.5 metres grading 1.22 grams gold and 136.6 grams silver per tonne (uncut), starting at a depth of 106.2 metres, and 2.08 grams gold and 4.8 grams silver (uncut) over 1.5 metres, starting at a depth of 15.2 metres. Hole LM-2 hit 58.05 metres grading 6.53 grams gold and 22.3 grams silver (uncut), starting at a depth of 45 metres, and 1.5 metres grading 1.25 grams gold and 158 grams silver (uncut), starting at a depth of 10.52 metres.

Assays were performed by Acme Analytical Labs in Santiago, Chile, and check assays were sent to Chemex Labs in Vancouver, B.C.

The second phase of drilling is expected to get under way shortly.

The drill holes were collared 75 metres apart in order to test areas where trenching returned values as high as 1.18 grams gold and 51.77 grams silver over a strike length of 70 metres.

Abacus Minerals can earn a 100% interest in the project from Barrick Gold (ABX-T) by spending US$2.7 million on exploration. Barrick holds the right to a 50% back-in or a 3% net smelter return royalty.

In other news, Abacus minerals will raise $3 million, by way of convertible debenture financing, through First American Financial Group of New York.

The financing agreement calls for a 3-year term at an annual interest rate of 9%. Payments will be made either quarterly or at the end of the term.

During the first year of the term, no conversion or retractions will be allowed. The holder will be able to convert principal into stock at 50cents per share during the second year and 60cents per share during the third.

Retractions will grant the debenture holder 2 million 2-year warrants exercisable into 2 million shares at 50cents during the first year and 58cents during the second year. The financing is subject to regulatory approval.