Tajos Cuates Area

The Tajos Cuates Area currently comprises five vein systems: Tajos Cuates, Tajos Cuates 1, Tomas, El Crudo, and La Perdida.

In May 2006 a 1,700+ metre extension of the mine access road was completed from the base of the Florida Mine site to the Tajos Cuates mineralized vein structure, which currently is being mined as a separate ore body. This road opened up the Tajos Cuates Area for further reconnaissance exploration from which additional vein systems have been discovered.

Tajos Cuates Vein
Exploration

The Tajos Cuates vein system is located 1 kilometre southwest of the Florida Mine site and is a primary target in the near term to outline additional potential ore sources for the existing milling operation. The vein system is a robust low sulphidation epithermal vein which has been traced on surface over 1.8 kilometres, and known workings and a historical drill intercept extend over a vertical horizonan interface indicating a particular position in a stratigraphical sequence of at least 200 metres. The mineralization is silver rich compared to the Florida Vein system - a 1.70 metre wide sample collected by Victor Jaramillo P.Geo. from the Chalata Adit assayed 2.7 g/t gold and 1300 g/t silver. Three drill holes completed in 2006 provided confirmation that the mineralized vein structure continues to depth and established a base of the mineralized horizonan interface indicating a particular position in a stratigraphical sequence at about the 900 metre elevation level. Drill hole No. 800-7-04 intersected 2.42 metres (estimated true width 1.5 metres) of mineralization which assayed 4.9 grams/tonne of gold and 310 grams/tonne of silver at the 915 metre elevation. The vein system at Tajos Cuates is the primary target for expansion of mining operations. Drift development activities are already underway to supplement more extensive trenching and surface sampling activities.

Left side new adit; right side historic adit

Drift Development

Since the summer of 2007 the Company has been conducting drift development at the Tajos Cuates vein system. In November, 2007 the Company reported that it had completed a 95 metre drift at level 976 which interesected the extension of the Tajos Cuates vein system to the northwest of the existing drift development workings. This appears to be part of the same vein system that from surface sampling and old workings is believed to extend strike for a further 1.8 kilometers to the northwest. A vertical raise of 8 meters was completed at the intersection of the Tajos Cuates vein which confirmed the existence of two additional parallel high grade the concentration of each ore metal in a rock sample, usually given as weight percent. Where extremely low concentrations are involved, the concentration may be given in grams per tonne (g/t) or ounces per ton (oz/t). The grade of an ore deposit is calculated, often using sophisticated statistical procedures, as an average of the grades of a very large number of samples collected from throughout the deposit. gold/silver veins. These veins pinch and swell and are between two and eight metres apart from one another. Both parallel veins are open vertically and open along strike. This new discovery will be followed up in the coming months.

Samples were collected from the two newly discovered veins at six intervals along the raise. Many of the intervals sampled produced very high grades. Examples include:

  • Sample 12353 assayed at 14.8 grams/ton of gold and 1.14 kilograms of silver;
  • Sample 12354 assayed at 30.6 grams of gold and 758 grams/ton of silver;
  • Sample 12363 assayed at 8.3 grams of gold and 833 grams/ton of silver.

The total average from this eight metre raise was 3.25 grams/ton of gold and 396 grams/ton of silver.

The Company will be implementing a 2000 metre diamond drilla type of rotary drill in which the cutting is done by abrasion using diamonds embedded in a matrix rather than by percussion. The drill cuts a core of rock which is recovered in long cylindrical sections. program early in 2008 and a 600 metre drift development program that is now underway.

Green lines indicate proposed drift development program- currently 400 metres of drift development completed to date… vein is silver rich- note: historic mine workings.

Tajos Cuates - Vein Systems Area

El Crudo Vein

The El Crudo vein is a single outcrop discovered in the northern-most part of the Tajos Cuates vein system. It is currently described as the northern extension and/or a secondary vein of the Tajos Cuates vein.

Tajos Cuates Vein

Location: Mina Real Project, Tajos Cuates Area
Strike - Longitudinal Section 1.5 kilometres
Description: epithermalhydrothermal mineral deposit formed within about 1 kilometer of the earth's surface and within a temperature range of 50 to 200 degrees centigrade, occurring mainly as veins. North: 1.0 metre to 3.0 metre width
Central: 1.0 metre to 2.0 metre width
South : 1.0 metre width
Oxidation & argillic alteration primarily; quartz has several stages of alteration in relation to fault material at hanging wall
Favorable horizonan interface indicating a particular position in a stratigraphical sequence 300 metres to 400 metres
Geologic Model's Favorable horizonan interface indicating a particular position in a stratigraphical sequence 900 metre elevation to 1300 metre elevation
Trend NW60°SE
Sample Result: Sample # Location Width Augold g/tgrams per tonne Agsilver g/tgrams per tonne
75111 South 0.75 164 316
793 South 0.50 51.8 316
791 South 0.8 46.7 536

Tajos Cuates 1 Vein

Location: Mina Real Project, Tajos Cuates Area
Strike - Longitudinal Section 1000 m
Description: epithermalhydrothermal mineral deposit formed within about 1 kilometer of the earth's surface and within a temperature range of 50 to 200 degrees centigrade, occurring mainly as veins. North : Covered
Central: 1.5 metre width
South : 1.0 metre width
Oxidation & argillic alteration - quartz has several stages of veining and breccia related to fault material at hanging wall - width 1.0 metre to 1.5 metre average.
Favorable horizonan interface indicating a particular position in a stratigraphical sequence 300 metres to 400 metres
Geologic Model's Favorable horizonan interface indicating a particular position in a stratigraphical sequence 900 metre elevation to 1300 metre elevation
Trend NW42°SE
Sample Result: Sample # Location Width Augold g/tgrams per tonne Agsilver g/tgrams per tonne
LC-61 South 0.37 26
LC-64 South 3.6 153
LC-66 South 0.3 42

La Perdida Vein

Location: Mina Real Project, Tajos Cuates Area
Strike - Longitudinal Section 1200 metres (1.2 kilometres)
Description: epithermalhydrothermal mineral deposit formed within about 1 kilometer of the earth's surface and within a temperature range of 50 to 200 degrees centigrade, occurring mainly as veins. 0.8 metre width - West
Covered - Central
1.2 metre width - East
Grey/ white quartz veining; hanging wall and footwall oxidation and argillic alteration
Favorable horizonan interface indicating a particular position in a stratigraphical sequence 150 metres
Geologic Model's Favorable horizonan interface indicating a particular position in a stratigraphical sequence 900 metre elevation to 1300 metre elevation
Trend E - W
Sample Result: Sample # Location Width Augold g/tgrams per tonne Agsilver g/tgrams per tonne
13981 South 0.90 8.13 283
13927 South 0.60 3.48 173
13918 South 0.60 0.44 864

Tomas Vein

Location: Mina Real Project, Tajos Cuates Area
Strike - Longitudinal Section 900 metres
Description: epithermalhydrothermal mineral deposit formed within about 1 kilometer of the earth's surface and within a temperature range of 50 to 200 degrees centigrade, occurring mainly as veins. 0.7 metre width - North
2.0 metre width - Central
Covered - South
As a detachment of Tajos Cuates Vein - contains oxidation & argillic alteration - quartz has several stages of veining related to fault material at hanging wall - width 1.0 to 1.5 m
Favorable horizonan interface indicating a particular position in a stratigraphical sequence 150 metre horizon partially eroded
Geologic Model's Favorable horizonan interface indicating a particular position in a stratigraphical sequence 900 metre elevation to 1300 metre elevation
Trend NE-SW
Sample Result: Sample # Location Width Augold g/tgrams per tonne Agsilver g/tgrams per tonne
18027 Central 2.00 0.08 127
15114 Central 1.10 0.084 30