Manantial Espejo yields more gold, silver

Partners Black Hawk Mining (BHK-T) and Silver Standard Resources (SSO-V) have cut some impressive grades and widths at their Manantial Espejo gold-silver project in southern Argentina.

Fourteen core holes sunk in the Maria vein returned between 0.28 and 40.08 grams gold per tonne, plus between 58.6 and 852.3 grams silver, over true widths varying from 2.9 to 13.2 metres. The results confirm the continuity of mineralization in the vein and are being followed up by tighter drilling in preparation for a feasibility study.

The best results came from hole T-116, which cut 10.6 metres (11-22.1 metres) averaging 19.84 grams gold and 312.6 grams silver. Included in the interval were 5.2 metres grading 40.8 grams gold and 540.2 grams silver.

Other highlights include:

• hole 114, which intersected 8.2 metres (15.1-24.6 metres) grading 11.74 grams gold and 207.9 grams silver, including 3.7 metres grading 25.35 grams gold and 306.2 grams silver;
• hole 111, which hit 5.2 metres (75.5-81.1 metres) of 9.32 grams gold and 378.8 grams silver;
• hole 117, which returned 10.99 grams gold and 265.3 grams silver over 4.8 metres (39-44 metres); and
• hole 110, which yielded 0.81 gram gold and 475.4 grams silver over 13.2 metres (25.7-39.4 metres), within which the final 3.9 metres graded 1.96 grams gold and 852.3 grams silver.

  The Maria vein has been outlined over a strike length of 1 km and down to a depth of 200 metres. Mineralization remains open in both directions.

  In addition to Maria, numerous vein systems occur elsewhere on the property. Two of these were tested by four short holes during the recent program, returning up to 0.85 gram gold and 4.6 grams silver over 1.5 metres (33.1-34.6 metres) true width.

  At last report, the entire project had a resource estimated at 7.9 million tonnes grading 2.87 grams gold and 191 grams silver. About two-thirds of this resource is contained in the Maria vein and, according to a prefeasibility study, could support a 1,500-tonne-per-day operation capable of producing 85,000 oz. gold-equivalent per year at a life-of-mine cash cost of US$188 per oz.

  Black Hawk owns an 80% interest in Manantial Espejo through a wholly owned subsidiary, with the remainder held by a unit of Barrick Gold (ABX-T). Silver Standard can acquire half of Black Hawk’s interest by paying US$1.5 million and spending US$4.5 million on exploration by the end of 2001 (expandable to 2002 under certain conditions). Upon completion of a positive feasibility study, Barrick must elect either to sell its interest to Black Hawk or increase it to 40%.

  Print