Neuquen Basin Project
The Neuquén Project includes twenty (20) properties situated approximately 1000 kilometers southwest of Buenos Aires, in eastern Neuquén Province (Figure 2) covering a total area of 30,000 hectares. Three of the properties, located within a 50 kilometer radius, contain significant "red-bed style" copper oxide deposits.
The Neuquén Red Bed copper deposit contains a drill indicated reserve of 35.5 million tones of 0.37% copper (287 million pounds). The deposit consists of near surface "oxide copper" minerals within a flat-bedded sandstone host. The three other identified deposits have not received as thorough an investigation, but preliminary estimates include the Quillen Diez B, Ernesto, and La Felicidad deposits have contents of gold and silver.
Preliminary metallurgical studies suggest that a heap leach, SXEW type recovery system could be applied. Economic assessments of acid consumption and availability are currently under investigation. However, the availability of very inexpensive hydropower, the low stripping ratio, the fact that no drilling and blasting is necessary for mining, and ease of access suggests that the deposits could be brought into production rapidly at relative low cost.
In addition to the identified deposits, AMA owns several untested cateos in the Neuquén Project area that contain numerous copper surface showings. Several of the cateos have an excellent potential for discovery of very large deposits of oxide copper, silver and gold. These targets offer the possibility to more than triple the Project's copper resource base. AMA has a contract for 2,800 hectares of surface covering the entire Barda Gonzales project for twelve years with an option for an additional twelve years if necessary. A water well is on the property with sufficient water for a medium mining project. Electrical power is on the projects property and road access is available.
General
The "arenisca" or sandstone oxide copper project is located in central Argentina, in the province of Neuquén about 1000 kilometers southwest of Buenos Aires. The property encompasses 13 500 square kilometers of a sedimentary basin. There are numerous recorded occurrences of oxide copper impregnated sandstone, showing potential for a new copper mining district in the low mesa, desert terrain in the eastern rain shadow of the Andes. Elevations are everywhere less than 1500 meters above sea level.
The region is a major oil-producing center, with highly developed infrastructure, a skilled labor force, and very cheap (1.5 cents/kilowatt hour) hydroelectric power. Most of the copper prospects lie within a radius of one hundred kilometers around the town of Cutral-Co (pop. 35,000), and between Neuquén (pop. 150,000) on the east and Zapala (pop. 30,000) on the west. Neuquén has a modern jet airport with service several times a day from Buenos Aires, and continuing flights to Mendoza and Santiago, Chile.
Some of the copper oxide deposits show potential to be very large, and are amenable to strip mining techniques similar to that used on coal seams. The ore beds are only weakly indurated, requiring little or no use of explosives in mining. Studies show the ores to be economically responsive to acid heap leaching and solvent extraction - electro winning recovery. The capital and operating costs for this type of a mine are comparatively low, and production can be achieved with short lead times. |
