Latin Metals Inc. provided an update on the status of the Company’s various gold, copper and silver exploration projects in Argentina. Details are listed below
Organullo Gold Project
The Company’s 100%-owned Organullo gold project is a relatively advanced exploration project located in Salta Province, northwest Argentina, and has been explored by several companies, including Triton Mining Corp., Northern Orion Explorations Ltd., Newmont Mining, Cardero Resource Corp, and recently Yamana Gold Inc. The Organullo Project includes 57 historical drill holes totaling 10,978 metres of diamond and reverse circulation drilling. Rock and soil sampling geochemistry has outlined gold anomalies extending over approximately 7 km of strike length, with only a small portion of this strike length tested by drilling. The Organullo Project requires additional drilling to fully define mineralization encountered in the area of historical work and to fully test the exploration potential of the Organullo Project.
Pursuant to an option agreement entered into by the Company with Yamana to acquire an initial 70% interest in the Organullo Project, Yamana has provided notice to Latin Metals advising of their decision to discontinue funding exploration and to terminate the Option. Although the Organullo Project no longer fits with Yamana’s strategy in Argentina, the Company believes that Organullo continues to have considerable exploration potential.
Keith Henderson, President and CEO, commented: «Since entering into the option agreement in October 2018, Yamana have completed a significant amount of exploration at Organullo, spending approximately US$1,100,000 and making US$200,000 in option payments to the Company. Work has included geological mapping of the target areas, collection of 152 soil and 1,039 rock samples and 14 diamond drill holes for a total of 2,804 m of drilling, with drilling focused on the Organullo Ridge, where most of the historical work had been undertaken. While we are sorry to see Yamana relinquish its option, we believe the potential of the Organullo Project is excellent with multiple geochemical anomalies defined along the 7 km anomalous trend that remain untested by drilling.”
Latin Metals expects to receive a comprehensive data set from Yamana in due course with complete exploration results. The Company will seek to engage a new joint venture partner to continue exploration at the Organullo Project.
Esperanza Copper-Gold Project
The Esperanza project is a copper-gold porphyry project on which the Company has an option to acquire a 100% interest. Approximately 8,000 m of diamond drilling has been completed to date, with Latin Metals most recently completing a drill program in 2018. The porphyry system is exposed at surface and mapping has revealed a pyrite halo extending over an area of 1,400m x 850m. Within this area, mineralization drilled to date is focused within an area of potassic alteration.
Drilling to date has begun to delineate the porphyry system with all drill holes intersecting significant copper-gold mineralization, most drill holes terminating in mineralization, and several drill holes increasing in grade with depth. The best drill intersection to date is 387m from surface grading 0.57% copper and 0.27 g/t gold, with the drill hole terminating in mineralization.
The system is open in all directions and at depth. To the west, mineralization is obscured by cover rocks, but higher-grade vein mineralization exposed at surface provides evidence that the system continues, and geophysical induced polarization surveys provide a focus for drill targets. The Company is seeking to secure a joint venture partner to continue with exploration drilling at Esperanza.
Mina Angela Gold Project
Latin Metals 100%-owned Mina Angela Project is a past producing mine which, prior to closure in 1992, reportedly produced 1,037,360 tonnes at an average grade of 4.0 g/t gold, 48.4 g/t silver, 2.0% lead, 0.4% copper and 4.6% zinc. Latin Metals’ subsidiary Cardero Argentina acquired the property under option in 2003 and the option was subsequently exercised in 2007.
In the years subsequent to mine closure, various companies have initiated work to restart the project, including a feasibility study initiated by Hocschild Mining in 2007. Past-producing veins are open along strike and additional drilling is warranted on multiple vein splays. The property is under-drilled with approximately one drill hole per one kilometer along strike.
Most recently, Latin Metals entered into an agreement with Patagonia Gold Corp. (“Patagonia”) under the terms of which Patagonia have the right to enter into a definitive option agreement on or before September 12, 2020. Under the terms of the agreement, Patagonia have made cash payments of US$140,000 to Latin Metals to date. In order to exercise the option in full, Patagonia will be required to make additional payments in the aggregate amount of US$950,000. Upon the exercise of the option, Patagonia will grant to Latin Metals a 1% net smelter returns royalty on any future production from the project.
Tres Cerros Gold and Silver Projects
The Company has an option to acquire eight exploration properties within the Deseado Massif comprising more than 3,000 hectares of property prospective for epithermal silver and gold deposits (“Tres Cerros Projects”). The Deseado Massif is a geological area in Santa Cruz where more than 19 million ounces of gold and 580 million ounces of silver have been discovered since modern exploration and mining began in 1990. Multiple mining companies operate in the area with eight mines currently operating.
The Tres Cerros Projects are located close to existing silver and gold occurrences and mine operations and all of the projects having known mineral occurrences. The Company was actively exploring throughout Q1 2020 until Argentina implemented travel restrictions related to COVID-19. The work completed will be reported in due course once results are received from the laboratory and work will restart as early as possible. The Company’s aim is to complete sufficient work to define drill targets before seeking a JV partner to move the Tres Cerros Projects forward.