Location and Claims

The La Reforma property consists of three claims totaling about 987 hectares, located adjacent to the west of the Company’s San Timoteo property just northwest of the town of Uruachic. It is subject to the option agreement with Fresnillo PLC

La Reforma Claim Map

 

 

 

 

 

 

 

Geology

The Reforma property is underlain by highly altered volcanic rocks of the Lower Volcanic sequence. These rocks are cut by small acid intrusive bodies as well as a prominent north-south trending siliceous dike in the north central part of the property. The hypogene clay alteration mineral Dickite is present in several areas in the central portion of the property indicating the source of the alteration to be at depth.

Exploration Program

During 2007 and early 2008, the Company carried out diamond drilling, assaying and road building on the La Reforma property. Drilling targets included both geophysical and geochemical anomalies across the property. Including 2007 and 2008 GNG drilled a total of 25 diamond drill holes totaling 5,443.94 metres on the La Reforma property.

La Reforma Alteration Zone

 

 

 

 

 

 

 

Drilling Results

In the Dickite Zone, one of the selected drill targets, two drill holes intercepted gold mineralization which appears to be structurally controlled and occurs within siliceous structures. The most significant intersections obtained from the 2002 work on the Dickite Zone are summarized below.

The last three of the 2008 holes on the La Reforma property were located in the southwest portion of the property in a very favourable zone referred to as the Red Ridge. These holes intersected anomalous mineral horizons up to 32 metres wide averaging 0.2 g/t gold. The source of this mineralization is believed to be a nearby intrusive body. The Company is encouraged with these results, which warrant further follow up work including detailed geological mapping, geochemical sampling and further drilling.

Hole

From (m)

To (m)

Width (m)

Gold (g/t)

Silver (g/t)

RF-02-8

3.05

19.81

16.76

0.50

2.98

RF-02-9

6.12

16.75

10.22

0.39

1.94

RF-02-9

19.89

38.01

16.14

0.49

3.00

RF-02-9

56.61

72.97

12.21

0.54

1.92

RF-02-9

93.33

97.29

2.73

0.25

2.20