Amerigo still faithful at Coppercorp (January 23, 2003)

A follow-up geochemical survey at the Coppercorp copper-gold-silver property, north of Sault Ste. Marie, Ont., has returned mixed results for Amerigo Resources (ARG-V).

In Sept., Amerigo acquired the property from local prospectors and subsequently began sampling two copper showings they had discovered earlier in the summer and several other pre-existing ones around the historic Coppercorp mine. The new Tower and A1 showings yielded only anomalous values, but the others carried as much as 10.71% copper and 5.3 grams gold per tonne.

Amerigo says two types of mineralization occur on the property: chalcopyrite and malachite, typically with hematite and quartz-carbonate veining, in amygdaloidal basalt or conglomerate, and disseminated chalcopyrite and malachite, with accessory magnetite, in epidote-altered mafic volcanics and dykes associated with a brecciated felsic intrusive. The first is typical of material found at the minesite, while the second characterizes the A1 showing.

Amerigo is planning a follow-up program of geophysical and geochemical surveying and mapping. Five targets will be assessed, including unmined areas of the mine and possible strike extensions to the northwest and south.

To earn a 100% interest, Amerigo must spend $200,000 on exploration, issue 600,000 shares and pay $100,000 in cash, of which 70% can be paid in shares. The vendors retain a 3% net smelter return royalty, though that will be halved in return for $1.5 million.

Amerigo also is exploring three similar properties in the surrounding region. Like Coppercorp, all are considered prospective for Olympic Dam-style copper-gold deposits.

Results from a preliminary drill program at the Island Copper project are pending. Four holes were sunk to test the depth extent of mineralization found at surface.

Amerigo can earn a 55% stake in Island Copper by issuing 200,000 shares to Falconbridge (FL-T) and spending $250,000 on exploration over three years.