Some recent news from the Deseado Massif is available from Argentex, GoldCorp and Mariana, to name a few.
The consistent message is that the volcanics of the Deseado Massif are full of silver and gold under the subtle surface expressions. Tenements are frequently uncovering networks of veins through systematic drilling campaigns. Also, the region is open to the juniors but the big players like GoldCorp and AhgloGold Ashanti are showing they will step in when exploration comes up trumps.
1. Mariana Resources
The following is a link to an interview with the Chairman of Mariana Resources - another junior, more advanced than DEG (about 519,000 ounces gold equivalent inferred or indcated to date at Las Calandrias and also other successes) - with a large presence in the Deseado Massif:
Their company has had AngolGold Ashanti buy in as a cornerstsone shraeholder owning around 20% of their shares.
Some quotes of interest: ---- "Our focus is the Santa Cruz province. Deseado Massif is the big gold play at the moment, with four major gold mines and two world-class projects coming on stream. It is controlled by a small bunch of juniors, and we're one of them." --- "We've been lucky a lot. I've been in this game my whole career and it's very hard to find anything. You tend to find that the good explorers are not just lucky because they tend to do it again and again.
You've got to be in the right area. For us, the right area is the Deseado Massif. It's highly prospective and under-explored.
It's also about persistence. You have to get used to failure. Not all these drill holes will be successful. You've got to know when to fold and when to be persistent." --- Some see Mariana as a takeover target - what is your take on that?
"Deseado Massif is a playground of the juniors.
We all want to be like Andean Resources, owner the Cerro Negro mine, which was taken over for $3.5 billion over a year ago. The next one is Extorre, and then there's a whole bunch of us with discoveries, which could be potential targets.
If you have success in Deseado Massif, then you are a target."
---
"Aguila is our second new project. We put together our property called Picadero with a neighbouring property owned by a private Argentinian company.
We we know there's gold there because other companies have drilled, but we believe that they didn't drill deep enough. We've found some high-grade prospects and have come up with new targets, but we also believe that there's possibility of bulk tonnage."
---
Why do you think the shares in the company have lost 75% of their value over the past year?
"It's not just us - If you look at all the juniors, we all peaked in February 2011.
I think for us, we came out with a resource estimate in July 2011, and I think the market was expecting more. We came up with a bulk-tonnage discovery, so the grade is low. The market was hoping for high-grade. We also do metallurgy, and I think the market was disappointed with the results we had.
But we think it was pretty good for a maiden resource. We went from discovery to resource in a year and half, and it's one of the fastest projects in the Deseado Massif."
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2. Aregentex
Argentex has released a presentation focussed on Pinguino - also in the Deseado Massif:
"Since acquiring the property gold reserves and resources have nearly doubled, and new discoveries support our expectations that Cerro Negro will be a long-lived, high quality asset with low production costs. Cerro Negro's ideal physical setting and easily accessible veins will result in near-term, cash flow-accretive gold production at a relatively small capital investment of $800 million. An updated feasibility study in 2011 dramatically expanded the production profile at Cerro Negro. Based on expected throughput of 4,000 tonnes per day, annual gold production in the first five years of full production is now expected to average 550,000 ounces at cash costs of less than $200 per ounce. First gold production is expected in the second half of 2013."
-------------------- There is a lot of further activity from other juniors in the Deseado Massif.
The Rio Negro province changes to mining laws are also resulting in a lot of opportuntiy and interest being discussed on the web. De Grey has moved on that region ahead of what will be rapidly growing interest.
Cheers
Elisby1
DEG Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
(20min delay)