Friday October 30, 2:48 pm Eastern Time
rpt-Argentina gold find heads for initial study
BUENOS AIRES, Oct 29 (Reuters) - Miner Argentina Gold Corp expects to launch a pre-feasibility study next year at its Veladero gold find straddling the Chile-Argentina border, a top project official said Thursday.
Prompted by estimated gold equivalent resources of six million ounces, the pre-feasibility study would cost about $10 million to $12 million and be completed by 2000, project Exploration Manager Ricardo Martinez told Reuters.
''We hope to begin pre-feasibility next year,'' said Martinez.
During the project's five-year history $12 million have already been spent and drilling has covered 17,000 meters at a depth of 250 to 300 meters.
Argentina Gold Corp. is bankrolling the upcoming work via the recent sale of 2,550,000 of its shares to U.S. firm Newmont Mining Corp. (NYSE:NEM - news), the world's second largest gold producer.
The Veladero deposit is 60 percent operated by Argentina Gold Corp., with the remainder in the hands of Canadian miner Barrick Gold Corp. (Toronto:ABX.TO - news).
Veladero sits 4-5,000 meters above sea level in the Andes mountains forming the border between Argentina and Chile. The site is 370 kilometers northwest of San Juan province's capital city.
The find is about 3.75 miles (6 km) southeast of Barrick's large-scale Pascua copper project and 35 kilometers northeast of its El Indio gold mine.
''Here in the Faja del Indio is where the deposits are being found,'' said Martinez.
The grade of gold discovered so far at Veladero has been 1.5-1.7 grammes per tonne, though in some spots are furnishing 4 grammes per tonne. A sufficiently high grade of silver has been found to consider its production as a byproduct.
The main drilling area encompasses 500 kilometers of the 13,000 hectare property. Argentina Gold Corp. owns 90,000 hectares in the zone, known as the Valle del Cuna.
Provided results remain positive Argentina Gold Corp. tentatively foresees a feasibility study completed by 2001, Martinez said.
Snows ranging from one meter up to four meters during the winter limit work at Veladero to September through May.
Argentina Gold Corp. is an affiliate of the Canadian firm of the same name.
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Newmont Mining Corp (NYSE:NEM - news)
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