THE LATIN BEAT — Argentina Gold expands holdings

By acquiring the property known as Las Tortolas-Vacas Heladas, Argentina Gold (VSE) has gained another block of ground in Argentina.

The deal includes yearly property payments and spending commitments, with a US$1.5-million purchase price in the fifth year.

Las Tortolas comprises 20,000 hectares and adjoins Chile in western San Juan, Argentina, within the belt of tertiary volcanic rocks known as El Indio. There is road access to the main exploration targets, which include two large zones of epithermal alteration.

The property has never been evaluated in detail or drill-tested, although limited sampling by the previous owner reportedly returned gold values as high as 14.3 grams per tonne and silver values as high as 168 grams. “We like the property” said Lukas Lundin, a director. “It has a good address.” The property is in the same volcanic unit, and within similar zones of epithermal alteration, as Lac Minerals’ multi-million-ounce deposits of El Indio (15 km to the northwest), Tambo (12 km to the northwest) and Nevada (70 km to the north-northwest).

Lundin expects to spend up to $200,000 on Las Tortolas this year, with an initial program consisting of bulldozer trenching and sampling. Argentina Gold now holds close to 250,000 hectares in the country and is considering joint-venturing some of its holdings.

With the recent completion of a one-million-unit private placement at $8 per unit, the company has about $8 million in working capital and 7.2 million shares outstanding.