Doing Mining Business in Argentina

PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS Index

1. Legal Aspects 3 > Mining Code: fundamental principles 3 > Ownership over the mines 3 > Classification of Mines 4 > Exploration or Prospecting 4 > Discovery Manifestation 5 > Conditions for the protection of the concession 6

2. Tax Incentive Schemes: Law N° 24,196 of Mining Investments 8

3. Environmental Protection 10

4. Mining Regions in Argentina 12 > Northwest Region 12 > Northeast Region 14 > Middle Region 16 > New Cuyo Region 17 > Patagonic Region 21

5. Mining Activity in Argentina 26 > Current status. Projections 26 > Mining institutions 26 > Main mining projects 27 > Mining companies with investments in Argentina 29

The purpose of the following Doing Mining Business in Argentina is to provide information to those seeking to invest in Argentina. It is hereby expressly understood that no individual or entity shall act or refrain from acting exclusively based on the information and comments expressed herefrom. For that reason, we recommend that each transaction be analized and examined by competent professionals. Mining Code: fundamental principles

1 At federal level, mining is specifically regulated by the Mining Code (“MC”), enacted through Law N° 1919 of November 25, 1886, and in force since May Legal Aspects 1, 1887. The main objective of the MC is to regulate the attribution of the original ownership of the mines, > Mining Code: fundamental principles as well as the legal relationships generated by their appropriation and exploitation. > Ownership over the mines As set forth by Article 75, Section 12, of the National > Classification of Mines Constitution, there is one MC for the whole country. Depending on the location of the mining resources, the > Exploration or Prospecting MC will be enforced by federal or provincial authorities.

> Discovery Manifestation Since 1887, the MC has been amended several times. In the 1990’s, many mining regulations were > Conditions for the protection issued, following a process which sought to stimulate 1 of the concession the development of the mining industry in Argentina .

Through laws aiming at the protection and encouragement of the mining activity and investments, the Argentine Government has committed itself to ensure national and foreign corporations that their acquired rights will be respected.

The MC sets forth the general legal framework as well as the procedures for the acquisition and extinction of said rights. Provinces, on the other hand, establish the procedural rules to exercise such rights before the relevant mining authorities.

Ownership over the mines

Article 2 of the MC establishes that mines are private assets of the federal government or the provinces, depending on where they are located. In that sense, the State has assumed the original ownership over natural

1. (i) Law N° 24,196, Mining Investments: it establishes incentives to the mining activity;

(ii) Law N° 24,224, Mining Reorganization: it creates the National Program of Geological and Thematic Cards, it institutionalizes the Federal Mining Council, and its sets new values for the mining royalties;

(iii) Law N° 24,228, Federal Mining Agreement: it ratifies the agreement celebrated between the Federal Government and the Provinces to attract foreign investments, harmonize local procedures and keep the Mining Record updated;

(iv) Law N° 24,498, Mining Update: it amends several sections of the MC;

(v) Law N° 24,585, Environmental Protection for the Mining Activity: it introduces a supplementary section in the MC regarding the protection of the environment;

(vi) Decree N° 456/97, Reordering of the MC: it ratifies the amended text of the MC.

3 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina resources, aiming at their preservation. Mining is regarded mineral stone or earth products and, in general all the as a matter of public interest. The State allows private output and materials which are used in construction and persons to search for mines, exploit them, and dispose of decoration, the whole or a set of which makes up a quarry. them as owners, in strict accordance with the MC.

According to the MC, private persons may exploit mines Exploration or Prospecting through legal concessions. Concessions are exclusively regulated by law, which means that mining authorities may “Prospecting” (“cateo”) is the permit granted to those not impose conditions other than those strictly established interested in exclusively exploring a certain area, for the in the MC. The right granted by the concession is exclusive, period of time and extension determined by law. transferable, free of charge and of unlimited duration, as long as the conditions of mining protection established in Exploration is not a necessary or mandatory step in the MC are fulfilled by the licensee. The concession allows the mining process, since a concession may be granted the licensee to become the owner of the mineral resources following a direct discovery. However, illegal explorers, existent within the area granted for the exploitation. who lack a permit, are sanctioned.

As the legal form of mining exploration, prospecting Classification of Mines is very important since it constitutes the natural- technical process to determine the existence of an Article 2 of the MC classifies mines according to economically and technically exploitable bed. their nature, economic importance and type of mineral discovered. Three classes are established: The measurement unit (“MU”) is the minimum surface over which a prospecting permit may be granted, consisting First Class Mines: These mines belong exclusively of five hundred (500) hectares. Prospecting permits may cover to the State and can only be exploited through a legal up to twenty (20) MU. At the same time, they may not exceed concession granted by the competent authority. The soil four hundred (400) MU per person in each province. is an accessory to these mines. This class includes the most economically important minerals, such as: gold, silver, The procedure to acquire a prospecting permit may platinum, mercury, copper, iron, lead, among others. be summarized as follows:

Second Class Mines: (i) Mines which, due to their Request: It is filed before the competent mining importance, are preferably granted to the owner of the authority, and it must contain: soil; and (ii) mines which, due to the conditions of their • The coordinates of the vertexes of the requested area, bed, may be exploited by anyone without having to expressing the purpose of the exploration. obtain a concession. This class includes metallic sands • Name and address of the petitioner and of the land owner. and precious stones found on river-beds, on the banks • A minimum plan detailing the works to be done, of water courses, or at the facilities of abandoned mines; estimating the projected investments and indicating saltpetres, salines and peat bogs, among others. the elements and equipment to be used. • Sworn statement declaring the inexistence of any Third Class Mines: These belong exclusively to the owner of the prohibitions contained in articles 29, second of the surface below which the mine is located, and they paragraph 2 , and 30, fifth paragraph 3 , of the CM. cannot be exploited without such owner’s consent, with the • Evidence of the provisional payment of the requested exception of reasons of public use. This category comprises units mining royalties.

2. MC, Article 29, 2nd paragraph: Permits shall be granted for up to twenty units. No more than twenty permits, and no more than four hundred units per province, shall be granted to any person, their partners or an intermediary.

3. MC, Article 30, 5th paragraph: Successive permits over an area or part of it may not be granted to the same person, or its partners, or an intermediary. Between publishing the expiration of a permit and requesting another one, a period of at least one year must elapse. Within ninety days of the expiration of the permit, the mining authority may demand the presentation of the information and technical documents gathered during investigations; the breach of this prescription shall be sanctioned with two times the paid royalty.

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Time and date of the filing stamped at the bottom of is of four hundred pesos (AR$400, nearly USD 130) the request document: This allows the determination per MU of 500 hectares or less. of priorities. • Declaration of the exploration works to be installed as described in the request, within thirty (30) days of the Registration Number: Given by the mining authority license awarding. to identify the request. • Apply before the mining authority for the authorization to differ the installation of the exploration works Location: The location of the request in the plans is or interrupt of the exploration works when there is in charge of the Graphic Registry (“Registro Gráfico”, justified cause. technical office depending on the mining authority). Its • Completion of the informed working plan. main functions are: • Compensate the land owner for any damage caused by the exploration work. • To identify the prospecting in the plans • Upon request by the mining authority, filing of the • To inform the authority whether it is a free area or not obtained information and documentation within ninety (90) days from the expiration of the license. Failure to This information must be obtained within five (5) days. fulfill this requirement is punished with a fine.

Registry: If the request is adequate, it is sent for The duration of the licence is of one hundred and fifty registering purposes to the Explorations Registry kept (150) days for the first MU, adding fifty (50) more days by the mining notary. for each additional MU. After three hundred (300) days of the expiration of the license, an equivalent to half of the Notification: The request, and all related documents are land exceeding four (4) MU must be vacated. After seven notified and sent to the land owner and published for hundred (700) days of the expiration, half of the remaining two days in the Official Gazette within ten (10) days. land has to be vacated. The owner of the license has to file a petition to liberate the licensed area before the expiration Opposition: Within twenty (20) days from the last day of the referred periods, indicating the coordenates of the of publication in the Official Gazette, the land owner vertexes of the vacated area. The lack of timely application or anyone who might have the right to oppose, may do will authorize the mining authority to liberate the areas to so in writing. its criteria, and to apply a fine to the licencee equal to the royalty paid. The term of the licence will commence thirty Guaranty: If requested by the land owner, a guarantee (30) days after being granted. deposit must be deposited. The mining authority may revoke the exploration Concession: If no opposition is filed, or the opposition licence, as a consequence of its own investigation or is solved, the license is awarded by the mining after a complaint of the land owner or a third party, in authority. the following cases:

The license allows its holders to prevent, in that area, • If the installation of exploration works is not finished the exploration by third parties or the State. Moreover, the within thirty (30) days. licensee becomes owner of the discoveries that, without • If the works are interrupted after being commenced. its consent, others may have made in the licensee’s area. • If the minimum working plan is not accomplished.

The holder of the exploration license should fulfill the following obligations: Discovery Manifestation

• Payment of a royalty for each requested MU: at the Article 44 of the MC establishes that mines are time of request and on a provisional basis. Its value acquired through a legal concession awarded by the

5 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina competent authority. Discoveries and expired or vacant • The person who manifested the discovery is obligated mines are subject to concessions. within one hundred (100) days as from the date of the registration, to make the legal work necessary to There will be a discovery when by means of obtain the characteristics of the discovery, such as its an authorized exploration, or accidentally, a non- direction, inclination and thickness, and the kind of registered bed is found. Therefore, the explorer may mineral discovered. have access to the exploitation of a bed both through a prospecting permit as well as a direct discovery. In • Upon expiration of the legal labor period and up to both cases, a manifestation of discovery must be made thirty (30) days thereafter, the discoverer must apply before the local mining authority, pursuant to the for the marking of its possessions that integrate the requisites established in the MC, which are shortly mine. The application and its response must be indicated below: published in the Official Gazette.

• The discoverer must submit a document to the • Once the land marking has been applied, the mining mining authority manifesting the discovery, authority orders the registration in the files, giving enclosing a sample of the mineral. The discoverer’s copy to the interested person as a title of ownership. personal information must be indicated in the Thus, the mining procedure is completed. document, as well as the name that the mine will be given and the reference point of the discovery. Finally, and also pursuant to Article 44 of the MC, The name and mineral of the neighboring mines mines are acquired by virtue of the legal concession and to whom those lands belong must also be granted by the mining authority over those mines informed; determining therefore an area of up to which have expired or which are vacant. These mines the double of the maximum possible extension of are those which, having had an owner that discovered the exploitation concession. them, have been declared to expire. This sort of legal concession does not depend on the will of the mining • Once the application has been filed, the time and date authority, but of the fulfillment of the requisites strictly are stamped at the bottom of the request document. established in the MC. This will determine the priority of the manifestation of discovery, in relation to those which may have been filed by others. Such information is given to the Conditions for the protection of the concession mining authority of exploration, that will evaluate if the application falls over open land or not, notifying In order to lawfully maintain the mining the interested person. rights, the MC imposes on the licensee different conditions of protection which are mandatory: • Following the referred filing, the notary of mines (i) the payment of an annual licence, which is proceeds to register the manifestation in the protocol periodically adjusted by a federal law; and (ii) the book that must be kept for such purpose. The fulfillment of an investment plan during the term registration is the most important act among the of five (5) years from the year when the petition of procedures of the mining concession, because it grants mine measurement was filed. the legal concession of the mine, giving authorization to the applicant to take possession of the land and Payment of the annual royalty is a condition of start the exploitation. protection of the concession that reflects the will of the licensee to maintain the ownership of that concession. • The applicant must publish the discovery in the It must be paid in advance and by equal amounts in two Official Gazette, to enable third parties to file semesters or a smaller fraction, which expire the 30 of oppositions to the discovery. June and the 31 of December of each year.

6 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina

The amount of the royalty is fixed by a law passed by within the term of one (1) year counted as from the National Congress, depending on the category of the the request of exploration, the licensee must present mine. Currently, it is fixed by Law N° 24,224 of mining to the mining authority a plan with the amounts reorganization 4 . The value of the royalty is established of the fixed capital investments that are to be depending on the category of the mine. The discoverer is made for the execution of labor work, building exempted of the payment of the royalty for three (3) years of camps, pathways and auxiliary works for the from the date of registration of the mine. In case of non- exploration, machinery acquisitions, among others. payment of the royalty, and upon expiration of a two- These investments must be made within the first month grace period, the mining authority will request five (5) years since the plan was presented, and the for the payment in forty five (45) days. If the licensee amount of the investments may not be lower than fails to pay in term, the mining authority will declare the three hundred (300) times the annual royalty that expiration of the right, registering that mine as vacant. corresponds to the mine according to its class and to the number of possessions. In the hypothesis that Likewise, and as a condition of protection of the investment was not timely made, the mining the mining concession, the MC establishes that authority may declare the concession’s expiration.

4. Law of Mining Reorganization, as amended by Decree N° 456/97 (Published 30/05/97).

7 The Law of Mining Investments (“LMI”) 5 was enacted with the purpose of compensating the 2 risk that companies face when developing mining project in the country. This is achieved by creating a promotion and incentive scheme for the mining Tax Incentive Schemes: activity, by establishing tariff benefits and by Law N° 24,196 of Mining lowering investment taxes. Investments It is worth mentioning that the benefit regime can only be applied by provinces that have adhered to such regime by the enactment of the corresponding provincial law, pursuant to Article 4 of the LMI.

The investment regime covers the following mining activities:

• Prospecting, exploration, development, preparation, and extraction of minerals comprised in the MC.

• The process of crushing, milling, pelleting, sintering, briquetting, primary elaboration, calcinations, melting, refining, sawing, carving, polishing, and burnishing. These processes are only covered if they are done by the same economical unit and are regionally integrated with the activities described in the previous clause (i), according to the availability of the necessary infrastructure.

Among the benefits granted by the LMI, it is noteworthy necessary to highlight the benefit of Tax Stability (“Estabilidad fiscal”) for thirty (30) years, starting on the submission of the corresponding feasibility report. This benefit extends to the national, provincial and municipal levels, as well as to customs and foreign exchange matters.

In relation to the income tax, the LMI establishes deductibility benefits Doble(“ Deducción”). Mining companies may deduct from their income tax statement one hundred percent (100 %) of the amounts invested in prospecting, special research, mineral and metallurgical test, pilot plants, applied research and other works performed destined to determine the technical and economic feasibility of the project. Such deductions are additional to those allowed by the background legislation that governs the reference tax.

5. Law of Mining Investments, as amended by Decree N° 2686/93 (Published 03/01/94).

8 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina

At the same time, the LMI authorizes the repayment This allowed the exploration companies to carry out of income tax originated in new capital investments or imports, acquire goods and services, and enjoy the in the enlargement of the productive capacity of existing refunding of tax credits resulting from such operations. investments. The companies under this regime can choose between the traditional income tax repayment regime It is also important to mention: (i) the possibility of or a special repayment regime which include equipment making an appraisal of mineral reserves and capitalize up to investments, civil works and construction, among others. fifty per cent (50%) of such appraisal for accounting matters; (ii) import rights payment exemption for capital goods, Regarding Value Added Tax (“VAT”), on special equipment, and ancillary equipment; and (iii) the 2001 the VAT refund to mining exploration was establishment of a maximum three per cent (3%) mining granted(“Devolución del IVA a la Exploración Minera”). royalties that can be charged by provincial governments.

9 Law N° 24,585 6, which came into effect in the year 1995, incorporated a complementary Title in 3 The Mining Code relative to the “Environmental Protection for the Mining Activity”. It also recognized the Complementary Regulations approved by the Environmental Protection Federal Mining Council (COFEMIN), completing in this way the principles sustained in Article 41 of the National Constitution, by setting a legal regime which premise is to preserve the right of all inhabitants to enjoy a healthy and balanced environment in the development of economic activities and processes that support them.

Law N° 24,585 has established in the MC the necessary instruments for environmental administration of mining activities. They are the following: (i) Environmental Impact Report (“EIR”): its presentation is compulsory for the mining activity holders, before the initiation of operations; and (ii) Statement of Environmental Impact (“SEI”): statement issued by the Authority as an approval to the corresponding EIR.

Consequently, the current environment mining management is based on the following legal regime:

• The National Constitution.

• Title XIII Section Second of the MC.

• The supplementary Regulations and Minimum Requirements (N.C) – San Carlos de Bariloche Act – approved by the COFEMIN on August 16, 1996.

• Provincial Decrees that established the application authority of the Title XXI Section Second of the MC.

• The Implementation Provincial Decrees of the Supplementary Regulation and Resolutions of institutional character and of administrative internal procedure that complete the environmental mining management.

Law N° 24,585 covers the following activities:

• Prospecting, exploration, exploitation, development, preparation, extraction and storage of mineral substances.

6. Law N° 24,585, Environmental Protection for the Mining Activity, as amended by Decree N° 456/97 (Published 30/05/97).

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• Crushing, milling, extracting, pelletization, sintering, under their control, or whether it is caused by the briquetting, primary manufacturing, calcination, the risk or vice inherent to the activity. Likewise, the melting, refinement, stone sawing, facetting or holder of the mining right is jointly responsible, in the cutting, polishing processes and any other process same cases, for the damage caused by persons involved as it is derived from new technologies, as well as the in the mine exploitation. management and disposal of any kind of waste. According to the Environment Mining Management The regulations also take into account the centralized Procedure it is established that, before the beginning and decentralized entities, and the national, provincial of mining activities subject to regulations, companies and municipal State companies that develop activities must present before the application authority an EIR. described ut-supra. The application authority evaluates and approves the EIR by means of an SEI, for each of the effective In damage matters, Law N° 24,585 establishes implementation stages. that anyone performing mining activities shall be responsible for all environmental damage that is The SEI must be updated twice a year, having to submit produced as a result of the non-fulfillment of the a report containing the results of the environment protection regulations. It is irrelevant whether the damage is actions that were executed, and detailed information of the caused directly by themselves or indirectly by persons new possible events that may have been produced.

11 Argentina has an enormous mining potential in minerals of diverse composition, throughout its entire 4 territory. Such reserves enable Argentina to be a strong regional supplier and to actively participate in the Mining Regions international markets. in Argentina The following section will describe, in detail, the characteristics of the main mining regions in the country, which are the Northwest Region, Northeast > Northwest Region Region, Middle Region, Nuevo Cuyo Region and Patagonia Region, as informed by the National > Northeast Region Secretariat of Mining.

> Middle Region Northwest Region > New Cuyo Region The provinces of Jujuy, Salta, Catamarca and Tucuman > Patagonia Region make up the Northwest Region, extending over 333,833 kilometers. It is located between 21° and 30° latitude south and between 69° and 62° longitude west. The climate of this region is dry to the west and warm to the east.

Economy: this region plays a starring role in the mining business due to the Bajo de la Alumbrera (copper and gold) and Salar de Hombre Muerto (lithium) projects.

Due to the accelerated growth in the production of metallic minerals, the Northwest Region has become very important to the country.

The main mining products in this regions are: concentrated copper and gold, gold and silver bullion, concentrated lead and silver, concentrated zinc, lithium salt and its secondary products (borax, boric acid, etc.), clay, limestone, sand, rolling stone, granite, gypsum, cobble, peat, grinded rocks, perlite, rhodochrosite, sodium sulfate, sandstone and mica.

Mining Potential: the Northwest region is rich in deposits of great economic value. In this sense, it is worth mentioning the first copper porphyry deposit (Bajo de La Alumbrera -Cu-Au-) and the exploitation of lead, silver, zinc and lithium sand.

The evaporites hold a distinct place in the mining business of the Northwest Region, especially the enormous borax reserves, which are exclusively

12 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina located in this region. Other industrial minerals province of Salta. Olaroz and Cauchari are examples of of importance are: perlite, diatomite, salts, mica, other salt deposits. limestone and flourite, among others. The oil and gas deposits at Campo Durán (Salta) are very important Salta: from an economic standpoint, this province is to the region as well. rich in deposits of industrial minerals, especially borax, diatomite, salts, barite and perlite. As for the sedimentary continental Cenozoic basins, the region is known for its evaporative Salta has numerous evaporative basins of interest, associated deposits of rock salt and borax. Likewise, it among them the Salares del Rincón, Pocitos y Arizaro, is important to mention the recent salt deposits, that exploiting salt and sulfates. Salt and borax are extracted have potential for sulfates and lithium salts, sodium from Salar de Pastos Grandes, Centenario, Ratones, and potassium. Diablillos y Pozuelos. This last salt deposit also contains lithium and potasium. Sodium Sulfate is deposited and Please, find a detail description of the mineral produced in the Salar de Río Grande, which is of great resources and the mining potential in each province importance to the province. that make up the Northwest Region hereinbelow. This province is the main supplier of perlite in the Jujuy: the province of Jujuy is rich in metallic and country; the production centers are found in the Puna, industrial mineral sites. San Antonio de los Cobres area.

El Aguilar is a distinct sedimentary exhalative deposit, There are also important sedimentary deposits of which has mineralization cloaks of Pb, Zn, Ag y Ba, singenetic diatomite in the Catua Zone. interspersed in ordovician sediments and they are affected by the contact metamorphosis, forming pockets rich in The Andes, at the argentine-chilean border, holds sulfur skarn mineralization. The grades of ores reach 8.4% Zn, deposits that have been in production until 1978. The 5.5% Pb y 120 g/t. Ag. This mine has been producing average grade of ores reaches twenty three percent (23%) since 1936. The total reserves exceed 25 Mt. sulfur and the geological reserves amount to 2,5 Mt.

Pirquitas is another important deposit in the Catamarca: this province is rich in metallic mineralization. province, being an epithermal compound of Sn and The majority of the deposits are in the exploration phase, Ag, with grades of ores of 6,57 oz/t. Ag and 0,49% Sn, while Bajo de La Alumbrera, YMAD (Farallón Negro- with reserves that exceed 15 Mt, located in ordovician Alto de la Blenda Mine) and Fénix mine (salar de Hombre sediments. It is currently at the construction stage. Muerto) are currently in the production phase.

The veined alluviums auriferous deposit of the Bajo de La Alumbrera produces copper porphyry and Mountain of the Santa Catalina-Rinconada holds Au, located in the volcanic compound Farallón Negro. historical value in this province. The possible deposit reserve is seven hundred and fifty two meters (752 Mt.) with grades of ores of 0,51% Cu and 0,65 As for the industrial minerals, it is worth mentioning g/t. Au, and recuperation in sub-products of Ag and Mo. the borax deposit Loma Blanca, laying in the lacustrous fossil cloaks, with grades of ores of 13,5% B203 and In this compound, there are various prospects of copper reserves of 20 Mt. The boraciferous cloak has an average porphyry: Bajo del Durazno, Bajo de San Lucas, Bajo de thickness of 50 Mt. los Jejenes, Bajo de las Pampitas, Agua Tapada, Bajo del Espanto. There are epi-thermal veins of Au, Ag and Mn Among the most important salt deposits, the with grades of ores of 5,77 g/t. Au and 104, 70 g/t. Ag. production of Salinas Grandes must be mentioned. in the Farallón Negro-Alto de la Blenda, producing 420 The western portion of these deposits is located in the kilograms gold and 4100 kilograms of silver per year.

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One of the most outstanding exploration deposits is Region. The six provinces cover a total area of 501,487 Agua Rica (ex Mi Vida), that mineralizes Au, Cu and square kilometers and its population density is of 13.2 Mo, of a copper porphyry type, and another of epi- inhabitants per kilometer. The region’s climate is warm thermal type, with reserves of 802 Mt. and grades of ores throughout the whole territory. of 0.61% of Cu, 0,035% de Mo and 0,24 g/t. of Au. Economy: the mining production in the Northeast Region Tucumán: currently, mining in Tucumán is based on is focused mainly in application rocks (93.3% of the total industrial minerals. The most sought-after minerals in regional value) and in particular, sands for construction. the market are those used for construction (aggregates, sedimentary limestone, gypsum, lime-clay and common With respect to non metallic minerals, the salt produced in the district of El Timbó). The aggregates exploitation of gypsum and siliceous sands in the reserves are practically unlimited at the river banks. The province of Entre Ríos must be pointed out. sedimentary limestone presents an interesting potential. Gypsum has a promising potential since the formation Río Misiones produces precious stones (amethyst), but Salí, which carries this mineral, allows for a broad regional they are insignificantly priced. distribution. The slime and clay reserves guarantee raw materials that exceed the market requirements. There has The main products of the region are: sands for been no exploitation of metamorphic limestone, slabs, construction, basal, rolling stone, gypsum, grinded siliceous sand, feldsparr, mica and granite. rocks, riprap, rock shell and amethyst.

With respect to mining of metallic minerals, it is Mining Potential: Misiones, Corrientes and Entre important to point out the El Alisal copper and gold Ríos participate in the basaltic basin of Sierra Geral, project, located at the Calchaquíes Heights, on the that extends over 1,200,000 square kilometers. All of Aconquija mountain range. It is a prospect of copper the provinces of the Northeast Region dwell mostly on porphyry, with disseminated mineralization through basalt through broken stone and, in less volume, through gaps with geo-chemical abnormalities and an area natural blocks reduced in size for construction purposes. between 100 and 200 ppb Au and between 400 and 800 ppb of Cu. In the Farallón Blanco’s prospectus, The important drainage net that these provinces in the Ramada mountain range, gold in quartz and posses is concentrated in the Paraná and Uruguay limestone veins are mineralized. Its geo-chemical Rivers, washing the red lands and finally settling the analysis indicated 3 g/t. Au and between 30 to 50 g/t. heavy minerals contained in the principal courses next Ag. Such manifestation has no current interest. to the sandy sediments. The greatest deposit of sand begins at the south end of Misiones. There are also magnesium sedimentary deposits in the form of nodules at the departments of Burruyacú Misiones: the province of Misiones is the principal basalt and Tafi Viejo; disseminated between sandstone and producer (0,5 Mt/year) destined for grinded rocks. clay. Hydrothermal manifestations of MN are also found in the departments of Tafi del Valle y Tafi Viejo. There are clay exploitations for the production of Both kinds of manifestations are low potential due to special bricks and ceramic use. the limited volume, low grades of ores and erroneous distribution of the mineralization. The districts of Santa Ana and San Ignacio hold cays suitable for carving and construction.

Northeast Region Among the gemstones, amethyst, agate and crystal rock are exploited from the geodes located at the basaltic The provinces of Santa Fe, Chaco, Corrientes, Entre flows. This production reached 3.000 kilograms per Ríos, Formosa and Misiones make up the Northeast year. This province offers great potential in terms of

14 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina new findings of this kind of resources due to the wide Corrientes: this province exploits basalt deposits superficial distribution of the basaltic flow that carries completely destined for the production of broken geodes and siliceous mineralization in numerous areas of stone. The main extractions have been carried out in the the provincial territory. districts of Curuzú Cuatiá, Yofre, Mercedes, Virasoro, Ituzaingó and San Borjita area. The ladders are widely distributed throughout the provincial territory, however the main development and The sand and rolling stone extractions are carried out on adequate content of alumina is found in the southeast a large scale and destined for the construction industry. They portion of the province, in the areas of influence at the are mainly extracted from the Paraná and Uruguay rivers. districts of Garupá, Parada Leis, Apóstoles, Concepción de la Sierra and Azara. There are traces of siliceous mineralization contained in the basaltic rock and found in the southeast portion of the Entre Ríos: the production of industrial minerals and province, between the districts of Monte Caseros and Pucheta. rocks in this province is distributed in the following From this type of mineralization, the potential gemstone manner: sand for construction (61.9%), gypsum (14.4%), resources can be inferred (geodes, agate, amethysts), along rolling stone (9.8%), siliceous sand (5.8%), riprap (4%), with the opal clastics and chalcedonies which are included basalt (2.7%), rock shell and clay (less than 1%). in the calcareous basaltic conglomerate that is found on top of the basalt, to the south of the district of Yofre. The provincial production of gypsum is concentrated at the west border of Entre Ríos, in the district of Corrientes has clay deposits suitable for ceramic and Paraná and La Paz, from National Route Nbr. 12 aluminum earths laterites in the Virasoro area. and Río Paraná. The deposits are round shaped with epigenist concentrations disseminated in almost sphere The exploitation of sandstone deposits are found in the shape with diameters between 10 and 30 centimeters. area of Felipe Yofre, Mercedes and Solari. This mineral is Currently, the Piedras Blancas and Santa Elena (Puerto used for coating and is commercialized in the local market. Buey) deposits are currently at the exploitation phase. Santa Fe: is the third largest construction sand producer The rolling stone production has decreased in the country, with an annual level of extraction notoriously due to the exhaustion of the natural deposits amounting to 2,5 Mt. These sands also provide mining in the Uruguay river. However, it still constitutes a potential for titanium minerals. potential gemstone resource (agate, chalcedony, etc.). Chaco: Chaco’s mining business is limited to industrial There are clay resources from the Pleistocene age, minerals and rocks. The main resources are aggregates suitable for red ceramic production in the Paraná area. These (sands and grinded stone) as well as clay. resources have also been identified in the Puerto Yeruá, Gualeguay, Paraje Campichuelo and Arroyo Las Chilcas. The clay deposits are exploited nearby the cities of Resistencia and Presidencia Roque Sáenz Peña. This As for the clays suitable for thermo expansion, they mineral is exclusively destined for the production of red have been identified nearby the cities of Concepción del ceramics (bricks, floors, tiles, among others). Uruguay, Rosario del Tala, Paraná and Gualeguay. The sands are completely extracted through the The districts of Puerto Yeruá and Colonia Santa dredging of the river-bed of the Paraná river. Eloias have important basaltic resources. The Paso Hervidero Deposit is currently being exploited. The The deposits of rock material suitable for the production production reached 150,000 tons per year, mainly of grinded stone are located in the northeast portion of the destined for grinded rocks used for construction. province, in the districts of 9 de Julio, Almirante Brown and Chacabuco. These are heterogeneous deposits made

15 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina up of quartzite (octo-quartzite) and sandstone, with Mining Potential: Córdoba, Buenos Aires and Santiago interposition, at a lower level, of calcareous and clay being del Estero have great mining potential in granite rocks distributed in a pocket or stratum form. and limestone.

The Las Piedritas deposit is the only one being exploited, The production of marbles and serpentine for with well developed fronts and known reserves, while Palo ornamental purposes as well as important pegmatitic Blanco, El Picazo and Tres Estacas are exclusively known for deposits rich in quartz and feldspar is outstanding in their perforations made in the middle of the woodland, where the province of Cordoba. In both cases, the extraction suitable materials are found, having similar characteristics as of blocks and serrate, and the industry of lime and those found in the Las Piedritas productions. The production cement are the pillars of the local mining business. in the Las Piedritas deposit is of 180,000 tons per annum. In the province of Buenos Aires, the extraction of Formosa: the mining production in Formosa is focused on clay, gypsum, sand and grinded stone for construction the exploitation of sand deposits used for construction. must be pointed out.

Córdoba: in this province, the metallic potential is Middle Region represented through the veined wolframio deposits and skarns, as well as in veined mineralization of lead-silver- The Middle Region is composed of the provinces of zinc and gold. Buenos Aires, Córdoba and Santiago del Estero, with an area of 609.243 square kilometers. This region’s climate Anciently, La Bismutina was exploited. The wolframios is moderate throughout great part of the territory mineralization presents itself in the four pegmatite (Templado Pampeano). intertwined accordingly and discordantly with the basaltic metamorphisms. Aside from pegmatitic mineralization, Generally, mining in this region is characterized by there is also alluvium mineralization, adding 4,000,000 m3 minerals associated with the construction industry. Most with a grade of ores of 1 kilometer per m3. The pegmatitic of them correspond to the application rocks category. bodies have grades of ores between 0.3% and 0.5% WO3, and extreme values of 6%. The geologic resources are The province of Buenos Aires produces almost two estimated at 1,330,000 tons. thirds of the regional production of application rocks. Among its principal products, sand for construction, The Los Guindos wolframio deposit (Pampa grinded rocks, limestone, riprap, block granite, de Olaen) was exploited fifty years ago. Aside from quartzite, are some examples worth mentioning. As for wolframio, disseminated sulfurs can also be found. the non metallic minerals, there are three main products Currently, gold is being explored. There are Cu, Sn, Bi, that can be mentioned: clay, gypsum and salt. Pb, Mo y Fe abnormalities.

Córdoba has a more diversified production of rocks and In the La Candelaria district, anciently exploited, non metallic minerals. For example, application rocks such gold mineralization presents itself through more than as grinded rocks, limestone, sand for construction, rolling fifty veined bodies. These hydrothermal veins are stone, dolomite, among others, metallic minerals (chrome related to high basaltic metamorphism areas and they and beryllium) and semiprecious stones (amethyst and are located in fractures. In the Puigari-Monserrat sector, aqua marine) are produced in this province. 86,500 tons of Au with 5.44 g/t have been determined. Due to the regional distribution of the manifestations, The main mining products are: sand for construction, the district’s reserves have increased notoriously. grinded rocks, clay, limestone, riprap, block granite, quartzite, salt, grinded dolomite, gypsum, rock shell, The main industrial minerals and rocks produced are rolling stone, marble, quartz, feldspar and mica. the following: grinded rocks (31.88%); lime (19,42%);

16 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina serpentine (7,74%); rolling stone (6,58%); gypsum The dolomite is part of the sedimentary sequence (5,27%); basalt (4,80%); clay (4,57%). of the Sierras Septentrionales or Tandilia, at the Sierras Bayas area (Olavarría district). There are numerous The plastic clay production is concentrated in the quarries in the Sierras Bayas, that are currently in Primero River basin (Montecristo), carrying deposits from activity, reopening and reconverting. the Pleistocene age. Kaolin can be found nearby Nono. The clay production reaches 145,000 tons per annum. The gypsum from the Quequén basin is used mainly for cement fabrication, even though its grade of ores is low. The serpentine exploitation, destined for the iron and steel industries, is conducted at the La Maga deposit, in Grinded rocks are produced in the Sotuyo passage, Rincón de los Sauces, producing 146,600 tons per annum. Cerro del Aguila and Azul.

The ornamental rock production (blocks) is based Riprap and selected soils exploitations are greatly in the exploitation of granite, marble and a variety of sought-after, constituting the greatest mining mountain range rocks. The exploited sites are located productions in the province. in Sierra Chica, having quarries that are practically paralyzed due to stock surplus. The granite that makes up the crystal base in the province is used as arid for construction and The sand and rolling stone exploitation focuses in ornamental materials. From an economic standpoint, the Primero, Segundo, Tercero and Cuarto Rivers, as the extractive activity of rocky materials is located well as in the Capital, Santa María, Punilla, Tercero mainly in three districts: Olavarría, Azul and Tandil, Arriba and Cruz del Eje departments. The production representing 90% of the provincial production. Aside reaches 1 Mt. of sand and 0.5 Mt. of rolling stone. from these districts, Sierras Australes or Ventania in Tornquist and Pigué exploit rocky materials as well. Basalt is exploited in the Chaján Cerro La Leoncita The block granite production reaches 79% of the total area, and in Berrotarán, to be used as broken stone produced in the country. (basalt, arid for construction). Quartzite from the General Puyrredón, Balcarce, Buenos Aires: the clay exploitation is located in the districts Torquist and Pigué areas is used as arid for construction, of Lobería, Necochea, Benito Juarez, Azul and Olavarría. blocks, slab, etc.

The limestone extracted from the Sierras The beach sand found at the south end of the province Septentrionales is well known for its production value, (between Necochea and Bahía San Blas), is an important especially the one extracted from Olavarría that, along titaniferous mineral resource, that has been studied for its with Barker’s extraction in Benito Juarez, is used for eventual use in the production of white titanium. making cement and lime.

There are various isolated black lime bodies in the New Cuyo Region Barker area, nearby the Villa Cacique. The Barker Deposit of Loma Negra C.I.A.S.A. is also found in this area. It is The New Cuyo Region (“NCR”) comprises the provinces important to keep in mind that the standard composition of La Rioja, Mendoza, San Juan and San Luis, which add up of these limes is: silicious dioxide, varying between 7% to a total surface area of 404.906 square kilomenters. and 16% (very impure limes), low magnesium oxide contents and ferrous oxide only in the chocolate variety, The climate in this region is arid in the western medium to low sulfur content and low phosphorous and cordilleran area, and template towards the east. anhydride. The calcium carbon percentage in black limes The former is known as Árido Andino de las Sierras y is between 85% and 90% average. Bolsones and towards the south as Árido Andino Puneño,

17 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina corresponding to the west of the territory (provinces disseminated. Veins are historically important since of La Rioja, Mendoza and San Juan). The latter is the they have been exploited from the late 1800’s to 1925. transition template climate, and it is characteristic of the rest of the region (province of San Luis). The veined mineralization of Au-Cu, which includes mines such as La Mejicana, Los Bayos and Offir, Economy: most of the mining production in the constitutes a typical association of a high sulfiding region relates to application rocks. In San Juan, crushed epithermal deposit. In the area of La Estrechura there dolomite, marbles, limestone, sand for construction are is disseminated Cu-Mo ore. Even though there is no worth mentioning, among others. Production of metals information concerning reserves, it has been estimated is restricted to uranium concentrates in Mendoza. In that in La Estrechura the amount is of 300,000,000 t. San Luis, feldspar, quartz, stone slab and granite in with grades of ore reaching 0.06% Mo and 0.5% Cu, blocks, among others, are the most important. while in La Mejicana reserves have been estimated to be of 250,000 t. with grades of ore reaching 8.4 g/t. Au. The main mining products are: sand for construction, rocky grindings, clays, limestone, granite (in blocks), The King Tut mine contains mesothermal veins of common salt, dolomite (crashed), gypsum, rolling Co-Ni located in Ordovician slates. Reserves of 5,000 t. stone, marble and quartz. have been indicated, with grades of ore reaching 0.83% Co and 5.9 g/t. Au. Mining Potential: the NCR is undoubtedly one of the regions with the highest mining potential given As for industrial minerals, refractory clays are the importance of the metal deposits which have been exploited in the district of Amaná, resulting in a discovered in its territory. Some deposits are still in production of 6,000 t. per year. Pyrophyllite is exploited the feasibility stage, others in the exploratory stage, in the district of El Chuschin-El Cosme, resulting in an and others in the production stage. Therefore, the average production of 3,000 t. per year. metalliferous mining activity represents an element of development and economic growth for the region. Finally, with regard to ornamental rocks, stone slab is produced in the district of Olta-Zona Loma Blanca, With regard to non-metalliferous mineral resources resulting in a production of 10,000 t. per year, while 2,500 and application rocks, there are important reserves of t. of black granite per year are produced in Alcázar. gypsum (Mendoza); limestones for lime and cement (Mendoza – San Juan); quartz, feldspar and mica (San Mendoza: among the metalliferous minerals found in Luis, San Juan); talc (Mendoza), bentonites (San Juan, this province, copper porphyry with molybdenum and Mendoza, San Luis, La Rioja) and ornamental rocks (San gold are noteworthy, together with epithermal gold. Luis, San Juan, La Rioja, Mendoza), plus one of the most important potassium salts deposit in the world. Yalguaraz is a prospect of Cu and Au varying from epithermal to mesothermal, characterized for its veined La Rioja: the following metal deposits are worth and disseminated mineralization, both of which are mentioning: high sulfiding disseminated epithermal, related to chalko-alkaline intrusives corresponding to skarn and veined. the upper Paleozoic. While there is no information about reserves, the resources are promising. La Helvecia is a deposit with a mineralization of Pb-Zn, located between Ordovician limestones. The Paramillos Norte is a deposit of Cu-Au-Mo, which may estimated reserves are of 361,000 t. with grades of ore be assimilated to a copper porphyry which develops Cu- reaching 8.3% Pb, 18,8% Zn and 91 g/t. Ag. Au veins on its margin. Even though resources have not been defined, it is estimated that the veined system holds The Famatina district is economically relevant. the highest expectations, containing over 2,000,000 t. A It presents two types of mineralization: veined and gapped area would contain more than 50,000,000 tons.

18 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina

In Paramillos South exists a copper porphyry of Cu- Mendoza is the principal producer of talc in the Mo-Au, in relation with a mesosilicious tertiary body. country. Reserves were estimated in the order of 150,000,000 tons with 0.58% Cu and 0,06-0,4 g/t. Au. The production of gypsum reaches 100,000 tons per year, in the areas of Puente del Inca and Malargüe. The San Jorge deposit is a copper porphyry with mineralization disseminated of Cu connected with a Limestone is exploited in Cerro de la Cal and copper granite of Paleozoic age. Reserves were estimated Cerro Blanco. in 146,000,000 tons with 0.5% Cu and 0,2 g/t. Au, and in the primary area reserves were estimated in Other industrial minerals with a variable exploitation 30,000,000 tons with 0.8% Cu. At the moment the grade are quartz, fluorite and sulfur of sodium. area is under exploration. Regarding stones, slab stone is exploited. In connection with epithermal gold deposits, it is worth mentioning Oro del Sur, a veined system of high There is a production of sand and rolling stone in Godoy sulfuration of Au-Cu. In this deposit, the Au is in the Cruz and in the area of General Alvear and San Rafael city. pyrite. In four veins in the oxidation area the oxidation was estimated in 460,000 tons (positives + probable) San Juan: in this province the metal mining potential is with a medium grade of ore of 8 g/t. Au. located in different types of deposits, such as the skarn type and epithermal auriferous of high sulfuration (as Regarding the non metallic minerals of industrial a part of the metallogenetic strip El Indio), the copper type, we can mention the production of clay and porphyry and the veins mesothermal. kaolin, used by the red ceramic industry, the Portland cement and the white concrete, refractories, drilling Among the deposits of type skarn, Gualcamayo is muds, clarification of wines, among many others. The a deposit of Au in paleozoic limestone, up to the date production hubs of clay are located in the Departments there is no available information with respect to the of Las Heras, Tupungato and San Rafael with volumes grades of ores and reserves. in the order of 200,000 tons per year. In the Valle del Cura there are different prospectus Regarding sulfur, the principal deposit is Volcano of deposits of Au epithermal of high sulfuration within Overo, with 1,000,000 tons of reserves, and which the metallogenetic strip El Indio; among others: exploitation finished in 1980. Despoblados, Jagüelito, Los Amarillos, Lama (with grades of ores of 20 to 50 g/t. Au), La Ortiga, Río There are deposits of barite and celestite (Rojino, Frío, Tórtolas (with superficial grades of ores of 14 Luthema, Pirucha, among many others) actually inactive g/t. Au) and Vacas Heladas (with superficial grades of and they were exploited to be used as a densified for ores of 0,4 to 8,4 g/t. Au). The area El Carmen has drilling muds. disseminated mineralization of Au-Cu in transition between epithermal of high sulfuration and deposit of The sodium chloride is located in salines (Salina strip type of Maricunga. In Veladero, there are grades del Diamante) with a production between 15,000 and of ores of 0,3 to 0,8 g/t. Au in the south of the river 30,000 tons per year and as a salt stone (mine Luncay – Taguas, reaching up to 3,3 g/t. in zones of breaches; 22,5 Mt. of reserves) about 200 tons per year. recent studies in the area defined a project of first magnitude, acquired by Homestake for it development. In the extreme south of the province the presence of Zancarrón has reserves of 2,500,000 tons with grade of one of the principals reservoirs of chloride potassium in ore 3 g/t. of Au and very good potential resources. The a worldwide level (1.500 Mt) in which measured 203 prospectus La Poposa is located in a dome of chalko- Mt. de Silvita is worth mentioning. alkaline stones of the superior tertiary and belong also

19 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina to the metallogenetic strip El Indio; even though there In Guachi the epithermal veins of Au are located are no reserves calculations, grades of ores of 2-3 g/t. in paleozoic stones, with contents of up to 25 g/t. Au. were obtained in the alter areas, 50 g/t. in veins, and Information of reserves is not available. 3,16 up to 18,2 g/t. Au in fractured zones. Regarding the industrial minerals it should be Pachón is a copper porphyry deposit. The mentioned the main exploitation of clay, bentonite, mineralization of Cu-Mo is in veins, disemination and quartz, sulfur aluminum and magnesium. stockwork. Reserves of 687,000,000 tons are considered with 0.63% Cu and 0.014% Mo. Clay is obtained from the deposits of San José and San Juan and the bentonite from the area of Barreal and In Hualilán, old auriferous district exploited since pre- Mogna, Jáchal Department. hispanic periods, the mineralization is presented in veins and also as a consequence of a replacement metasomatic The extraction of quartz, feldspatr and mica is in limestones ordovician produced by subvolcanics dacitics concentrated in pegmatite bodies of the Sierras of Valle miocene bodies; also there are bodies of breach. The Fértil, La Huerta and Pie de Palo, with a production in 1997 reserves reaches 270,000 tons and the grades of ores 10 of 9,747 tons, 2,571 tons and 120 tons, respectively. g/t. Au. The potential of this deposit resides in the reserves that could increase for the evaluation of other veins of the The production of limestone is in the order of 1,2 district and for the existence of disseminated gold in the Mt. anually, concentrated in quarries located in San Juan subvolcanics bodies and in the sedimentary box. of the Andes (The Berros-Jáchal). The same centers are producers of calcite, with a production of 40,000 tons Regarding the mining district Castaño Viejo, is a vetiform annually and reserves in the order of the 5 Mt. mesothermal deposit of Pb-Zn Ag, which exploitation was initiated during the pre-hispanic period. The stone box is The deposits of dolomite are located in the same composed of volcano-sedimentary paleozoic stones and Andes limestone strip, in the area of Villicún (quarry El the mineralization is related to tertiary quartz monzonite. Volcán). Its main uses is the siderurgia industry and the Reserves were estimated in 614,000 tons with grades of ores production reaches the 0,5 Mt. annually. of 7.5% Zn, 7.4% Pb, 0.15% Cu and 72 g/t. Ag. The province has important reservoirs of dry stones, In the district of Marayes or Cerro Blanco, there being the river- bed and the beach of San Juan river the are mineralizations of Pb-Zn-Ag-Au of two types: most important ones. veinds and of replacement. The veins are located in metamorfitas (Caledonia mine) and in replacement San Luis: the mining potential of this province is related bodies in limestone (Bella Blenda mine). In Caledonia to its deposits of epithermal gold, massive sulfides and the grade of ore of gold reaches 20,8 g/t. in veins and disseminated wolfram. 2,2 g/t. in associated breaches. The auriferous district La Carolina has a long- The district of Tocota was explorated long ago, and standing mining history and it has been exploited for is considered as an epithermal auriferous deposit. It ages. Mineralization is associated with volcanic gaps consists of veins of Au-Ag-As related to granodiorites and domes, probably based on the Pampean mountains. and dacites. Although information of reserves is not The gold is in pyrite form and is related to breached available, the grade of ore reaches 20% As, 4-8 g/t. Au bodies with a typical alteration of the low sulfide and 6-20 ppm Ag. It is an area with good perspectives, deposits. Mineralization is disseminated, in streaks and considering that different areas with hydrothermal it is sometimes formed by alluvial deposit. Even though alterations and volcanic breaches are associated, as well there are no reserves data, it has been determined that as the intense magma and gondwana activity.

20 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina the grades of ore in trenches are of between 1 and 3 g/t. snowy and humid of the Patagonic Cordillera. The first Au, and of between 0.3 and 3.2 g/t. Au in drillings. corresponds to the south (Tierra del Fuego and south of Santa Cruz) and the other two correspond to the Andes Las Águilas is a Ni-Co-Cu deposit of the massive area (Santa Cruz and Chubut). The arid climate is sulfide type associated with mafic and ultramafic rocks, characteristic of most of the territory (Neuquén, Santa the latter of which is in the metamorphic foundation of Cruz, Río Negro and Chubut). low and medium degrees. According to metallurgical studies, the processing is technically viable. Total reserves Economy: as of 1998, the production of metalliferous are of 2,220,000 t. (proved + probable). The grades of ore minerals has been driven by the start-up of Cerro reach 0.51% Ni, 0.5% Cu and 0.035% Co. Vanguardia, one of three main projects in the context of the boom of metal mining in Argentina. In the district of La Florida, which has been exploited for long, there is mineralization of veined and Following 1997 figures, it is worth mentioning: coal disseminated W. Au and odd soil components are also (Santa Cruz), kaolin (Chubut), bentonite (Río Negro), found. Reserves are unknown, but the grades of ore vary common salt and sodium sulfate (La Pampa), as well as from 0.4 to 1.5% WO3. other non-metalliferous minerals and rocks related to the construction industry. With regard to industrial minerals and rocks, the province’s main potential consists of pegmatite minerals The main mining products are: bullon of gold and (quartz, feldspar, beryl, mica), salt, limestone, granitic silver, mineral coal, bentonite, kaolin, common salt, rocks and stone slab. clays, rolling stone, construction sand, gypsum, rocky grindings and sodium sulfate. The exploitation of pegmatites is mainly concentrated in La Toma-Naschel. Reserves are over 3 Mt. and the Mining Potential: the region hosts a variety of resources, most important mines are La Discutida, Beatriz, La ranging from the energetic to the metalliferous and Norma, among others. non-metalliferous.

Other minerals that may be found in the province Large sedimentary basins such as Magellan, Gulf of are fluorite, garnets, vermiculite, gypsum, salt and clays. San Jorge and Neuquina provide petroleum and gas. Limestone reserves are of as much as 8 Mt. The Nordpatagonic and Deseado massifs contain Stone slab deposits in Estancia Grande, El Durazno metalliferous deposits, mostly industrial minerals and and Totoral are a very important resource. Granite is application rocks. Both geologic units are significant mainly produced in the quarries known as La Peñas, la for the extraction of industrial minerals. For example, Totora, La Lomita and Los Chorrillos. the southern area of the Nordpatagonic massif contains the largest kaolin reserve in the country. The intense extractive activity of application rocks is due to the Patagonia Region impact of the Mesozoic era in the region.

The Patagonic Region (“PR”) comprises the In the Southern Patagonic Cordillera, mining provinces of Chubut, La Pampa, Neuquen, Río Negro, production is mostly related to the coal beds in Río Santa Cruz and Tierra del Fuego, which add up to a Turbio. Towards the north of the Northern Patagonic surface area of 930,731 km2. Cordillera and the south of the Main Cordillera, mining production is mostly related to metals and, to a lesser The climate is cold in the western, cordilleran area, extent, industrial minerals. and arid towards the center and south of the region. The various cold climates are known as Magellanic,

21 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina

With a few exceptions, a proper valuation of the Bentonite in the Zapala area (El Beto, Cerro potential of these resources is lacking, due to the absence Bandera) corresponds to montmorillonite. The strata of specific technical studies. are of the tertiary era and production reaches 56,000 t. per annum (1997). Neuquén: the metalliferous mining potential of this province is determined by the copper porphyry deposits The combined production of barite-celestite is and gold mesothermal veins. of about 8,500 t. The deposits, which belong to the Mesozoic era and have a sedimentary origin, are located Campana Mahuida is a copper porphyry containing in the Departments of Loncopué, Ñorquin y Picunches Cu-Au-Mo related to magmatic chalko-alkaline and cover a surface area of 4,000 km². The Achalay, Río Cretaceous-to-Oligocene rocks and produces an Agrio, Santa Barbara, 4 de Noviembre and La Cecilia intense hydrothermal alteration. In the oxidized area, beds are worth mentioning. The geologic reserves of the 4,700,000 t. with 0.73% Cu have been evaluated, while area are of more than 2 Mt. 33,000,000 t. with 0.61% Cu have been evaluated in the supergenic area, with uniform grades of ore reaching Gypsum reserves are over billions of tons and are 2.3 g/t. Au and 132 ppm Mo. located mainly in the Auquilco Formation. In the Vaca Muerta area, they are exploited to produce baked gypsum. In the mining district of Andacollo there are over 50 mesothermal veins of gold. 60% of such gold is As for rocks, there is exploitation of tuffs and, associated to sulfides and 40% appears to be free. sporadically, marble blocks. The two most important mines are Erika and Sofía. The former is located in propylitized sediments Limestone is exploited in several levels. These belonging to the upper Paleozoic; disseminated and correspond to the quarries of El Salitral, Los Catutos, veined mineralization consists of pyrite and native Cuchillo Curá and Vaca Muerta. It is used for the gold. Reserves of 129,240 t. (positive + probable + production of lime and Portland cement. possible) with grades of ore reaching 9.73 g/t. Au have been measured. There are very important potential In the Zapala and Picunches areas, construction resources in this mine. In Sofía, mineralization of sand and debris are produced. gold is next to pyrite in four seams that penetrate into the Tobas Inferiores and the Huaracó Formation Santa Cruz: the metalliferous mining potential of this of the Upper Carboniferous; measurements have province is reflected in the numerous areas containing shown an amount of 201,850 t. (positive + probable deposits of low sulfiding epithermal gold, as well as in + possible) and grades of ore reaching 15.64 g/t. Au. polimetallic and mesothermal veins.

La Voluntad is a copper porphyry deposit with In Cerro Vanguardia there is a system of epithermal disseminated and stockwork mineralization of Cu-Mo. auriferous veins located in the Chon Aike Formation The estimated reserves are unknown, even though there (Bahía Laura Group) and corresponding to the Jurassic are indicative values of 0.2% Cu. era. Mineralized structures are the result of the filling of fissures, and they add up to 90 km. long. The deposit is Regarding industrial minerals, the province stands of the adularia-sericite kind (low sulfiding), with scarce out for its deposits of barite-celestite, limestone, hydrothermal alteration and low sulfide content. About gypsum, bentonite and clays. 30,000,000 t. of reserves have been measured, and the grades of ore reach 9 g/t. Au and 10 to 60 g/t. Ag. The Clays are concentrated south of Zapala (La Graciela, area is full of potential resources. La Beatriz, Chita, among other mines). The district reserves are over 10 Mt. and the annual production is of The epithermal auriferous deposit La Josefina is of about 64,000 t. the adularia-sericite kind (low sulfiding). It consists of

22 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina a number of veins filled with open spaces which add Other industrial mineral resources are barite (in the up to 11 km. These veins are located in the same rocks Vanguardia area), kaoline (in the San Julian area, Cerro than Cerro Vanguardia. There is siliceous hydrothermal Rubio and Lote 8 mines), salt (Cañadón Grande, La alteration, which coincides with topographic heights and Lobería, La Voluntad, among others) and gypsum (San comes with sericitization and kaolinization. Chemical Julián), although the production of all these minerals is tests performed on surface samples have shown that less significant. grades of ore reach 1 to 8 g/t. Au. The production of sand for construction and riprap Like Cerro Vanguardia and La Josefina, Manantial is concentrated in Lobería and La Esperanza, and is Espejo is an epithermal auriferous deposit of the mainly destined to Comodoro Rivadavia. adularia-sericite kind (low sulfiding) with Au-Ag veins which reach as much as 2 km. Measured reserves are of Chubut: in this province the metal mining potential is 885,000 t. whose grades of ore reach 9.62 g/t. Au and represented principally by polimetalic deposits. 235 g/t. Ag. With the mine name Angela is described the In the El Dorado-Monserrat district there are about district of Los Manantiales, which includes the veins 30 auriferous veins of quartz and barite, of the adularia- of Angela, Clara Natividad and Susana Beatriz. They sericite kind (low sulfiding). These are located in are all covered with polimetalic veined deposits (Pb- volcanites in the Bajo Pobre Formation. The total length Zn-Cu-Au-Ag) that are located in jurassic volcanites. reaches 5 km. The amount of reserves is unknown, but The veins are of filled fractures and of replacement, and grades of ore reach 10.3 g/t. Au and 164.21 g/t. Ag. the hydrothermal alteration in the stone of box is given These quantities are variable, and the Au/Ag relation by pyritization, silicification and sericitization. The increases in quartz and decreases in barite. mineralization is located in jurassic volcanites of the Andes and they are connected in a sub volcanic body Laguna Guadalosa is an auriferous epithermal deposit of cretaceous age. Reserves were calculated in 350,000 of the same kind as Cerro Vanguardia. It has multiple tons of minerals proved with grades of ores of 5.6% Zn, veins and it is almost 8 km. long. The amount of reserves 2.9% Pb, 0.38% Cu, 50 g/t. Ag and 3,5 g/t. Au. is unknown. Grades of ore vary from 2 to 3 g/t. Au. Cerro Gonzalo is an auriferous epithermal deposit, Arroyo Correntoso (also known as Laguna del in which the disseminated mineralization is related to a Desierto) consists of a mesothermal vein of Pb-Zn-Ag- cretaceous batholith which includes volcanites from the Cu-Au, characterized by disseminated mineralization. Andes and jurassic piroplastities. The mineralization and Reserves have been estimated to be of 3,000,000 t. with the hydrothermal alteration are related to porphyries average grades of ore reaching 1,8% Zn, 0,5% Pb, 0,5% dioretic granite. The alteration is represented by Cu, 0,6 g/t. Au and 5,5 g/t. Ag. potassium, clayish and turmalinic types. The reserves could be of 670,000 tons, and grades of ores were Río Oro is a polimetallic veined desposit (Au-Ag-Pb- measured up to 5 g/t. Au, 92 g/t. Ag y 480 ppm Mo. Zn-Cu) located in Neopaleozoic quartzites. Seventy (70) km. south up to the lake Nansen area there is a strip of Huemules deposit presents veined mineralization exploration favorable to the same sort of deposits. There related to dikes from the Andes and tertiary riolitics. is no information concerning reserves and grades of ore. There is hydrothermal alteration given by silicea, clayish, propilitic and piritic types, that constitute an As for industrial minerals, the province counts with anomaly of color. The reserves could be of 60,000 clay resources in the San Julian area, where reserves are tons with grades of ores of 8,3 g/t. Au, 20 g/t. Ag and of several millions of tons. These are loam reserves which 1.5% Zn. They present good potentiality given by the make up part of the Baqueró Formation, belonging to extension of the area. Within the area, other auriferous the lower Cretaceous. polimetalic prospectus are in the exploration stage.

23 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina

Located in the Andes introduced by dacitics dikes, La Pampa has been the main national sodium the deposit of Lake Fontana consists in polimetalics chloride producer since 1912, with almost 55% of mesothermal veins of Zn-Pb-Ag-Cu. Reserves were the national production. Several associated salts with estimated in 150,000 tons with grades of ores of 4.5% industrial potential such as sodium sulfate, sodium Zn, 1.6% Pb, 0.6% Cu, 14 g/t. Ag and 1 g/t. Au. carbonate, magnesium salt, potasium salt, lithium salt, bromide salt and gypsum are found together with The main industrial minerals resources in sodium chloride. The overall economic profitability of Chubut correspond to clay and kaolin, the province such minerals rests on the production, recovery and also has reserves of fluorite, barite, gypsum and salt, industrialization scale of the exploitation. among others. Among the main sodium chloride salt deposits Clays are concentrated in the area of the river of the province we can find Salinas Grandes de Chubut. They are from sedimentary origin, generated Anzoátegui, 24 km north of Río Colorado and from for the alteration of volcanic stones. The deposits 5km SE of the town of Anzoátegui, Caleu-Caleu of La Valeriana, Colón, Las Cars, Acrópolis and Meseta Department. It has an extention of 12km long and Montemayor are worth mentioning. a width of 3km. Two hundred and fifty (250,000) tons of sodium chloride are harvested annually, with Kaolin concentrates which constitutes the main a concentration of 99,4%. Other important salt district of the country in the valley of the river Chubut. deposits are Salina de Callaqueo, Salina El Chancho, It covers an area of 750 km2. In the mineralogical Salinas Grandes de Hidalgo, Salinas Colorada Grande composition appear the kaolinite, quartz and illite, with y Chica and Salina Salitral Negro. less content of halloysite and montmorillonite. Regarding sodium sulfate, the main salt deposits The deposits of limestone are located in the area are located in the center east region of the province, in of Comodoro Rivadavia (Sindicato, Arroyo La Mata, Guatraché and General San Martín. La Pampa is the most Fernandez Lagoon); in cretaceous sequences in the important sodium sulfate producer of the country. It is area of Bahía Bustamante (La Esther, 220 Mt), in the worth mentioning that most saltworks which only produce departament of Gaiman (La Alicia), among others. sodium chlorate would be also capable of producing sodium sulfate. Salina Colorada Grande has a sodium Among the ornamental stones, the production of sulfate reserve of 59 million tons and Salina de Hidalgo porphyry in slabs and paving stones, of grey and red colors, of about 7,3 million tons. Other sodium sulfate deposits belonging to jurassic volcano units should be mentioned. worth mentioning are lagunas de Guatraché, La Salitrosa, Depósito Villa Alba, La Ernestina and El Pioner. La Pampa: saltworks are the sole current and potential extractive industry available in the province. La Pampa Sodium carbonate is also an important resourse. is one of the most important national producers of salt The main sodium carbonate saltwork is Sulfatera La and has a strong potential of growth. Ernestina, located in the Utracán valley. It has known reserves of 45,000 tons. Sodium chloride is the best known and most exploited mineral, although sodium sulfate, gypsum, bentonite, Gypsum can be found in the Puelén and Cura Có construction sand and carbonatic rocks are also extracted. departments, with estimate known reserves of more Other industrial minerals such as diatomite, quartz, red than 50 millon tones of firt class mineral containing clay, calcite, feldespate and kaolin are almost not exploited more than 90% of SO4Ca.2 H20. La Pampa produces and there is little technical knowledge due to the lack of 5 million cubic metres of gypsum boards anually. exploration and economic incentive. During the 1970’ bentonite deposits were discovered in La Pampa. Exploitation commenced in 1979 in the

24 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina

Puelén Department. The mineral is utilized in smelter Gypsum deposits of cretacic origin are located in the and oil industries. General Roca department. The most important quarries are Corral, La Estrella del Sud, Aguada Malleo, Galeano Riprap can be found in the eastern side of the province, and Pico Blanco. which is mostly used for the construction of roads. Kaolin deposits are located in Los Menucos area. There are not conclusive evaluations supporting These deposits are from hidrothermal origin, and are the potential exploitation of any other minerals in La concentrated in the southeast and southwest areas. The Pampa province. southeast deposits occupy an area of 50 km2, located in sequences of riolitic vulcanites. Don Sergio, Trinidad- Río Negro: this province has epithermal to mesothermal Laurita, Blanquita, El Penasco y Nahuel Guerr are the deposits of Pb-Ag-Zn, veined wolfram and sedimentary main quarries. The southwest deposits occupy an area of iron ore. 45 km2, and the main quarries are Adelina, La Fortuna, Amanda and El Piliquín. Gonzalito mine, toghether with Vicentito mine, Polito mine, Maria Teresa mine and several others, are important The main limestone deposits are Pailemán (3 Pb-Zn-Ag-Mn-F mines. Gonzalito mine is a veined Mt), Yaminué (4 Mt), San Antonio Oeste (1 Mt) and epithermal to mesothermal deposit exploited during the Valcheta district (Lote 54, 0,9 Mt), this last together 1950’, a result of fracture fillings and located in shales and with dolomite (0,3 Mt). proterozoic anfibolites. Vicentito mine has an estimate reserve of 23,000 tons with grades of ore of 8,45% Pb. Tierra del Fuego: Beatriz mine is a deposit of volcanogenic metamorphized polimetalic massive San Martín veined wolfram deposit is located in the sulfides (Zn-Pb-Cu-Au-Ag), placed in a mesozoic San Martín-Lloncura permotriasic granite stock. It has volcanic-sedimentary sequence with low grade regional estimate reserve of 45,400 to 250,000 tons with grades metamorphosis (Yahgán formation). Mineralization of ore of 1,23% of WO3. is present in lenses and stockworks, and is related to riolitic sinsedimentary domes. Although reserves are Sierra Grande mine is a sedimentary iron ore deposit not estimated, mine samples gave grades of ore of exploited until 1992. Estimate reserves reach 80,000,000 0,9% Pb, 3,4% Zn y 40 g/t. Ag. tons with grades of ore of 54% Fe and 1,4% P. There are other areas in the province currently being Bentonite, diatomite, gypsum and kaolin deposits explored, known as Arroyo Rojo, Sargent, Río Hambre, are the main reserves of the province. Fluorite, salt and Río Encajonado, Gregores and Lago Guanaco. Terrain clay can also be found. Among rocks there are reserves samples gave grades of ore of 8,62% Zn, 1,79% Pb, 0,89% of porphyry and potential reserves of block granite. Cu, 0,4 g/t. Au y 37,2 g/t. Ag. There is an 11km strip between Sargent and Gregores, near Ushuaia, favorable The main bentonite reserves are located in Lago to massive sulfides, with the presence of riolites. Pellegrini (Allen formation). There are also first class peat deposits for Río Negro is the most important diatomite producer agricultural use. of the country. Diatomite is mostly used as a filtrant, absorbent and decolorant. Deposits are found in lakes Heavy minerals and gold in low proportions can be located in the 25 de Mayo department. Estimate reserves found in coastal alluviums. are of 1 million tons.

25 Current status. Projections

5 The mining industry in Argentina has experienced an exceptional and rapid growth which has had a direct impact in the increase of mineral production, exports and Mining activity employment, and its development constitutes a tangible in Argentina alternative for the development of the national economy.

According to a recent publication of the National > Current status. Projections Mining Department, during 2007 the investments in the mining sector were over AR$5,600 millons with > Mining institutions several new projects, resulting in an increase of 740% in comparison to 2003. Over 40,000 direct and 192,000 > Main mining projects indirect jobs were created, resulting in an increase of 120% in connection to 2003. > Mining companies with investments in Argentina Development projections for the mining industry in Argentina for the year 2015 are highly positive: (i) 18 mayor exploitations; (ii) AR$38,500 million in investments; (iii) AR$28,000 million in exports; (iv) 87,250 direct jobs; (v) 316,000 indirect jobs; and (vi) a production of AR$36.200 million.

Such projections together with an increasing global demand for precious metals, the region’s great mining potential, and a strong development of benefit policies to this industry, have turned Argentina into a priviledged country for mining projects, chosen by more than 23 countries investing in mining exploration and exploitation.

Mining institutions

There are several national and provincial institutions in Argentina grouping mining-related parties interested in the development of mining activity.

Among national institutions, we will find the: • Cámara Argentina de Empresarios Mineros (CAEM). • Asociación Obrera Minera Argentina (AOMA). • Consejo Asesor de la Producción Minera (CASEPROM). • Fundación para el Desarrollo de la Minería Argentina (FUNDAMIN).

On a provincial level we will find: • Cámara Minera de San Juan. • Cámara Minera de La Rioja.

26 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina

• Cámara Minera de Salta. Bajo La Alumbrera (Province of Catamarca) • Cámara de Empresarios Mineros de Chubut. Operated by: Minera Alumbrera Limited (consortium • Cámara Minera de Jujuy. of Xstrata Cooper (Swiss, 50%), Goldcorp (37.5%) and • Cámara Empresaria Minera de Córdoba. Yamana (12.5%). • Cámara de la Piedra de la Provincia de Buenos Aires. Minerals: copper, gold and molybdenum. Estimated investment: USD 1,240million. Stage: Production. Main mining projects Farallón Negro (Province of Catamarca) There are currently around 330 mining projects in Operated by: Yacimientos Mineros de Agua de Dionisio. Argentina. It can therefore be established that mining Minerals: gold, silver and manganese. activities are of great importance for the development Stage: Production. of the country. Mining projects have promoted the creation of services, infrastructure, employment and Salar del Hombre Muerto (Province of Catamarca) other progress-provider externalities. Operated by: Minera del Altiplano S.A. (FMC Lithium Corp., subsidiary of FMC Corporation, USA). Several mining projects can be mentioned: Minerals: lithium. Stage: Production. Pirquitas (Province of Jujuy) Operated by: Silver Standard Resources Inc. (Canada). Casposo (Province of San Juan) Minerals: silver, lead and zinc. Binational project. Stage: Final stage of construction. Operated by: Troy Resources NL (Australia). Initial investment: USD 220 million. Minerals: gold and silver. Initial investment: USD 45 million. El Aguilar (Province of Jujuy) Stage: Exploration and economic feasibility studies. Operated by: Compañía Minera El Aguilar S.A. (Glencore AG) El Pachón (Province of San Juan) Minerals: lead, zinc and silver. Operated by: Pachón S.A. Minera (subsidiary of Xstrata Stage: Production. Cooper). Estimated investment: USD 155 million. Minerals: copper and molybdenum. Estimated investment: USD 2,166.66 million. Diablillos (Province of Salta) Stage: Pre-Feasibility. Operated by: Silver Standard Resouces Inc. Minerals: silver and gold. Gualcamayo (Province of San Juan) Stage: Exploration. Operated by: Minas Argentinas S.A. (Yamana). Minerals: gold and silver. Taca Taca (Province of Salta) Estimated investment: USD 150 million. Operated by: Global Cooper Corp. (Canada). Stage: Production. Minerals: copper, molybdenum and gold. Stage: Exploration. Pascua Lama (Province of San Juan) Argentina-Chile binational project. Agua Rica (Province of Catamarca) Operated by: Barrick Exploraciones Argentinas S.A. Operated by: Minera Agua Rica LLC Argentina Branch, (Barrick Gold) subsidiry of Yamana Gold Inc. (Canada). Minerals: gold and silver. Minerals: copper, molybdenum and gold. Estimated investment: USD 2,583.33 million. Estimated investment: USD 3,000 million. Stage: Feasability / Obtention of permits. Etapa: Feasibility.

27 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina

Veladero (Province of San Juan) Cerro Vanguardia (Province of Santa Cruz) Operated by: Minera Argentina Gold S.A., subsidiary Operated by: Cerro Vanguardia S.A. (AngloGold of Barrick Gold Corporation (Canada). Ashanti Ltd, 92.5%, and FO.MI.CRUZ S.E., minority Minerals: gold and silver. shareholder, with the 7.5%). Estimated investment: USD 646 million. Minerals: gold and silver. Stage: Production. Estimated investment: USD 382.33 million. Stage: Production. Potasio Río Colorado (Province of Mendoza) Operated by: Vale Do Río Doce (Brazil). Manantial Espejo (Province of Santa Cruz) Minerals: potasium. Operated by: Minera Triton Argentina S.A., subsidiary Estimated investment: USD 2,333.33 million. of Pan American Silver Corp. Stage: Feasibility. Minerals: silver and gold. Estimated investment: USD 200 million. San Jorge (Province of Mendoza) Stage: Production. Operated by: Coro Mining Corporation (Canada). Minerals: copper and gold. San José - Huevos Verdes (Province of Santa Cruz) Estimated investment: USD 300 million. Operated by: Minera Santa Cruz S.A., a joint venture Stage: Analisys by the corresponding authority of the of Mauricio Hochschild & CIA S.A. (Peru) and Minera Enviromental Impact Report for Exploitation Stage. Andes S. A. (Canada). Minerals: silver and gold. Calcatreu (Province of Río Negro) Estimated investment: USD 103.33 million. Operated by: Minera Aquiline Argentina S.A., subsidiary Stage: Production. of Aquiline Resources Inc. (Canada). Minerals: gold and silver. Mina Martha (Province of Santa Cruz) Stage: Feasability. Operated by: Coeur D’ Alene Mines Corp. (USA). Minerals: silver and gold. Navidad (Province of Chubut) Estimated investment: USD 18 million. Operated by: Aquiline Resources Inc. Stage: Production. Minerals: silver, lead and zinc. Stage: Exploration - Pre-feasibility.

28 PASTORIZA EVINER CANGUEIRO RUIZ BULJEVICH ABOGADOS doing mining business in argentina

Mining companies with investments in Argentina Following you will find a list of mining companies currently engaged in mining activities or mining projects in Argentina.

Company COUNTRY MINING PROJECTS Admiralty Resources Nl Australia Salar del Rincón (Salta) Alexander Mining Plc. United Kingdom León (Salta) Amera Resources Corp. Canada Mogote (San Juan) Andean Resources Australia Cerro Negro (Santa Cruz) Anglo American Plc. United Kingdom No projects in Argentina / Proyects in Brazil, Chile, Peru. Antares Minerals Inc. Canada Río Grande (Salta) Antofagasta Minerals Plc. Chile No projects in Argentina / Projects in Chile, Ecuador, Zambia and Pakistan Apex Silver Mines Limited USA Quevar and Chinchilla (NW of Argentina) Argentex Mining Canada Owns 14 mines in Santa Cruz and 18 in Río Negro Atw Venture Corp. Canada Los Amarillos, Los Amiches (San Juan) Aur Resources Inc. (Teck Cominco Limited) Canada No projects in Argentina / Development of exploration in South America Barrick Gold Corp. Canada Veladero (San Juan) Cardero Resource Corp. Canada Huachi (San Juan) Castillian Resources Corp. Canada San Luis and Las Águilas (San Luis) Coeur D’ Alene Mines Corp. USA Mina Martha (Santa Cruz) Chapleau Resources Ltd. Canada No projects in Argentina / Projects en Brazil and Peru Compañía Minera Solitario Argentina S.A. Canada El Salto (San Juan) Consolidated Pacific Bay Minerals Canada Cueva del Chacho (La Rioja), Cerro Solo (Chubut) Coro Mining Corp. Canada San Jorge (Mendoza) Depromin S.A. (Tenke Mining Corp.) Canada Vicuña, Batidero, José María, etc. (San Juan) El Portal Resources Ltd. Canada Tigre (Mendoza), La Pampa and Arroyo Verde (Chubut), Exeter Resource Corp-Estelar-Cognito Canada La Cabeza (Mendoza), Cerro Moro (Santa Cruz) Global Cooper Corp. Canada Taca Taca (Salta) Mauricio Hochschild Peru San José - Huevos Verdes (Santa Cruz) Ima Resources Canada Las Flechas (San Juan) Investor Resources Ltd. Australia Jaguelito (San Juan) Mansfield Minera S.A. Canada Río Grande (Salta) Marifil Mines Limited Canada Amarillo, Carrizal, Manantiales (San Juan) Mega Uranium Ltd. Canada Concarán I, San Martín I and II (San Luis) Minas Argentinas/Yamana Resources-Viceroy Canada Gualcamayo (San Juan) Minera Andacollo Gold S.A. Chile Buena Vista, Erika, Sofía, Julia (Neuquén) Minera Andes Inc. USA Los Azules (San Juan) Minera Aquiline Argentina S.A. Australia Calcatreu (Río Negro) Minera Del Altiplano S.A. USA Salar del Hombre Muerto (Catamarca) Minera Teck Cominco Argentina Canada Development of mining prospects (San Juan) Mirasol Argentina S.R.L. Australia Development of mining prospects (San Juan) Palladon Ventures Ltd. USA Guadalosa, Tres Hermanas, Gran Bajo, Río Deseado (Santa Cruz) Pan American Silver Corp. Canada Manantial Espejo (Santa Cruz) Patagonia Gold Plc United Kingdom La Manchuria (Santa Cruz) and Huemules (Chubut) Rio Doce Argentina S.A. Brazil Rincón de los Sauces (Neuquén) Rome Resources Ltd. Canada Varvarco (Neuquén) Silver Standard Resources Inc. Canada Diablillos (Salta), Pirquitas (Jujuy) Solex Resources Corp. Canada No projects in Argentina / Development of projects in Peru South American Minerals Inc. USA No projects in Argentina / Development of projects in Guyana Southwestern Resources Corp. Canada Development of projects in Peru Stealth Minerals Canada Development of projects in Canada Strategic Resources USA Guanchín, Cuesta de Miranda, Rincón de los Páez (La Rioja) Tnr Gold Corp. Canada El Tapau, Los Azules, El Salto, La Hortiguita, Las Carachas, Batidero (S. Juan) Uranio Ag Switzerland Owns mines in San Luis and La Rioja Urex Energy Corporation USA Río Chubut (Chubut) Wealth Minerals Ltd. Canada Diamante-Los Patos, Ambalayo & Alemania (Salta), San Jorge (Chubut) Xstrata Cooper Switzerland Bajo La Alumbrera Yamana Gold Inc. Canada Agua Rica (Catamarca) Yamiri Gold And Energy Inc. Canada Famatina, El Potro, Helvecia, El Oro (La Rioja)

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