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Elementos begins expanded Phase II drilling program at Manantiales in Argentina

Elementos (ASX: ELT) is not waiting until the New Year to get cracking at its Manantiales epithermal gold-silver project in San Juan, Argentina and has already begun an extended Phase II drilling program.

An additional three diamond holes will be drilled as part of a new drill rig commissioning program by drilling contractor Energold.

The program will comprise about 600 metres aimed at testing the depth extensions of the Manantial vein.

Last month Elementos successfully expanded the high grade gold zone at the Manantial vein to 180 metres in a north-south direction in its initial Phase II drilling campaign. 

Another possibly defining factor is that the Manantial vein may support a larger epithermal system at depth, with mineralisation now extending down to 250 metres.

Encouraging intersections from Phase II drilling include 10.07 metres at 2.22 grams per tonne (g/t) gold and 5.9g/t silver from 189 metres, including 1.31 metres at 10.95g/t gold and 13.64g/t silver and 0.56 metres at 14.2g/t gold and 19g/t silver from 190 metres.

Results of the extended program are expected in early 2012.


Santo Domingo Gold-Copper Project

Meanwhile, Elementos has also been busy at its Santo Domingo project, also in San Juan Argentina, with the start of the second phase of a geological survey at the Divisoria porphyry prospect this week.

The geophysical survey is designed to expand on results from a ground magnetometry survey, which identified a pattern of magnetic lows related to porphyry mineralisation over a larger area than that mapped on surface. 


Cash

Elementos is certainly well funded to carry out its exploration activities with A$7.2 million cash in the bank at the end of the September quarter.

Importantly, the company’s projects are located in a large district of gold-silver epithermal vein mineralisation with little modern exploration.

The San Juan Province hosts a number of world class mining operations including Barrick Gold’s (NYSE, TSX: ABX) 12 million ounce Veladero mine and Yamana Gold’s (NYSE: AUY, TSX: YRI, LSE: YAU) 2.9 million ounce Gualcamayo mine.