Argosy Mining finances stake in Aussie junior

Argosy Mining (AGO-V) has spent more than $800,000 in acquiring a 19% interest in Australian-based Andover Resources.

The Vancouver-based junior acquired 3 million shares of Andover, which controls the Nyabikere, Waga and Musongati nickel-cobalt deposits in Burundi, Central Africa.

Discovered in the 1970s, the Musongati deposit is reported to contain an inferred resource of 184.7 million tonnes grading 1.31% nickel, 0.08% cobalt and 0.17% copper. The calculations are based on 14,000 metres of core from 237 drill holes.

One of the three mineralized zones at Musongati contains an inferred resource of 72.5 million tonnes grading 1.56% nickel; another hosts an indicated resource of 29 million tonnes grading 1.62% nickel, 0.12% cobalt and 0.31% copper.

A study of the deposit in 1990 projected annual production of 36,000 tonnes nickel, 1,850 tonnes cobalt and 5,500 tonnes copper.

Argosy intends to evaluate the deposit’s amenability to pressure acid leaching technology.