Wealth Eyes Argentina’s Uranium Riches

Vancouver — Wealth Minerals (WML-V, WMLLF-O) believes its Diamante-Los Patos uranium property in northwestern Argentina could lead to proverbial riches in the form of a potential large-tonnage, near-surface deposit of the highly sought energy metal.

Since purchasing the properties in mid-2006, Wealth has conducted a program of prospecting to follow up on anomalous uranium geochemistry in the area. Results turned up large sections of elevated radioactivity with surface sampling returning visible yellow and yellow-green uranium minerals.

The extent of surface mineralization spurred the company to start an aggressive pit and trenching program to get a better handle on what it had. Of several dozen samples taken in its initial program, almost half returned grades above 0.04% U3O8 with several assaying above 1% U3O8.

Trenching and prospecting have so far defined seven zones of mineralization at Diamante-Los Patos within an area of at least 12 sq. km. With data from several hundred samples, Wealth is interpreting the extensive surface mineralization as possible “leakage” from a large, structurally controlled volcanic system on the flanks of a caldera.

The project, which straddles the border of Salta and Catamarca provinces, is situated along the northern flanks of the large Cerro Galan Caldera Complex, which has a diameter of about 60 km.

Uranium mineralization at Diamante-Los Patos is hosted in dacitic to rhyolitic ignimbrites and associated felsic fragmental volcanics. Meta-autunite, a secondary calcium-uranium phosphate mineral, typically occurs as a cement in porous units (fragmentals, agglomerates and tuffs), in breccias and in fracture zones.

The company is eyeing potential similarities to other structurally controlled felsic-volcanic uranium deposits, such as the Macusani district in Peru and the prolific Streltsovka district in southeastern Russia, where current reserves and past production are estimated at 560 million contained pounds of U3O8 in 20 deposits.

Having yet to drill at Diamante-Los Patos, Wealth has literally only scratched the surface with mineralization remaining open in all directions.

The two main zones, Diamante and Los Patos, are situated about 20 km apart and quite distinct in that they lie on the flanks of large white sinter zones associated with the caldera complex.

On the 2.5 by 2.5-km Diamante zone, extensive trenching has identified a 400-metre-wide, northwest-trending mineralized corridor that is open to the southeast and tracks into and is covered by the large post-mineralization sinter mound to the northwest. The samples collected there averaged 0.023% U3O8. A number of parallel, northwest-trending lenses have been identified in the program with the centre of the Diamante system interpreted to be beneath the 1,500 by 1,000-metre hot spring sinter.

Located at an elevation of about 4,200 metres in the semi-desert like Puna region, Diamante-Los Patos is accessible by road from the city of Salta. There are two active mining operations in the region: the Tincalayo borate mine and FMC Corp.’s (fmc-n) Minera Del Altiplano lithium mine, located 70 and 80 km northwest, respectively.

Expanding its land position north and southwards to cover additional prospective ground, Wealth has now tied up about 1,300 sq. km in the area. The company is quick to note that given the large area of surface mineralization, even a modest depth extension could lead to the delineation of significant tonnage of uranium-bearing material, potentially minable by open pit.

The company plans further trench sampling as well as detailed mapping and extensive radon gas surveys to define targets for planned drilling in September 2007.

Wealth is evaluating other uranium prospects in Salta and Catamarca as well, in addition to prospects in the provinces of Jujuy, La Rioja and San Juan. The company also holds the San Jorge basin uranium project in the southern Argentinean province of Chubut.

Argentina, which has two operating nuclear plants and a third under construction, is emerging as a very prospective region for uranium exploration. Past-producing uranium mines in the country include Dr. Baulies in Mendoza province, Don Otto in Salta province, and Sierra Pintada-San Rafael mine in Mendoza.

Wealth Minerals’ shares have recently risen to around $5.50 from around $2.00, giving it a market capitalization of $133 million. The company has 24.1 million shares outstanding.