Tenke Mining fires up second rig at Vicuna

Vancouver — Junior Tenke Mining (TNK-T) has added a second drill rig to its 23-hole program on the Vicuna gold project, in northwestern Argentina.

The reverse-circulation work is testing five targets:

– Filo del Sol;

– Flamenco;

– Co. Vicuna;

– Maranceles; and

– Gemelos.

The Vicuna property encompasses more than 264 sq. km in the prolific gold belt that hosts Barrick’s Pascua deposit and the Homestake-Barrick Veladero deposit.

Previously reported intercepts at the Filo del Sol target revealed encouraging intervals of quartz-alunite-enargite-pyrite-chalcocite, which is typical of the sulphide portion of high-sulphidation epithermal gold systems (T.N.M., Jan. 22-28/01).

The best result came in hole 4, which cut 118 metres grading 0.51% copper, 81 grams silver and 0.38 gram gold per tonne from a down-hole depth of 162 metres. This interval included a higher-grade section running 0.55% copper, 192 grams silver and 0.39 gram gold from 202 metres down-hole. The hole terminated in mineralization, with the last 10 metres grading 0.92% copper, 5 grams silver and 0.67 gram gold.

Another significant intercept was hole 5, which cut 168 metres grading 0.86% copper, 33 grams silver and 0.23 gram gold. The mineralization is associated with a complex system of erupted breccias and fault structures, and seems to resemble sulphide portions of the Pascua deposit, 60 km to the south.

The Flamenco anomaly is a breccia complex intensely deformed by north-northeasterly striking faults. The target lies 3 km south of the Filo del Sol diatreme and hosts a large gold-in-soil anomaly. Alteration is marked by opaline silica and minor vuggy silica. Numerous chip samples returned anomalous gold values. Hole 8 cut 82 metres averaging 0.41% copper and 0.16 gram gold.

The Co. Vicuna prospect lies 1 km south of Filo del Sol and represents a silicified porphyry with multi-stage vuggy silica covering 1.6 sq. km. Trenching returned 24 metres grading 1.24 grams gold, 6 metres of 3.04 grams, and 10 metres of 0.93 gram. Cyprus Amax previously tested the porphyry for copper with 16 drill holes. One hole intersected 20 metres grading 1.18 grams gold near the edge of a soil anomaly, starting at a depth of 4 metres. Hole 9 was collared on this prospect and hit 0.19% copper, 1.5 grams gold and 4 grams silver over 4 metres from surface.

The Marancelas breccia is a 2-sq.-km quartz-alunite alteration zone with widespread silicification and breccias. Soil and chip sampling have revealed anomalous gold on the eastern side of the target in an area of quartz-enargite veining.

The Gemelos target represents a large zone of silica leach alteration, which is associated with a locally erupted tuff unit. The zone boasts a mercury-sulphur-lead anomaly with a large resistor geophysical anomaly.

The North anomaly is an extension of the Gemelos zone and is about 7 km north of the Filo del Sol target. It represents an alteration zone of steam-leached silica containing anomalous mercury and sulphur. Soil geochemical analysis has revealed locally anomalous gold, silver, lead and molybdenum. Rock samples have yielded up to 0.22 gram gold and 93 grams silver per tonne.

Tenke is led by the team that discovered the Veladero gold camp 75 km to the south. Homestake Mining (hm-n) acquired the project in a US$190-million takeover of Argentina Gold.

In 1999, Tenke put together the Vicuna project, a package of ground between the Maricunga belt to the north and the El Indio belt to the south. The exploration concessions had been held by Cameco (CCO-T), Westward Explorations (WWE-V) and Cyprus Amax Minerals (CYN-N). Tenke can earn a 100% interest in the land package by spending US$4 million on exploration and issuing 2.4 million shares over four years. The company subsequently augmented its position by optioning the Lirio property, which is adjacent to Vicuna, in return for exploration expenditures of US$1.5 million over five years. Tenke also has right of first refusal on several properties north of Vicuna; these are known collectively as Yamiri.

A subsidiary of London-based Rio Tinto (RTP-N), is funding the drill program. The major can earn a 51% interest by spending US$10 million over four years. It can then boost its position to 60% by spending an additional US$5 million.