Anglo launches program at Aripuna

A Brazilian subsidiary of Anglo American plans to spend US$850,000 on a first-phase exploration program at the Aripuna project, a joint venture with Karmin Exploration (KARM-C).

Aripuna is viewed as Anglo’s “number-one exploration project” in Latin America because of its geological similarities to Manitoba’s Flin Flon district, where Anglo subsidiary Hudson Bay Mining & Smelting has base metal operations. Situated in Mato Grosso state, the favourable belt of volcanic rocks has been mapped over a strike length of 25 km.

Aripuna hosts the Valley deposit, which was previously found to contain 11.65 million tonnes averaging 6.29% zinc, 2.25% lead and 0.07% copper, plus 65 grams silver and 0.25 gram gold per tonne. The estimates are based on a 3% zinc block cutoff grade.

The Valley deposit is adjacent to Anglo’s Arex deposit, which the South African company says hosts estimated resources “of a similar magnitude.”

Earlier this year, Anglo and Karmin agreed to form a company that would hold mineral rights to their pooled properties. Karmin’s 85%-owned Brazilian subsidiary has a 30% stake in the company, whereas Anglo American has a 70% interest. Their agreement calls for Anglo to spend US$4.7 million before mid-2003, including the funds to be spent this year.

Anglo is re-interpreting the local geology using combined databases for the two projects, which are more than 1 km apart. The major suspects they may be connected, thus creating a larger, more attractive target. The initial exploration program is aimed at gaining a better understanding of the relationship between the two resources. It will include ground geophysics and a drilling program that should be completed this summer.

Previous work by Karmin at Aripuna also revealed gold potential in a 50-metre-thick oxide cap on the property. More than 300,000 oz. of the yellow metal have been recovered by local miners. The best oxide intersection to date is 22 metres of 19 grams gold, starting at surface.