Amerigo prepares spring budget

Once the snow melts, Amerigo Resources (ARG-T) will renew its search for iron oxide copper-gold deposits in the Sault Ste. Marie region of northwestern Ontario.

At the Coppercorp property, Amerigo will explore a regional magnetic high targeted by airborne geophysics. The survey entailed 825 line km on 100-metre spacings.

Two types of mineralization occur on the property: chalcopyrite and malachite, typically with hematite and quartz-carbonate veining, in amygdaloidal basalt or conglomerate; and disseminated chalcopyrite and malachite, with accessory magnetite, in epidote-altered mafic volcanics and dykes associated with a brecciated felsic intrusion. The felsic intrusion partly coincides with the magnetic high; a chalcocite-rich boulder that yielded 42% copper remains unexplained.

To earn a 100% interest, Amerigo must spend $200,000 on exploration, issue 600,000 shares and pay $100,000 in cash, of which 70% can be paid in shares. The vendors retain a 3% net smelter return royalty, though that will be halved in return for $1.5 million.

The adjoining Island Copper and Bellevue properties cover 16 sq. km of Archaen gneisses and Proterozoic sedimentary and volcanic rocks. Recent drilling in an alkalic granite that intrudes the gneisses at Copper Island returned 8 metres of 1.5% copper and 0.2 gram gold per tonne, and these figures are comparable to historic results of 4.02% copper over 9.5 metres.

Amerigo can earn a 55% stake in Island Copper by issuing 200,000 shares to Falconbridge (FL-T) and spending $250,000 on exploration over three years. Bellevue is wholly owned.

Situated to the east, the Deroche property covers 2 sq. km of a fault-bounded block of Archean granite and sedimentary rocks. Hematite is abundant in the southernmost fault, which is an extension of the regional Bellevue fault, and occurs in the rocks themselves.

Amerigo can earn a 100% interest in Deroche by issuing 30,000 shares to a local prospector and spending $30,000 on exploration over two years.

The upcoming exploration campaign at the properties will include mapping and geochemical sampling. Crews will mainly focus on unexplained geophysical anomalies.

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