Argentine 60% Joint Venture & Other News
Brancote Holdings PLC
16 December 1999
Contacts: Richard Prickett, Chairman
Bill Humphries, Managing Director
Brancote Holdings PLC 0171 493 1002
David Bick/Becky Jewers
Holborn Public Relations 0171 929 5599
david_bick@holbornpr.co.uk
becky_jewers@holbornpr.co.uk
BRANCOTE HOLDINGS PLC
Argentine 60% Joint Venture
Land Acquisition and Progress Report on Gold Exploration Programme
Highlights
* INCREASED TENEMENT HOLDINGS, in the highly prospective Cordon de Esquel
and Huemules areas, by 48,500 hectares bringing the total now held to
120,732 hectares.
* CONTINUED EXPLORATION SUCCESS with the new discovery veins - Beleriand -
Gandalf - Ungoliant and Pinnacles in the south and the identification of a
massive breccia complex, La Cupula, in the northern Mayoco Cateo.
* BONANZA SILVER GRADES of 1 to 2 kilogrammes/tonne in addition to the high
gold grades reported in veins Galadriel Sur and Julia.
* DRILL TARGETS FOR NEW PROGRAMME are all identified, with drill pads
constructed and drills on site.
Chairman, Richard Prickett comments, 'The outstanding success of this year's
exploration programme has clearly indicated the enormous potential of the
Company's joint venture. The Company is in an excellent position to move
forward into the new year with money already raised for further exploration,
the drill programme in place and an increased land holding.'
Land Acquisition
Minera El Desquite (MED) has successfully concluded 'Option to Purchase'
agreements with:
* Cerro Castilla, a Lonmin subsidiary, for its 'Nahuel Pan' mining
tenements, area 13,173 hectares, situated to the south of MED's Cordon de
Esquel properties, separated only by the Willimenco fault valley. Nahuel
Pan, although lightly explored is considered to be highly prospective with
large colour alteration areas and being along strike of the epithermal
corridor in the Cordon de Esquel.
* Sunshine, a North American silver producer, for its Cordon de Esquel and
Huemules exploration tenements of area 24,424 hectares. The main tenement
is situated immediately to the north of MED's Mayoco Cateo and contains
several exploration targets defined from Satellite imagery. The other two
tenements are adjacent to MED's Huemules properties and are, as yet, only
lightly explored but offer potential.
Both Lonmin and Sunshine have recognised MED's dedication to the Esquel area
and have opted to participate by awarding MED the 'Option to Purchase' at a
modest entry price with a retained royalty on future mine production.
MED also successfully claimed additional tenements over an area of 10,903
hectares, within the Cordon de Esquel adjacent to existing properties.
Exploration
Intensive field exploration has identified the presence of a mineralised
corridor four kilometres long, with an average width of approximately 500
metres extending from the Elena vein at the southern boundary of the Cordon de
Esquel to the new discovery vein Beleriand to the north.
Within this corridor seven discrete gold bearing vein systems have been
located.
Elena, Gandalf and Ungoliant are grouped to the south separated from 'The
Pinnacles' and Galadriel Sur by some 1,800 metres over the watershed.
Galadriel and Beleriand, are further to the north.
A recently completed geochemical soil survey over the watershed has delineated
several continuous mineralised zones indicating that Galadriel Sur and the
Pinnacles could persist for a further 1,200 metres to the south and possibly
even connect with Gandalf and Ungoliant. The soil anomalies within these
zones were high, up to 850 ppb, and were supported by float and subcrop.
Subsequent construction of drill pads and roads has uncovered deep weathering
and structural evidence within these zones to add further support.
Pathfinder elements and textural evidence suggest a totally preserved gold
reporting zone may be present on the high watershed between Ungoliant and the
Pinnacles.
To the west of the main corridor mapping and prospecting have extended the
veins Julia and Antonia both along strike and laterally. The high grades
(Julia up to 100g/tau, Antonia 48g/tau), together with the potential large
tonnage available for open caste mining makes these two systems priority
drilling targets for this coming season.
'First pass' exploration has been carried out over the northern properties
with several promising discoveries requiring follow up works.
In the northern Mayoco Cateo a massive breccia complex (La Cupula) has been
identified measuring some 3 kilometres long by 1 kilometre wide with up to 200
metres vertical relief.
The system contains reportable but low gold values probably due to an acid
leach effect. However, the potential of the system is supported by visible
gold in pan concentrates from drainage around the flanks of the complex.
Follow up work will involve detailed mapping and sampling.
Bonanza Silver (See intersections)
Galadriel Sur and Julia veins are both reporting high to very high silver
grades which will provide significant credits (1 to 3 g/t gold equivalent)
towards resource/reserve estimates with resulting substantial reductions in
operating costs.
Resource Estimate
Completion of the 'Resource Estimate' (1999 drill programme) being carried out
by Pincock Allen and Holt from Denver USA has been extended due to the late
inclusion of the vein Julia together with the complexity of modelling around
the number of small, but valuable, veins adjacent to the main structures.
Anticipated completion is now the end of January.
MINERA EL DESQUITE GALADRIEL VEIN
Au GR58 Ag
Sample No. From To Interval CODE Grade Grade Wt.Ave Wt.Ave
Au Ag Au Ag
15866 51.0 52.0 1.0 VMZ 20.30 51.60 20.30 51.60
15867 52.0 53.0 1.0 VMZ 29.40 1180.00 29.40 1180.00
15868 53.0 54.0 1.0 VMZ+DYK 20.10 811.00 20.10 811.00
15869 54.0 55.0 1.0 DYKE 2.24 17.7 2.24 17.70
15870 55.0 56.0 1.0 VMZ+DYK 12.10 61.70 12.10 61.70
15871 56.0 57.0 1.0 VMZ 12.30 68.9 12.30 68.90
15872 57.0 58.0 1.0 HMZ 5.11 14.8 5.11 14.80
15873 58.0 59.0 1.0 HMZ 2.06 14.8 2.06 14.80
Totals 8.00 103.61
2,220.5
Au INTERSECTION 8.0 m @ 13.0 g/t Au
Ag INTERSECTION 8.0 m @ 278 g/t Ag
Intersections are not a true thickness
Intersection quoted are > 1 g/t > 2m
MINERA EL DESQUITE SAWN CHANNEL JULIA VEIN
Au JC2 Ag
Sample No. Channel From To Interval CODE Grade Grade Wt. Ave Wt. Ave
Au Ag Au Ag
19219 JC2 0.00 0.65 0.65 VMZ 25.40 49.00 16.51 31.85
19221 0.65 1.40 0.75 VMZ 30.20 126.00 22.65 94.50
19222 1.40 2.40 1.00 VMZ 18.80 91.70 18.80 91.70
Totals 2.40 57.96
218.05
Au INTERSECTION 2.40 m @ 24.2 g/t Au
Ag INTERSECTION 2.40 m @ 90.9 g/t Ag
19233 JC2 14.20 15.00 0.80 VMZ 2.57 27.10 2.06 21.68
19234 15.00 15.64 0.64 VMZ 17.20 45.60 11.01 29.18
19235 15.64 16.59 0.95 VMZ 27.70 64.30 26.32 61.09
19236 16.59 17.29 0.70 VMZ 8.62 43.30 6.03 30.31
19237 17.29 18.45 1.16 VMZ 25.20 314.00 29.23 364.24
19238 18.45 18.86 0.41 VMZ 15.90 56.80 6.52 23.29
Totals 4.66 81.16
529.79
Au INTERSECTION 4.66 m @ 17.4 g/t Au
Ag INTERSECTION 4.66 m @ 114 g/t Au
19239 JC2 33.36 33.99 0.63 VMZ 11.00 1890.00 6.93 1190.70
19241 33.99 34.40 0.41 VMZ 11.30 648.00 4.63 265.68
19242 34.40 35.05 0.65 VMZ 20.70 426.00 13.46 276.90
19243 35.05 35.55 0.50 VMZ 1.15 10.50 0.58 5.25
Totals 1.69 25.02
1,733.28
Au INTERSECTION 1.69 m @ 14.8 g/t Au
Ag INTERSECTION 1.69 m @ 1027 g/t Ag
Intersections are not true thickness
Intersection quoted are >2g/t > 1.5m
Latest directors dealings
- 12 hours ago Johnson Matthey
- 13 hours ago Galliford Try
- 13 hours ago Galliford Try
- 13 hours ago Centrica
- 14 hours ago Smith & Nephew