Denver — Now that the Esquel gold property in southern Argentina is progressing to the development phase, London-based
One such target is the Cordon Leleque property, 50 km to the north and still within Chubut province, where Brancote has identified outcropping epithermal veins.
Work to date has found a broad zone, measuring up to 10 sq. km, of anomalous gold and base metal mineralization. The epithermal veins, similar to those found at Esquel, are up to 15 metres wide and 300 metres long. Grab samples returned as much as 2 grams per tonne.
Brancote will fund further work at Cordon Leleque by means of a recent private placement for 1 million shares priced at 165 p per share, or 1.6 million pounds (US$2.3 million). The shares will be admitted through the Alternative Investment Market (AIM) of the London Stock Exchange.
Brancote acquired part of the 180-sq.-km property from
In the meantime, work is under way on the feasibility study for the Esquel project, and is expected to be completed by 2002. Brancote, which holds a 60% interest in the project through its subsidiary Minera El Desquite, has identified three high-grade vein systems measuring 2.4 km.
The property contains a resource of 4.2 million oz. gold, based on a calculation at the end of the third drilling program. Grade and tonnage estimates were not available.
Results of a fourth drilling program are expected to improve the size and grade of the deposit. An in-house scoping study estimated capital costs of US$100 million and operating costs of US$100 per oz.
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