Vancouver-based Mansfield also appears to have an "ace in the hole" in the form of the potentially world-class Rio Grande copper-gold deposit, also in northwestern Argentina. In fact, the latest drill results (which we will soon discuss) further underscore the odds in favour of a high-impact bulk tonnage, open-pittable deposit.

First, it is worth noting that a wealth of geological science has been applied over the last seven years to revealing the considerable promise of this emerging major discovery. Much of which has been underwritten by Mansfield's joint venture partner, Antares Minerals Inc.

Antares is a well-financed mining company that is committed to a multi-million dollar work program, as well as staggered cash and share payments, in return for the right to earn up to a 60% ownership of the deposit.

In the Company of Giants

In 1994, Mansfield was quick to capitalize upon a favourable change in Argentina’s mining laws to explore vast swathes of virtually virgin mineral hunting grounds. (By comparison, major mining companies are seldom so nimble in acting upon such opportunities).

 

This proved to be a strategically shrewd move. It was also a tactically wise decision in terms of Mansfield’s quest for “elephant-sized” discoveries. However, this was no impulsive gamble. Already, the Company had come to realize the close similarities between the geology of northwestern Argentina and that of the Great Basin in the western United States (which includes Nevada – the world's third most prolific gold territory). This remote Argentinean hinterland plateau may yet prove to be as geologically fertile as the gold-rich Great Basin, Mansfield reasons.

 

Additionally, the Company has also stacked the odds in its favour by ensuring that its expansive Argentinean land holdings are all located along a continental northwest-trending tectonic fault line. This geological phenomenon is the result of shifting tectonic plates and involves hundreds of kilometers of linear cracks or fissures in the earth’s crust.

 

These geological paths of least resistance are conducive to the migration of gold and copper mineralization towards the earth’s surface. Consequently, such events are synonymous with the structurally controlled emplacement of major mineralized ore bodies along these faults or mineralized corridors.

 

A good example of this type of situation is the giant Escondida porphyry copper mine (the largest of its kind in the world) which is about 150 kilometres to the northwest of the Rio Grande Project in neighbouring Chile.

 

Similarly, the sprawling Rio Grande porphyry deposit has been revealed to share many geologic similarities with the 545-million-tonne Bajo de Alumbrera porphyry copper-gold mine – the largest of its kind in Argentina. Located approximately 300 kilometres to the south of Rio Grande, Bajo de Alumbrera is also seated along a similar northwest-trending regional fault line.

 

Other deposits that resemble the Rio Grande model include Phelps Dodge's 366-million-tonne similarly-mineralized Candelaria deposit in neighboring Chile, as well as the 560-million-tonne copper-gold-silver Olympic Dam deposit in Australia.

Building Strength Through a Strategic Partnership

The Rio Grande Project, which is situated in Salta Province, may yet prove to be the jewel in the crown of Mansfield’s impressive portfolio of properties. (Other than the Lindero Deposit, none of these properties are yet reflected in Mansfield’s share price and therefore will not be discussed at this time).

 

With a view to providing maximum investment leverage for its shareholders, Mansfield has selected its joint partner carefully. A Canadian mining junior, Antares Minerals is run by a very successful team of industrious and well-respected explorationists who also benefit from enviable technical expertise. 

 

In essence, the project is now being advanced at the cost of several million dollars without any depletion to Mansfield’s treasury. This goes a long way towards explaining why the Company still maintains a relatively tight share structure of about 34 million shares outstanding (approximately 39.5 million shares fully diluted).

 

Such a situation is typically a very reliable catalyst to establishing a pronounced  upwards trend for a company’s stock price on the strength of positive exploration news flow.

 

Rio Grande Deposit – The “Big Picture” Emerges

To date, the Rio Grande Property has been shown to host a cluster of about half a dozen large porphyry iron-oxide-copper-gold prospects, several of which have yet to experience any systematic exploration.

 

To date, the property has been the focus of 17 drill holes spanning about 5,145 metres, as well as 14 trenches covering over 3.5 kilometers. Nearly all of this has focused on the Discovery and Sofia zones, which is where two extensively mineralized structures have already been probed at surface and at depth with much success.

 

These zones form a crescent-shaped mineralized footprint covering most of the eastern hemisphere of the discovery area. This is where a plunging strike length (direction of mineralization) has been demonstrated that is continuous to the southwest over at least 1.5 kilometres in length. It also averages 130-150 metres in width (approximately 80 metres wide at Sofia and 220 metres wide at Discovery).

 

The story also gets more enticing in light of the discovery of an additional style of rich mineral-laced rock – structurally-controlled, bulk tonnage gold-copper stockworks or veinlets at surface and near surface. For instance, 106 metres of 0.93 grams per tonne (g/t) of gold and 0.57% copper have been outlined in a large trench that overlies the Sofia zone.

 

Such breccia-hosted “shoots” constitute mineralized sweet spots that significantly enhance the economic odds in favour of the development of a bulk tonnage open pit deposit. By way of explanation, shoots are transporters for what is typically rich mineralization that is injected into the overlying vein or stockworks systems.

 

Moreover, the presence of mostly oxidized mineralization throughout the deposit to a depth of at least 300 metres makes the prospect of an inexpensive heap leach mining operation all the more viable.

 

Latest Round of Drilling Attests to a Major Discovery in-the-Making

Highlights of the summer/spring Phase II drilling program, consisting of 10 holes spanning 3,382 metres, include the following impressive intervals: 128 metres of 0.71 g/t gold and 0.47% copper (62-190 metres depth); 158 metres of 0.51 g/t gold and 0.46% copper (167-325 metres depth).

 

Notably, all 10 holes intercepted significant widths of copper-gold mineralization. This clearly attests to the impressive near-surface bulk tonnage potential of the deposit. Moreover, the encountering of 158 metres of 0.51 g/t gold and 0.46% copper at deep as 325 metres has confirmed that meaningful mineralization also continues to a considerable depth.  Exactly how deep it runs has yet to be determined, but the deposit is believed to be continuously mineralized to at least 500 metres.

 

These two sizeable porphyries are also completely “open” (continuous) at depth and with improving grades. They also remain open in several lateral directions, particularly to the southwest.

 

Additionally, other very large geochemical anomalies such as the North, Northeast and #7 target areas have yet to be drill-tested. At this time, a 6,000-metre trenching program is focusing on the North and #7 zones, which constitute the western hemisphere of Rio Grande’s cluster of porphyries. These developments suggest that the size and scope of this multi-faceted deposit may yet prove to be very prolific once it has been more extensively drilled.

 

Of further significance, the still-emerging geological footprint of the Rio Grande Deposit already covers an area four times the size of Bajo de Alumbrera. Hence, Mansfield’s management believes that a deposit of between 500 million tonnes and one billion tonnes in well within the realm of possibility.

 

Value-oriented investors will also take heart from the fact that the excavation of rich, bulk tonnage ore (much of which is stockworks-style near-surface mineralization) typically offers tremendous cost savings. Especially when comparing an open pit (quarry-like operation) to underground mining activities.

 

Furthermore, the ready availability of prolific tonnage invariably leads to meaningful economies of scale. This represents yet another significant cost-cutting dynamic that further contributes to making the project economics all the more robust.

 

Therefore, a further 15,000 metres of drilling (expected to be undertaken between January and May of next year) will go a long way towards outlining the overall size and scope of this prospectively world-class porphyry discovery.

 

La Frontera Project: Drilling Commences Below Bulk Tonnage Bonanza-Grade Surface Mineralization  

Another regional exploration prospect that offers plenty of “blue sky” potential (albeit on a lesser scale than Rio Grande) is the La Frontera silver-gold prospect. This epithermal style discovery was discovered by Mansfield in 2000 in the same geologically fertile mineral province as the Rio Grande and Lindero properties.

 

Five years later, the Company entered into a joint venture earn-in agreement with a wholly owned subsidiary of Apex Silver Mines Ltd. – a high flying mining company that is listed on the American Stock Exchange (AMEX).

 

Apex is earning an initial 55% interest in the property by spending US $2 million in exploration expenditures and by making various cash payments over four years. Apex may also earn an additional 10% interest by spending US $1 million in exploration expenditures in the 12-month period following vesting.

 

In February of this year, Apex announced that trenching has exposed high-grade silver-gold mineralization over a structural horizon exceeding 1,500 metres in length. Highlights include an attention-grabbing 2,344 g/t of silver over 6.2 metres. Moreover, past silver grab sample values in this zone have also revealed “bonanza” grades of up to 4,000 g/t.

 

Apex commenced a 3,000-metre drill program in October of this year spanning 14 holes with a view to developing a preliminary understanding of the parameters and grade distribution of this discovery. The consensus to date is that this discovery demonstrates the early-stage potential to become an economically viable high-grade, vein-hosted gold deposit.

 

Argentina: A Geopolitical Overview

Until the early 90’s, Argentina suffered from a lack of foreign investment due, in part, to protectionism-related restrictions on foreign ownership of mining properties. However, the gradual advent of sweeping “mining-friendly” legislation has since provided legal and economic safeguards, as well as incentives, for foreign investors. In turn, this has set the stage for a mining boom that is already opening up Argentina's vast untapped mineral wealth.

 

Mansfield was one of the very first intrepid North American exploration and development companies to establish itself in Argentina. And the Company has since been resolutely single-minded in its application of sophisticated geological acumen and state-of-the-art technological expertise to making major discoveries in virtually virgin territories. Discoveries that promise to help ensure Argentina’s emergence as a Latin American mining powerhouse.

 

Investment Summary

On the corporate front, Mansfield benefits from a strong management team. It includes brothers Gordon Leask and John Leask, who together have close to half a century's worth of experience in the mining business.

 

This power partnership has demonstrated over the past 12 years the enterprising vision and the unwavering commitment necessary to successfully unearth and develop high-impact discoveries in one of the world's last under-explored mineral belts.

 

Accordingly, SmallCapMedia firmly believes that there will be no shortage in the coming months of drill-bit-driven positive news flow to fuel the trajectory of Mansfield’s stock. Without a doubt, this scenario makes Mansfield Minerals by far one of our favourite investment selections for 2007.

 

(For more information on the “company maker” Lindero  discovery, please refer to Part I of this corporate assessment of Mansfield Minerals).