Tenke follows trailblazing sibling into South America

Tenke Mining (TNK-T), presided over by Lukas Ludin, is making inroads into South America following the success there of sister company Argentina Gold.

In April, Argentina Gold, another Ludin-led company, was snapped up by Homestake Mining (HM-N) for US$300 million following its discovery of 5.8 million oz. gold and 72.2 million oz. silver at its 60%-owned Veladero project in San Juan province, Argentina.

Homestake managed to outbid Barrick Gold (ABX-T), owner of 40% of Veladero and all of the nearby Pascua project. Pascua straddles the border between Argentina and Chile, 6 km northwest of Veladero. The property hosts reserves and resources of more than 20 million oz. gold and 525 million oz. silver.

Tenke has signed a preliminary deal to acquire a 100% interest in the Los Caballos claims held by Cameco (CCO-T) and Westward Explorations (WWE-V), as well as surrounding ground held by Cyprus Amax Minerals (CYM-N).

The exploration concessions, dubbed the Vicuna property, are 75 km north of Veladero, in an unexplored region of San Juan province, between the Maricunga belt to the north and the El Indio belt to the south.

The Vicuna property covers a series of northwesterly and north-northwesterly trending structures in a caldera setting within a Miocene dacite volcanic complex.

Tenke reports that a large hydrothermal system with a high sulphidation alteration assemblage has been traced over 20 km in a north-northeasterly direction. The system is 1-2.5 km wide.

Preliminary sampling has recovered anomalous gold values, including: talus soil samples of up to 3.36 grams gold per tonne; rock grab samples of 0.4 gram; and rock-chip and float samples as high as 1.43 grams. One large soil anomaly averages more than 0.2 gram.

Following approvals and due diligence, Tenke will sign a formal agreement to earn a 100% interest in the Vicuna property. It must spend US$4 million on exploration and issue 2.4 million shares over four years.

An aggressive program of geological mapping, sampling and geophysics is scheduled to begin in October, followed by drilling late in the season. Tenke also has acquired the right of first refusal for a collection of gold properties known as Yamiri, north of Vicuna. The company intends to conduct a reconnaissance program at Yamiri before the end of the year.

Tenke is raising $2.6 million by way of a private placement consisting of 2.5 million shares priced at $1.05 each. The funds will be used for exploration at Vicuna, as well as for general purposes.