Project

La Cumbre Deposit

The 2012-2013 work program is evaluating the optimum mine development plan for the higher grade oxidized gold mineralization located near and at surface at the La Cumbre deposit. The 2012 infill drill results indicate an expansion of the 1+ g/t gold core of mineralization.

Large Continuous Zones of Oxidized Mineralization

Several zones of higher grade oxidized mineralization occur as large continuous bodies near and at surface
Focus is on the >0.7 g/t gold oxidized gold mineralization

Potential Starter Pit of Oxidized Gold Mineralization at Surface

An Oxide Zone of mineralization exists at surface to a depth of up to 70 metres. Initial gold recoveries of 90% to 94%.
An underlying Transition Zone (of low sulphur content) exists over a vertical distance of 150 metres to 250 metres. Initial gold recoveries range from 82% to 86%.
Topography and location of gold mineralization support a low strip ratio.
Negligible deleterious chemical elements are associated with the gold mineralization.

2012 Drill Results Outline Grades above 1.0 g/t Gold

Total 2012 drill program consisted of 35 holes over 4,947 metres
2012 drill program outlined grades over 1+ g/t gold in the large continuous zones of mineralization at La Cumbre
Drill results also extend the trend of the 1+ g/t gold core of mineralization at La Cumbre to the northwest and southeast

LC070: from 6.50 m to 150.00 m (end of hole) grading 1.36 g/t gold and 2.58 g/t silver
LC057: vertical hole from 4.00 m to 100.00 m (end of hole) grading 1.20 g/t gold and 2.16 g/t silver, including from 94.00 m to 100.00 m grading 1.69g/t gold and 3.66 g/t silver
LC036: from 3.40 m to 100.00 m (end of hole) grading 1.14 g/t gold and 2.37 g/t silver

2012 Drill Hole Program Results

The 2012 development drill program commenced on July 15, 2012 and was completed on September 25, 2012. The drill program was designed to (i) infill the areas of interpolated higher grade mineralization along a northwest-southeast trending corridor, (ii) step out to the northwest and southeast to extend the areas of interpolated higher grade mineralization, and (iii) step out to the north of La Cumbre towards the El Centro zone to test near surface higher grade linkage between the deposits. The drill hole lengths vary from 100 metres to 200 metres, and were multitasked to provide both geological and geotechnical information and sample material for metallurgical test work.

Infill Drilling at La Cumbre – North, Central and Southeast

Drilling confirmed and delimited the near and at surface high grade mineralization, +1 g/t gold, that starts in the oxidized zone and continues at depth through a low total sulphur transition zone. All holes ended in gold mineralization.

Step Out Drilling at La Cumbre – Northwest and Southeast

Drilling confirmed continued mineralization along both step out directions. To the northwest the near surface mineralization is limited by a fault structure and non-mineralized volcanic breccia. However, mineralization was encountered at depth across the fault and remains open to the northwest at depth. To the southeast mineralization above 0.5 g/t gold was confirmed to continue in trend and supported by narrow high grade, +1g/t gold, veinlet systems.

Step out Drilling towards El Centro

Results from drilling near El Centro indicate there is little near surface high grade mineralization across the Amarillo Structural Corridor, but confirm narrow high grade epithermal style mineralization located above the deeper porphyry style mineralization previously drilled at El Centro. Further interpretation of the drill data in this sector is required to properly establish the epithermal/ porphyry target at El Centro.

Plan Map of La Cumbre Click on map to view PDF