The international exploration division of BHP Minerals has started drilling the Agua Rica copper-gold project, owned by American Resource (NASDAQ) and situated in northern Argentina.
The program follows a review of previous drilling and a remapping of surface geology, both of which indicate the property is underlain by a complex system that includes a porphyry copper mineralizing event overprinted by an epithermal gold event.
Previous exploration, which included 8,000 metres of drilling and several hundred metres of underground development, indicates a potential reserve of 50-60 million tonnes grading 1-2% copper.
Under a joint-venture agreement, BHP will spend US$1 million on exploration and US$200,000 on option payments. American Resource retains a 30% interest in the Mi Vida property and acquires a 30% interest in the surrounding Agua Rica area controlled by BHP.
In other news, Placer Dome (TSE) has withdrawn from the joint venture with American Resource on the Durazno property, also in Catamarca province. Another leading company has shown interest in the Durazno project.
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