In a market starved for trading opportunities, investors are keeping a close eye on Argentina Gold (ARP-V). The Vancouver-based junior has released more encouraging drill results from the Amable target, part of its 60%-owned Veladero project in San Juan province.
Drill hole 82 cut 91 metres averaging 1.49 grams gold and 35.75 grams silver per tonne starting at a down-hole depth of 99 metres. A 33-metre interval within this intersection averaged 2.14 grams gold and 23.8 grams silver. The hole ended in mineralization at a down-hole depth of 318 metres. Hole 82 was collared 150 metres west of previously reported hole 76 (193 metres averaging 1.49 grams gold and 55.09 grams silver) and was drilled due west at an angle of minus 80.
The thickness of the mineralized oxide zone is known to be between 120 and 212 metres. The mineralization is contained in a sub-horizontal, tabular zone, where it is believed paleophreatic water mixed with magmatic fluids to form ideal conditions for the precipitation of gold and silver.
The Amable target is outlined by a resistivity geophysical anomaly and a coincident geochemical anomaly that occur over an area measuring 800 by 300 metres. Drilling to date has indicated mineralization in an area of 300 by 200 metres. Amable is on the southeastern flank of the Cerro Pelado diatreme, about 2.5 km southeast of the Filo Federico diatreme and NW target.
Hole 81 returned anomalies up to 1.15 grams gold and 66 grams silver in thin, discontinuous, fractured silicified zones. The gold mineralization encountered was found in quartz-alunite-sulphide veinlets in the lower part of the hole. Even though these veinlets represent conduits for mineralization, they are not considered favorable for gold dissemination.
The hole was collared 200 metres north of hole 76 and designed to test the northeastern section of the Amable target. Geological data from the core suggest the hole was drilled at the hangingwall of one of the major northwesterly trending faults. Argentina Gold believes that any mineralization contained in the silicified upper horizon along these faults could have been displaced vertically or horizontally, or both.
A 10,000-metre drill program budgeted at US$4.2 million is expected to provide results through to the early spring of 1999. About 6,000 metres will be drilled on the Amable target. Drilling of holes 83 and 84 is now complete, and assay results are pending.
Argentina Gold is the operator and 60% owner of the Veladero project. Barrick Gold (ABX-T) holds the remaining interest.
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