Preparation for the commencement of the 1998/1999 exploration
Argentina Gold is preparing for the commencement of the 1998/1999 exploration
season at the Veladero project in San Juan Province, Argentina. A report recently
completed by independent consulting engineers estimates a resource of 2.4 million troy
ounces of gold and 75 million troy ounces of silver (does not include Amable (SE)
target) at the Veladero project. The access roads to the region have been opened and
the company's camp is fully operational. It is anticipated that the drilling program of
approximately 8,300 to 8,500 metres will commence by the end of September.
The following drilling program has been proposed. An initial reverse circulation
program will commence at the Amable target in the area of hole 76 (193 metres of
2.59 g/t gold and 55.09 g/t silver) where between 5,000 to 6,000 metres are to be
drilled. At the Filo Federico target, a diamond drilling program of approximately 2,000
metres in two sections of the deposit will be carried out to further delineate higher
grade zones that have been intersected by drilling and to verify the gold/silver grades.
Based on the successful gold exploration program carried out to date at the Veladero
project, Argentina Gold had applied for and has received an extension of the
exploration period set out in its contract with the government of San Juan Institute for
Mining Exploration and Exploitation. The IPEEM is the government authority which
awarded the Veladero property to the company following an international tender
process in 1994.
The exploration stage of the contract has been extended to Aug. 31, 1999 whereupon
Argentina Gold would enter the prefeasibility/feasibility stage for the period Sept. 1,
1999 to Dec. 31, 2001. Following the end of this period, Argentina Gold has 180 days
to present a feasibility study and to exercise the option for continuation of the project
into the exploitation stage which covers a period of 25 years (renewable) with a fixed 1
per cent nsr due to the San Juan government. |
