News>>Monday August 11 3:35 PM EDT
Company Press Release
Source: Northern Orion Explorations Ltd.
Northern Orion Announces Agreement Signed on Major
Epithermal Gold Target in Argentina
VANCOUVER, Aug. 11 /CNW-PRN/ - Northern Orion Explorations Ltd.
NNO - TSE MAE - TSE, VSE MAENF - NASDAQ
*T
Northern Orion is pleased to announce that it has entered into an agreement to explore the
Antofalla East Mineral Reserve. It is located in Catamarca Province, Argentina, an area where
there has been intermittent precious and base metal mining since Spanish colonial times within an
extensive epithermal gold-silver system.
Potential for Significant Epithermal Deposits
The Antofalla project is highly prospective for the discovery of multiple epithermal and porphyry
gold-silver and base metal deposits. Work to date has identified a 35 sq. km. area of gold, silver
and base metal anomalies associated with Tertiary age alteration and mineralization in a setting
similar to that of the Maricunga belt in Chile. Several prospects with stock work veining and
silicified breccias are contained within a 12 sq. km area of coincident argillic alteration, thematic
mapper (TM) anomalies and associated gold, silver and base metal geochemical anomalies.
One of the most prospective targets identified to date, named Filo de Volcan, has extensive
brecciation and alunite alteration associated with a rhyolite dome. At Filo de Volcan, rock
sampling has outlined a geochemical anomaly extending over an area 1,000 meters by 400 meters,
with values up to 0.6 g/t gold and over 2,000 g/t silver. Northern Orion believes the Filo de
Volcan target has excellent potential for the discovery of a significant epithermal gold-silver
deposit. Drilling is planned to commence by the end of 1997.
Filo de Volcan is just one of several targets identified in this area. Several of the other targets
appear to have similar size potential and similar geology, and are being reviewed.
Regional Potential
The properties are located in northwestern Catamarca Province, Argentina, within a
Miocene-Quaternary magmatic arc that is a favorable geological setting for epithermal and
porphyry-style precious and base metal mineralization similar to those in the Maricunga gold belt of
Chile.
The favorable geological setting and identification of strong alteration and gold-silver mineralization
suggest the Antofalla region has excellent exploration potential for multiple epithermal and
porphyry-style gold-silver and base metal deposits.
Agreement
Northern Orion's Antofalla Project consists of six properties wholly owned by Northern Orion's
100% owned subsidiary, Grupo Minero Aconcagua SA, plus the recently optioned Provincial
Reserve, which combined, encompass an area of 45,000 hectares. Another wholly-owned
subsidiary of Northern Orion, Compa(ia Minera Antofalla SA (``Minera Antofalla'') has entered
into an agreement with the Province of Catamarca, Argentina, to explore the Antofalla East
Mineral Reserve with an option to produce any economic deposits developed in the area. Under
terms of the agreement, Minera Antofalla will invest a minimum of US$910,000 in geologic work,
equipment purchases, and exploration drilling to be carried out in the first 17 months of the
agreement. Should Minera Antofalla elect to continue the option, it will be obligated to make
additional expenditures on the property totaling US$2.91 million, and make a payment on a
production decision to the Province of Catamarca, which will retain a 2.0% NSR royalty on the
payable metals produced.
No Stock Exchange has approved or disapproved the information contained herein.
BUSINESS/PHOTO EDITORS: A copy of the Northern Orion map of the Antofalla Argentina
area is available by fax by calling Canada NewsWire, Vancouver at (604) 669-7764. |
