Mansfield clears legal hurdle in Argentina

The end of a 36-month legal dispute clears the way for partners Mansfield Minerals (MDR-V) and Teck (TEK-T) to resume work on the Cerro Samenta copper property in northwestern Argentina.

Under the terms of the out-of-court settlement, Mansfield agreed to buy an adjoining claim block from Jorge Daroca for US$70,000 cash. In turn, Daroca agreed to stop all court action related to the Cerro Samenta property.

Situated 300 km northwest of Salta, Cerro Samenta has been the subject of a court challenge by Daroca since mid-1996. After the court of appeal awarded Mansfield title to the property in 1998, Daroca filed a constitutional complaint with the Supreme Court of Salta, alleging that his constitutional rights had been violated by the government’s lack of due diligence in maintaining claim maps. The dispute had focused on the location of claims in relation to the geographical point known as Cerro Samenta.

Mansfield discovered the property during a regional evaluation program in 1994. Copper mineralization was subsequently outlined over an area measuring 1.2 km by 400 metres. Trenching returned up to 0.5% copper over 250 metres — including 0.7% copper over 150 metres and 1.4% copper over 75 metres — when exploration stopped in 1996 because of Daroca’s legal dispute.

Teck can earn a half-interest in the property by making cash payments of US$1.6 million and spending US$7.5 million on exploration. Mansfield has the right to dilute to a 40% interest in consideration of Teck’s arranging all financing to production.