ARGENTINA – Vancouver-based junior VICEROY EXPLORATION is looking to expand its land package in western Argentina’s San Juan province around its existing Gualcamayo property, CEO Patrick Downey told the PDAC convention in Toronto last week.
San Juan province is one of the most active exploration zones in Argentina, and includes BARRICK GOLD’s nearly 13-million-oz Veladero gold project. The San Juan government is looking to tender out various tracts of exploration land this year.
Gualcamayo covers 30,000 ha of land in the foothills of the Andes mountain range, and hosts the Quebrada del Diablo (QDD) deposit, and the less-explored Amelia Ins and Magdalena targets. QDD has a current measured and indicated resource of 37.1 million tonnes at 1.04 g/t Au, or 1.2 million oz of the yellow metal, and an additional 11.3 million tonnes at 1.20 g/t Au, equivalent to 435,000 oz in the inferred category, using a cut-off grade of 0.5 g/t. Amelia Ins and Magdalena have a combined estimated measured and indicated resource of 2.1 million tonnes at 2.82 g/t Au, or 192,000 oz of gold and inferred resources of 2.91 million tonnes at 1.88 g/t for a further 176,000 oz.
Viceroy has completed a scoping study on Gualcamayo, with a focus on QDD. It estimates the property could sustain a 100,000-oz/year operation for at least 10 years. An open pit would be cut into a hillside, and the ore would then be dropped through an orepass to a lower level and hauled out of an adit to conventional heap-leach and processing facilities.
Cash costs are estimated to be US$133/oz, and capital expenditures of US$55.7 million would be necessary. Visit www.ViceroyExploration.com.