Two Spokane mining exploration companies, Yamana Resources Inc. and Minera Andes Inc., say theyre making significant advances on promising mineral deposits in Argentina.


Yamana says its has found what it believes to be a commercially viable silver deposit at its Bacon property in the Santa Cruz Province of Argentina.


Meanwhile, Minera Andes has signed an agreement with an Argentinian subsidiary of Houston-based Battle Mountain Gold to pursue further exploration at Minera Andes Los Azules property in the San Juan Province of Argentina. Minera Andes separately plans to begin an additional drilling at one of its deposits in the Santa Cruz Province.


Richard Walters, Yamanas executive vice president and chief operating officer, says that the company plans to begin diamond drilling in February to map out what appears to be a high-grade silver-gold quartz lode system at its Bacon property, which also is in the Santa Cruz Province. Diamond drilling produces high-quality rock samples for assaying.


Im quite optimistic about the discovery, Walters says. Its not like its the largest deposit ever, but Ill tell you what, its awfully rich.


Walters says Yamana hasnt reached the stage yet on its Bacon property at which mining feasibility would be formally studied, so a decision as to whether to develop a mine there or seek a joint-venture partner for the property still is down the road. He says, though, that Yamana is well-funded and plans to invest as much as $2.5 million in the first half of 1999 on what it calls its Santa Cruz project, which is made up of 20 different properties, including the Bacon property. Yamana is expected to spend more than half of that money on the Bacon project alone, he says. The money will be used for drilling, mapping, and metallurgy.


Meanwhile, Minera Andes and Minera BMG, the subsidiary of Battle Mountain, have signed an agreement that outlines the terms of an operating agreement and eventual joint-venture agreement whereby Battle Mountain could earn a 50 percent interest in the Los Azules deposit by spending $1.3 million on exploration during the next four years. Battle Mountain could earn an additional 10 percent interest in the property by spending another $1.3 million in the two years following the four-year agreement period, says Arthur Johnson, director of investor and public relations for Minera Andes.


The Los Azules property, which is wholly-owned by Minera Andes, is contiguous with property to the north controlled by Battle Mountain. Minera Andes has performed only preliminary surface sampling and mapping at the Los Azules property, which shows potential for gold mineralization, but Johnson says that Minera Andes priorities have been elsewhere. He says the company currently is trying to advance a property in Santa Cruz Province. Additional drilling is expected to begin on that silver-gold prospect during the first quarter of next year.