The Las Calandrias property contains a low-sulfidation epithermal system located in the eastern part of the Santa Cruz province in southern Argentina. The property is in the Deseado Massif, a 60,000 sq km area which hosts numerous low-sulfidation epithermal vein and vein-breccia deposits. Producing mines in the Deseado Massif include Newmont’s Cerro Negro mine, AngloGold Ashanti’s Cerro Vanguardia mine and Pan American Silver Corp.’s Cerro Moro mine.
The principal area of the property that has been explored is the Las Calandrias zone consisting of Calandria Sur and Calandria Norte. Calandria Sur is a bulk tonnage rhyolite dome-hosted deposit and Calandria Norte is a vein/breccia system that has been drilled along a 400 metre strike length.
A September 2018 Mineral Resource estimate was published for the Las Calandrias zone and totaled 7.4 Mt of Indicated material at grades of 1.3 g/t gold and 24.65 g/t silver at Calandria Sur, and 0.6 Mt at 3.1 g/t gold and 8.2 g/t silver at Calandria Norte (0.8 g/t to 1.5 g/t Au cut-off).
The Morena vein breccia system lies immediately to the northwest of Calandria Norte and has seen only limited drilling. Outcrops along the vein system have returned gold grades ranging from below detection to a high of 116 g/t gold. The northern extension of the Morena vein has chalcedonic silica exposed on surface, similar to the northern part of the Calandria Norte vein, and remains completely untested.
The Refugio target lies approximately 6 km west of Calandria Norte, and consists of a 1.5 km-long, sub-cropping vein breccia system with high anomalous molybdenum concentrations. Scout drilling at Refugio will form part of the current drill program.