Central Patagonia, Argentina

The "arenisca" or sandstone oxide copper project is located in central Argentina, in the province of Neuquén about 1000 kilometers southwest of Buenos Aires. The property encompasses 13 500 square kilometers of a sedimentary basin. There are numerous recorded occurrences of oxide copper impregnated sandstone, showing potential for a new copper mining district in the low mesa, desert terrain in the eastern rain shadow of the Andes. Elevations are everywhere less than 1500 meters above sea level.

The region is a major oil-producing center, with highly developed infrastructure, a skilled labor force, and very cheap (1.5 cents/kilowatt hour) hydroelectric power. Most of the copper prospects lie within a radius of one hundred kilometers around the town of Cutral-Co (pop. 35,000), and between Neuquén (pop. 150,000) on the east and Zapata (pop. 30,000) on the west. Neuquén has a modern jet airport with service several times a day from Buenos Aires, and continuing flights to Mendoza and Santiago, Chile.

Some of the copper oxide deposits show potential to be very large, and are amenable to strip mining techniques similar to that used on coal seams. The ore beds are only weakly indurated, requiring little or no use of explosives in mining. Studies show the ores to be economically responsive to acid heap leaching and solvent extraction - electro winning recovery. The capital and operating costs for this type of a mine are comparatively low, and production can be achieved with short lead times.

Argentina has no primary sources of copper production. The domestic market for cathode or refinery-grade copper is strong at prevailing LME prices. There would be a substantial political - economic advantage to be the first copper producer in Argentina.

Discovered by FMA (Military Fabrications) which is a branch of the Argentine military in 1933.