Abacus recent up-date , sorry about the format, but one can read it clear at their web page.
abacusminerals.com
Introduction
In March 1997, Abacus signed a letter of intent with Barrick Gold Corp. to acquire six gold
properties in Santa Cruz Province, southern Argentina.
To earn a 100% interest in all six properties, Abacus will issue 600,000
shares to Barrick over the next four years, and carry out a total of US$2.75
million over this period. Abacus has completed its first year work
commitment with US$500,000 in exploration expenditures, including a
minimum US$350,000 on the most advanced project, La Manchuria. The
Company has completed US$900,000 in work expenditures, and will expend at least an
additional US$400,000 to satisfy the second year work commitment. Barrick retains the
right to "back in" to all six properties for a 50% contributing interest once Abacus has spent
US$2.75 million. To "back in", Barrick must notify the Company within 60 days after the
completion of expenditures. If Barrick elects to contribute, they must expend US$3.75
million in ongoing development.
All six properties were identified by Lac Minerals in the early 1990's from LandSat images.
The properties were subsequently acquired by Barrick when they obtained control of Lac in
1992. In 1996, Barrick performed an initial evaluation of the properties, and discovered
significant gold and silver values on the La Manchuria Property.
La Manchuria
La Manchuria is located 80 kilometres west of Anglo American's Cerro Vanguardia Project
where a 3.8 million ounce gold deposit is currently under construction. La Manchuria, like
Cerro Vanguardia, trends northwest. Gold mineralization at La Manchuria occurs in zones of
quartz vein swarms to stockwork, hosted within intense silica-clay-hematite alteration. Veins
are variably textured including classic epithermal chalcedonic banded and vuggy textures.
Phase I - Preliminary Property Exploration
In November 1997, Abacus completed the Phase I exploration program which included 7.2
line kilometres of IP and 8.6 line kilometres of CSAMT geophysical surveys, geological
mapping, soil sampling, prospector rock sampling, trench sampling, and Landsat imagery.
Mapping confirms that felsic volcanic rocks, which host the known epithermal mineralization,
extend under overburden to the north and south of the known mineralized area. The
geophysical surveys clearly identify a large and depth persistent zone of high resistivity,
underlying a present day topographic high. The interpretation of this geophysical data
suggests extensive silicification of the host units. The area of this zone of silicification is in
excess of 200,000 square metres at 50 metres in depth with deep seated feeder zones.
Studies have found a correlation between silicification and gold and silver values. Within this
zone, previously reported trench results by Barrick included 110 metres grading 1.48 g/t
gold, 57.70 g/t silver in Trench 1, and 180 metres grading 1.37 g/t gold, 14.89 g/t silver and
60 metres of 1.21 g/t gold and 11.90 g/t silver in Trench 2. Sampling by Abacus during the
Phase I work program returned results as tabulated below:
Sampling by Abacus during the recent work program returned results as tabulated below:
Trench
From
(m)
To
(m)
Width
(m)
Au
(g/t)
Ag
(g/t)
1
290
360
70
1.18
51.77
1
452
516
64
0.35
31.85
2
150
200
50
0.81
41.70
3
0
50
50
0.92
55.90
Trench 1 returned the highest grade section assaying 6.80 g/t gold and 97.5 g/t silver across
10 metres. Approximately 75 metres north of Trench 1, a series of Barrick rock saw channel
cuts from vertical rock outcrops previously averaged 1.48 g/t gold, 16.89 g/t silver across
56 metres.
Prospector grab samples, collected from individual quartz veins within the large area of
silicification, yielded highly anomalous values ranging up to 201.03 g/t gold and 9502.9 g/t
silver. Anomalous gold soil geochemistry overlies the area of geophysical anomalies and rock
and trench samples.
Epithermal stockwork quartz veining similar to the trench area was discovered approximately
two kilometres northeast where grab samples returned values as high as 10.7 g/t gold and
52.0 g/t silver.
Phase I - Diamond Drilling
In April/May 1998, the Company was pleased to announce the results from the Phase I drill
program on La Manchuria. Abacus wanted to test drill targets outlined from previous trench
samples and large, strong geophysical responses outlined using CSAMT. The initial drill
program tested several widely spaced areas, and the Company is pleased to announce a
significant new high grade gold area of discovery. The first two holes drilled on the property
intersected high grade gold values of significant width. LM 98-2 is the high grade discovery
hole which intersected 58.05 metres of 6.53 g/t gold and 22.3 g/t silver. LM 98-1
intersected 11.5 metres of 1.22 g/t gold and 136.6 g/t silver. Drill holes LM98-1 and
LM98-2, drilled 75 metres apart, tested trench results previously reported by Barrick and
Abacus. Both drill holes encountered high geochemically anomalous gold values throughout
their length and terminated in the favourable felsic volcanic host unit with quartz stockwork
veining still present.
Phase II - Diamond Drilling
In May, Abacus began a Phase II drill program which predominantly targeted the discovery
area of LM98-2. Abacus was pleased to announce additional high grade gold and silver
intercepts from this stage of drilling. Highlights included LM98-9 which graded 4.46 g/t gold
and 12.14 g/t silver over 54.6 metres, LM98-10 which graded 1.82 g/t gold and 449.84 g/t
silver over 9.65 metres, LM98-11 which graded 5.10 g/t gold and 56.67 g/t silver over 14.5
metres, and LM98-12 which graded 1.27 g/t gold and 22.75 g/t silver over 43.5 metres.
Management is extremely pleased with the progress the Company has made on the La
Manchuria Project. Presently, the drill holes indicate a 250 metre strike length to a depth of
100 metres open in both directions on strike and to depth.
Many companies are active in the area of La Manchuria:
Anglo American is busy placing their Cerro Vanguardia Mine into production. Cerro
Vanguardia, located 80 kilometres east of La Manchuria, is a 3,800,000 ounce gold
and 30,000,000 ounce silver deposit.
Mount Isa Mines (MIM) and Newcrest Resources recently announced significant
results from their Cerro Negro Property, located 75 kilometres northwest of La
Manchuria. Two drill holes returned values of 3.9 g/t gold over 80 metres, and 4.1 g/t
gold over 38 metres.
Yamana Resources are presently drilling their Lejano and Bacon Properties. These
properties are located approximately 50 kilometres to the north and south of La
Manchuria. Previous Lejano results included 12m of 642 g/t silver and 1.78 g/t gold,
and 22m of 290 g/t silver and 1.00 g/t gold. Bacon results included 14m of 737 g/t
silver and 1.30 g/t gold, and 24m of 664 g/t silver and 0.68 g/t gold.
Silver Standard is a co-owner of the Manatial Espejo Project which currently has a
reserve of 1,500,000 ounces gold equivalent.
Minera Andes is presently drilling their El Puma Property and Northern Orion is also
actively exploring in the Santa Cruz Province with positive results.
Abacus Minerals has recently announced a $1,000,000 private placement. With the
encouraging results received from the Phase I and Phase II drill programs on the La
Manchuria Project, Abacus Minerals is eager to begin a $500,000 Phase III drill program.
La Sarita and Sarita Sur Properties
In November, Abacus announced a joint venture agreement with Redstar Resources Corp.
where Redstar can earn a 50% interest in the Sarita Sur, La Sarita, and Sarita Norte
Properties. At the company's La Sarita and Sarita Sur properties, located approximately 40
kilometres to the southeast of La Manchuria, prospecting has identified three northwest
trending epithermal vein swarms within a three kilometre by six kilometre area. Numerous
prospector grab samples returned anomalous gold, silver and base metal values. Separate
samples yielded values as high as 4.58 g/t gold, 1137.9 g/t silver, 1.1% copper, 2.4% lead
and 1.3% zinc. To date, sampling has been carried out over only a small portion of the 65
square kilometres comprising these two contiguous properties. Redstar is raising funds to
begin a preliminary exploration program on the properties in which Abacus will be the
operator. The US$175,000 exploration program will commence in the late spring.
Cerro Moro, Cerro Negro, and Rio Oro Properties
In November, Abacus announced a joint venture agreement with Snowfield Resources Ltd.
where Snowfield can earn a 50% interest in the Cerro Moro, Cerro Negro, and Rio Oro
Properties.
Snowfield is raising funds to begin a preliminary exploration program on the properties in
which Abacus will be the operator. The US$375,000 exploration program will commence in
the late spring.
1999 Argentina Project Plan
With the $1,000,000 financing, Abacus has planned Phase III and Phase IV drill programs
at La Manchuria in the Spring. The Company will drill 7-10 drill holes in each phase. Phase
III will test the area of discovery of LM 98-2 which graded 58.05 metres of 6.53 g/t gold. In
between drill programs, Abacus will begin exploration on the other Argentinian properties.
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