Argentina Gold reports hot holes at Veladero gold-silver property in San Juan

Argentina Gold (ARP-V) has pulled some impressive results from its Amable target, part of the Veladero project in the western province of San Juan.

Analysis of the first 182 metres of hole 79 indicated an open-ended mineralized intercept of 114 metres (90 metres true width) grading 1.49 grams gold and 55.2 grams silver per tonne. The hole was drilled to the west at an angle of minus 75 and was terminated at a down-hole depth of 312 metres. Assay results for the remaining 130 metres are pending.

Hole 79 was collared 110 metres northeast of last season’s hole 76, which intersected 193 metres grading 1.49 grams gold and 55.09 grams silver.

The Amable target is 2.5 km southeast of the Filo Federico diatreme and the NW target. Calculations at Filo Federico and NW point to an indicated resource of about 45.4 million tonnes grading 0.86 gram gold and 25.20 grams silver. The inferred portion of the resource has been pegged at 45.4 million tonnes grading 0.77 gram gold and 26.17 grams silver.

The total contained resource is equivalent to 2.4 million ounces gold and 75 million ounces silver.

Situated on the southeastern flank of the Cerro Pelado diatreme, the Amable target was outlined by coincident geophysical and geochemical anomalies that cover an area measuring 800 by 300 metres.

Results from three additional holes are also pending. Hole 80 was collared 100 metres south of hole 76; it was drilled due west at minus 75 and terminated at a depth of 300 metres. Hole 81 was collared 200 metres north of hole 76; it was drilled due west at minus 75 and terminated at 350 metres. Hole 82 was collared 150 metres west of hole 76; it was drilled due west at minus 80 and ended at a depth of 318 metres.

Argentina Gold is currently drilling hole 83, which has been collared 250 metres northwest of hole 76.

Overburden encountered at Amable is reported to be less thick than at Filo Federico. Mineralization in holes 76 and 79 was hit at depths of 37 metres and 68 metres down-hole, respectively. At Filo Federico, gold-silver mineralization tends to be covered with 80-150 metres of overburden.

The company also states that gold mineralization at Amable seems to be structurally controlled in silicified tabular zones. Alteration in the tuff-ring breccias is dominated by strong silicification and oxides, which grade into basement crystalline tuffs.

About 6,000 metres of drilling are budgeted for Amable this season. Argentina Gold is the operator of the Veladero project and holds a 60% interest. Barrick Gold (ABX-T) holds the remaining 40%.

The junior has working capital of $750,000 and 33.4 million shares fully diluted.