Argentina Gold hits best grades yet

The latest batch of highly anticipated drill results from Argentina Gold‘s (ARP-V) Amable target are highlighted by impressive values in hole 90.

The target is part of the Veladero project in the northwestern state of San Juan. Argentina Gold holds a 60% interest in the project, with the remainder held by Barrick Gold (ABX-T).

• Hole 90 hit 255 metres averaging 6.2 grams gold and 24.5 grams silver per tonne starting at a down-hole depth of 62 metres. Included in this intersection was a 147-metre interval that averaged 10.25 grams gold and 35.6 grams silver starting at 74 metres down-hole. The hole was collared 50 metres east of the main resistivity zone, between previously reported holes 80 (212 metres of 3.67 grams gold and 47.71 grams silver) and 84 (126 metres of 2.66 grams gold and 22.77 grams silver). Hole 90 was drilled due west at an angle of minus 70.
• Hole 89 assayed 1.2 grams gold and 33.32 grams silver over a 193-metre interval starting at a down-hole depth of 139 metres. Included in this intersection was an 81-metre interval of 1.88 grams gold and 53.5 grams silver starting at a down-hole depth of 141 metres. The company also reported an overlapping mineralized section, between 67 and 193 metres down-hole, which averaged 1.12 grams gold an 57.8 grams silver. Hole 89 was collared 100 metres west of hole 84 and drilled at an angle of minus 75 toward the northwest.
• Hole 88 was collared on the same drill pad as hole 89 and drilled at minus 75 toward the southwest. The hole cut 78 metres averaging 1.18 grams gold and 30.96 grams silver starting at 76 metres down-hole. At a depth of 232 metres down-hole, a 32-metre interval averaged 0.94 gram gold and 5.16 grams silver.
• Hole 87 intersected 14 metres grading 0.83 gram gold and 30.1 grams silver starting at 148 metres down-hole. The hole was collared 100 metres southwest of hole 84 and drilled at minus 75 toward the west.
• Hole 86 was collared on the same drill pad as previously reported hole 82 (91 metres averaging 1.49 grams gold and 35.75 grams silver) and drilled toward the northwest at minus 70. The hole intersected 59 metres averaging 0.83 gram gold and 69.5 grams silver starting at a down-hole depth of 134 metres. Another interval was hit at 223 metres down-hole; it assayed 0.24 gram gold and 39.2 grams silver over 33 metres.

Argentina Gold believes these latest results suggest that high-grade gold and silver mineralization exists in the quartz alunite zones that rim the intense silicification in the Amable target. The quartz alunite mineralization is believed to correlate with lower resistivity zones that boarder the main geophysical anomaly. This pattern may correlate with the Veladero North diatreme-dome complex — a theory which will be tested by further drilling.

In progress is hole 91, which has reached a depth of 340 metres. The hole was collared in the eastern sector of the Filo Federico target in an attempt to test the possible eastern extension of that mineralized resource.

Preliminary estimates have pegged the indicated and inferred resource at Filo Federico at 2 million oz. gold and 70 million oz. silver contained in 82.8 million tonnes grading 0.75 gram gold and 26.14 grams silver. The indicated and inferred resource at the NW target stand at 381,600 oz. gold and 5.3 million oz. silver contained in 8 million tonnes grading 1.48 grams gold and 20.95 grams silver.

Hole 92 will be collared at the Amable target in an attempt to test its eastern extension.

To date, Argentina Gold has put down 3,991 metres of a planned program of 6,000 metres at the Amable target (not including hole 91). To date, the drilling has employed the reverse-circulation method, but diamond drilling will soon begin in an attempt to verify previous results.

Argentina Gold has working capital of $4.5 million and 36.4 million shares fully diluted.