Suite 6, 25 Walters Drive, Osborne Park, WA 6017 PO Box 1767, Osborne Park DC, WA 6916 Perth, Western Australia Tel: +61 (8) 9204 2433 Fax: +61 (8) 9244 7273 Email: info@argentinamining.com.au ASX:AVK 24 January, 2013 ASX ANNOUNCEMENT High Grade Gold & Silver at Amiches Project Channel sampling returns 2m @ 18.91g/t Au & 389.51g/t Ag from dacitic hydrothermal breccia HIGHLIGHTS 2m @ 18.91g/t Au & 389.51g/t Ag from a 10m x 3m dacitic hydrothermal breccia outcrop Project lies within highly-mineralized El Indio Belt, host to major Au-Ag-Cu projects Two prior sampling programs record 1m @ 4.9g/t Au & >100g/t Ag and up to 12.4g/t Au & 60g/t Ag High mercury response confirms epithermal origins High Au & Ag grades indicate sample site is on or near epithermal boiling zone Extensive alteration indicates potential for large high-grade epithermal Au-Ag mineralized system Follow-up sampling, mapping and geophysics in progress to define drill targets Drilling required to test extent of higher grade system under cover (Argentina Mining or the Company)(ASX:AVK) is pleased to announce a bonanzagrade gold and silver analytical result, with other anomalous element support, from the Company s latest (December 2012) round of sampling at its Amiches epithermal gold-silver project in San Juan Province in Argentina (Figures 1a,b & 2). Among four separate rock-chip samples taken, an analytical result of 2m @ 18.91g/t gold & 389.51g/t silver was obtained from Sample 7122, a 2m long continuous rock-chip sample across the strike of a 10m long by 3m wide outcrop of dacitic hydrothermal breccia at the Amphitheatre, one of two currently-recognized prospects within the Amiches Project (Figures 3-5). Extensive alteration indicates that the zone of interest is of considerable area (Figure 6). Previous sampling of the same outcrop in 2009 returned a result of 1m @ 4.9g/t Au & >100g/t Ag while more extensive sampling of the Amphitheatre area in 1985 yielded a number of results above 1g/t Au, up to 12.4 g/t Au & 60 g/t Ag, refer Table 2. The high precious metal grades, coupled with widespread Au-Ag anomalism and other field observations (Figure 7), indicate that the sampled surface lies near the epithermal boiling zone, meaning that drilling will be required to test for high grades and bonanza zones at depth. The high mercury response of 16658ppb Hg confirms the epithermal origins. The sampled breccia appears similar to those found at the following nearby major deposits: Del Carmen Inf. Resource 25.4Mt @ 1.00 g/t Au & 13.3g/t Ag for 816,600oz gold & 10.9Moz silver Jaguelito - Measured and Indicated Resource of 123,000oz gold and 9.7Moz silver Veladero - Reserves 14.7Moz gold at an average grade of ca. 0.8 g/t Pascua Lama - 25 year LOM based on 18Moz gold reserves & 676Moz silver in gold reserves. These more advanced projects in San Juan Province lie only 30, 40, 90 and 100 kilometres respectively from Amiches, all within the globally-recognized and highly-mineralized El Indio Belt, whose name is taken from the famous El Indio Mine, only 50km north of Amiches (Figures 1a & 2). www.argentinamining.com.au ACN 141 940 230
Figures 1a & b Location Plans (a) San Juan Province in Argentina and (b) AVK Amiches & San Francisco Projects in San Juan with respect to other nearby major projects & El Indio Gold Belt Figure 2 The Amiches Project lies within the the globally-recognized, highly-mineralised El Indio Belt
With a successful round of gold-silver sampling recently completed at the San Francisco Project on a short section of the 3,700m long Las Leñas quartz-goethite multiple reef system (as announced to ASX on 16 th January 2013), followed by this latest confirmation of high-grade gold-silver in volcanic breccias at the Amiches Project, Argentina Mining is now focusing on both projects to evaluate their potential to host largescale, high-grade gold-silver deposits. Both properties lie in one of the world s richest mineral provinces, estimated to contain tens of millions of ounces of precious metals gold-silver, and in which there is already a number of developing major resources and producing mines. The Company is highly encouraged by the results from its recent field work and will use the remainder of the summer season to further define these mineralised systems in preparation for drill testing. More results are expected by the end of the first Quarter of 2013. -------- END -------- Remaining Figures 3-7 and Tables 1-2 supporting this announcement follow, while accompanying Appendix 1 provides additional information on the Amiches project Company Contacts: Doug Bright Chairman +61 (8) 9204 2433 Eduardo Videla Managing Director +54 (264) 427 3633 Email: info@argentinamining.com.au About is exploring a suite of five gold and base metal projects in San Juan Province, Argentina. These projects range from the established porphyry copper-gold-molybdenum project at Cerro Blanco, epithermal vein gold and copper mineralization at Amiches, San Francisco and Tres Amigos and regional exploration projects near Barrick Gold Corporation s major Veladero (Reserves 12Moz Au) and Pascua-Lama (Reserves 17.8Moz) gold operations. The Company s first 5 diamond core-holes drilled in two phases in 2011 at the Copper Hill Prospect at Cerro Blanco intersected broad zones of porphyry copper-gold-molybdenum mineralization which, supported by results from geophysical Ground IP-Res and Magnetics surveys, confirm the presence of a large mineralized porphyry sulphide and oxide system. Follow-up drilling is planned in 2013. In late 2012, the Tres Amigos Projects was optioned to Canadian explorer New Destiny Mining Corp (TSX.V:NED). A Memorandum of Understanding (MOU) has been signed between AVK and NED for the Cerro Blanco project. NED is currently undertaking due diligence on the Cerro Blanco project with the aim of signing a Heads of Agreement with AVK in the First Quarter of 2013. Competent Person Statement The information in this report relating to Exploration Results is based on information compiled by Mr Doug Bright, a Member of the Australasian Institute of Mining and Metallurgy and a Director of and geological consultant to. Mr Bright has sufficient experience relevant to the style of mineralization and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bright consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
FIGURES 3 7 and TABLES 1-2 Figure 3 North-westerly view along south face of ridge dominating the Amphitheatre (on far side of ridge) showing Sample sites 7119-7122, with geological notes. Figure 4 - Sample site 7122 Dacitic hydrothermal breccia
Figure 5 Simplifed geological plan of Amphitheatre area showing sample locations and rock-chip or channel sample gold values above 2g/t Au Figure 6 Amiches - Google Earth image with superimposed PIMA alteration interpreted at Pirquen Ridge (S) & Amphitheatre (N) Prospects
Figure 7 Barite-calcite-quartz pseudomorphs at sample site 7119 - evidence of epithermal boiling zone level TABLE 1 Results AVK Amiches Samples 7119-7122 - continuous rock-chip sampling results SAMPLE NO. EASTING NORTHING RL (m) Width (m) Au_ppm Au4-50 Ag_ppm Hg_ppb G5_AA Cu_ppm ICP_MA39 Pb_ppm ICP_MA39 7122 2431671 6652766 4724 2 18.91 389.51* 16,658 628 4188 7120 2431195 6653128 4814 1 0.28 <0.05 273 12 27 7121 2431225 6653135 4797 1 0.02 <0.05 91 9 54 7119 2431198 6653128 4814 1 <0.01 <0.05 42 13 47 *Sample 7122 silver initially by ICP-MA39 reported >200g/t Ag, repeat assay determined by Ag4A-50 Grav. Table 2-1985 Secretary of Mines San Juan (SOMSJ) Prospecting Campaign (values above 1g/t Au highlighted) SAMPLE EASTING NORTHING mrl Au_ppm Ag_ppm Cu_ ppm CV1 2432817.60 6655517.92 4300 0.4 0.5 21.5 CV2 2432299.46 6655516.04 4500 0.4 0.5 6 CV5 2432573.52 6655667.54 4500 0.2 2 5.5 CV6 2432734.57 6653452.33 4557 2.4 4.5 5 CV7 2433018.12 6654021.3 4700 5.1 30 54.5 CV8 2433864.45 6656399.42 4100 0.5 1 2.3 CV9 2432959.91 6653787.41 4500 0.4 1 5 CV10 2435949.8 6657914.66 4055 0.2 1 19.5 CV11 2436532.94 6658233.01 3895 7.1 14.5 19 CV12 2430568.38 6658754.99 4285 0.3 1.5 17.5 CV18 2430324.58 6657913.39 4747 12.4 60 14.5 CV19 2430220.09 6657796.04 4900 2.4 1 8.5 CV20 2440307.03 6656938.72 3400 1.79 4.5 3 CV21 2441108.77 6656253.72 3500 0.8 1 28
APPENDIX 1 The Amiches Project An Introduction Introduction & Location The Amiches Project consists of 13 contiguous tenements enclosing an area of 13,122Ha at latitude 30 o 14 S Longitude 69 o 43 W, approximately 174km northwest of the provincial capital of San Juan in San Juan Province, Argentina. As the project lies within an elevation range of 3,700 5,600m, the field season is normally between October and May. Geologically, Amiches lies only 50km south of the famous Chilean El Indio and Tambo deposits, within the extension into Argentina of the El Indio Belt which, along the adjacent Maricunga Belt to the north, hosts the majority of the Chilean gold deposits. Exploration and Mining History Between the 1960s and 1990s, several exploration campaigns were undertaken in the Amiches area for base metals and, in the latter years, for gold and copper, as follows: 1949 First mining activity on Amiches for lead from underground workings at the Don Carlos Mine. 1970s Regional exploration programmes around Amiches focussed on lead, molybdenum, silver and gold. 1980s Photo-interpretation led to recognition of the Amphitheatre as a phyllic-silica alteration zone with gold and silver anomalies. 1985 Carlos Castro (Department of Mining of San Juan) collected 15 samples from veins, rock-chips and float. All samples returned anomalous gold values ranging from 0.2g/t to 12.4g/t and silver values from 1g/t to 60g/t (Table 2 & Figure 5, above). Castro described the geology and alteration assemblage of the area, defining an area of 36km 2 highlyaffected by hydrothermal fluids with phyllite-argillite alteration. 1987 Small-scale underground gold mining at the Lita prospect. 1990s Geophysics and drilling undertaken by Newcrest Mining Limited and Minera Andes, 17km NW of the Amiches. Geological Service of Argentina published the geological map (3169-II) "Paso de Agua Negra" at 1:100,000 scale. 2007 Andres Lasry (Rojas & Associates, on behalf of the ATW Venture Corp.) collected 26 rock-chip samples within a 3km area. Eight samples returned anomalous gold values higher than 0.01 g/t with a peak of 0.20g/t and silver values from 0.5g/t to 3.5g/t. Lasry concluded that Amiches is a cross between a high-sulphidation system and a porphyrytype alteration system. 2007 UAKO Geological Consultant, Gustavo Fernandez commissioned by Patagonia Mining SA to assess the exploration potential of the Agua Blanca Project north of the Amphitheatre at Amiches. An ASTER satellite image covering the area was processed and interpreted by Fernandez to be the "middle section of a high-sulphidation system. Further field work was recommended to confirm his interpretation. 2007 ERSA compiled previous data & entered into agreements with owners of the Amiches Project. ERSA collected 22 rock-chip samples, with analysis by ICP. While no anomalous gold results were returned, ERSA consolidated its ownership at Amiches. 2008 A magma study was undertaken by Lithotech geological consultant Michael Parr concluding that there are probably two magma series present at Amiches, an older series that produced the country rock and a younger series which may be linked to the observed alteration. 2009 U3O8 Holdings (a publicly listed company on the London Plus market) entered into an Option to Purchase with ERSA and undertook a survey at the Amiches Project. 78 samples were collected from a number of areas and analysed by ICP; Thirty three samples returned anomalous gold, with 11 returning values higher than 0.01 g/t with a peak (Sample 11028) of 4.9g/t gold, > 100g/t silver and 89.5ppm Cu. The presence of a large, highly-altered epithermal and porphyry system was interpreted. Fifty samples were collected for PIMA studies by Lithotech, a Chilean geological consultancy. Eight samples showed the presence of dickite +/- alunite, indicating a high-sulphidation system. 2010 The U308 agreement was terminated and entered into an agreement to purchase ERSA. Local Geology The project area is located in the Andean Frontal Cordillera. It encloses porphyritic andesite and quartz andesites, in addition to dacite and monzo-granite intrusives and dioritic dykes.
Diagnostic high-sulphidation mineralogy was identified in 2009 at the Pirquen Prospect area, using PIMA multi-spectral scanning. The most significant mineral determined is dickite, indicative of the upper part of a high-sulphidation, precious metal system. Two drill-holes have been proposed to test this target, Figure 6, above. Downstream from Amphitheatre Creek, a vein-like hydrothermal breccia composed of undifferentiated clasts of varied sizes crosses the Guanaco Creek. This breccia exhibits moderate silicification over quartz sericite alteration. Disseminated and veined pyrite and undifferentiated copper sulphides are noted. The porphyritic andesites in this area have been subjected to pervasive propylitic alteration. There is widespread mild-intensity pyritisation in the Guanaco Creek hydrothermal breccia zone and in the upper area of the Amphitheatre drainage system. The Amphitheatre is an extensive north-facing, semi-circular prominence featuring many small historical artisanal mines and prospecting pits for gold, silver and lead, as well as extensive high-level geochemical anomalism in a suite of altered dacitic and andesitic rocks (Figure 5 & Tables 1 & 2, above). It formed by preferential erosion of host rocks made less-resistant by widespread intense hydrothermal alteration associated with numerous local epithermal and porphyry intrusions. The spectacular colouration of the Amphitheatre reflects the wide range of alteration minerals, many of which, including dickite, are favourable mineralization indicators, Figures 3 & 6, above. The sampled outcrop is one of a number of mineralized silicified volcanic breccia exposures in the locality which are hosted by a large dacitic complex. Preliminary interpretation is that the area lies within a dilational structural splay that may be a significant mineralization control. The sampled breccia exhibits pervasive Silicic-Phyllic-Adv.Argillic-Argillic-Oxide hydrothermal alteration, consistent with a low-sulphidation precious-metal mineralized system. Mineralogy includes a paragenesis of quartz, sericite, K-feldspar, pyrite and gray sulphides, hematite, jarosite, goethite and limonite. Fine-grained disseminated gold mineralization is associated with hematite, goethite and jarosite within silicified horizons in the oxide zone. The true dimensions of the breccia and related rocks complex are presently difficult to quantify due to widespread but shallow talus cover, although the extent of alteration evident in imagery indicates a large zone of interest, Figure 6, above. Alteration The alteration assemblages include dickite-alunite-jarosite and illite-kaolinite-halloysite-silica, indicating an advanced argillic alteration that typically occurs in structural zones or as replacement of permeable lithologies. This extreme form of leaching alteration takes place mostly in the higher parts of epithermal high-sulphidation deposits. Gold mineralization is typically disseminated and breccia-veinlet controlled, and associated with pyrite in these settings. Summary of Exploration Significance Previous exploration has defined strong indications for a buried mineralized porphyry system at Amiches. The key features supporting this are: An area measuring 4km by 2km encloses both low and high-sulphidation epithermal systems and porphyry intrusive bodies Mining history - Prospectors have mined Au-Ag-Pb-Zn bearing veins in several locations; Previous rock-chip sampling of surface veins and breccias has returned gold values ranging from 0.01g/t up to 12.4g/t and silver values ranging from 0.5 g/t up to 100g/t. Field studies using PIMA infrared spectral imaging of altered rocks, combined with ASTER multi-spectral image interpretation confirms the presence of large areas of advanced argillic and alunite alteration at the Amphitheatre and Pirquen Prospects. Latest chip-sampling of hydrothermal breccia by AVK yields a result of 2m @ 18.91g/t Au and 389.51g/t Au. -------- END --------