Spokane, Wash.-based junior Minera Andes (MAI-A) has signed a joint-venture agreement with Pegasus Gold (PGU-T) to earn an 80% interest in the Arroyo Verde gold-silver discovery in south-central Argentina.
To do so, Minera Andes must spend US$1.3 million over four years, including US$200,000 in the first year.
The Arroyo Verde project comprises 13,600 ha in the northeastern corner of Chubut province near the Gulf of San Matias.
Pegasus, which made the discovery in 1995, recently completed 25 shallow reverse-circulation holes in a program spanning 2,500 metres.
The area tested contains gold-silver mineralization in hydrothermal breccias and sheeted veins. As much as 85% of the property remains obscured by colluvium.
Minera Andes plans to conduct surface mapping, sampling and geophysical work.
Drilling is expected to begin in early 1998.
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