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SANTA CRUZ, ARGENTINA
High grade epithermal gold breccias, 27km west of Cerro Negro Project (1.5Moz Au equiv.) |
PROSPECT LOCATION
The Cerro Vasco property is located in the northwest of the Deseado Massif metallogenic province in Santa Cruz and is about 30 km to the south of Perito Moreno along the National highway N 40. The generally flat topography of the area is characterised by sparsely exposed outcrop within extensive areas of post mineral age alluvial cover throughout which the maximum elevation attains 1,000m
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PROPERTY OWNERSHIP
The Cerro Vasco property of 34 km² and the adjoining La Emilia property covering 8,589ha are owned 100% by Patagonia Gold S.A (PGSA).
These two properties are immediately north and contiguous with the La Paloma Project property block which contains the Lomada de Leiva resource. |
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GEOLOGY
The metallogenic province containing the Jurassic aged Deseado Massif volcanic complex of southern Patagonia is widely acknowledged as a world class, epithermal Au-Ag mining district which hosts several producing and advanced stage gold-silver projects including Cerro Vanguardia- 4.4 Moz Au equiv (AngloGold-Ashanti), Cerro Negro- +1.9 Moz Au equiv (Andean Resources), Manantial Espejo- 1.2 Moz Au equiv (Pan American Silver), San Jose-Huevos Verdes 0.9 Moz Au equiv (Hochschild/Minera Andes) and Mina Martha- 6.5 Moz Ag (Coeur D’Alene
Geologically the area is comprised of felsic ignimbritic, poor to moderate, welded volcanics of the Jurassic aged Chon Aike Formation and late fluvio-glacial sediments of Pleistocene age. The sparse topographic highs generally correspond to a cluster of rhyolite flow domes.
Gold mineralization is found within zones of crackle to jigsaw brecciation characterised by cementation of silicified and leached ignimbrite clasts by a silica-hematite-jarosite matrix.
The most significant gold values to date are located in the main N-S trending breccia structure “Brecha La Emilia” (approximately 50 m x 1200 m). These values occur in hydrothermal tectonic breccia lenses as well as cross cutting and peripheral stringer zones of silica/jarosite/hematite veinlets.
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EXPLORATION / DRILLING
During 1997, mapping and sampling was conducted by Mincorp, subsequent to which three scout drill holes totalling approximately 500m were drilled along a prominent N-S trending tectonically brecciated structure.
Mapping by PGSA in 2002 concluded that the structure was potentially drilled parallel to the dip of the breccia zone, called Brecha La Emilia.
Further geologic reconnaissance and systematic rock chip sampling was carried out by PGSA which reported up to 2.85m @ 44.2 g/t Au from a zone of strongly silicified breccia
Rock chip sample results at Cerro Vasco |
Rock chip sample results
Brecha La Emilia |
2.85 m @ 44.20 ppm Au |
3.40 m @ 3.93 ppm Au |
2.00 m @ 3.37 ppm Au |
1.20 m @ 0.87 ppm Au |
3.25 m @ 0.59 ppm Au |
1.60 m @ 0.56 ppm Au |
0.90 m @ 0.53 ppm Au |
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Recent reconnaissance to the south of the main structure identified an extensive zone (1km x 2km) of acid leaching and pervasive silicification characteristic of advanced argillic alteration.
Rock chip sample results from the Cerro Vasco Prospect |
Sample N° |
Au |
Ag |
Cu |
Rock Type |
51141 |
0.38 |
22.9 |
9491 |
Vuggy Silica |
51147 |
0.42 |
135.9 |
9470 |
Vuggy Silica |
51149 |
0.38 |
124.2 |
104 |
Vuggy Silica |
51150 |
0.42 |
181.6 |
3038 |
Vuggy Silica |
51155 |
1.89 |
257 |
1088 |
Vuggy Silica |
51156 |
1.38 |
274 |
1036 |
Vuggy Silica |
51157 |
0.06 |
320 |
108 |
Vuggy Silica |
51169 |
1.12 |
315 |
180 |
Sulphidic Structure |
51172 |
8.11 |
763 |
66 |
Sulphidic Structure |
51173 |
2.86 |
63.1 |
132 |
Sulphidic Structure |
Samples taken comprised of vuggy silica, pervasive silicification and sulphide rich breccias, and returned up to 8ppm gold, 763ppm silver and 1% copper, plus a complete anomalous suite of pathfinder elements (Barium (>2000ppm) Mercury up to 8352ppm, Tellurium up to 1379ppm, which are considered significant in an alteration assemblage associated with a dome complex.
This reconnaissance mapping and positive sample results lead to the application for the La Emilia cateo
In late 2007 a CSAMT (Controlled Source Audio frequency MagnetoTellurics) geophysical survey was carried out over the mineralized zone on the Cerro Vasco Prospect. The results of this survey along with assimilation of the recent significant reconnaissance data will form the basis for further exploration in 2008.
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