NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: ARGENTINA GOLD CORP.
VSE SYMBOL: ARP
FEBRUARY 2, 1999
Argentina Gold: Hole 107 Further Extends High-Grade Zone
of Western Filo Frederico Towards NW Target; Complete
Results from Diamond Core Hole DDA1 Show Substantial
Increase in Gold Grade at High-
VANCOUVER, BRITISH COLUMBIA--Argentina Gold Corp. (the "Company")
is pleased to announce results from Hole 107, Hole 106 and the
remaining results from diamond core Hole DDA1, drilled at the
Company's Veladero project in San Juan Argentina.
Western Filo Federico - possible high-grade starter pit zone
expanded westward towards NW target resource
Hole 107, collared 50 metres southwest of Hole 98, returned 74
metres of 2.04 grams per tonne gold and 18.12 grams per tonne
silver including 24 metres of 3.82 grams per tonne gold and 26.62
grams per tonne silver.
This hole further expands the high-grade sector (above 3 g/t gold)
of western Filo Federico towards the resource found at the NW
target.
Details of the results from Hole 107 are in the following table.
/T/
Hole Total Inter From To Gold Silver Gold Azimuth Angle Coor-
Depth -val Equiv. Dinates
(x)
(m) (m) (m) (m) (g/t) (g/t) (g/t)
107 215 74 51 125 2.04 18.12 2.40 125 -75 2406710 E
including 24 64 88 3.82 26.62 4.35 6752550 N
Elev: 4245
(x) 50 g/t Ag = 1 g/t Au
/T/
High-grade, near surface gold/silver mineralization has been
intercepted in all holes drilled so far between the Filo Federico
resource and the NW target resource. Over half of the original
gap between these two targets has been covered with initial
drilling that has shown the potential for a significant expansion
of the resource, increase in grade, and a decrease in the
stripping ratio in this area. The geology encountered in these
holes is the same as that found at both the Filo Federico target
and the NW target, providing further evidence that the two targets
may be linked. Preliminary indications are that the expanding
high-grade sector of western Filo Federico and the higher-grade NW
target may be a possible starter pit zone for the Filo Federico
resource.
Reverse circulation drilling continues at the western extension of
the high-grade zone at Filo Federico and given the exceptional
results received from the diamond core hole at the Amable target,
a second diamond drill rig is being mobilized up to the Filo
Federico target.
Complete results from Diamond Core Hole DDA1 - indicate
substantial increase of grade
The results from the first diamond core hole drilled on the
property have been very encouraging. This hole, DDA1, was
designed to test the high-grade section intercepted by Holes 90,
80 and 85, which were drilled using a reverse circulation rig.
The results have shown an overall increase of grade in this
section particularly in the highest grade zones with related free
gold in oxides and quartz. It appears that the diamond drilling
has allowed for a better conservation of finer particles than the
reverse circulation drilling. A second diamond hole is underway
at the Amable target further testing the high grade section from
the west.
The entire length of Hole DDA1 was mineralized. Details of the
complete results are in the following table:
/T/
Hole Total Inter From To Gold Silver Gold
Depth -val Equiv. (x)
(m) (m) (m) (m) (g/t) (g/t) (g/t)
DDA1 234.90 169.90 65 234.90 12.50 67.82 13.86
including 59 76 135 30.27 80.71 31.88
including 43 76 119 39.01 79.39 40.60
including 25 81 106 52.50 49.64 53.49
(x) 50 g/t Ag = 1 g/t Au
Hole Azimuth Angle Coordinates
DDA1 270 -55 2407695 E
6750442 N
Elev: 4352
/T/
Drilling Continues
Drilling continues at the southeastern extension of the Amable
target and the western extension of the high-grade zone of Filo
Federico. As well, a second hole is underway at the new Amable
North target. A second diamond core hole (DDA2) at the Amable
target is also in progress.
Hole 106 (Amable), collared 60 metres SSE of Hole 103, is
complete. Results received showed discontinuous mineralization up
to 1.5 grams per tonne gold. The geology and grades indicate a
similar situation as in Holes 87 and 101 on the hanging wall of
the fault that controls Amable at the south and southwest.
Hole 108 (Amable), collared 10 metres east of Hole 80, drilled
vertical, is testing potential deep continuity of high grade
zones. This hole is complete with assays pending.
Hole 109 (Filo Federico), collared 50 metres SSW of Hole 72 (a
hole from the previous season), is complete with assays pending.
Hole 110 (Amable), collared 45 metres east of Hole 92 is complete
with assays pending.
Hole 111 (Amable North), collared 50 metres east of Hole 100 is
underway and is currently at a depth of 342 metres.
Hole 112 (Filo Federico) is underway. It is being drilled in a
southerly direction from the same platform as Hole 58 (a hole from
the previous season).
Hole 113 (Amable), collared 50 metres west of Hole 92, is
underway.
DDA2 (Amable) is currently at a depth of 70 metres and is located
15 metres north of Hole 89 (drilling in an easterly direction at
an angle of 75 degrees.
There are three reverse circulation rigs on site, one at Filo
Federico, one at Amable and one at Amable North. One diamond core
rig is in operation on the Amable target and a second rig for Filo
Federico is being mobilized.
Please visit our website for maps and detailed information on the
Veladero project. The website address is www.argentinagold.com
Argentina Gold is the operator of the Veladero project holding a
60 percent interest. The Company's partner, Barrick Gold Corp.,
holds the remaining 40 percent. The drill samples are being
assayed by CIMM Labs of Chile using top quality control systems
and interlab check assays.
ON BEHALF OF THE BOARD
Lukas H. Lundin, Director
-30- |
