LATIN AMERICA — Pacific Rim acquires Argentine option

An option on a polymetallic massive sulphide project in Argentina was recently acquired by Pacific Rim Mining (VSE).

The property, known as La Colorada, covers 55,000 hectares and is accessible by road 50 km north of the Belgrano Railway line in northwestern Argentina.

Previous work on the property by the Argentinean government outlined a massive, near-surface, flat-lying pyrrhotite layer measuring 900 metres long, 200 metres wide and about 20 metres in thickness.

Probable and possible reserves based on wide-spaced drilling are estimated at about 12.5 million tonnes grading 0.5% copper, 1% zinc, 0.1-1.0% lead, 7-10 grams silver and 0.1-0.7 grams gold per tonne.

Pacific Rim has the right to acquire a 100% undivided interest in the property through payments totalling US$2 million over five years, including US$50,000 every six months, with balance payable on the fifth anniversary. The company has also agreed to pay a finder’s fee of 200,000 shares over a period of four years.

Henk Van Alphen, president of Pacific Rim, said the company is planning an initial $650,000 geophysical and geochemical program starting in March. Van Alphen said much of the previous exploration work on the property is relatively primitive by Canadian standards and he sees excellent potential for the discovery of other similar massive sulphide deposits on the property. The company does not expect to begin an infill drilling program on the property to confirm reserves until later in the year.

Van Alphen said the company is well funded with almost $500,000 in working capital and he added that raising up to an additional $2 million will not be a problem.