Santa Cruz

About Santa Cruz Projects

Within Santa Cruz, Argentex owns 100% mineral rights to 9 projects, including Pinguino, which were acquired in 2004. The properties total approximately 169,235 acres (68,487 hectares) and are located in the prominent geological feature known as the Deseado Massif, one of the world's most prolific low sulphidation epithermal provinces.

The portfolio encompasses projects at all exploration stages from advanced exploration drilling, to drill ready projects, and a large group of earlier stage projects available for joint venture.

Argentex's projects in the Santa Cruz Portfolio include:

Pinguino Project

Argentex's 10,000-hectare advanced silver and gold exploration Pinguino project is located in Argentina's Patagonia region, within the Deseado Massif of Santa Cruz province.

Pinguino is easily accessible, situated approximately 400 meters above sea level in low-relief topography. An existing system of all-weather roads provides year-round access to the property. Argentex believes that recent high-grade precious metal discoveries within newly tested structures of the district scale vein system at Pinguino show potential for the development of a significant silver-gold resource.

To date, the Company has completed over 66,000 meters of drilling in over 677 holes on 36+ veins. More than 70+ individual vein segments have been identified to date, comprising more than 113 line-kilometers of strike length.

Resource update was completed in January 2013.

Please refer to Pinguino Project page by clicking here.

Plata Leon (10,000 Ha)

Plata Leon adjoins Pinguino to the northwest along a major fault zone, known as the Tranquilo fault. Preliminary fieldwork at Plata Leon has identified multiple gossans in outcrop which appear similar to those at surface above the primary sulphide rich veins at Pinguino. Reviewing next stage of exploration.

Cerro Contreras (7,000 Ha)

Reviewing project for next stage of exploration; project is nearing a drill ready stage.

Please refer to Cerro Contreras Project page by clicking here.

Condor (5,500 Ha)

Reviewing project for next stage of exploration; project is nearing a drill ready stage.

Please refer to Condor Project page by clicking here.

Grassroots Properties

Outside of its Pinguino, Plata Leon, Cerro Contreras and Condor projects, Argentex has an extensive land package within the highly prospective Deseado Massif region of Santa Cruz province. Preliminary prospecting, sampling and mapping have shown good results and additional follow-up is planned on the following:

La Leona (2,400 Ha)

Grassroots - reviewing opportunities for joint ventures.

CVS (14,594 Ha)

Grassroots -- reviewing opportunities for joint ventures.

Merlot/Cabernet (8,958 Ha)

Grassroots -- reviewing opportunities for joint ventures.

Diamante (7,768 Ha)

Grassroots -- reviewing opportunities for joint ventures.

Nuevo Oro (2,951 ha)

Grassroots -- reviewing opportunities for joint ventures.

About Deseado Massif

All the properties are located within the prominent geologic feature, the Deseado Massif; which has proven to host significant epithermal deposits of precious metals. The Deseado Massif is comprised mainly of middle-to late-Jurassic age volcanic and volcaniclastic rock units. These units are dominated by rhyolitic to rhyodacitic ignimbrite flows and lava domes together with subordinate agglomerates, volcanic breccias and tuffs with minor basalts, andesites and volcanic agglomerates intercalated upward with mafic tuffs, conglomerates and sediments.

Faults active during the period of intense Jurassic extension and volcanism trend mostly NNW-SSE and form a series of grabens, and horst blocks. Since Jurassic time, the rocks have been cut by normal faults of several different orientations, but have undergone only a moderate amount of compression.

In general, the Jurassic rocks remain relatively un-deformed and generally flat to gently dipping, except locally where close to faults, volcanic domes or similar features.

History of Mining in the Deseado Massif

Prior to 1998, there were no operating precious metals mines, and limited exploration activity and even local private mining. The Santa Cruz province continues to see significant activity in merger and acquisitions (ie. Goldcorp purchasing Andean Resources in 2010 for $3.4 Billion in 2010), joint ventures, exploration, development, and production. There are currently four operating gold and silver mines in Santa Cruz: the world class Cerro Vanguardia mine (AngloGold Ashanti: 5.5 Moz gold reserves); the recently commissioned Manantial Espejo mine (Pan-American Silver: 0.4 Moz gold and 45.8 Moz silver resources); the San Jose mine (Hochschild Group and Minera Andes: 0.5 Moz gold and 33.4 Moz Silver resources); and Coeur d'Alene's high grade Mina Martha silver mine.

With the recent surge of activity in the Deseado Massif, upwards of 10 precious metals projects with new discoveries are being drilled out and each advancing to various stages of development, including resource updates, scoping studies and advanced feasibility and permitting stages.

Argentex's Pinguino project continues to be the flagship project and property of the Company, but Argentex has advanced two other projects, the Cerro Contreras and Condor, to a drill ready state.

About Santa Cruz Province, Argentina

Santa Cruz is a province of Argentina, located in the southern part of the country, in Patagonia. It borders Chubut province to the north, and Chile to the west and south. To the east is the Atlantic Ocean. It is the second largest province of the country (after Buenos Aires province), and the least densely populated in mainland Argentina.

Santa Cruz, with a small population and rich in natural resources, has long had one of Argentina's most prosperous economies. Its 2006 output was estimated at US$3.3 billion, or, US$16,550 per capita (three-fourths above the national average and Argentina's third-highest).

Its economy, with the possible exception of Neuquen's, is the country's least diversified, however. Fully half its output is accounted for by the extractive sector (petroleum, gas and mining), with an annual production of 4.5 million m3 of petroleum and 3 million m3 of gas, mainly in the Pico Truncado, Cañadón seco and Cerro Redondo extracting facilities.

The coal production at Río Turbio, Argentina's only active coal mine, is of around one million m3 per year. Mining includes gold and silver (Cerro Vanguardia Mine), clay, gypsum, salt and others.

The second most important productive activity is that associated with sheep. With 7 million heads, Santa Cruz is the second main producer of wool and meat after the Province of Chubut, most of which is designated for export. Sheep farming revived in 2002 with the devaluation of the peso and firmer global demand for wool (led by China and the EU). Still there is little investment in new abbatoirs (mainly in Rio Gallegos), and often there are phitosanitary restrictions to the export of sheep meat. Livestock also includes small numbers of cattle, and in lesser numbers pigs and horses.

There is little agriculture due to the arid nature of the soil. There is a small timber industry fed by both forests and planted trees, of which the wood of the lenga is the most exploited.

Source: Wikipedia