Vancouver — Still hurting from disappointing drill results at the Luicho gold property in Peru, Pacific Rim Mining (PFG-T) is about to lose its joint-venture partner on the Diabillos silver-gold property in northwestern Argentina.
Gold miner Barrick Gold (ABX-T) let its option agreement with the junior expire on June 26.
The major spent US$17 million exploring the project and was earning a 70% stake. Under the terms of the deal, Barrick had to spend US$4 million annually until a positive production decision was made. Although the agreement provided for a nominal buy-back provision should Barrick not meet these commitments, the company declined to extend its option.
The 3,600-ha property hosts a number of silver-rich “high-sulphidation-type” targets, including the Oculto target, which has been drill-tested by 151 reverse-circulation and 41 diamond drill holes.
At last count, Oculto held an inferred geological resource of 30 million tonnes averaging 93 grams silver and 0.6 gram gold per tonne, using a cutoff grade of 0.8 gram gold-equivalent. Metallurgical work indicated lower-than-expected recoveries from column leach tests, suggesting that the deposit may not be amenable to heap-leaching.
Barrick last worked the project in August 1999, when the company completed a five-hole diamond drilling program aimed at determining potential silver loss in the reverse-circulation holes at Oculto. The results of this program proved inconclusive.
The junior believes the property has potential for additional gold-silver mineralization. Most notable is the Laderas target, which lies 500 metres north of Oculto.
Cash-rich Pacific Rim is looking for a new project. Because of poor drill results, the company dropped the highly touted Luicho gold property in Southern Peru last October.
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