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Monthly Mining Bulletin
PANORAMA MINERO
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Mining in Argentina: What happened in May?

May was witness of important developments in Argentina's mining industry, particularly in different stages of development in several projects.

One of the most important issues was the approval of the EIS of Mina Palca Ingenio y El Torno Sur (Soltera Mining), providing an important step to develop this vein project. Also in Jujuy, Orocobre is advancing its flagship project, Salar de Olaroz, at full speed.

In the exploration stage, Minera IRL discovered three new gold systems near Don Nicolas Project, Hunt Mining is working closely with Eldorado as strategic partners in Santa Cruz province, and NGeX Resources is advancing at Filo del Sol with encouraging results. Also, Los Azules has increased its resource, and McEwen Mining Is working in order to get an updated Preliminary Economic Assessment in the second half of 2013.

Near Lindero, Arizaro has received good metallurgical results: its mineral could be processed by heap leaching, just like Lindero (Feasibility Stage), just a few Km away.

Soltera Mining Receives Environmental Impact Statement Approval
Soltera Mining Corp. reported that the Jujuy Department of Mining and Energy Resources has approved the Environmental Impact Statement ("EIS") for Mina PalcaIngenio and El Torno Sur areas at the El Torno Gold Project.

Orocobre provides Olaroz Lithium Project Construction Update
Orocobre Limited provided a progress report on the construction of the Company's flagship Olaroz lithium project, located in Jujuy province.

Arizaro Project - Mineralization potentially amendable to Heap Leach Processing
Goldrock Mines Corp. announcedthat it has received initial metallurgical test work results for the Arizaro project, Salta province. Arizaro is a gold-copper porphyry discovery located 3 km southeast of Goldrock's 100% owned and fully permitted developmental stage Lindero gold deposit.

Minera IRL - Three New Gold Vein Systems near Don Nicolas
Minera IRL Limited reported positive exploration results from three new gold vein systems near Don Nicolas project,Santa Cruz province.

McEwen Mining Provides Operational and Development Update
McEwen Mining Inc provided a summary of significant developments and first quarter operating results during Q1, 2013: Production results for the company's share in San José mine (Santa Cruz province / 49% shareholding) was 10,328 gold ounces and 661,915 silver ounces, representing 23,057 gold equivalent ounces (converting silver into gold using a 52:1 ratio).

Hunt Mining's Exploration and Operations Update
Hunt Mining Corp provided an update on its exploration and operational activities: the corporation is continuing to manage its funds under a policy of cash conservation, limiting expenditures to only essential strategic items.

Marifil Partners With Southern Copper on Cerro Samenta
Marifil Mines Limited announced that it has signed a definitive agreement with Southern Copper Argentina ("SCA"), a wholly owned subsidiary of Southern Copper Corporation for SCA to acquire a 70% equity interest in the Company's Cerro Samenta porphyry copper project in Salta Province

High Grade Zone at Filo Del Sol Project
NGEx Resources Inc. provided the complete results from the 2012/2013 exploration program at the Filo del Sol project located in San Juan province.

Encouraging Results from Preliminary Drilling at Corina Project
Samco Gold Limited announced encouraging results from the preliminary drill campaign on the Cerro Cubilete target at its Corina Project in Santa Cruz province.

Exploration Update Chita North Porphyry Sector, Chita Valley Cu-Mo-Ag-Au Project
Minsud Resources Corp. announced exploration results from the Chita North Porphyry area of the Chita Valley diatreme volcanic vent/porphyry complex, located in San Juan province.

Regulus Commences Drilling at the Cerro Cori Gold Target
Regulus Resources Inc. has commenced a drilling campaign at the Company's 100% owned Cerro Cori gold target located two kilometres northeast of the main Rio Grande Project in Salta Province.

U3O8 Corp. Completes Acquisition of Calypso Uranium Corp.
U3O8 Corp. and Calypso Uranium Corp. announced the completion of the acquisition of Calypso by U3O8 Corp.

 

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Soltera Mining Receives Environmental Impact Statement Approval

 
 

Soltera Mining Corp. reported that the Jujuy Department of Mining and Energy Resources has approved the Environmental Impact Statement ("EIS") for Mina PalcaIngenio and El Torno Sur areas at the El Torno Gold Project.

The El Torno Gold Project consists of five mining rights covering a total of 7,863 hectares located in the Andean Cordillera in the mining friendly north-western province of Jujuy, near the international border with Bolivia.

The areas covered by these EIS approvals, Mina PalcaIngenio and El Torno Sur, contain approximately half of the gold anomalous zones considered as priority drill targets at El Torno. Approval of the EIS for El Torno Norte, still pending, will give Soltera drilling access to 100% of the six highly prospective gold target areas identified at El Torno.

Soltera's executives stated that "od workings and drilling done in the 1990's by Puma and Peñoles show that gold occurs to at least 100 meters below surface, but drilling is absolutely essential to ascertain its quantity and distribution. Gaining these EIS approvals is a critical step towards the commencement of a drill program currently being finalized."
The company believes that El Torno Gold Project has potential for world-class gold deposits of two types; vein gold in a very large quartz vein system that extends intermittently north-south for 14 km and has been worked underground in the past, and dispersed gold in suites of small veins and stockworks that are separate from the main system and appear to be major open-pit targets.

 

Orocobre provides Olaroz Lithium Project Construction Update

 
 

Orocobre Limited provided a progress report on the construction of the Company's flagship Olaroz lithium project, located in Jujuy province. The construction of the Olaroz lithium project continues to progress on time and within budget.

Over the past month the following tasks have been completed:

- Liming plant ground works and foundations.
- Raw water pipeline.
- Road and platforms on the salar.

The following tasks are in progress or commenced in May:
- Foundations and metal structure fabrication for process plant buildings, soda ash warehouse, finished product warehouse and maintenance facilities.
- Raw water pumping station - Electrical control room installation.
- Preparation for overhead power line construction in Area 4000-7000-8000.
- Ground work and concrete foundations of water treatment plant.
- Waste water treatment plant 2nd stage.
- Mechanical erection of liming plant.
- Brine Wells - drilling.
- Brine pipeline - installation.
- Site surveillance - access control.
- Evaporation pond construction.
- Vegetation removal and manual site clearance.
- Ground work and concrete foundations for liming plant.
- Liming plant structure - fabrication.
- Ground work and concrete foundations for water plant.
- Water plant tank construction.
- Gas pipeline construction.
- Definitive camp (supply and erection).
- Definitive camp infrastructure construction.
- Overflow channel construction.
- Concrete supply on site.
- Camp infrastructure (Sewage, water and power lines).

The following tasks are scheduled to begin in June and July:
- Construction of process buildings (main building, soda ash and end product storage).
- Liner installation at evaporation ponds.
- Construction of reinforced earth gabions for transfer pumps foundations.
- Construction of overhead power line - LMT Area 4000-7300-8000.
- Construction of warehouse and maintenance workshop building.

Approximately $101m of the US$229m capital budget has been committed or spent (up from $87m last month) and all major contracts awarded to this point remain on, or under, budget. The process of tendering and awarding contracts is on schedule.

The Company continues to follow the "Jujuy First" strategy to successfully work with suppliers and the employment bureau to focus on the hiring of local people from the communities of Olaroz, Huancar, PuestoSey, PastosChicos, Catua, Susques, Jama, El Toro, Coranzulí, San Juan and Abrapampa. The engagement of the community also extends to the provision of health services and programs to encourage the continued education of young people.

The project implementation is through EPCM (Engineering, Procurement and Construction Management) with a high proportion of local involvement through construction and supply contracts and local employment. The unique community and shared value policy continues as a key success factor, training local people with supervision by high quality experienced professionals.

The Olaroz lithium project is being developed by Orocobre (66.5%) with partners Toyota Tsusho Corporation ("TTC") (25%) and the Jujuy Province mining and energy company, JEMSE (8.5%) with a construction budget of US$229m including contingency. The project is fully funded with up to US$275m of funding available via US$82.8m of equity funding from TTC and Orocobre and US$192m of project finance from Mizuho Corporate Bank. First production is scheduled for the end of the second quarter, 2014.

 

Arizaro Project - Mineralization potentially amendable to Heap Leach Processing

 
 

Goldrock Mines Corp. announcedthat it has received initial metallurgical test work results for the Arizaro project, Salta province. Arizaro is a gold-copper porphyry discovery located 3 km southeast of Goldrock's 100% owned and fully permitted developmental stage Lindero gold deposit.

With the view to potentially utilizing the Lindero heap leach processing facility, preliminary metallurgical testing was conducted to start profiling leaching behavior of the typical Arizaro medium to high grade mineralization. Four cyanide bottle roll test results were conducted on both fresh and oxide mineralization and show very favorable coarse fraction gold recoveries of between 64% and 73%. These recoveries are in a range typical of the early bottle roll test work for the Lindero deposit, and provide a preliminary indication that the Arizaro mineralization is amenable to heap leach gold extraction.

The Arizaro porphyry body was identified prior to the discovery of the Lindero gold deposit in 1999. The Arizaro porphyry system, as defined by drilling, surface sampling and mapped alteration covers a 600 metre by 500 metre surface area. Gold-copper mineralization occurs from surface to a true vertical depth of 300 metres and remains open for expansion in all directions.

 

 

Minera IRL - Three New Gold Vein Systems near Don Nicolas

 
 

Minera IRL Limited reported positive exploration results from three new gold vein systems near Don Nicolas project,Santa Cruz province.

Highlights include:

- The Cecilia Prospect hosts an undrilled, two-kilometre long, vein system with recent surface diamond saw channel sample results up to 19.3g/t gold, and is located approximately 20 kilometres south of the proposed site of the Don Nicolas Project treatment plant. To date, systematic diamond saw sampling has encountered significant gold mineralization over at least 1.5 kilometres of the principal vein structure, which remains open along strike.

- The Paula Andrea Prospect is an undrilled vein system with recent surface diamond saw channel sample results up to 54.4g/t gold. It is located less than four kilometres southeast of the Sulfuro Vein (Measured and Indicated Resource of 498,361 tonnes grading 9.2g/t gold containing 147,214 ounces), a significant contributor of high-grade ore to the Don Nicolas Project. Diamond saw channel sampling of quartz vein outcrops along three mineralized trends at Paula Andrea has returned a number of high-grade gold assays.

- At the Goleta Prospect, recent surface sampling returned scattered gold values up to 24.9g/t gold over an area of 600m by 400m. It is located approximately six kilometres north of the proposed Don Nicholas processing plant site at Martinetas. The Company recently sourced historical exploration results carried out by Yamana Gold Inc in 1997. These results included 49 shallow reverse circulation drill holes for a total of 1,326 metres, with the best hole intersecting six metres grading 27.7g/t gold. Field work carried out by Minera IRL has defined anomalous gold mineralization at Goleta over a 600 metre by 400 metre area.

All three prospects are in close proximity to the planned infrastructure for the Don Nicolas Project, where financing negotiations with Argentina based funds are currently progressing.

 

McEwen Mining Provides Operational and Development Update

 
 

McEwen Mining Inc provided a summary of significant developments and first quarter operating results during Q1, 2013: Production results for the company's share in San José mine (Santa Cruz province / 49% shareholding) was 10,328 gold ounces and 661,915 silver ounces, representing 23,057 gold equivalent ounces (converting silver into gold using a 52:1 ratio). Production for the remaining quarters is expected to be slightly higher. In 2013, McEwen Mining's share of production has been forecast at 102,700 gold equivalent ounces.

At Los Azules (San Juan province), this season's exploration effort focused on expanding the resource base. A total of 15,800 meters of drilling was completed which produced a 17% increase in contained copper in the Indicated Resource category, to 5.4 billion poundsof copper and a 32% increase in contained copper in the Inferred Resource category, to 14.3 billion poundsof copper, since the June 2012 estimate of mineral resources.

This updated resource estimate will form the basis of a new Preliminary Economic Assessment (PEA), which is expected to be completed in the third quarter of 2013. This PEA will evaluate the possibility of: (1) increasing the daily throughput; (2) producing copper cathode instead of a concentrate and (3) processing low-grade mineralized material not previously considered, via a heap leach.

The advantages of being able to produce a copper cathode rather than a copper concentrate are twofold: first, it would eliminate the capital intensive, concentrate pipeline through Chile; and second, it would reduce the applicable export tax by 50%.

 

Hunt Mining’s Exploration and Operations Update

 
 

Hunt Mining Corp provided an update on its exploration and operational activities: the corporation is continuing to manage its funds under a policy of cash conservation, limiting expenditures to only essential strategic items. The Corporation is dedicating the majority of its Argentine exploration team and assets to projects covered by its exploration agreement with Eldorado Gold Corporation.

Highlights from 2012 include:

- Renegotiated the agreement covering the Corporation's La Josefina project: on November 15, 2012 the Corporation signed an amendment to its La Josefina exploration agreement extending the exploration term by 7 years, ending June 30, 2019.

- Acquired the right to explore the La Valenciana project: on November 15, 2012 the Corporation entered into an agreement for the La Valenciana project, the exploration term is 7 years, ending October 31, 2019.

- Formed a strategic exploration alliance with Eldorado Gold Corporation. It gives the Corporation the ability to explore its entire Santa Cruz land package with a leading mid-tier gold producer.

Field work in 2012 and early in 2013 focused on preliminary exploration of property blocks, most of which fall under the Corporation's exploration alliance with Eldorado Gold Corporation, in effect since May of 2012. This work generated multiple targets that the company plans to follow-up on during subsequent exploration campaigns.

This year's activities included, but were not limited to: survey and mapping of infrastructure; construction, installation and improvement(s) to satellite camps for logistical support of field crews operating in remote areas; acquisition of detailed remote sensing imagery to cover prospective ground in western Santa Cruz including all of the Corporation's exploration packages; acquisition of high resolution satellite imagery to cover proposed future drill targets on BajoPobre and El Gateado property blocks; analysis, interpretation and field verification of project imagery to aid in prioritization of prospective areas, detailed geological mapping, identification of structural settings, and creation of base maps for data compilation; preliminary reconnaissance sampling covering 1500 square kilometers on nine separate property blocks; field reconnaissance, with a focus on due-diligence, for possible acquisition of new opportunities, located both inside and outside the current area covered under the Corporation's exploration agreement with Eldorado Gold Corporation.

Hunt Mining announced that its 2013 Exploration Plan is the following: the corporation plans to continue its 2013 regional exploration program in accordance with its exploration agreement with Eldorado Gold Corporation, the current program includes regional soil sampling, geologic mapping, detailed target generation and a first pass drill program.

 

Marifil Partners With Southern Copper on Cerro Samenta

 
 

Marifil Mines Limited announced that it has signed a definitive agreement with Southern Copper Argentina ("SCA"), a wholly owned subsidiary of Southern Copper Corporation for SCA to acquire a 70% equity interest in the Company's Cerro Samenta porphyry copper project in Salta Province

The agreement is subject to the following terms to earn a 70% equity interest in the property:

1. SCA will pay Marifil a total of $375,000 over four years including $75,000 on signing the agreement
2. SCA will carry out a minimum $4 million work program on the property over four years

SCA will make the contract payments on behalf of Marifil to two underlying property owners over a six years period.

Additionally, SCA can increase their equity interest from 70% to 80% by providing Marifil with a bankable feasibility study within seven years of the date of signing.

Southern Copper Corporation is an integrated copper producer and in 2011 was the 7th largest copper producer in the world with sales of $6.8 billion. SC produces copper, molybdenum, zinc and silver. All of its mining, smelting and refining facilities are located in Peru and Mexico, and SC conducts exploration activities in those countries and in Argentina, Chile and Ecuador.


 

High Grade Zone at Filo Del Sol Project

 
 

NGEx Resources Inc. provided the complete results from the 2012/2013 exploration program at the Filo del Sol project located in San Juan province. The results of this season's drilling expand the previously identified high grade copper zone at Filo del Sol and extend the broader zone of disseminated copper, gold, silver mineralization that surrounds the high grade zone.

Filo del Sol is a high sulphidation epithermal copper-gold-silver system that overlies a porphyry copper-gold system. It is part of the Vicuña Project which includes the nearby Los Helados and Josemaria copper-gold porphyry deposits. Filo del Sol is a very large mineralized system, with minimum dimensions, based on wide spaced drill holes, of 2.8 kilometres in a north-south direction and 1 kilometre in an east-west direction.

The system includes both disseminated and stockwork mineralization and is open in all directions. Leaching and secondary enrichment of this mineralized system has created a high-grade copper-silver zone, further adding to the potential of the deposit.

These results, combined with previously released drilling, are encouraging and support plans for a larger drill program next season that could, if successful, lead to a maiden resource estimate for the project. The exploration season is during the South American summer and drilling is expected to restart in late 2013.

A total of 819.6 metres were drilled in 5 holes during the program. Highlights from the results reported include: FSDH08 with 38.1m of 1.23% copper, 0.21 g/t goldand 10.9 g/t silverand FSDH11 with 65m of 0.77 g/t gold.

The 2012/2013 drill program focused on expanding the high-grade copper-silver zone which occurs in the northern part of the mineralized system and has been traced by previous drilling over a distance of at least 1,200 metres.

 

Encouraging Results from Preliminary Drilling at Corina Project

 
 

Samco Gold Limited announced encouraging results from the preliminary drill campaign on the Cerro Cubilete target at its Corina Project in Santa Cruz province.

Samco Gold has completed a ten-hole, fully cored drill program. The program was carried out at the Cerro Cubilete silver prospect, where Samco has previously announced a NNE-trending, 300 x 75m zone of high to bonanza silver grades in rock chip samples.

The drill program, which totals 2,148m, was carried out between January 10 and 28, 2013. Nine holes were drilled on four sections oriented at 295°, and angled at -55°. The distance between the northernmost and southernmost sections is 270m. The tenth hole was drilled on an azimuth of 238°, and angled at -50°, to investigate possible hangingwall mineralization.

- Drilling on four fences has defined an east-dipping and probably south-plunging mineralized body over a strike length of at least 270m and width up to 70m, open at depth and in all directions.

- Of the nine parallel holes, eight intersected what appears to be a broad NNE striking silver-lead-zinc mineralized body. The Cubilete Structure dips 30-45° E and occurs in the footwall of a fault with similar orientation it is hosted by oxidized and brecciated volcanics which are also inferred to dip to the east. Flow-banded rhyolite at depth suggests the body may be located on the east flank of a buried rhyolite flow-dome.

- Notable intersections include:
-In the North of the Structure, (CCDDH008) 32 metres averaging 75ppm silver; 3.02% silver and 0.66% zinc from 26 metres including, from 54 metres, 2 metres averaging 178ppm silver; 2.56% lead and 0.67% zinc;
-In the South of the Structure, (CCDDH007) 10 metres (from 67 metres) averaging 0.29ppm gold; 57ppm silver, with trace lead and zinc;

At Cerro Cubilete, silver and base metals are associated with strongly anomalous iron, magnesium, barite, and molybdenum in both outcrop and drill-core, suggesting an intermediate sulfidation style of mineralization. Anomalous values of these elements also occur in outcrop at Cerro de la Mina, 1 km to the west, within a large ground magnetic low which trends NW and also pass through Cerro Cubilete.

 

Exploration Update Chita North Porphyry Sector, Chita Valley Cu-Mo-Ag-Au Project

 
 

Minsud Resources Corp. announced exploration results from the Chita North Porphyry area of the Chita Valley diatreme volcanic vent/porphyry complex, located in San Juan province.

The following is an update on recent exploration work conducted on the Chita North sector of the Chita Valley Project. The Project is a large exploration stage diatreme volcanic vent/porphyry complex with classic alteration features, widespread porphyry style Copper-Molybdenum-Silver-Gold mineralization, and associated gold and silver-bearing polymetallic veins.

Exploration Work First Quarter 2013

The current exploration program represents a balance between systematic multidisciplinary exploration and prudent use of limited funding in a poor financial market. As a result Minsud is currently concentrating primarily on the continuation of systematic detailed geological mapping and alteration studies with selective surface sampling.

The strategy is to continue expanding the areas covered by detailed mapping to eventually include the entire Chita Valley Properties area. Lithological, alteration, structural and mineralization studies that initially focused on the Chinchillones and Chita South Porphyry areas are being expanded to include other nearby sectors (Chita North Porphyry, Breccias Ridge, Placetas Porphyry, Romina and Minas de Pinto) to eventually produce a coordinated exploration and mineral deposits model for the entire property.


 

Regulus Commences Drilling at the Cerro Cori Gold Target

 
 

Regulus Resources Inc. has commenced a drilling campaign at the Company's 100% owned Cerro Cori gold target located two kilometres northeast of the main Rio Grande Project in Salta Province. Near-surface gold mineralization was discovered with a single drill hole at Cerro Cori in late 2012 (RGR-12-118 with 297 m containing 0.36 g/t goldfrom the surface). In the intervening months the Company has completed a follow-up program consisting of trenching, geological mapping, and extension of the existing ground magnetic survey in preparation for the current drilling program.

The work completed over the last several months at the Cerro Cori gold target has confirmed potential for near-surface gold mineralization amenable to heap leaching. The company believes that the multi-directional, sheeted quartz-magnetite vein style of mineralization at Cerro Cori may represent the upper levels of a system similar to the nearby Lindero gold deposit, located ten kilometres to the southeast. Goldrock Mines recently announced the completion of a positive feasibility study for a heap-leach gold operation at Lindero and is fully permitted for mine development. The proximity of the projects presents opportunity for synergy if similar mineralization is encountered at Cerro Cori and this possibility can be tested for very low cost.

A total of 3,127 metres of trenching has been completed and sampled at the Cerro Cori gold target, largely in areas of limited outcrop exposure. This trenching has confirmed the presence of elevated gold, ranging from 0.2 to 1.1 g/t.

The Company started a 1,200 metre drilling programme, comprised of four to five shallow (<250-300 metre) holes, on May 10th, 2013. Drilling is expected to be completed by the end of the month with assays available shortly thereafter. This low-cost program is intended to determine if there is potential for significant grade and volume of mineralization to warrant additional drilling.

 

U3O8 Corp. Completes Acquisition of Calypso Uranium Corp.

 
 

U3O8 Corp. and Calypso Uranium Corp. announced the completion of the acquisition of Calypso by U3O8 Corp. The Acquisition expands U3O8 Corp's strategic land position around the state-owned Cerro Solo and Sierra Pintada uranium deposits in Argentina and adds approximately $3.3 million in working capital.

Under the terms of the Acquisition, U3O8 Corp. issued 20,252,327 common shares in exchange for all of the 50,630,819 issued and outstanding common shares of Calypso, on the basis of 0.40 of one U3O8 Corp. share for each whole Calypso share.

U3O8 Corp. has now solidified its position as a leading uranium company in Argentina at a time when the country is seeking local uranium production to fuel its growing nuclear fleet. U3O8 Corp. continues to progress on a preliminary economic assessment expected in the second half of 2013 on its Laguna Salada Deposit (Chubut province) towards positioning this project as a potential low-cost, near-term uranium producer. With the Calypso properties, U3O8 Corp. consolidates its strategic holdings adjoining Argentina's two largest known uranium deposits, and sets up a strong pipeline of projects for exploration after Laguna Salada.

 
  Panorama Minero
Buenos Aires - Argentina
Phone: (054-11) 4952-1117