Finally, we have the latest drill results from Los Azules - this copper deposit continues to shape into the one of the largest undeveloped copper deposits in the world.
The very important message is that there are no ice glaciers present in the project area. Step out hole looks very encouraging as well. Solid results, which will allow to upgrade the resource category. Condemnations holes are drilled on the Escorpio IV, which is described as "Contested Concession" - all other project areas are called 100% owned. Escorpio IV is a part of litigation with TNR Gold on this project. "The results of the 2011 drilling will not have a material impact on the inferred mineralisation and no resource update is warranted" - this must be the message to Minera Andes disgruntled shareholders by the US Gold's low ball merger offer made before these results were announced. TNR Gold will hardly bite into any discount of its properties.
"TNR Gold Corporate Update Post Lithium Spinoff and Litigation Update On Los Azules case. Very interesting part is the link to the new Los Azules page on TNR Gold website, now we can see the recent Judgement and Application from TNR Gold for the new claim on Los Azules. Recent sell off in the company share price looks like another punishment - we have seen it a few times already during the last year. Will be interesting to see who is buying. This tree will not be shaken, these people know what they are doing and the magnitude of recent litigation is matched very well by the profile of the people involved in it."
The very important message is that there are no ice glaciers present in the project area. Step out hole looks very encouraging as well. Solid results, which will allow to upgrade the resource category. Condemnations holes are drilled on the Escorpio IV, which is described as "Contested Concession" - all other project areas are called 100% owned. Escorpio IV is a part of litigation with TNR Gold on this project. "The results of the 2011 drilling will not have a material impact on the inferred mineralisation and no resource update is warranted" - this must be the message to Minera Andes disgruntled shareholders by the US Gold's low ball merger offer made before these results were announced. TNR Gold will hardly bite into any discount of its properties.
"TNR Gold Corporate Update Post Lithium Spinoff and Litigation Update On Los Azules case. Very interesting part is the link to the new Los Azules page on TNR Gold website, now we can see the recent Judgement and Application from TNR Gold for the new claim on Los Azules. Recent sell off in the company share price looks like another punishment - we have seen it a few times already during the last year. Will be interesting to see who is buying. This tree will not be shaken, these people know what they are doing and the magnitude of recent litigation is matched very well by the profile of the people involved in it."
"The New Claim alleges that Xstrata and Minera Andes did not complete the required exploration expenditures required for Xstrata's exercise of its option on April 23, 2007 to acquire the Properties. On that basis, TNR and Solitario advance a claim of breach of contract and intentional interference with economic relations, and seek the return of the Properties, or alternatively, damages as against the defendants or any of them."
These properties are called Xstrata on the map above. TNR Gold litigation team now seeks in this new claim that Northern half of the Los Azules deposit to be returned to TNR Gold. The level of the case is elevated now by this action from potentially 15% after back-in into the project for TNR Gold (it is 25% for the Northern Half of the deposit, but high grade core is located on TNR Gold property called Xstrata on the map) to the claim that seeks the return of the all Solitario (TNR Gold subsidiary in Argentina) properties, which comprise roughly half of the Los Azules deposit at this moment - above the line on the map called Xstrata.
Nobody will take these kind of developments lightly just before the trial which was due to commence in June 2011. It took Judge two days to consider the application of George Macintosh litigation team and it was granted to TNR Gold.
Nobody will take these kind of developments lightly just before the trial which was due to commence in June 2011. It took Judge two days to consider the application of George Macintosh litigation team and it was granted to TNR Gold.
"TNR Gold: Los Azules litigation: Rob McEwen Proposes Merger of US Gold and Minera Andes. In our publishing hobby, which we consider educational for us and our fellow investors, we like to follow the big cases which are played by small players and build up the puzzles on the chess board. Los Azules with its profile of the really "Big Copper" project in Americas fits well into this description. We will have to run a little bit of history in order to put the recent news in the context"
Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.
Minera Andes Reports Drill Results and Development Update for the Los Azules Copper Project | 06/27/2011 |
Download this Press Release (PDF 1.08 MB) | |
Exploration Drilling West of Resource Two exploration holes were designed to test geophysical anomalies located west and north of the resource. The best result, hole T-01, located approximately 250 meters west of the resource, intersected 0.50% copper over 269 meters, including 0.95% copper over 45 meters. This hole is encouraging for several reasons, 1) it demonstrates that geophysics may be a useful guide for copper mineralization at Los Azules, 2) this area is only one of several high priority geophysical targets that have been identified on the property, and 3) the hole bottomed in 0.42% copper and was terminated before reaching its target depth, suggesting that there may be potential to find additional mineralization at depth. Follow up exploration is currently being planned. Infill Drilling Confirms Expectations Drilling to upgrade the inferred mineralization to the indicated category consisted of nine drill holes. In general, the holes returned mineralization in-line with expectations. Drill holes AZ1168 and AZ1170 were terminated while in mineralization due to difficult drilling conditions, bottoming in 0.95% and 0.55% copper, respectfully. The mineralization at Los Azules is open at depth. Hole AZ1164 was extended as planned, intersecting good copper grades over a wide intersection. This result helps infill the central portion of the deposit. Table 1 - Los Azules Infill Drilling Summary ---------------------------------------------------------------------------- Hole Cu Thickness From To (%) (m) (m) (m) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AZ1164 0.55 284.4 120.0 404.4 Including 0.75 128.0 120.0 248.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AZ1168 0.66 395.4 148.0 569.3 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AZ1169 0.36 229.8 86.0 315.8 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AZ1170 0.63 237.3 112.0 349.3 Including 0.85 62.0 112.0 174.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- AZ1176 0.63 130.0 162.0 292.0 ----------------------------------------------------------------------------Despite encountering low grade copper mineralization, infill holes AZ1171, AZ1172, AZ1173 returned values less than expected. Planned Exploration at Los Azules Due to difficult ground conditions the amount of meters drilled between January-May was less than planned. The strategy for the upcoming season is to continue testing deep geophysical targets. Also, Preliminary Feasibility Study -- Developed preliminary hydrologic model -- Evaluated potential geotechnical risks with positive outcome -- Completed evaluation of construction/production access road alternatives -- Continued environmental base line assessment and monitoring, including glaciology studies (no ice glaciers are present in the project area) -- Drilled condemnation holes in areas that are potential locations for surface facilities (Exhibit 1A and Exhibit 4) -- Completed archeological assessment -- Completed initial stakeholder mapping -- Conducted preliminary testing of alternative metallurgical processing options with positive results -- Completed trade-off study of heap leaching option as an alternative to flotation recovery with determination that heap leaching is not a viable option -- The anticipated cost to complete the Preliminary Feasibility Study isAbout Los Azules Los Azules is a large copper porphyry system located in western The mineral resources for Los Azules were calculated in ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Mineral Resource Tonnes Copper Contained Copper Gold Silver Category (millions) % (MM lbs) grams/tonne grams/tonne ---------------------------------------------------------------------------- Indicated 137 0.73 2.2 0.07 1.7 ---------------------------------------------------------------------------- Inferred 900 0.52 10.3 0.07 1.7 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------There is a high-grade secondary enrichment zone near the top of the mineralization. We use a cut-off grade of 0.70% copper to define "high-grade" mineralization, and the material above the 0.70% cut off approximates the secondary enrichment zone, but it is not exactly coincident. The portions of the deposit that exceeded the 0.70% copper limit are 67 million tonnes of indicated resources at an average grade of 0.95% (1.4 billion pounds of contained copper) and 127 million tonnes of inferred resources at an average grade of 0.86% (2.4 billion pounds of contained copper). The results of the 2011 drilling will not have a material impact on the inferred mineralization and no resource update is warranted. Refiled Interim Financial Report About This news release has been submitted by For further information, please contact: Scientific and Technical Information: This news release was prepared by For further information in respect of the Los Azules project please refer to the technical report entitled "Canadian National Instrument 43-101 Updated Preliminary Assessment, Cautionary Note to U.S. Investors: All resource estimates reported by the Corporation are calculated in accordance with 43-101 and the Caution Concerning Forward-Looking Statements: This press release contains certain forward-looking statements and information. The forward-looking statements and information express, as at the date of this press release, the Corporation's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results and management's understanding of proposed legislative changes. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, risks related to on-going or pending litigation including specifically risks related to litigation which if resolved adversely to Readers should not place undue reliance on forward-looking statements or information. The Corporation undertakes no obligation to reissue or update forward-looking statements or information as a result of new information or events after the date hereof except as may be required by law. See the Corporation's annual information form for additional information on risks, uncertainties and other factors relating to the forward-looking statements and information. All forward-looking statements and information made in this news release are qualified by this cautionary statement. Exhibit 1 - Summary of Drill Hole Results for 2010-2011 Drill Season ---------------------------------------------------------------------------- Intersection ---------------------------------------------------------------------------- Vertical Thickness From (m) To (m) (m) % Cu Comments ---------------------------------------------------------------------------- 0 120 120.0 - Pre hole drilled in 2009-2010 HOLE 1064A season. 120 248 128.0 0.75 Secondary enrichment zone 248 288 40.0 0.58 Mixed secondary enrichment (Cc) and chalcopyrite mineralization disseminations 288 404.4 116.4 0.33 Primary disseminated chalcopyrite ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 0 156 156.0 - Pre hole drilled in 2009-2011 HOLE 1067 season 156 336 180.0 0.23 Mixed secondary enrichment and disseminated chalcopyrite 336 375 39.0 0.40 Primary disseminated chalcopyrite ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Hole 1168 0 46 46.0 - Gravel overburden 46 148 95.0 0.04 Leached cap 148 515 344.4 0.67 Mixed secondary enrichment and disseminated chalcopyrite 515 557 39.5 0.48 Primary disseminated chalcopyrite 557 569.3 11.5 0.95 Primary disseminated chalcopyrite and bornite ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Hole 1169 0 50 50.0 - Gravel overburden 50 86 36.0 0.10 Leached cap 86 315.75 229.8 0.36 Primary chalcopyrite mineralization disseminations ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE 1170 0 30 30.0 - Gravel overburden 30 112 82.0 0.05 Leached cap 112 174 62.0 0.85 Secondary enrichment 174 349.3 175.3 0.55 Mixed secondary enrichment and disseminated chalcopyrite ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE 1171 0 50 50.0 - Gravel overburden 50 86 36.0 0.05 Leached cap 86 201 115.0 0.12 Mixed secondary enrichment and disseminated chalcopyrite 201 400.1 199.1 0.16 Primary disseminated chalcopyrite ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE 1172 0 62 62.0 - Gravel overburden 62 74 12.0 0.09 Leached cap 74 125 51.0 0.22 Mixed secondary enrichment and disseminated chalcopyrite 125 152 27.0 0.07 Primary pyrite and chalcopyrite veinlets ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Intersection ---------------------------------------------------------------------------- Vertical Thickness From (m) To (m) (m) % Cu Comments ---------------------------------------------------------------------------- HOLE 1173 0 32 32.0 - Gravel overburden 32 80 48.0 0.11 Leached cap 80 99 19.0 0.34 Secondary enrichment 99 228 129.0 0.22 Mixed secondary enrichment and disseminated chalcopyrite 228 294.5 66.5 0.18 Primary disseminated chalcopyrite ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE 1174 0 24 24.0 - Overburden 24 76 52.0 0.03 Leached cap 76 250 174.0 0.17 Mixed secondary enrichment and disseminated chalcopyrite 250 341.4 91.4 0.10 Primary chalcopyrite mineralization disseminations ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE 1175 0 63 63.0 - Overburden 63 74 11.0 0.03 Leached cap 74 249.5 175.5 0.22 Primary disseminated pyrite and veinlets ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 0 32 32.0 - HOLE 1176 Overburden 32 162 130.0 0.03 Leached cap 162 292 130.0 0.63 Secondary enrichment 292 393.4 101.4 0.19 Primary disseminated pyrite and veinlets ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE T-01B 0 72 72.0 - Overburden 72 80 8.0 0.09 Leached cap 80 86 6.0 0.78 Secondary enrichment 86 132 46.0 0.27 Primary disseminated chalcopyrite 132 140 8.0 0.73 Mixed secondary enrichment and disseminated chalcopyrite 140 186 46.0 0.25 Primary disseminated chalcopyrite 186 192 6.0 1.43 Secondary enrichment 192 387 195.0 0.13 Primary disseminated chalcopyrite 387 408 21.0 0.62 Secondary enrichment 408 422 14.0 0.54 Mixed secondary enrichment and disseminated chalcopyrite 422 468 46.0 0.25 Primary disseminated chalcopyrite 468 486 18.0 0.49 Mixed secondary enrichment and disseminated chalcopyrite 486 496 10.0 0.95 Secondary enrichment 496 560 64.0 0.33 Mixed secondary enrichment 560 605 45.0 0.95 Primary chalcopyrite and bornite 605 656 51.0 0.42 Primary chalcopyrite ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE T-02 0 76 76.0 0.04 Leached cap 76 700.1 624.1 0.06 Primary pyrite mineralization disseminations and veins ----------------------------------------------------------------------------Exhibit 1A - Summary of Condemnation Drills Results for 2010-2011 Drill Season ---------------------------------------------------------------------------- Intersection ---------------------------------------------------------------------------- Vertical Thickness From (m) To (m) (m) % Cu Comments ---------------------------------------------------------------------------- HOLE CO 01 0 200 200.0 0.001 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE CO 02 0 168 168.0 0.001 Fresh unmineralized rock 168 200 32.0 0.006 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE CO 03 0 200 200.0 0.003 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Fresh unmineralized rock, HOLE CO 04 0 28 28.0 0.004 partially leached 28 186 158.0 0.001 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE CO 05 0 162 162.0 0.002 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE CO 06 0 200 200.0 0.003 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE HB 04 0 200 200.0 0.002 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE HB 05 0 200 200.0 0.001 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- HOLE HB 06 0 200 200.0 0.003 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Fresh unmineralized rock with HOLE HB 07 0 82 82.0 0.002 meteoric weathering 82 200 118.0 0.006 Fresh unmineralized rock ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Fresh unmineralized rock with HOLE GB 02 0 42 42 0.003 meteoric weathering 42 200 158.0 0.007 Fresh unmineralized rock ----------------------------------------------------------------------------To view the figures associated with this press release, please visit the following link:http://media3.marketwire.com/docs/mai_627_figures.pdf The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management. 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