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The Magma Project is located in southern Argentina, with the following attractive features:
- Attractive land position within the Esquel Corridor district being developed by Meridian Gold Inc.
- Located to cover the projected strike extensions of known mineralization on the Esquel mineral trend.
- Information from the Esquel project confirms the favorable location of the Magma claims. It is the Company's intention to maintain the Magma concessions and monitor the activities of Meridian.
NDR staked the Magma claims in 1999, during the relatively early days of the Esquel Gold Project. The two claims total 5,000 hectares in size and were located to cover the projected strike extensions of known mineralization on the Esquel mineral trend. Recent information from the Esquel project confirms the favorable location of the Magma claims (see map).
The Esquel Gold Project is now owned by Meridian Gold Inc., who are predicting an annual production of 300,000 ounces of gold upon start-up. Meridian plans an open pit operation with predicted grades in the first five years of 10.9 g/t gold and 19 g/t silver. At last report, the measured and indicated resources of Esquel stand at 3,276,000 ounces gold and 5,866,000 ounces of silver with 75% of this grading in excess of 10.5 g/t gold and 18.2 g/t silver. The total resource, from a 2001 study by Pincock Allen and Holt, is approximately 3.8 million ounces of gold and 6.9 million ounces of silver. Recent local concerns have slowed the project, but the economics remain favorable.
Gold mineralization at Esquel is related to bonanza grade, quartz vein structures, stockwork vein systems, hydrothermal breccias and adjacent wall rock within a horst block. Mineralization dips steeply and trends generally north. This mineralized trend is called the Esquel Corridor and reportedly contains over 20 kilometres of mineral occurrences. Meridian considers the exploration potential to be substantial and efforts to expand the mineralized Corridor, especially on strike, is an ongoing priority.
NDR's Magma concessions are situated within the Esquel Corridor and, although mostly covered by post mineral volcanics and younger sediments, represent an attractive land position within the developing district. It is the Company's intention to maintain the Magma concessions and monitor the activities of Meridian.
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