Argentex Mining Corporation (TSX-V: ATX; OTCBB: AGXM) is a junior mineral resource company with extensive holdings in Argentina's active Patagonia region, including its flagship Pinguino property in Santa Cruz province. Argentex discovered the unique indium-bearing silver polymetallic Pinguino deposit, has carried out extensive diamond drill testing and still retains 100% ownership of the property. The company achieved another milestone at Pinguino in mid September 2009, releasing an initial 43-101 mineral resource estimate including:
- 35.4 million tonnes at 4.0 oz/t (123.63 g/t) silver equivalent in the inferred category
- 7.3 million tonnes at 5.5 oz/t (169.64 g/t) silver equivalent in the indicated category
The silver equivalent values were calculated from a combination of individual silver, gold, lead, zinc and indium grades using a specific formula and metal pricing referred to in the company’s September 14, 2009 press release.
Argentex acquired the grassroots Pinguino property in early 2004 and immediately commenced exploration. Since that time, the company has made a significant new discovery and completed five successful drill programs, uncovering precious metal veins and an epithermal silver-zinc-indium polymetallic deposit. With four operating silver-gold mines, Santa Cruz is one of Argentina's most mining-friendly provinces. Argentex’s 2009-2010 exploration and engineering program, including additional work at Pinguino, is currently underway.
Pinguino - Mineralized Potential
In addition to an extensive silver-zinc-lead-indium mineralized system, Pinguino is also host to significant silver-gold values. The first-ever drill program focused on precious metals, with highlights including hole P001 with 1.4 meters (4.6 feet) of 140 g/t silver and 7.35 grams g/t gold, hole P024 with 1.90 meters (6.2 feet) of 916 g/t silver and 8.19 g/t gold, and hole P032 with 8.80 meters (28.8 feet) of 1094.9 g/t silver and 0.90 g/t gold. All of these holes intersected mineralization at shallow depths. Pinguino’s silver-zinc-lead mineralization was the subject of considerable drill testing in the company’s 2008-2009 work program.
Of more than 47 veins mapped on the property to date, 15 have been tested by drilling. Nine of the 15 drill-tested veins had sufficient density to be used in the initial mineral resource estimate for Pinguino. Mineralization at the property covers a combined strike length of over 74 kilometers (45 miles) and has been proven to depth. A total of 30,028 meters (98,517 feet) of diamond drilling has been completed in five drill campaigns on the Pinguino property.
Foundation for Growth
Beyond Pinguino, Argentex has an extensive land package within the prospective Deseado Massif region of Santa Cruz province.
Condor, a drill-ready epithermal silver-gold discovery, is located approximately 100 kilometers (62 miles) east of Pinguino. Detailed mapping and preliminary geophysics as been carried out in relation to an exposed outcrop containing visible gold within a largely overburden-covered property. Interpretation of the geophysics shows a large resistivity anomaly underlying the solitary mineralized outcrop. Condor has never been drilled or trenched.
Cerro Contreras is another grassroots gold discovery approximately 70 kilometers (43 miles) north of Pinguino. Detailed mapping in 2007 defined a number of circular structures with hydrothermal alteration zones and well as a separate gossanous zone with quartz veins containing interesting gold values. The property shows good potential for low-sulphidation epithermal gold-silver.
In Rio Negro, Argentex holds mining rights to 12 highly prospective properties totaling approximately 113,737 acres (46,028 hectares). Preliminary work has identified a significant number of epithermal veins and two separate gold discoveries in highly oxidized outcrops. These properties are at an early stage of exploration.
In total, Argentex holds mineral rights to more than 35 properties covering approximately 307,981 acres (124,636 hectares). The company believes its extensive property portfolio is the foundation of a solid growth strategy.
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