Copied this from Sedar site. Tables don't copy well. Form 61
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British Columbia Q U A R T E R L Y R E P O R T
Securities Commission FORM 61
INSTRUCTIONS
This report is to be filed by Exchange Issuers within 60 days of the end of their first, second and third fiscal quarters and within 140 days of the end of their fourth fiscal quarter. Three schedules (typed) are to be attached to this report as follows:
SCHEDULE A: FINANCIAL INFORMATION
Financial information prepared in accordance with generally accepted accounting principles of the fiscal year-to-date, with comparative information for the corresponding period of the preceding fiscal year. This financial information should consist of the following:
For the first, second and third fiscal quarters:
An interim financial report presented in accordance with Section 1750 of the C.I.C.A. Handbook. This should include a summary income statement (or a statement of deferred costs) and a statement of changes in financial position. A summary balance sheet is also to be provided.
For the fourth fiscal quarter (year end):
Annual audited financial statements.
SCHEDULE B: SUPPLEMENTARY INFORMATION
The supplementary information set out below is to be provided when not included in Schedule A.
1. For the current fiscal year-to-date:
Breakdown, by major category, of those expenditures and costs which are included in the deferred costs, exploration and development expenses, cost of sales or general and administrative expenses set out in Schedule A. State the aggregate amount of the expenditures made to parties not at arm's length from the issuer.
2. For the quarter under review:
(a) Summary of securities issued during the period, including date of issue, type of security (common shares, convertible debentures, etc.), type of issue (private placement, public offering, exercise of warrants, etc.) number, price, total proceeds, type of consideration (cash, property, etc.) and commission paid.
(b) Summary of options granted, including date, number, name of optionee, exercise price and expiry date.
ISSUER DETAILS
NAME OF ISSUER
ARGENTINA GOLD CORP.
ISSUER'S ADDRESS
SUITE 1320 - 885 WEST GEORGIA STREET
CITY PROVINCE
VANCOUVER B.C.
CONTACT PERSON
WANDA LEE
CERTIFICATE
The three schedules required to complete this Quarterly Report are attached and the disclosure contained therein has been approved by the Board of Directors. A copy of this Quarterly Report will be provided to any shareholder who requests it.
DIRECTOR'S SIGNATURE
“LUKAS H. LUNDIN”
DIRECTOR'S SIGNATURE
“WILLIAM A. RAND”
FIN 2061 Rev. 96 / 6 / 30
SCHEDULE B
ARGENTINA GOLD CORP.
SUPPLEMENTARY INFORMATION
November 30, 1998
(Unaudited)
1. Expenditures incurred during the current period to date:
a. Mining properties and related exploration expenditures
Balance, May 31, 1998
Permits, licenses and rights
Geophysics studies
Geochemistry and sampling
Drilling, road works and
maps
Camp and field supplies
Transportation
Site wages and salaries
Consulting and
professional fees
Office and general
Travel and related costs
Refundable sales taxes
Incurred during the period
Adjustment on termination
of Del Carmen
Joint Venture
Balance, November 30, 1998 1998
b) General and administrative expenditures
Reference is made to the Consolidated Statements of Operations and Deficit of the accompanying consolidated financial statements.
c) Non-arm's length transactions
During the quarter ended November 30, 1998 the Company incurred management and administrative expenses of $90,578 payable to the Chairman's office and a corporation owned by a director of the Company, which provides office premises, secretarial and other services in Vancouver.
2. For the quarter ended November 30, 1998:
a) The following shares were issued:
Date of Issuance
October 9, 1998
October 20, 1998
October 21, 1998
October 28, 1998
October 28, 1998
November 18, 1998
b) No incentive options were granted.
3. As at November 30, 1998:
a. The authorized capital of the Company consists of unlimited common shares without par value of which 35,717,764 common shares were issued and outstanding.
b. Options outstanding:
c) No warrants were outstanding.
d) The directors of the Company were:
Adolf H. Lundin
J. Patricio Jones
Lukas H. Lundin
John H. Craig
William A. Rand
SCHEDULE C
ARGENTINA GOLD CORP.
MANAGEMENT DISCUSSION
For the Period Ending November 30, 1998
Argentina Gold Corp. is pleased to present the following report on the activities of the Company during the second quarter period ending November 30, 1998.
The past few months have been an exciting and rewarding time for the Company. Since start-up of the 1998/1999 exploration season in September at the Company's Veladero project, we have defined a high grade gold resource at the Amable target, expanded the high grade resource at Filo Federico, uncovered several promising new target areas, been the subject of a hostile takeover and have seen our share price move from a low of $0.41 to over $5.65.
Amable Target
Twenty-six reverse circulation holes have been drilled this season so far at the Amable target resulting in the definition of a 2.3 million ounce high grade inferred gold resource that remains open to the east and southeast. This target has produced some of the best holes ever drilled in Argentina, for example:
Hole 90 - 255 m of 6.15 g/t gold and 24.50 g/t silver
Hole 80 - 212 m of 3.67 g/t gold and 47.71 g/t silver
The drilling at Amable has shown a consistent higher-grade mineralized horizon throughout the target area, starting near surface, and ranging in thickness from 100 to over 250 metres.
A sector of the Amable target, defined by Holes 80, 85 and 90, was recently tested by the first diamond (core) hole drilled on the property. The results showed a substantial increase in gold grades. Given the nature of the free gold observed in chip cuttings, the diamond core results reflect a higher gold grade. This is apparently due to the better conservation of all finer materials, especially those oxide-rich crusts that rim the open fractures in the hydrothermal breccias of Amable. The intensity of the silicification produces a highly brittle rock that is strongly crushed by the reverse circulation drilling (using tricone bits) and the intensity of the air pressure pushes the finer particles into the open spaces within the hole.
The drilling program continues at the Amable target using both a reverse circulation rig and a diamond core rig.
Amable North Target
Approximately half way between Filo Federico and Amable, a promising new target was discovered through Hole 100 (91 metres of 1.15 g/t gold and 11.70 g/t silver, including 44 metres of 1.56 g/t gold and 11.82 g/t silver).
The results obtained in this one wildcat hole indicate that the gold and silver mineralization defined to date at the Veladero project is part of a much larger system that may contain multiple deposits. The target has similar geological and geophysical characteristics as the Amable target 600 metres to the south.
Further drilling to define this target is planned.
Filo Federico Target
Two holes drilled recently have expanded a higher grade section of the resource found at the Filo Federico target. The expansion is westward towards the NW target, another significant resource area. Holes 98 and 104, both encountering strong mineralization near surface, have the same geology as found at 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.
Of interest, another hole (Hole 91) encountered gold/silver mineralization 500 metres east of the Filo Federico resource area, indicating the continuity of the mineralized model and significantly increasing the potential of the area.
Reverse circulation drilling continues at the western extension of the high-grade zone at Filo Federico and given the exceptional results received to date from the diamond core hole at the Amable target, a second diamond drill rig is being brought up to the Filo Federico target.
Over the course of four years, Argentina Gold has brought the Veladero project from a grassroots gold exploration project to the threshold of a multi-million ounce, world-class gold resource. We have so far defined an inferred resource of 4.5 million ounces of gold and 119 million ounces of silver.
Updated Resource Estimates
Consulting geologists and engineers, Watts, Griffis and McOuat have provided a resource estimate for the Amable target and a review of Argentina Gold's exploration program at the Veladero project.
Consulting geologists and engineers, Giles R. Peatfield, Ph.D. and J.A. Zbettnoff, B.Sc., P.Geo., have provided a resource estimate for the Filo Federico and NW targets.
Amable Target
High Grade (+2 g/t Au):
Indicated 8.76 million tonnes grading 5.37* g/t gold and 47.88 g/t silver
Inferred 5.54 million tonnes grading 4.60* g/t gold and 47.88 silver
Low Grade (1 to 2 g/t Au):
Indicated 5.00 million tonnes grading 1.36 g/t gold and 44.02 g/t silver
Inferred 3.67 million tonnes grading 1.35 g/t gold and 44.02 g/t silver
* High gold grades cut to reduce influence.
From its review of the Veladero project, Watts, Griffis and McOuat has concluded that:
• the results of Argentina Gold's exploration program to date are extremely promising
• the three targets outlined to date are open in one or several directions
• the recent intersection of gold and silver mineralization in Hole 100, 600 metres north of the Amable target not only represents a new discovery but suggests that the targets defined to date are only part of a much larger gold-bearing system
• based on the current resource base, the Veladero project could be operated independently of any neighbouring operation.
Filo Federico Target
Indicated 7.2 million tonnes grading 1.91 g/t gold and 21.1 g/t silver
Inferred 5.1 million tonnes grading 1.89 g/t gold and 20.6 g/t silver
This higher grade resource is within a larger mineralized body which has been estimated at:
Indicated 42.7 million tonnes grading 0.81 g/t gold and 25.2 g/t silver
Inferred 42.7 million tonnes grading 0.70 g/t gold and 26.0 g/t silver
NW Target
Indicated 4.4 million tonnes grading 1.43 g/t gold and 20.8 g/t silver
Inferred 3.2 million tonnes grading 1.49 g/t gold and 21.4 g/t silver
Expanded Geophysical Targets
The completion of an in-fill geophysical (CSAMT) survey with detailed emphasis on the Amable target and possible “Amable-like” anomalies along the east flank of the Veladero project resulted in a considerable positive impact on the size and extent of new target areas.
Approximately 15 kilometres of CSAMT lines, trending NW-SE, NE-SW and E-W, were recently surveyed using a special array of close dipoles (every 25 metres) to better define the borders and intensities of the resistors identified at some crucial zones of the northern Veladero regional project. The Amable target has been used as an example to extrapolate resistivity versus conductivity zones with the existing drill hole control. Mineralization has been identified in zones of lower resistivity (5,000 to 20,000 ohms-m) from the previous 50,000 ohms-m targets, thereby considerably enlarging the size of the overall targets. This is correlative with the identification of gold-silver grades at silica alunite zones that usually rim the silicified core zones.
The new geophysical infill, together with the previous coverage has resulted in a more defined set of structurally controlled corridors where NNE and WNW fracture intersections are more obvious and coincident with geological mapping. Using this new data and structural interpretations, the Company expects to uncover several “Amable-like” targets within the Veladero project.
Newmont Technical Review
Newmont Overseas Exploration was contracted by Argentina Gold to provide a technical review of the Veladero project. The Company received very favourable conclusions as follows:
“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.”
Hostile Takeover Bid by Barrick Gold Corporation
On December 9, 1998, Barrick Gold Corporation announced that it intended to make a take-over bid for all of the outstanding shares of Argentina Gold Corp. for C$4.00 cash per share. This original offer expired on January 9, 1999 and was then subsequently extended to January 19, 1999. On January 18, 1999 Barrick Gold Corporation announced that it would increase its offer to C$5.00 cash per share and extend the offer further to January 29, 1999.
Argentina Gold retained Loewen, Ondaatje, McCutcheon Limited to provide an independent fairness opinion on both the C$4.00 and the C$5.00 offer. Upon review by a Special Committee, Argentina Gold's Board recommended rejection. In making the recommendation the Board concluded that:
• The Barrick offers of C$4.00 and C$5.00 were inadequate, opportunistic and coercive
• In the opinion of LOM, the offers significantly undervalue Argentina Gold shares and was inadequate
• The market clearly recognizes that the Barrick offers were inadequate
• Barrick has rushed its initial offer in an attempt to acquire 100% of the Veladero Project before further exploration results are announced
• The Barrick offers were inadequate and failed to give recognition to the underlying fundamental value of Argentina Gold and its very prospective exploration properties
• Barrick has confirmed that the value of Argentina Gold is substantially greater than its offers
• Barrick's offers are its latest coercive attempt to obtain control of the Veladero Project without paying fair value
In view to maximizing shareholder value on behalf of all Argentina Gold shareholders, the Companay appointed ScotiaMcLeod Inc. as its financial advisor to assist the Company in considering all alternatives available to Barrick's unacceptable offers.
In addition to the Veladero project, Argentina Gold holds the very promising Del Carmen project, Rio Frio, Pancho Arias (Santa Rosa), Vicuna Pampa and several more. All totalled, Argentina Gold has a gold exploration portfolio comprising over 560,000 hectares which covers 80% of the El Indio gold belt in Argentina.
Water rights have been secured, ample flat land exists for any future mining operations, high-grade potential “starter-pit” areas have been defined and a mining treaty between Argentina and Chile is in the final stages of approval - all this placing Argentina Gold's properties in a very strategic position in a region growing exponentially in importance for gold exploration.
We would like to thank all our shareholders for their support over the last few months and we look forward to continued exploration success as our drilling program progresses.
ON BEHALF OF THE BOARD
“J. Patricio Jones”
President
January 27, 1999
Argentina Gold Corp.
Suite 1320 - 885 W. Georgia Street
Vancouver, B.C. V6C 3E8
Ph. (604) 689-7842 Fx. (604) 689-4250
Corporate development and investor relations activities are carried out by Company personnel. For additional copies of this report the annual report and other information, please contact the Company at the address noted above.
ARGENTINA GOLD CORP.
CORPORATE DIRECTORY
NOVEMBER 30, 1998
DIRECTORS
Adolf H. Lundin
J. Patricio Jones
Lukas H. Lundin *
William A. Rand *
John H. Craig *
* Members of Audit Committee
OFFICER
Adolf H. Lundin
Chairman
J. Patricio Jones
President
Wanda Lee
Controller/Treasurer
Jean Florendo
Corporate Secretary
AUDITORS
PricewaterhouseCoopers
Vancouver, British Columbia
Canada
BANKERS
Canadian Imperial Bank of Commerce
Vancouver, British Columbia
Canada
Banque Cantrade Ormond Burrus S.A.
Geneva, Switzerland
SHARE LISTINGS
Vancouver Stock Exchange (ARP)
COMPANY OFFICE
#1320 - 885 West Georgia Street
Vancouver, B.C. Canada V6C 3E8
Telephone: (604) 689-7842
Fax: (604) 689-4250
CHAIRMAN'S OFFICE
6, rue de Rive
1204 Geneva, Switzerland
Telephone: (41-22) 311 74 88
Fax: (41-22) 310 39 96
BRANCH OFFICE
Sarmiento 517
4° Floor “A”
(CP 1041) Buenos Aires, Argentina
TECHNICAL OFFICE
Esteban Echeverria 229 Sur
San Juan, Argentina
5400
REGISTERED AND RECORDS OFFICE
#1100 - 888 Dunsmuir Street
Vancouver, B.C. V6C 3K4
SOLICITORS
Cassels Brock & Blackwell
Scotia Plaza, Suite 2100
40 King Street West
Toronto, Ontario
M5H 3C2
McCullough, O'Connor, Irwin
#1100 - 888 Dunsmuir Street
Vancouver, B.C. V6C 3K4
Quattrini, Laprida & Asociados
Av. Del Libertador 602 - Piso 4
Buenos Aires, Argentina
1001
SHARE CAPITAL
Authorized: unlimited common shares
Issued and Outstanding: 35,717,764 shares
REGISTRAR AND TRANSFER AGENT
Montreal Trust Company
510 Burrard Street, 4th floor
Vancouver, B.C.
V6C 3B9
SUBSIDIARIES
Argentina Gold (Bermuda) I Ltd.
Argentina Gold (Bermuda) II Ltd.
Minera Argentina Gold, S.A.
Minera Rio Frio, S.A. |
