SEGEMARTHE ARGENTINE GEOLOGICAL AND MINING SURVEY

DATA AND TECHNOLOGY FOR MINERAL RESOURCES DEVELOPMENT

Julio Ríos Gómez

SEGEMARSecretaría de Minería

Argentina

Toronto, March 2018

1. SEGEMAR BASIC INFORMATION

2. SEGEMAR SERVICES

3. SEGEMAR MAIN RESEARCH PROGRAMS

4. ARGENTINA MINING POTENTIAL: METALLOGENIC MODELS AND

GEOLOGIC SETTINGS – SEGEMAR APROACH AND DATA GENERATION

CONTENTS

• SEGEMAR: National State Agency created as Directorate ofGeology, Hydrogeology and Mining in 1895 and unified with theInstitute of Mining Technology in 1996 as a decentralizedscientific-technical organization.

• Nowdays, SEGEMAR includes:➢ IGRM (Institute of Geology and Mineral Resources), the geoscientific

branch of the Agency

➢ INTEMIN (Institute of Mining Technology), its technological support.

• Main missions are: ➢ Generate information on the geological and mineral resources of the

Nation.

➢ Constitute the REPOSITORY of geological, mining, geo-environmental and volcanological data of our country.

SEGEMAR SERVICES

INTEMIN: Services for the mining industry

➢ Chemical laboratories

➢ Mineral processing studies

➢ Applied geology

➢ Biomining research

➢ Studies on glasses and ceramics

➢ Technical assitance for industrial projects (quarries, lime and

cement industry)

➢ Minerals for agriculture

➢ Remediation of mining sites

INTEMIN: Main works developed in 2017.

1. Project for recovery of Cu - V - Au. From laboratory to pilot scale. Tested material from

oxidation zone of mineralization.

2. Recovery of fine grain aggregates. Originated from quarries of industrial minerals,

aggregates and carbonates. Production of pre-cast for construction, aggregates for

Portland floor and recovery of minerals such as quartz, feldspars, micas and others.

3. Reduction of emissions from carbonates calcination. Evaluation of the use of rotary

kilns with control of preheating and adsorption of the emitted CO2 underway.

4. Use of natural sulfates as coagulants, in the treatment of drinking water.

5. Optimization of sand for fracturing. To be used in the extraction of shale oil by

fracking.

PUBLIC ACCESS OF GEOLOGICAL INFORMATION

Airborne geophysics

Metallogenic beltsMineral deposits databaseIndustrial minerals

Geochemical dataGeology

TopographyDigital elevation models

Remote sensingprocessed data

SIGAM (Geological and

Mining Environmental

Information System): a

Geographical Information

System for the production,

management and

dissemination of

information and / or

products generated by

IGRM - SEGEMAR with

remote and public access

SEGEMAR – IGRM RESEARCH STRATEGIES

➢ Knowledge of the potential of Mineral Resources in Argentina,based on the data collection and regional geological survey withlatest generation tools and technologies.

➢ Preparation of databases with public and private information, ofpublic access.

➢ Generation and accessibility of the information generated, topromote the exploration and enhancement of the mineralresources of the national territory, for exploitation for thepromotion of the extractive industry, as well as to contribute toregional and national development.

➢ Evaluation of the potentiality and typification of salt lakes andbrines in Argentina (lithium, potassium, minor elements)

➢ Evaluation of potentiality in critical minerals (titanium, rareearths, columbium-tantalum, tungsten, Indium, etc.)

➢ Support for exploration and evaluation of geothermal resourcesfor their use in electric and thermal generation.

➢ New data integration and evaluation programs at provincial levelin order to:

➢ Identify metallogenic belts and new exploration targets by integratinggeological, structural, geochemical, geophysical and remote sensing data

➢ Provide qualified information TO ATTRACT THE INVESTMENTS required forthe development of the mining activity

REGIONAL PROGRAMS

A REGIONAL APROACH: MINING POTENTIAL EVALUATION IN SAN JUAN PROVINCEDepartments of Iglesia, Calingasta, Jachal and Valle Fértil-Caucete

Au, Ag, Cu, Mo and other base metals IGLESIA CALINGASTA JACHAL VALLE FERTILCAUCETE

High Potential 23 45 5 3

Medium Potential 26 49 12 13

Low-grade anomalies 16 27 15 27

Total Targets 65 121 32 43

EVALUACIÓN DEL POTENCIAL MINERO EN LA PROVINCIA DE SAN JUANDepartamentos Iglesia, Calingasta, Jachal y Valle Fértil-Caucete

Au, Ag, Cu, Mo y otros metales base IGLESIA CALINGASTA JACHAL VALLE FERTILCAUCETE

Alto Potencial 23 45 5 3

Potencial medio 26 49 12 13

Anomalías de bajo grado 16 27 15 27

Total Blancos 65 121 32 43

METALLOGENIC MODELS AND GEOLOGIC SETTINGS –SEGEMAR APROACH AND DATA GENERATION

Background: Argentine mining today in numbers

• More than 500 known prospects, including 350 at exploration level• 9 proyects at advanced exploration level and 18 with feasibility or pre-feasibility

studies• 2 mines under contruction and 14 in production

PRODUCCIÓN MINERA DE ARGENTINAPOSICIÓN EN EL MUNDO Y EN AMÉRICA LATINA

Producto % de la producción mundial

Posición en el mundo

Posición en América Latina

Litio 10,00% 3° 2°

Boro 7,00% 4° 2°

Plata 3,60% 10° 5°

Oro 2,00% 14° 4°

Plomo 0,60% 21° 4°

Cobre 0,60% 20° 5°

Cinc 0,20% 26° 4°

METALLIC RESOURCES- NORTHWEST

Main commodities: Cu - Au - Ag - Pb - Zn - SnOthers: U – REE – FeGeological setting:• Cenozoic sedimentary basins• Tertiary magmatic arc• Sedimentary and metamorphic Paleozoic basement

Main metallogenic models:• Tin-silver and polymetallic epithermal Bolivian-type deposits

(Pirquitas-Chinchillas)• Porphyry-Cu and Au-rich porphyries (Taca Taca, Lindero, Arizaro,

Rio Grande). In the back-arc porphyry Cu-Au-Mo deposits (Bajode la Alumbrera, Bajo El Durazno and Agua Rica

• Mesothermal Au vein deposits, with associated antimony (Sierra de Rinconada, Incahuasi mine)

Identified resources: 46 M oz Au – 875 M oz Ag – 58 Blb Cu

METALLIC RESOURCES - CENTRAL REGION –CUYO

Main commodities: Cu-Au-AgGeological setting:• The Andes constitutes one of the richest orogenic belts in the world.

The greatest potential is related to the Tertiary magmatism.

Main metallogenic models:• Epithermals deposits. Argentine portion of the Faja El Indio- Valle del

Cura (Veladero, Lama-Pascua, Jagüelito, Vicuña, Filo del Sol).• Porphyry Cu deposits: NW San Juan Province (Jose Maria, Toro-

Malambo), and SW La Rioja province (El Potro-Sillimanita).• Porphyry Cu belt from SW San Juan Province (Pachón, Altar, Los Azules,

Rincones de Araya, Piquenes, Yunque).• Porphyry-Cu belt of Chile (to the south of El Teniente mine) of the

Upper Miocene – Piocene, extended to the South in Argentina• Porphyry Cu-Mo, Au-rich and Ag-rich polymetallic veins in the Famatina

district, la Rioja Province.• Shear Zones with associated Au-rich veins (Sierra de Chepes, de las

Minas and Ulapes).

Identified resources: 78 M oz Au – 1550 M oz Ag – 122 Blb Cu

METALLIC RESOURCES - PATAGONIA

Main commodities: Au – AgOthers: U – Pb – Fe – Coal

Geological setting:• Jurassic extensional magmatism in the Deseado

Massif (Santa Cruz province, with the largest number of active mines in Patagonia) and Permo-Triassic magmatism in the Somuncura Massif (Rio Negro province).

Modelos metalogenéticos con potencial minero:• LS epithermal deposits (Navidad, Cerro Vanguardia,

Cerro Negro, etc.)• IS epithermal deposits (Pingüino)• HS epithermal deposits

Identified resources: 19 M Oz Au – 1150 M oz Ag

MINERAL POTENTIAL

UNEXPLORED AND UNDER EXPLORED AREAS >70%

OF TOTAL ARGENTINA SURFACE

GOLD

COPPER

URANIUM

COMPLEX POLLYMETALLIC VEINS

LITHIUM

LEAD-CINC (SIMPE POLLYMETALLICS)

IRON

PROSPECTIVE AREAS

MAIN PROSPECTIVE AREAS

WORLD CLASS DEPOSITS

POTENTIAL FOR EXPLORATION: COPPER: 282 Mt – GOLD: 300 Moz – SILVER: 3,500 MozBORATES: 250 Mt – LiCO3: 100 Mt –POTASH: 2,750 Mt

Other commodities: CINC, LEAD, INDIUM, ANTIMONY, REE, TUNGSTEN

RESOURCES IN ADVANCED OPERATION PROJECTS: COPPER: 67.1 Mt – GOLD: 143 Moz –SILVER: 1,700 MozBORATES: 123 Mt – LiCO3: 55 Mt – POTASH: 1,000 Mt

CONCLUSIONARGENTINA: A COUNTRY FOR INVESTING

Resources, metallogenic potential and high quality geological, geochemical and geophysical data

That’s why, I would like to invite you all to see a detailed presentation of our Geological potential this afternoon,

hoping to have the opportunity of increasing your interestto come to invest in our country.