Foreign Trade: SANTO DOMINGO PROJECT - Adrián Mercado
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MINING

PROYECTO 018

SANTO DOMINGO PROJECT

San Juan Province


SANTO DOMINGO PROJECT


EXECUTIVE SUMMARY

Santo Domingo is located 120 km east of San Juan city, Argentina at an average altitude of 1,200 masl. The project is accessible all-year round by paved and gravel roads after 3 hours driving from San Juan city. Gran grupo de terrenos ​ Santo Domingo comprises 250 km² of exploration and mining tenements in the Sierra de la Huerta ranges, eastern San Juan Province, Argentina.  ​​Located near established 33 KW powerline and partially disused Belgrano railway, 25 km south of project area, that could be rapidly renovated for transportation of metals to deep-port of Rosario, Argentina.  Situated within a historical small-scale mining district with no previous modern exploration, Santo Domingo is becoming a large combined mineralisation system with upside exploration potential in low altitude region. The multi-proposit exploration of objectives in Santo Domingo has potential for Gold, Silver, Molybdenum Lead and Zink. The potential for gallium and other elements in Rare Lands has yet to be confirmed. Initial standard bottle roll test (cyanide leaching 24 hours) over 5 samples of El Arriero West gold-silver structures indicates satisfactory gold – silver recoveries, with a minimum of 71 % gold and presence of coarse gold in some of the samples.

The Santo Domingo mineralised environment is proving extensive, with a number of distinct mineralisation and structures, all corresponding to different levels and proximities to a porphyry environment. The main proven targets are: ​ porphyry-style gold-copper - large-tonnage, low-grade shear-hosted gold and silver-polymetallic - mid-tonnage and mid to high-grade.    Clear development strategy following up the significant investment done in mapping, geophysics and geochemistry to advance the projects to near-drill ready status, The firm is seeking a partner with the financial and technical capacity to explore and develop any or both mineralisation, to compliment the Company’s understanding of the project.

INTRODUCTION

The company that controls Santo Domingo Project, located in Sierra de La Huerta, San Juan, Argentina, through an option to purchase exploration contract.Exploration activities carried out since December 2009 allowed diversification of exploratory targets in two main types:

  • Porphyry style gold-copper (large tonnage and low grade) and;
  • Shear-hosted high grade gold – silver – polymetallic structures, mid-tonnage and mid to high-grade.

First group includes Divisoria, El Arriero, El Arriero Extension, Alunita and El Bronce prospects whereas second group encompasses Yvette and El Arriero West prospects. The Divisoria gold-copper porphyry shows a mínimum footprint of 700 metres diametre where two pulses of andesitic and dacitic porphyry stocks followed by rhyolite dikes intrudes the metamorphic basement. Hydrothermal alteration has a concentric distribution pattern showing a nucleous of magnetite – secondary biotite potassic alteration which passes outwards to phylic and propilitic alteration. Potassic alteration shows variable intensity of intermediate argillic alteration overlapping, characterized by chlorite after secondary biotite and hematite (martite) after magnetite. Gold-copper disseminated mineralisation and structural controlled gold- silver – polimetallic mineralisation (veins and breccias) highlighted by mapping and sampling includes peaks of:

  • 4m @ 0.79 g/t Au, 0.01 % Cu and 4m @ 0.58g/t Au, 0.06% Cu (disseminated mineralisation);
  • 0.4m @ 1.18 g/t Au, 186 g/t Ag, 0.07% Cu and [email protected] 0.9 g/t Au, 0.2% Cu (B and D early stage stockwork);
  • 0.8 m @ 7.4 g/t Au, 84 g/t Ag, 0.03 % Cu; 0.3m @ 36g/t Au, 144g/t Ag and 0.11% Cu and 0.2m @ 5.6g/t Au,   219g/t Ag, 20,1 % Pb y 8,7% Zn (late stage gold – silver breccias and polimetallic intermediate sulphidation veins.

The highest gold – copper values within disseminated mineralisation zone take place within a area of 500 metres by 300 metres, elongated northeast, mostly within the phyllic alteration zone. B and D stockwork veinlets, with concentrations ranging between 1 to 5 % are placed in the potassic nucleous. Late-stage veins and breccias controlled by NW and NE structural trends are located within the porphyry and in the periphery in the contact zone with the metamorphic basement.

Ten (10) kilometres of ground magnetometry survey highlighted a magnetic low well correlated with the main disseminated mineralised zone within the phyllic zone, occupying an area of 500 metres by 300 metres, elongated northeast. Following a potential continuity in this zone at deeper levels a Pole-Dipole IP survey (PDP IP, 100 metres dipole spacing) combined with and Audio Magneto Telluric survey were completed. The PDP IP highlighted a significant chargeability anomaly with an extension of 750 metres by 400 metres (elongated northeast) and open up to 300 metres depth, the maximum depth of survey.

High chargeability is related with sulfide mineralisation within the phyllic zone affecting both, dacite porphyry stock and contact breccia. The AMT survey delineated a low resistivity anomaly between 600 and 750 metres depth. AMT resistivity in the upper 300 metres is well correlated with the residtivity delivered by PDPIP.

Geophysics shows potential to find deep extensions of porphyry style mineralisation delineated on surface.

Disclamer

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