Hello Bill,
It's interesting that you mention Chile. I have an email from an Internet newsletter I came across. It mentions the many benefits of mining in Argentina and the similar geogoly to that of Chile.
I also like ARB's neighbours, CTQ/BHP, PFG/Barrick, Teck/Mansfield and I'm sure this will continue being a hot area play in '97.
primenet.com
I'll post an excerpt from the newsletter below. I'll also post the link to their web page if anyone is interested in getting a sample copy. I recieved just recieved this as my sample.
Good Luck,
Essam.
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RESOURCE STOCKS ADVISORY Volume 2 # 13 Dec 21 1996
P.O. Box 335, Owen Sound, Ontario, Canada N4K 5P5 519-372-8855
resource@sentex.net Yearly subscription $129 cdn/year $99 US
Web Site "http://www.sentex.net/~resource"
ARGENTINA ONE LAST GOLDEN FRONTIER
As you know from previous issues, I believe South and Central America and
Indonesia offer potential for numerous large precious metal finds. One area
in particular that offers extrodinary potential and is developing into a new
area rush is Argentina with a number of bargain priced stocks.
Why does Argentina have such good potential? Basically because of
excellent geology that has been unexplored and new mining laws and
economic reforms recently enacted. The mining sector has not been developed
because it has belonged to the state till 1992 and lacked risk capital.
President Carlos Menem's liberal mining policy is now attracting vast
amounts of foreign investment. There are no restrictions regarding residence
of the procurer of exploration interests, title is freely transferable and
there are no restrictions on the repatriation of dividends. There is no
foreign exchange controls but just a 3% tax on foreign currency
transactions.
Taxation and Environment
The Mining Investment Law states that no changes to federal, provincial
and municipal taxes can occur for a period of 30 years after the date of
feasibility. The tax rate is 30% and there is no withholding tax on
dividends. Equipment and raw materials is exempt from import duties and
exports are exempt from VAT. Double depreciation is granted for exploration,
feasibility costs and accelerated depreciation is granted on the majority
of capital expenditures. Mining permits are handled by Argentina's 24
provinces and enviromental policy suggests that ecological protection is
very important but it must not stand in the way of economic growth. To
expedite the process, enviromental impact studies, once submitted, allows
the provincial authorities 60 working days for the resolution of the
applications.
There are different levels of exploration/mining permits. A 'cateo' is
an exclusive prospecting right consisting of up to 20 units of 500 hectares
each. The maximum size of a cateo is 10,000 hectares and a company can have
up to 200,000 hectares per province. The cateo is granted for 1,100
prospecting days and after a discovery, the holder can then file for a
'manifestaciones'.
A 'pertenencias' is a mining claim which gives the holder the right to
develope and mine a property. A 'mina' is a real property interest which
gives right of mining and may cover several 'pertenencias'. A 'mineria
reserve' is a property which can be obtained through direct negotiation with
the province
Geology
The previous political climate kept foreign concerns out and didn't
encourage much domestic exploration neither on vast amounts of excellent
geology. Argentina's western border stretches more than 3,000 kilometers
through the Andes and runs through some of the most minerilized ground in
the world along the Argentina/Chile border, known as the Maricunga/El Indio
gold belt. Numerous large mines ranging up to a size of 10 million ozs.,
such as Aldebaran, Marte, Lobo and El Indio have been discovered along the
border in Chile and there is no reason for the deposits to end at the
border.
This border area high in the Andes, known as Andean Cordilla is at an
elavation of 4,600 meters. It was formed in the Jurassic period of high
volcanic activity and is very receptive to gold, silver as well as copper
minerilization. The other geological areas are known as PreCordillera, an
area similiar to the Basin and Range extension in the U.S. with potential
for Carlin-type minerilization.
Patagonian Plateau, is a tectonically different area which has
experienced volcanic activity conductive to epithermal gold deposits.
Puna, the high elevation plateau is transected by young faults and active
volcanoes which has potential for both gold and copper minerilization.
How to invest in this potential?
These favourable conditions have attracted about 60 foreign mining
companies that are estimated to spend up to $3 billion in the next 5 years. |
