Projects
Los Amigos
Location
Los Amigos comprises three adjoining prospective gold-silver tenements totaling 13,455 hectares in the western sector of the Deseado Massif in Santa Cruz Province, southern Argentina. They consist of Mariana’s Amigos I and Amigos II and Hochschild’s San Augustin tenements, located 110km south of Hochschild’s producing gold-silver San Jose Mine.
Ownership
Under the terms of the agreement, Mariana and Hochschild will pool their respective properties into the JV. A US$2M exploration budget over a three year period will be 40% paid by Mariana and 60% by Hochschild, to confirm participating interests of 49% and 51% respectively. Of this, US$500,000 is committed in the first year. Hochschild can earn a further 9% by funding 60% of the next US$3M in the next two years and a further 10% by either completing a Feasibility Study or, if requested by Mariana, by providing project financing, repaid out of 80% of Mariana’s share of cash flow. This could see Hochschild’s interest in the joint venture increase to a total 70% with Mariana at 30%. IAMGOLD will retain a royalty interest 1.5% of net smelter returns from any mineral produced from the properties.
Geological Setting
The area contains well developed NW and NNW structures hosting vein breccias. Rock chip samples have returned anomalous precious metal values. Silicified lacustrine sediments indicate a palaeosurface and an intact epithermal system. Exploration potential therefore exists at depth for precious metal mineralization of low sulphidation epithermal type.
Previous Exploration
Previous exploration is limited. Five holes were drilled in 2005 by Minera Andes Inc. in the new J.V. area for a total of 1,440m which followed surface sampling and Induced Polarisation geophysics. The drilling did not intersect economic gold-silver mineralization, but abundant hydrothermal breccias with a banded chalcedonic quartz-pyrite matrix were reported.
Exploration Planned by Mariana and Hochschild Mining
The initial exploration programme will comprise geological mapping together with lag soil, rock-chip, diamond saw channel sampling and backhoe trenching as required. Geophysics may include ground magnetics and Induced Polarisation/Resistivity surveys. Targets will be tested by preliminary drilling in 2010. Hochschild will operate the programme with technical and operational input from Mariana. The project gives both companies access to a larger consolidated target area where gold and silver mineralization may extend across common property boundaries.
Fig 1 Deseado Massif, Los Amigos JV
Fig 2 Los Amigos JV
