Overview of mining activities

Argentina’s mining industry has experienced significant growth in recent years, fostered by major changes in its regulatory framework in the early nineties. Nevertheless, it is estimated that 75% of Argentina’s mining wealth remains unexploited. Most metal mining reserves are located in the Andes Mountains in the west of the country. There are large copper and gold deposits in San Juan and Catamarca provinces, uranium deposits in Mendoza and zinc deposits in Jujuy.

Currently five companies account for 70 percent of Argentina’s mineral exports:

• Minera Alumbrera (gold) in Catamarca and the Pachon copper deposit in San Juan, owned by Swiss mining company Xstrata.
• Minera del Altiplano, owned by FMC Lithium
• Borax, owned by the Rio Tinto
• Cerro Vanguardia, owned by South African Anglo Gold
• Veladero mine in San Juan, owned by Barrick. Veladero was officially inaugurated in October of 2005.

The Government of Argentina expects new mining investment to rise to 10.8 billion pesos ($3.76 billion) in 2006, after tripling from 2003 to 2004 to 1.9 billion pesos. Possible future developments include Agua Rica, a large deposit of copper, gold, and molybdenum owned by Northern Orion Resources Inc. The Canadian company reportedly intends to build by 2009 what may be the country's largest mine, in the province of Catamarca.

Barrick is completing studies on the Pascua Lama project, on the border with Chile.

According to the Mining Secretariat, there are over 140 exploration projects under way in

Argentina. The following is a partial list:

-Cardero Resources Corporation: gold-silver in Salta.

-Lumina Cooper Corporation: copper-molybdenum-gold in Salta and Mendoza.

-Viceroy Exploration Ltd.: gold and silver in San Juan.

-Intrepid Mineral Corporation: gold and silver prospect in San Juan and several prospects in the Patagonian Provinces.

-La Mancha Resources: gold-silver-zinc in San Juan.

-Exeter Resources Corporation: gold-silver as well as copper-molybdenum-gold in Mendoza, with Xstrata, discoverer of the prospect.

-Aquiline Resources Inc.: gold-silver property in Río Negro,

- Palladon Ventures Ltd.: gold in Río Negro and Santa Cruz.

-Silver Standard Resources: gold-silver in Salta and silver/tin in Jujuy.

-Yamana Explorations: silver-gold in Santa Cruz.

These companies have raised over 100 million Canadian dollars in the Toronto and Vancouver Stock Exchanges for risk mining investment in Argentina. There are several others investing in exploration, such as Mansfield Minerals, in Salta and Jujuy, IMA Explorations Ltd, in San Juan and Chubut, Deprominsa S.A., in San Juan and Mendoza, Minera Andes Inc. in Santa Cruz and San Juan, Golden Peak Resources Ltd., in La Rioja, Río Negro and Chubut, and the majors Río Tinto in San Juan and Mendoza, and Anglo American in Mendoza.