Urique Project: North

CERRO COLORADO TARGET

To date the structurally controlled breccia at Cerro Colorado has been traced over a strike length of 2.5 kilometres. The width of the structure varies from 2 metres to greater than 10 metres and occurs within a much wider package of alteration. At least four areas of mineralization have been identified: the El Vergel, Mina Guadalupe and Ampliacion Guadalupe zones occur along the main structure, and the Las Taunas zone is an interpreted splay off the main structure. Mapping has shown that the main structure is continuous between all of the zones.

The first phase of drilling has shown the potential for a significant silver/gold grades at the Cerro Colorado Target of Urique North. Drilling successfully intersected the target breccia over widths of several metres in each of nine holes over approximately 2.0 km of strike length.

Drill hole UCC-08-08 - with 9.2 m grading 0.51 g/t Au and 96.5 g/t Ag - will be a focus of further exploration programs as the nearest holes are approximately 200 m to the northwest and 600 m to the southeast. It is possible for there to be a clavo or ore shoot at several locations along the known 2.5 km strike length of the system.

Additional drilling is also warranted at the south end of the zone as UCC-08-09, drilled approximately 900 m to the south, intersected increased gold mineralization. As drilling has only tested to a maximum vertical depth of approximately 140 metres, deeper holes will also be required as other systems in the district have been shown to be well mineralized to depths of 400 metres or more.