1. 4/27/2016 Argentina coming back into play as elections loom. Mining Journal. March 2015 ­ Synergy Resource Capital
http://synergyresourcecapital.com/argentina­coming­back­into­play­as­elections­loom­mining­journal­march­2015/ 1/11
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Argentina coming back into play as elections loom. Mining Journal. March 2015
December 22, 2015 | Articles,Latin American Mining,Synergy in the news | 0 Comment
In this article, Paola Rojas, Business Development Director of Synergy, was interviewed about mining in Argentina.
Argentina coming back into play as elections loom
by Paul Harris 24 Mar 2015
Argentina is moving back into view as a destination for mining investment as the presidential term of Cristina Fernandez de Kirchner draws to a close
Portfolio of prospective exploration
projects in Argentina – AR01
THE OPPORTUNITY The company, a
private firm, has assembled a portfolio of
prospective exploration projects, located ...

2. 4/27/2016 Argentina coming back into play as elections loom. Mining Journal. March 2015 ­ Synergy Resource Capital
http://synergyresourcecapital.com/argentina­coming­back­into­play­as­elections­loom­mining­journal­march­2015/ 2/11
with elections in October.
Silver Standard, which has the Pirquitas mine in Argentina, anticipates ‘improving business environment post­election’
Fernandez de Kirchner, who first came to power in 2007, oversaw the implementation of fiscal policies including capital controls and an export duty
payable on the sale of mineral concentrates, whilst the country has experienced inflation and an overvalued official exchange rate, all of which have
impacted mining investment and resulted in various mining development projects being shelved.
With six months to the presidential elections there is a feeling that whoever the next president is, from whatever part of the political spectrum, will be
more positive for the mining sector. “Politically, Argentina has received, rightly or wrongly, a bad reputation as a place to do business, but this
perception is rapidly changing. This Fall a new president will be elected and we are advised that the three leading candidates are all pro­business,”
said John Hite, president of Marfil Mines.
“The deterioration of business conditions are by now evident to everyone and more so to the presidential candidates,” Paola Rojas, director
business development of Synergy Resource Capital, told Mining Journal.
“The next government has a substantial task ahead, to turn around this negative tendency that has been worsening for over three years.
Argentina is such a rich country that if they have the courage to make some tough calls, and it seems most of the candidates do, they will be
able to pull it off. Among those running for presidency only the least popular candidate has expressed a negative position towards mining.”
Since October 2011, when the first capital control measures started to be imposed, which placed restrictions on the ability to repatriate profits, mining
investment in Argentina began to dry up and new companies stopped arriving.

3. 4/27/2016 Argentina coming back into play as elections loom. Mining Journal. March 2015 ­ Synergy Resource Capital
http://synergyresourcecapital.com/argentina­coming­back­into­play­as­elections­loom­mining­journal­march­2015/ 3/11
“Argentina is challenging because of the cost structure there,” John DeCooman, VP corporate development at Silver Standard Resources told Mining
Journal.
Silver Standard is one of several existing producers in Argentina looking to leverage its local presence and knowledge through operating the Pirquitas
silver mine in Jujuy and possibly acquire other assets.
Pan American Silver is one company that put the brakes on in the face of uncertain changes to mining regulation and taxation in Argentina,
suspending work on the feasibility study and environmental impact assessment for its 750­million­oz Navidad silver project in Chubut in 2012. At the
time the provincial government proposed regulations including a new 5% NSR for the province in addition to the 3% NSR that already exists, plus a
requirement for Chubut­province owned resource company Petrominera, to receive 4% of total sales, although these never made it into law.
Now, in 2015, and presumably with the promise of a new government and a change in policies and the economy, explorers are again starting to review
projects and discuss investments, and producers are looking to build mines.
“We started observing interest in Argentina increase 18­24 months ago and people are now less frightened by it as a jurisdiction. People anticipate that
the next president will be more market friendly,” DeCooman said.
“The explorers contemplating Argentina are mainly those who know the country well and can thus significantly de­risk the move, and/or
those who have identified an asset that is of interest and good value, that can be acquired inexpensively. They are betting on the imminent
change, and they want to get in now to avoid costly acquisitions once things are more stable,” said Rojas.
She expects interest and investment to flow back first to jurisdictions that strongly support mining such as Salta, San Juan, Catamarca,
Jujuy, La Rioja and Santa Cruz. “One would expect a significant rise in exploration and investment in those provinces first. Other resource
rich areas such as Chubut and Mendoza, need to work a bit more to help the general community understand the opportunities available to all
in mining,” she said.
Argentina has several large projects in development and has the promise for discovering large orebodies.
“Yamana is developing the Cerro Morro gold mine, Glencore is developing the giant El Pachon porphyry copper deposit, Yamana is conducting
feasibility studies on the giant Agua Rica porphyry copper deposit, and Chevron and other major oil companies are developing large shale oil projects
in the Neuquen Basin,” said Hite.
Yamana Gold, a company with a long history of operating in Argentina, sees that better days are to come having recently announced that it will build a
gold­silver mine at Cerro Moro in Santa Cruz Province, Argentina before year end. The US$398 million capex project will to produce 135,000oz of
gold and 6.7Moz of silver a year during its first three years and annual life of mine production (LOM) estimated at 102,000oz gold and 5Moz silver
from 2H17. “Argentina has an improved socio­economic and political state,” said chairman and CEO Peter Marone during the company’s 2014 results
conference call.

4. 4/27/2016 Argentina coming back into play as elections loom. Mining Journal. March 2015 ­ Synergy Resource Capital
http://synergyresourcecapital.com/argentina­coming­back­into­play­as­elections­loom­mining­journal­march­2015/ 4/11
Yamana also signed a definitive agreement in March with Catamarca province mining company, CAMYEN, for cooperation that may eventually led
to the creation of a mining district in which CAYMEN will have a 5% participation that encompasses Yamana’s Agua Rica copper, gold, silver and
molybdenum deposit and Cerro Atajo prospect. The agreement includes a plan to train the existing workforce in Catamarca to ensure local
communities have the opportunity to benefit directly from planned economic activity in the area. Yamana also has operations at Gualcamayo and a
12.5% stake in Alumbrera.
There are several projects on standby for construction such as Goldrock Mines’ Lindero project in Salta province that is fully permitted and at project
finance stage.
However, while the sentiment towards the country is improving, exploration funds remain hard to come by at the moment, leading some explorers to
wait until tangible change is a reality before committing to expenditure.
“We are watching but not willing to take an option on Argentina at this stage. Bigger players like Lukas Lundin can afford to take an option on
countries and sit on projects, but we cannot take on projects that we cannot develop,” said Alex Black, CEO of Rio Alto Mining.
“At Argentex we are on hold mode until we see how the elections go,” director Rick Thibault told Mining Journal. Argentex has identified a resource
of 26.7Moz silver­equivalent at its polymetallic Pinguino project in Santa Cruz province.
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