Vancouver — Patagonia Gold has begun a 5,500-metre, 24-hole drill program at the Cuya low-sulphidation epithermal gold property in the Argentina’s Rio Negro province.
The project is a joint-venture between Patagonia Gold and Arminex, 51% of which is owned by
Patagonia Gold is required to spend a total of US$1.5 million over two years, half of which must be applied to drilling at Cuya within the first six months of 2003.
Gold mineralization occurs in felsic intrusives and breccias, and appears to be related to east-west- and north-south-trending fault systems. It is exposed over an area measuring 1 by 1.5 km.
Meanwhile in southern China, APAC has completed its due diligence on the Nibao gold project and intends to form a joint venture with Guizhou Bureau of Geology and Mineral Resources (BGMR).
According to the agreement, APAC will earn a 70% equity interest in the joint venture company by investing US$2 million over three years. It can earn an additional 14% equity interest by bringing the property to the development stage.
The property hosts widespread, disseminated gold mineralization that has been traced on surface for over 4 km along strike and ranges up to 1 km in width. Gold mineralization is hosted in thinly bedded limestone, shale and partly silicified tuff. BGMR has explored the property near surface with pits, trenches and shallow drilling.
The largest mineralized zone identified by BGMR measures 1,500 metres along strike and 500-600 metres along dip, with a typical thickness of 3-10 metres. The zone hosts grades of up to 7.5 grams per ton.
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