AG boosts resources at Veladero

Argentina Gold (ARP-V) has tabled an updated resource estimate for its Amable and Filo Federico targets at the Veladero property in Argentina. Amable now has a total indicated and inferred resource of 26.99 million oz. averaging 2.98 grams gold and 46.46 grams silver per tonne (or 2.59 million oz. gold and 40.32 million oz. silver).

This resource has a high-grade component of 7.9 million tonnes averaging 5.91 grams gold and 54.22 grams silver (or 1.5 million oz. gold and 13.78 million oz. silver), using a 3-gram cutoff grade. The low-grade component of 19.09 million tonnes averaging 1.77 grams gold and 43.24 grams silver (1.09 million oz. gold and 26.54 million oz. silver) uses a 1-gram cutoff.

These estimates were calculated by Watts Griffis & McOuat and include drill data to hole 132. The firm estimates that Amable has a global resource of 29.09 million tonnes averaging 2.84 grams gold and 45.57 grams silver (2.65 million oz. gold and 42.62 million oz. silver).

At Filo Federico, the total indicated and inferred “in-pit” resource is now estimated to be 20 million tonnes averaging 3.05 grams gold and 19.12 grams silver (or 1.96 million oz. gold and 12.3 million oz. silver).

These calculations include all drill-hole data up to hole 135. Cutoff grades were set at 0.75 gram gold per tonne.

Filo Federico holds a global resource estimated at 44.1 million tonnes averaging 2.25 grams gold and 20.88 grams silver (3.19 million oz. gold and 29.62 million oz. silver).

AG says the total resource for both Amable and Filo Federico stands at 5.84 million oz. gold and 72.24 million oz. silver contained within 73.19 million tonnes of material.

Drilling continues, with new results in hand from Amable North and Filio Federico. At Amable North, hole 141 hit 145 metres averaging 0.98 gram gold and 13.84 grams silver, starting at 145 metres.

Drilling at the Western Filo Federico target has shown that higher-grade mineralization tends to occur where brecciation and jarosite is present.

Hole 137 cut 207 metres averaging 0.61 grams gold and 26.56 grams silver (starting at 15 metres), which includes:

• 9 metres averaging 1.27 grams gold and 2.13 grams silver;
• 14 metres averaging 1.03 grams gold and 32.81 grams silver; and
• 16 metres averaging 0.85 gram gold and 14.5 grams silver.

Hole 140 intersected 3 metres averaging 2.14 grams gold and 1.07 grams silver, starting at 3 metres, followed by a 59-metre section of 0.89 gram gold and 37.59 grams silver. Hole 144 cut 60 metres averaging 1.13 grams gold and 3.25 grams silver, starting at 13 metres.

Hole 147 intersected 139 metres averaging 0.41 gram gold and 34.37 grams silver starting from surface, which includes a 45-metre section of 1.09 grams gold and 33.07 grams silver. Holes 138 and 143 intersected no significant mineralization.

AG holds a 60% interest in the Veladero property, with the remainder held by Barrick Gold (ABX-T).

Shareholders of AG were to meet April 27 to vote on Homestake Mining‘s (HM-N) bid to acquire all of AG’s outstanding shares.

AG’s board has unanimously determined that the arrangement is in the best interests of the company and is recommending that shareholders vote in favour of the $300-million bid.