Magna Terra controls 103,000 hectares of exploration rights in the mining friendly Santa Cruz Province of Argentina. The concessions lie entirely within the highly prospective Deseado Massif which constitutes a world class “Large Igneous Province” (LIP) with outstanding epithermal precious metal mineralization associated with Jurassic volcanism and crustal extension. The Massif is located in the northern part of Santa Cruz Province and is in an early-stage of exploration and development. Mining infrastructure is developing rapidly and most of our projects occur in close proximity to producing gold and silver mines such as Cerro Vanguardia, Cerro Negro, San Jose, Mina Martha, Manantial Espejo, Cerro Moro and the newly developed Don Nicolas.
We categorize our land packages as two main types:
- Projects, where we can offer a joint venture with defined drill targets, which include El Monte, Piedra Negra, Covadonga, Gertrudis, El Meridiano and La Rosita.
- Prospects, where generative exploration is planned or underway, which include Katrina and Boleadora
El Monte is currently the most advanced of the six projects. This project hosts structurally and stratigraphically controlled Au and Ag mineralization and has enjoyed significant investment in mapping, rock chip sampling, soil sampling and trenching in addition to a completed IP program. The data from these studies supported the planning of a 2,000 m drill program which awaits implementation.
During 2017 Magna Terra will implement ground magnetic and IP programs on five further projects enabling detailed drill planning and budgeting for each of them and thus permitting us to offer them for first phase drilling as turnkey projects under our management.
The Covadonga project is at an early stage of exploration and exhibits a significant mineralized footprint from rock chips with of anomalous Au, Lead (Pb), Arsenic (As) and Mercury (Hg) over a 3 km strike length in veins and hydrothermal breccias. Trenching has revealed low level Au with a very high correlation coefficient to Pb in argillic alteration in volcanics. A soil sampling program is currently underway to test recessive ground in the vicinity of hydrothermal veins and breccias. The Company is planning a program of ground magnetic and IP surveys.
The newly discovered Piedra Negra project constitutes a zone of low sulphidation veins and stockworks in outcrop and float over a 2 km strike length and 700 m width. With results from the first 356 rock chips reported we have an average grade of 397 ppb Au (See Press Release dated June 29, 2017). Sampling and mapping is ongoing on this project and the Company is planning a program of ground magnetic and IP surveys.
The Gertrudis project is comprised of two mineralized structures which we refer to as the Gertrudis and David veins. These veins are some 300 m apart, sub parallel and steeply dipping and are comprised of silicified tectonic and volcanic breccias with argillic alteration halos. Low grade Au anomalies occur in both veins which are also associated with As, Sb and Hg anomalies. The Gertrudis vein is the more prominent of the two and extends for 800 m. This is a NNW striking structure which is steeply dipping to the WSW, and is well exposed along most of its length. The David vein is exposed for 350 m and does not exhibit a measurable dip. The Company is planning a program of ground magnetic and IP surveys.
The El Meridiano project lies in the western part of an 8-10 km wide caldera, and the westernmost part of this feature is thought to be the site of a 2.5 km wide circular diatreme complex. Andesitic to felsic tuffs in a 4 sq. km area are cut by gold-bearing hydrothermal breccias filling N to NW trending fractures and faults. Virtually all samples of these breccias contain small to significant amounts of gold, arsenic and antimony, but very little silver or base metals, suggesting that the mineralization is preserved at a high level of erosion. Drilling was carried out on the project in 2009 and 2010 by a previous operator. Most holes hit one to several discrete intervals of at least 100 ppb Au and about one-third intersected wider intervals of weak mineralization interspersed with narrower higher-grade zones. Ten holes intersected “significant mineralization”, here considered to be the equivalent of 1.5 meters (true thickness) of at least 340 ppb (See Renaissance Gold Press Release dated Dec 20, 2010). We are currently planning a CSAMT survey to supplement previous ground magnetic and gradient array surveys in defining the flanks of the diatreme and the optimal drilling depth.
La Rosita project occupies a basin measuring around 4 by 4 km which is formed in andesitic and dacitic volcanics and is occupied by highly deformed cherts, limestones and siltstones which are locally altered and mineralized. The formation of this basin is the result of extension and wrenching related to major regional and district scale structures which strike NNE, N-S, NNW, NW and WNW. The formation of the basin provided a site of high potential for geothermal and hydrothermal fluid flow as well as the topography for sedimentation which would ultimately cover the favourable stratigraphy and much of the evidence of hydrothermal activity. The presence of mineralization in sinters accompanied by associated soft sediment deformation, implies an environment in which sedimentation was accompanied by geothermal activity in the Jurassic period and that hydrothermal fluids, associated with structures in the underlying volcanics, had to pass through this column of unfavourable stratigraphy before brecciating and mineralizing sinters at the surface. Drilling on the project, during 2010, produced multiple low grade Au intercepts. Of the 12 holes drilled, 5 hit one to several discrete intervals of at least 50 ppb Au and 2 holes intersected “significant mineralization”, here considered to be the equivalent of 2 to 3 meters (not true thickness) of at least 700 ppb (see Renaissance Gold Press Release dated May 9, 2011). We are currently working on a structural and stratigraphic model and planning an IP Survey to supplement previous ground magnetic and gradient array surveys, in defining optimal drilling depth in zones of potential high fluid flow.
In addition to the defined projects we also have the Boleadora group to the south of Cerro Negro and the Katrina Cateo between Cerro Vanguardia and Cerro Moro. These properties constitute 60,000 hectares of prospective ground. During first pass prospecting, the Katrina Cateo revealed Au anomalies ranging from 20 ppb up to 1.5 ppm. The Company is planning first pass exploration of the Boleadora group properties which includes using proprietary remote sensing and data analysis techniques.