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Andean confirms, extends Cerro Negro gold, silver

Source: News Bites

Andean Resources Ltd has confirmed and extended the high-grade gold and silver mineralisation at its Cerro Negro project in Santa Cruz province, Argentina.

The discovery of the San Marcos, Mariana Norte, and Mariana Central vein systems 4-6km northeast of the Eureka deposit has lead to a focused drill program that is defining the shape and extent of these potential ore bodies.

Highlights from San Marcos include:

SDD-1004: 12.4m of 16.5g/t gold and 131g/t silver (Ag) from 143.6m

SDD-1005: 6.4m of 10.7g/t gold and 144g/t Ag from 142.7m

SDD-1007: 3.65m of 12.2g/t gold and 52g/t Ag from 108m

SDD-1008: 11.45m of 15.2g/t gold and 136g/t Ag from103.55m

Holes SDD-1010 and SDD-1012 extended the mineralisation in the San Marcos veins a further 100m to the east and may have intersected the veins at a shallower angle due to a potential change in the vein dip.

Vice president of exploration William Wulftange says Cerro Negro now has at least three distinct centres of mineralisation that include Bajo Negro and Vein Zone to the east, Eureka to the west and now the Mariana’s and San Marcos mineral system in the north central part of the property.

“The fact that all three systems have significant gold grades over broad widths is quite exciting and a very rare occurrence in the gold industry,” he said. “I believe that as the exploration program continues, Andean geologists will develop a geologic link between the three deposits that will help us find additional mineral zones outside of the current known deposit areas.”

Lihir Gold one of Australia’s most prolific gold producers has come under attack by another very large and powerful gold company Newcrest ASX: NCM.

NCM’s ~AUD$8.5B bid, probably the largest amount ever offered for an Australian gold miner has put LGL into play and LGL’s out of hand rejection seems to have initiated the beginning of “hostile” takeover attempt by NCM.

One wonders if there isn’t another player in the wings or that NCM needs to bulk up to protect itself from Newmont or perhaps even one of the major diversified miners.

What seems clear is that Friday’s 33% rise could be just the start of the action for Australian investors with LGL shares…. perhaps witnessed by even the Fat Prophets not calling it a sell as they seem so prone to do.. with their recommendations lately at the beginning of a takeover attempt to cut and run.

So more to come is my guess…..