Argentine silver keeps Yamana active

In the country named for silver, Yamana Resources (YRI-T) has located four new precious-Metal systems, some of which exhibit bonanza grades of the white metal.

These discoveries took place in the vicinity of Yamana’s Santa Cruz gold project in southern Argentina, as part of a reconnaissance exploration effort.

The company has since acquired cateos (exclusive prospecting rights) on the ground surrounding each of the four discoveries, bringing its total holdings in the district to 17 cateos covering 1,054 sq. km.

Lejano, the northernmost cateo, covers the best of the sample results, where 27 chip samples have been collected, each of which covers a minimum area of 15 sq. metres. Of these, 55% grade in excess of 30 grams silver per tonne, with 33% grading greater than 100 grams, and 15% grading greater than 1,000 grams. The best sample assayed 3,400 grams.

Gold and silver mineralization at Lejano occurs in hydrothermally altered, Jurassic-Age rhyolitic volcanic rocks exposed in two prominent hills, each measuring more than 1 km long and 300 metres wide. It is often associated with sheeted-To-stockwork quartz veining. About 80% of this 60-sq.-km cateo has yet to be examined.

The southernmost cateo, Bacon, situated 200 km south of Lejano, encompasses 44 sq. km adjacent to the Manantiel Espejo gold-silver vein deposit, in which Triton Mining holds a purchase option from Barrick Gold.

One structural zone on Bacon consists of many small, sheeted quartz veins cutting silicified rhyolitic tuff beds. This zone continues along strike for more than 3 km, with a variable width ranging up to 30 metres. Preliminary sampling has yielded assays of up to 0.5 gram gold and 730 grams silver per tonne.

Two more cateos, Bola and Vista, are situated between Lejano and Bacon, and together make up an additional 141 sq. km covering a similar Jurassic-Age volcanic setting. Both properties exhibit large zones of sheeted and stockwork quartz-Vein complexes several kilometers in strike length. Both also transgress calderas and contain anomalous gold and silver concentrations. Sampling has revealed values in excess of 0.2 gram gold in both areas, accompanied by up to 12 grams silver.

Yamana reports that geological mapping and further systematic geochemical sampling of these prospects will be undertaken in the third quarter.

Yamana’s exploration work in southern Argentina is funded by Rio Algom, which can earn a half interest in Santa Cruz by spending US$20 million on exploration by Aug. 31, 2001.

Meanwhile, at the nearby Estrella property, the last drill hole of the 1996-97 field season penetrated and bottomed in 100 metres of 0.55 gram gold per tonne, including 6 metres of 2.17 grams gold.

Cuttings from this reverse-Circulation hole show many tiny quartz veins in silicified crystal-Tuff similar to that found in two previously drilled holes, situated 650 metres and 1,100 metres farther west.

Says Mel Klohn, Yamana’s manager of the Santa Cruz project: “This really looks like a lead into a bulk-Tonnage-style target, with mineralization spread over a large area, the limits of which are currently unknown.” The 17 reverse-Circulation holes drilled at Estrella since mid-February total 2,497 metres. Only 20% of the 30-sq.-km property has been subjected to detailed exploration. Geologic mapping, surface sampling and drilling are expected to resume in the third quarter.