High grade Au-Ag epithermal veins, 60km north of  Mina Martha
SANTA CRUZ, ARGENTINA
 

PROJECT LOCATION

The La Manchuria Project area is situated approximately 60km north northeast of Gobernador Gregores in the Santa Cruz Province. Good access to the project area, less than 2 hours drive from Gobernador Gregores, is via paved provincial highways and secondary dirt roads.

In regional geological terms the area is situated in the same structural corridor that hosts the operating, high grade Ag, Mina Martha mine, situated approximately 60km  to the SE by road, in the southwest portion of the Deseado Massif geological province of southern Patagonia
  
 

PROPERTY OWNERSHIP

The Manchuria Project area comprises a total of 5,575 hectares, held 100% by Patagonia Gold S.A (PGSA). These concessions were acquired in February 2007 from subsidiaries of Barrick Gold Corporation.
  
 

GEOLOGY

The project area encompasses four defined zones of epithermal veining and alteration throughout a 600m x 800m NW trending structural corridor. Veining is exposed within a broadly 900m x 900m,  fault bounded block of shallow dipping rhyolitic tuff of the Jurassic age Chon Aike Formation, which is underlain by andesitic flows of the Bajo Pobre Formation.

High grade Au-Ag mineralization within the central Main Zone is associated with a low to intermediate sulphidation style, with classic CRT, crustiform banded and ginguru  textures in a epithermal quartz-adularia vein system the textures of which show strong similarities to that of mineralization found in Cerro Vanguardia and Manantial Espejo
  
 

Au-Ag mineralization is comprised of NW to NNW trending, principal dilatational, banded veins 0.2-1.5m wide which are enveloped by 5-15m wide zones hosting sub parallel, densely sheeted 1-5cm wide veining. Typically the bonanza grade values correlate with ‘ginguro’ black sulphidic banded veining containing visible argentite and ruby silver. The vein geometry is interpreted to have been spatially controlled by dextral displacement along a WNW trending, regional transtensional fault array.

 
 

EXPLORATION / DRILLING

Historic exploration completed between 1997-1999 concentrated on the central portion of the property covering areas denominated as the Main and Eastern Zones and included soil sampling, trenching and sawn channel sampling, geological mapping and the drilling of 22 holes for a total of 3,104 m. In addition over 15km line km of electrical geophysics and 27km of magnetic surveying were completed.  

Results from drilling and trenching reported numerous bonanza grade Au-Ag values corresponding to narrow banded veins up to 1.5m wide hosted within the rhyolitic tuff
unit over an approximate area of  La Manchuria Drill hole plan (click to enlarge) 150m x 400m within the Main zone. Re-sampling and validation of these results was conducted by PGSA for which significant results are presented in the included Table.
The sectional interpretation of drill hole geology and results for Section N5350 is shown in the included figure.
  
La Manchuria Project  -  Significant Drill Hole Intersections
Drill Hole No
From (m)
Interval (m) 
Au g/t
Ag g/t 
LM-001-D
52.50
0.80
32.42
62
and
62.70
0.95
4.84
44
and
86.25
0.75
13.60
290
and
125.50
0.40
4.19
666
LM-002-D
43.30
0.55
8.08
10
and
52.55
1.51
6.38
4,521
LM-003-D
47.80
1.15
10.10
16
LM-005-D
22
0.65
3.17
1,445
LM-007-D
63.50
0.60
7.94
801
and
87.80
0.50
2.76
1,060
LM-008-D
62.30
1.50
10.90
21
and
82
0.50
20.10
2,980
and
90
0.50
20.20
509
and
105.90
0.70
11.55
963
and
165.25
0.60
11.65
5
LM-010-D
262
5.30
6.10
10.15
including
262.70
0.70
14.25
64.10
including
266.50
1.50
14.85
3.90
LM-011-D
71.30
0.80
13.80
38.70
and
94.40
0.55
12.35
2,220
and
172.50
0.50
5.82
1,980
LM-012-D
135.10
0.50
13.85
26.20
and
192.60
0.55
7.79
4,920
LM-014-D
103.80
1.20
10.30
735
LM-015-D
60.70
1
20.10
23.30
and
95.25
1.20
58.90
4,150
LM-016-D
187.85
0.85
11.80
33
LM-017-D
68.00
1
14.50
19
LM-020-D
119.50
2.85
22.35
401
including
121.65
1.55
27.53
612
including
121.65
0.70
31.40
246
 

Based on the reappraisal of the geological, geochemical and geophysical data, a drill programme started in early 2008   will initially comprise of infill drilling throughout the Main Zone so as to advance towards the delineation of a N143-101 compliant resource. Subsequent drilling will target the down dip and southeast strike extension of veining to test for enhanced development of wider, high grade Au-Ag fissure-vein system within the underlying more brittle andesite flow and adjacent zones of coincident anomalous pathfinder element soil geochemistry.

  
 
The planned drill programme was completed in April and 3,965.45 metres was drilled in 20 diamond drill holes. A total of 3,686 samples were dispatched  The significant intersections received to date from the initial 8 holes are shown in the table below and the drill hole locations shown in the included plan.