Marifil Mines (CVE:MFM) Thursday saw its shares surge 12.5 per cent, after it announced that its partner Netco Silver (CVE:NEI) has discovered two new vein structures at the Toruel property in Argentina.
Marafil said it received a progress report from joint venture partner, Netco, on their prospecting, trenching and sampling program at the Toruel property.
Toruel is located approximately 23 kilometres southeast of the town of Los Menucos and approximately 100 kilometres from Pan American Silver's (TSE:PAA) Navidad project, one of the world's largest undeveloped silver deposits.
Marafil said that multiple vein structures have been identified on the Toruel property to date, with only 50 per cent of the property having been explored and mapped.
Recent prospecting and sampling has identified two additional vein structures, the "El Cumpa" vein and the "Capo" vein, said the company.
Marafil noted that the El Cumpa vein was discovered 2,500 metres east of the Toruel vein, where past drilling had intersected 6.7 metres of almost two kilograms silver and 5.34 percent copper.
The company said the new vein is expressed by discontinuous, one-metre wide outcrops along a strike length of about 1,100 metres. The El Cumpa vein is also genetically similar to the known Toruel vein system and comprises multi-phased silica events.
The Capo vein lies roughly 250 metres to the north of the El Cumpa vein, said the company, adding that Capo shows one metre wide discontinuous outcrops over a strike length of approximately 950 metres.
To date, Marafil said that trenches have been opened across both mineralized structures and rock samples were collected and have been sent for analysis.
"These results continue to support the geological model, which indicates that the Toruel vein is at a lower level of an epithermal system, with tectonically down-thrown blocks to the east and west," the company said in Thursday's release.
Marafil added that up-thrown blocks have been exposed to a deeper level of erosion, whereas downthrown blocks have not.
The company said the consequence of this is that many of the lower level anomalies discovered "quite likely" represent surface expressions of buried epithermal mineralization.
Marafil said prospecting and mapping efforts are ongoing to tie the complete geological picture together, including identifying the intrusive source for the silver and gold mineralized systems.
As part of these efforts, the company said some of the historic diamond drill core from the Toruel vein is scheduled to be resampled and analyzed for silver and gold, and also for indium and gallium - both important metals for the high tech electronics sector.
Drilling is expected to start on the site by June this year.
Marifil is a Canadian exploration company that focuses on Argentina. Through its joint venture opportunities, it has been able to develop a diverse portfolio of properties, including several with bonanza grade gold, silver, copper and indium values.
The company has a land position of 20 properties, totaling more than 400,000 hectares within nine provinces of Argentina.
In early May, the exploration-stage resource company hired Robert J. Rennie to aide with the proposed spin-out of its fertilizer-related assets, under a consulting services agreement.
Marifil's flagship potash properties, K-2 to K-6, are located in the Neuquén Basin in Argentina, where the company said it has identified "extremely significant potash targets" on all five properties through a review of oil well drill logs.
Based on these wells, Marifil projects a potash target that potentially exceeds 200 square kilometres and yields around 200 million tonnes of KCI. The company noted that there are similar targets on its K-3 and K-4 properties, with 50 to 100 million tonnes of potential KCl based on fewer wells.
Marafil's shares were trading at 13.5 cents as at 3:30 pm EDT.