Mining in Argentina 2009: After the storm, is the

outlook positive?
On spite of the global crisis, Argentina continues to
crystallize projects Argentina and mines of significant
importance, further enhancing an already dynamic
sector.
It is true that the crisis precipitated the exit of a good
number of companies with in exploration projects –both
grass roots and advanced- but the vast majority owe
their withdraw to other reasons. For example, Alexander
Gold had already decided to stop their Leon project
months before; they now are only maintaining the property and focusing in the
development of their processing technology Metaleach. ATW Venture (now
ATW Gold) completed two drilling programs between 2007 and 2008 in the
Amarillo project, owned by Marifil Mines, and after not being able to find what
they intended they decided to leave the country to focus on their newly
acquired gold mine, now already in production. Most of the over 130
companies still active in Argentina have reduced their activities drastically, but
with the interest of maintaining their assets and withstand the storm. It is
frankly not strange, that in an environment mostly populated by junior
companies, the sector has a high mobility, in any situation.
Even though the current market conditions are harder, there are still funds
available for exploration. This is proven by a case very close to the mining
sector in Argentina: the biggest IPO of the year so far reached US 100 M, by
Magma Energy, a company focused on geothermal exploration. The
relationship between Magma and Argentina? Magma’s CEO is the mining mogul
Ross Beaty, also Chairman of Pan American Silver, operator of the Manantial
Espejo silver-gold mine, located in Santa Cruz. And Magma also has geothermal
interests in Argentina, along with Chile and other countries with rich
geothermal potential.
And on spite of everything, there are still new players. During 2009 at least a
dozen firms have laid eyes on Argentina. Some, like Troy Resources, went for
the gold, literally, acquiring the Casposo gold deposit in a private bid that left
several other bidders on the road. Other junior companies have arrived to do
grass roots exploration, such as Metropolitan Mining and Cadillac. Also a few
name changes occurred –Apex Silver emerged from chapter 11 in the US as
Golden Minerals, and Suramina is now Canadian Gold Hunter- as well as
escicions, Pachamama was created from Mansfield Minerals.

Contact Us:
Agustín Álvarez 1348 Barrio Arizu, Godoy Cruz M5501BFB, Mendoza, Argentina.
Tel / Fax: +54 (261) 4243479 - info@argentinamining.com - www.argentinamining.com
The other side of the
story is production:
the largest amount of
mines in the
Argentina’s history,
from which 12 are
metalliferous:
Veladero, Martha,
Cerro Vanguardia, San
José, Alumbrera,
Pirquitas,
Gualcamayo,
Manantial Espejo,
Aguilar, Farallón
Negro, Andacollo y Sierra Grande; plus numerous industrial minerals deposits
from which Salar del Hombre Muerto, Tincalayu and Loma Blanca stand out;
Río Turbio’s coal and rhodocrosite in Capillitas. This implies that Argentina will
soon be 3rd gold producer in South America, after Peru (203 Tn) and Brazil
(49.7 Tn).
Before the end of 2009 two new mines will commence construction, the
binational giant Pascua Lama, with an investment close to US 3 B and Casposo,
with US 100 M.
All in all, mining in Argentina continue to grow and consolidate. Thousands of
mining workers, both technicians and professionals, are joining the workforce
each year, and continue to provide this new sector of the economy more
critical mass and opportunity.
Interested in knowing more about mining in Argentina? See the latest update
>>

Contact Us:
Agustín Álvarez 1348 Barrio Arizu, Godoy Cruz M5501BFB, Mendoza, Argentina.
Tel / Fax: +54 (261) 4243479 - info@argentinamining.com - www.argentinamining.com