The acquisition of a 61% stake in Minera Rio Frio increases Argentina Gold’s (VSE) already substantial holdings in Argentina.
Rio Frio holds claims comprising 45,000 hectares in San Juan province; they are situated along the Argentine-Chilean border, within the tertiary volcanic belt known as El Indio. (This same belt contains the multi-million-ounce deposits of El Indio, Tamba and Nevada — all owned by TSE-listed Lac Minerals.)
The junior’s attention is focused on three major alteration zones within the claims.
One of these, known as the Zancarron (Chezanco), is estimated to contain 2.5 million tonnes grading 3 grams gold per tonne. It was previously worked in 1989, when 3,560 tonnes of ore were removed. The company is re-evaluating the project and expects to begin drilling before year-end.
Another zone, the Deidad-Los Banitos, is the same that hosts Lac’s Tambo mine. Trenching and sampling are planned for next month.
The third zone, the Rio Frio Caldera, measures 5 by 2.5 km.
In a related development, Argentina Gold has formed a joint venture with Lac on two newly acquired concessions in the same district, Del Carmen (to be held 40-60 by the junior and Lac, respectively) and Veladero (60-40). The ground comprises 20,000 hectares and is adjacent to the Rio Frio and Tortolas holdings.
Exploration is to begin this month.