ARP
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: ARGENTINA GOLD CORP.
VSE SYMBOL: ARP
JANUARY 4, 1999
Argentina Gold Receives Positive Technical Review from
Newmont
VANCOUVER, BRITISH COLUMBIA--Argentina Gold Corp. ("ARP") is
pleased to announce the results of a technical review (Phase I) of
the Veladero project conducted by Newmont Overseas Exploration
Limited ("Newmont").
Newmont was contracted by ARP to provide a technical review of the
Veladero project in San Juan province, Argentina. The purpose of
the work was:
- To assess the drill and drill sample methods. Make
recommendations to improve sample quality, drill productivity or
reduce drill costs.
- To check/verify new drill results through collection,
preparation and analysis of duplicate samples for two holes.
- To check previously reported drill results through preparation
and analysis of coarse reject from portions of five holes.
- To verify the presence of gold in the system by collection and
analysis of surface, rock chip channel samples. These samples
were collected from three areas where "ore-grade" gold
concentrations were previously detected by Argentina Gold.
- To describe the nature of the gold occurrence through
microscopic examination of select high grade drill samples.
The executive summary and conclusions of the report follows:
Executive Summary
"The reverse circulation drill program, though high cost, is
efficient and geared to collection of a high quality sample. Few
comments can be made to improve the drill operation or the sample
and sample preparation techniques. Evaluation of gold assays from
reverse circulation drill cuttings indicates good agreement
between samples collected, prepared and analyzed by Argentina
Gold/CIMM and duplicate samples independently collected, prepared
and analyzed by Newmont/Bondar Clegg. In addition check assays by
Bondar Clegg of coarse reject from select intervals in previously
drilled holes compare well with Argentina Gold/CIMM results.
Sampling of roadcuts by Newmont and analysis of these samples by
Bondar Clegg confirms the presence of gold within the Veladero
system. Microscopic examination of select high grade drill
intervals indicates the presence of liberated/free gold within the
mineralized zones. The form of the free gold particles is similar
to that of native gold which was observed in place and still
within the host rock fragments."
Conclusions
1. "Reverse circulation drilling though high cost is focused on
sample quality and not meter productivity.
2. Few comments can be made to improve the drilling operation.
Lower costs may be achieved with slight changes including type of
tri-cone bit, increased rotational rpm and use of hammer bits.
3. Reverse circulation samples from the two holes observed are
judged to be good.
4. Sample preparation is well organized and relatively clean.
5. Results from the two holes observed and for which separate
duplicate samples were collected, prepared and analyzed show
acceptable comparisons. Bondar Clegg gold results generally are
slightly higher than the ARP results but that difference is not
great (2-10 percent on the average).
6. Results from the check assays of coarse reject from previously
drilled holes compare well with the ARP data. It is acknowledged
that the material analyzed was not "pristine" as it had been
handled and stored prior to this study; however, the results are
similar to those reported by ARP.
7. Results from the surface sampling indicate the presence of gold
in the system. Though a direct comparison with ARP results was
not possible, the values are generally similar.
8. Mineralogical examination of high grade samples indicates that
liberated/free gold is present. The liberated gold is similar in
form to gold noted within the rock and appears to have been
derived from the rock within the system."
Phase II of the technical review, which will provide for limited
metallurgical testwork, is being completed by Hazen Research, Inc.
of Golden, Colorado and results will be reported as available.
In addition, further drill results are expected this week. Hole
97, located 45 metres SSW of Hole 94 is complete with assays
pending. Hole 98, testing an area between the NW target and the
Filo Federico target is also complete with assays pending. Hole
99, located 85 metres west of and in section with Hole 85 is
nearing completion and Hole 100, testing the Amable North target
(between Amable and Filo Federico), is also near completion.
The Company expects to soon bring a second diamond drill rig on
the property, bringing the total rigs in operation at Veladero to
four.
ON BEHALF OF THE BOARD
J. Patricio Jones, President
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