Junior Argentina Gold (ARP-V) has released further drill results from its 60%-owned Veladero project, 400 km north of San Juan in western Argentina, near the Chilean border.
The Vancouver-based company is engaged in an ambitious 20,000-metre program of reverse-circulation drilling at the site. Barrick Gold (ABX-T) holds the remaining non-operating interest.
Access to the property, which lies 5,000 metres above sea level, is generally restricted to the South American summer, which lasts from October to May. However, because of poor weather conditons in 1997, exploration was delayed until December of that year.
Exploration crews are focusing on the Filo Federico and Cerro Pelado prospects, which are coincident with large, previously discovered geochemical and geophysical anomalies.
To date, Argentina Gold has completed 1,700 metres of drilling. Progress has been hampered by unstable rock conditions and rig breakdowns. Currently two drills are operating, and a third is scheduled to start up shortly. By early to mid-May, the company hopes to have completed at least 12,000 metres.
Hole 57 was drilled to the south into Filo Federico from the same platform as hole 55 (previously reported). Results include: 371 metres grading 0.55 gram gold and 9 grams silver per tonne. Included in this interval was a 109-metre section grading 1.27 grams gold and 17.3 grams silver.
Hole 58, collared 170 metres northeast of hole 55, intersected 163 metres grading 0.54 gram gold and 15.58 grams silver, including a 75-metre interval grading 1.07 grams gold and 32.5 grams silver. Drilling of this hole is still in progress, and the remaining assays are pending.
Hole 59 was drilled 220 metres southwest of hole 55. Results include 23 metres grading 0.31 gram gold and 3.76 grams silver, followed by 54 metres grading 0.52 gram gold and 38.82 grams silver. The hole collapsed at a depth of 240 metres.
Hole 60 intersected 39 metres grading 0.19 gram gold and 3.82 grams silver, and collapsed at 42 metres.
Argentina Gold believes the Cerro Pelado and Filo Federico targets represent two coalescent diatreme dome complexes similar to the Pascua deposit in Chile. The Filo Federico diatreme measures about 1.1 km by 350 metres and comprises several sets of explosive breccias with strong silicification.
Drilling is designed to test the Filo Federico anomaly so as to confirm the diatreme model of mineralization.
The drill holes have been collared along the periphery, as opposed to the centre, of the anomaly. There are two reasons for this approach. The southern part of the Federico anomaly lies under 400 metres of overburden, and to avoid drilling through it, the company has collared its drill holes down-slope, along the margin. Argentina Gold is also intent on drill-testing the anomaly to a greater depth, thereby using the topography to its advantage.
The second diatreme, known as Cerro Pelado, is estimated to have a diameter of about 1 km. Altered phreatic and matrix-rich breccias have been outlined within its dimensions. Prior to drilling, the company intends to perform a geochemical and geophysical survey to define the diatreme’s potential.
Metallurgical tests on 12 samples of drill core have determined that gold recovery from cyanide leaching averages 82%. To date, gold mineralization is found to be associated with quartz and oxides. Sulphide mineralization is expected at greater depths.
In related news, Argentina Gold has begun a 3,000-metre drill program on its 40%-owned Del Carmen project, 30 km south of Veladero. Barrick is the operator and holds the remaining interest.
The target is the Cerro Amarillo prospect, which represents a silicified breccia zone with silica-alunite-pyrite rims. Hole 26 has penetrated to a depth of 378 metres and cut through quartz-alunite and massive silica zones.
Assays are pending, and hole 27 is reported to have reached a depth of 250 metres.
Barrick has budgeted US$1.2 on this season’s exploration.
Meanwhile, at Argentina Gold’s 40%-owned Rio Frio project, operator Western Mining (WSTM-N) of Australia has budgeted US$2.1 million for a 4,000-metre drill program. Three anomalies have been targeted.
Argentina Gold has $4 million in working capital and 31.1 million shares fully diluted.
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