PROJECTS - Rosarita
Introduction
The project is located 110 km west-northwest of San Juan City, the provincial capital of San Juan Province in western Argentina. Estelar Limited (Exeter's wholly owned subsidiary) holds mining rights to 29.3 sq. km. of mineral property. The property has excellent year round road access. The Rosarita property was initially explored by Argentina Mineral Development (AMD) and Battle Mountain Gold (BMG). BMG withdrew from the joint venture after its take-over by Newmont. Intrepid Minerals later acquired the Casposo gold-silver discovery, located immediately north of Rosarita. There is a 2% net smelter royalty due to AMD from production on the project.
Rob Harley & inspired Chairman, Yale Simpson view Rosarita from Casposo
Exploration Potential
The Rosarita prospect has potential for a low sulphidation epithermal gold-silver system similar to the adjacent Casposo discovery. Casposo is located immediately north of Rosarita, with the two properties occupying portions of a major northwest-southeast regional fault system. Intrepid is currently completing scoping studies at Casposo to develop a 60,000 to 70,000 ounce/year gold mine. The key mineralized zone is Intrepid's Kamila Zone, within a 3.5 km long structure referred to as the Rocio de Oro corridor that extends on to the Rosarita property. Rosarita has a similar geological setting to the Casposo property with potential for epithermal gold mineralization at depth. Exeter has an interest in taking on a joint venture partner to explore the property.
Mining Title
The Rosarita project area is protected by one manifestacione de discubrimiento (MD) application covering a total area of 29.3 sq.km.
Satellite Imagery of Rosarita
Previous Exploration
The Rosarita and Intrepid's Casposo properties are situated within the Andean Cordillera Frontal on the western margin of the Uspallata Graben. Both properties are underlain by the Permo-Triassic Choiyoi Formation that include units of pyroclastic breccia, ignimbrites and rhyolites. These felsic rocks are host to the gold and silver mineralisation on the Casposo property.
Exploration work on the Rosarita property includes mapping and geochemical sampling by AMD in 1994, geological and geophysical surveys and drilling by Puma Minerals in 1995-1996 and mapping, geochemical sampling and geophysical surveys by BMG in 1999. None of the 14 holes drilled by Puma encountered significant mineralization; however the drilling program did not effectively test the potential gold-bearing structures or strike extensions of the Casposo mineralization.
BMG optioned the Rosarita project from AMD with the knowledge that the Casposo style epithermal mineralization frequently does not occur in isolation. The more recent geophysical surveys completed by BMC on the Rosarita property show anomalies on the northwestern portion of the property. These anomalies may indicate southerly geological extensions of gold and silver mineralization existing at the Casposo project. No drilling was undertaken by BMG on the Rosarita Project after acquisition of the company by Newmont Limited. BMG had delineated CSAMT resistivity anomalies with co-incident geochemistry, and recommended more detailed geochemistry and geologic mapping prior to drilling.
After acquisition by Newmont, BMG withdrew from the joint venture without having earned an interest, and Newmont ownership of the Casposo project moved to Intrepid Minerals. Estelar acquired the project from AMD.
More recently at Casposo, Intrepid has stated that it has calculated an Indicated Resource of 775,000 tonnes grading 5.6g/t gold and 88g/t silver for 163,000 ounces, and an Inferred resource of 1,970,000 tonnes grading 3.6g/t gold equivalent and 110g/t silver for 304,000 ounces gold equivalent.
Intrepid Exploration Program
In 2004 Estelar farmed out Rosarita to Intrepid Minerals. Intrepid conducted detailed exploration including geophysics and mapping south-east from its Kamila Zone on to the Rosarita property along the favourable NW-SE trending "Rocio de Oro" structural corridor. In 2004, Intrepid completed three drill holes that showed hydrothermal alteration but without significant gold values. Intrepid withdrew from the joint venture without a retained equity in June, 2005.
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