Amerigo still faithful at Coppercorp (February 03, 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 September, Amerigo acquired the property from local prospectors and subsequently began sampling two copper showings discovered earlier in the summer, plus several others around the historic Coppercorp mine. The new Tower and A1 showings yielded anomalous values only, but the others carried as much as 10.71% copper and 5.3 grams gold per tonne.

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 plans to carry out geophysical surveying to assess the showings and other known targets. Two of those targets are untapped 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.