TSE-listed Viceroy Resource has sent its exploration team to Argentina to review prospective gold properties in five provinces covering more than 220,000 hectares.
The move is in keeping with the company’s objective of expanding beyond its Castle Mountain gold mine in San Bernardino Cty., Calif.
Viceroy has until mid-September to complete its due diligence review, based on an agreement with Minas Argentinas (MASA), the owner of 22 properties in Argentina. These properties are situated along the eastern Andean slopes and are adjacent to the Chilean trend known as El Indio, as well as the Maricunga belt and the north-central plains of Argentina.
MASA also owns 24,000 hectares of placer properties south of the Bolivian border.
Viceroy can acquire a half interest in MASA by spending $3 million on exploration and other property acquisitions. If Viceroy elects to proceed, it will establish a public company to carry out exploration in Argentina. The company’s key asset is a 75% interest in the Castle Mountain mine. The open-pit, heap-leach operation produced 150,907 oz. gold at an average cash cost of US$207 during its second full year of operation.
For the quarter ended June 30, the mine produced 40,415 oz. at an average cash cost of US$179 per oz., compared with 33,724 oz. at US$208 per oz. a year earlier.
Viceroy reported earnings of $3.3 million on sales of $16.6 million during the 3-month period ended June 30 — a 31% increase on both earnings and sales, compared with the same period last year.
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