EXPLORATION — Exploration heats up in northwestern Argentina — South America’s El Indio gold belt continues to attract Canadian juniors

Drill results from the Veladero property of Argentina Gold (ARP-T) have caught the eye of mining markets, even though numerous juniors have been working in the region for some time.

Of particular interest to companies exploring in the country is the prolific El Indio gold belt, which has attracted such companies as Mansfield Minerals (MDR-V). The Vancouver-based firm recently signed a joint-venture agreement with Argentina Gold for the Santa Rosa prospect, retaining the right to earn a half-interest by spending US$500,000 over three years.

The 2,140-ha property, 600 km northeast of Veladero, is described as a typical porphyry copper-gold prospect with widespread alteration. Mineralization at Santa Rosa is spread across five zones of gold-bearing quartz-sulphide stockworks and breccias hosted in altered sediments and intrusives. Exploration to date has consisted of grid and channel sampling, as well as geological mapping. Mansfield is compiling a comprehensive structural map of the property, and future geophysical surveys will help define drill targets.

Mansfield also holds the rights to the Las Burras and Incahuasi properties, 50 km northwest of the city of Salta. The two properties represent newly discovered porphyry copper-gold prospects. Incahuasi consists of several zones of intensely stockworked quartz-sericite alteration covering an area measuring 2.5 by 1.5 km. Of 32 samples collected, 24 returned values greater than 100 parts per billion (ppb) gold. Maximum values hit 3,870 ppb gold.

At Las Burras, 3 km northeast of Incahuasi, stockworked quartz-sericite-pyrite alteration covers an 800-by-1,200-metre area. Swarms of gold-bearing quartz-sericite-tourmaline-sulphide veins occur peripheral to the porphyry style mineralization. Of 180 samples collected, 73 assayed higher than 100 ppb gold and 16 higher than 1,000 ppb gold.

Recently, Teck (TEK-T) has taken an interest in the two properties, purchasing a $1-million private placement from Mansfield. About $400,000 will be spent on exploration, with the remaining $600,000 earmarked for grassroots work elsewhere in Argentina. By committing to spend $5.1 million on exploration and cash payments over the next five years, Teck can earn a 55% interest in the Incahuasi and Las Burras properties.

Mansfield has working capital of $7 million and about 17.1 million shares fully diluted.

• IMA Resource (IMR-V) holds the Rio De Las Taguas property, which covers 8,150 ha in an area 10 km northeast of Barrick Gold’s Pascua-Lama deposit.

  IMA’s property contains several large areas of argillic alteration and enriched arsenic and gold-in-soil occurrences. Grab samples assayed up to 1.78 grams gold per tonne.

  The company also has acquired two new properties near Argentina Gold’s Veladero property. Work has yet to begin on those properties, dubbed the Despoblados and Veladero.

  The company has working capital of $2 million, with 5.6 million shares fully diluted.

• Viceroy Resource (VOT-T) can earn a 60% interest in the Gualcamayo property from Mincorp Exploraciones by spending US$5 million on exploration over five years. The property lies 200 km north of San Juan and comprises 914 ha. Minas Argentinas (MASA), Viceroy’s wholly owned subsidiary, holds a 100% interest in an additional 50,651 ha of surrounding ground.

  Interest on the Gualcamayo property revolves around the Quebrada del Diablo (Devil’s Canyon), or QdD, zone.

  The zone is host to limestone and marble breccias, as well as an altered feldspar porphyry. Recent chip sampling along the canyon walls averaged 2.39 grams gold over 106 metres and 2.9 grams over 62 metres. The sampling covers a curved portion of the canyon, and thus does not represent true width.

  In October, Viceroy commissioned, at a cost of US$1-million, a 3-rig diamond drilling program over 3,000 metres on the QdD zone. Results of that program have not yet been received. The company has working capital of about $51 million and has 59.8 million shares fully diluted.

• Minera Andes (MAI-V) controls 25 properties covering 530,000 ha in Argentina. Three of its projects are in San Juan province, namely Agua Blanca, Rincon de los Chonchones and Los Azules.

  Agua Blanca covers 39,426 ha and is a prospective gold-copper porphyry target. A 1,000-metre, 10-hole drill program, scheduled to commence in the fourth quarter, is designed to test potassic and phyllic alteration zones associated with the porphyry. Previous drilling intersected 146 metres grading 0.5 gram gold and 0.19% copper in phyllic alteration.

  The 7,200-ha Rincon de los Chonchones property is another prospective copper porphyry target. Exploration is still in the grassroots stage, consisting of geological mapping and some sampling.

  The Los Azules property, also in the preliminary stage of exploration, represents a fault-bounded linear prospect on which surface sampling has identified anomalous gold, silver, arsenic and mercury in rock and talus samples.

  Minera Andes has working capital of US$2.5 million and 20.4 million shares fully diluted.

• Corriente Resources (CTQ-T) holds a 100% interest in the Taca-Taca Lower property in Salta province, about 50 km from the Chilean border.

  The property hosts a copper-gold-molybdenum porphyry measuring more than 3 km in diameter. A preliminary resource estimate, based on 33 holes, indicates a resource of 440 million tonnes averaging 0.58% copper, 0.02% molybdenum and 0.2 gram gold.

  A separate exploration target on the property is classified as supergene copper mineralization.

  Corriente has calculated a discrepancy between the volume of leached rock at Taca-Taca and the known resource of supergene copper present. The shortfall is estimated to be between 4 and 8 billion lbs. of copper. This summer’s exploration program targeted shallow copper mineralization at the northern end of the property. Highlights from drilling include: hole 35, which intersected 104 metres averaging 0.83% copper; hole 46, which cut 32 metres grading 1.47% copper; and hole 39, which intersected 227.5 metres grading 0.40% copper. All assays were derived from secondary chalcocite copper mineralization.

  Corriente is completing work related to structural geology, geophysics, alteration studies and geochemical zoning patterns with the goal of resuming a drill program in the fall.

  The company has about $12 million in working capital and 22 million shares fully diluted.

• Pacific Rim Mining (PFG-V) counts five mineral properties in its Argentine portfolio. The company has focused its efforts on the La Colorada and San Francisco properties in northwestern Argentina.

  La Colorada, 160 km northwest of the city of Salta, hosts a steeply dipping zinc-lead-silver volcanogenic massive sulphide (VMS) occurrence. Geological mapping and geophysical studies have revealed stratiform VMS horizons 3 to 5 metres thick at surface.

  Pacific Rim is now in the midst of a 5-hole, 1,000-metre drill program on the prospect. The company has also acquired an additional 1,400 ha of ground surrounding La Colorada.

  The San Francisco property is a low-sulphidation epithermal system in the province of Jujuy. A reconnaissance geological mapping and rock-sampling program revealed near-surface gold anomalies. From the 100 chip samples collected, 68 returned values of between 5 and 49 ppb gold. One sample assayed 1.2 grams gold per tonne. Nine of the samples slid in below the 5-ppb geochemical detection limit. The company hopes to drill the property in the new year.

  Pacific Rim optioned the Fantasma property from Corriente Resources in early 1998. The property covers the strike extent of the structure that appears to control mineralization at the Oculto deposit on the neighboring Diablillos property, which is being evaluated by a subsidiary of Barrick Gold (abx-t). That company holds a 70% interest in Diablillos, with Pacific Rim holding the remainder.

  Pacific Rim has working capital of $9 million and 24.7 m
  illion shares fully diluted.

• Golden Peaks Resources (GL-V) and Primo Resources (PRI-V) have teamed up with Mitsubishi of Japan to explore the Sierra de Las Minas and Los Dos Buhos properties.

  The two properties straddle the boundary between the provinces of La Rioja and San Luis. Mitsubishi stands to earn a 30% interest in each property by spending a total of US$1.5 million on exploration. Once the earn-in is complete, Golden Peaks, the operator, and Primo each will hold a 35% interest.

  The joint venture is targeting prospective epithermal gold-silver and related base-metal mineralization. To date, Golden Peaks has identified 13 gold-bearing quartz vein systems on the two properties. Only half of each property has been explored. Drills are currently spinning on the Los Dos Buhos, Vallecito, Portezuelo and Esperanza vein systems. Trenching at the Skull, Videla and Corral vein systems is designed to identify future drill targets.

  Primo Resources has working capital of $1.2 million, with 14.5 million shares fully diluted.

• TNR Resources (TRR-V) and Orko Gold (OR-V) have joined forces to explore for gold on the La Ortiga, Valle del Cura and El Fierro properties in northwestern San Juan province. Orko can earn a 51% interest in the properties by making payments totalling US$340,000 and issuing 600,000 shares. Orko must also spend a minimum of US$2 million on exploration of the properties.

  Work is expected to commence immediately on the La Ortiga property, 7 km east of Argentina Gold’s Veladero property. The three properties cover 365,708 acres about 260 km northwest of San Juan and each covers one or more zones of hydrothermal alteration. Satellite imagery suggests that these alteration patterns are similar to known deposits in the area, including the Veladero discovery. Reconnaissance sampling on the three properties has identified numerous zones of anomalous gold and silver.

  TNR also has other prospective properties in its Argentinean portfolio.

  The Canada Honda property, in the province of San Luis, covers 5,000 acres. TNR optioned the property to Australian-based major Newcrest Resources. That company can earn up to a 60% interest by spending US$2.2 million on exploration and paying US$200,000 over four years.

  The Australian miner recently commenced a 1,200-metre drill program to test deep targets below historic reverse-circulation holes. Chip sampling results from this summer’s exploration program indicated that surface gold anomalies extend farther than originally thought, and Newcrest has decided that reconnaissance drilling is warranted.

  The Cerro Negro property comprises 8,600 acres southeast of the city of Rodeo. Sampling, drilling and geophysics have outlined several gold and copper anomalies that extend northeast on to ground held by Battle Mountain Gold (BMG-N).

  Battle Mountain can earn a 100% interest in the 20,000-acre Los Azules property, 175 km west of San Juan, by bringing it to feasibility. The deal is subject to a 30% back-in right by TNR Resources. Battle Mountain has spent the past two years exploring Los Azules and is currently engaged in an extensive drilling program.

  TNR Resources has working capital of about $250,000 and 8.5 million shares fully diluted.