Claims

The La Cruz property has one claim, called La Cruz covering 90.00 hectares.

Exploration Program

The La Cruz property was staked by Golden Goliath in 2006. Preliminary surface mapping was completed by Golden Goliath, along with underground mapping and sampling of some of the several old mine workings on the property.  The property gained the attention Pan American Silver, who conducted at least two property examinations.  La Cruz was then optioned to the Mexican subsidiary of Pan American. An internal claim, called La Cruzada, was obtained directly by Pan American and was rolled into the agreement.

Under the terms of the option agreement, Pan American Silver Corp’s Mexican subsidiary, Minera Corner Bay S.A. de C.V., has the right to earn a 60% interest in La Cruz by making cash payments totaling US $300,000 and spending US $450,000 on the property over a period of 3 years. The property will consist of: the Company’s La Cruz property; additional ground staked around the La Cruz property; and the La Cruzada property for which Pan American’s subsidiary already has an option. Golden Goliath will be responsible for 25% of the costs associated with La Cruzada.. Upon Minera Corner Bay exercising its option, a 60/40 joint venture would proceed on the La Cruz and newly staked grounds, with Pan American having the right to earn an additional 15% by completing a feasibility study.

Paul Sorbara, president of Golden Goliath said “This is a major milestone for Golden Goliath and its shareholders. We are very pleased to be working alongside Pan American during the exploration and development stage of our La Cruz property. Also, with Pan American taking the reins at La Cruz, we will continue to focus the majority of our attention and resources on our Uruachic Camp properties, where a major drilling program is underway with four drill rigs currently at work”.

Geology

The La Cruz property, which is not in the uruachic camp, lies on the extreme eastern edge of the Sierra Madre Occidental. The property hosts numerous old underground workings and dumps along a 1.5 kilometre trend.   The workings and extensive dumps are associated with two parallel, strongly silicified and brecciated structures separated by a distance of about 200 metres. The structures strike Az 220º, dip 75º N, and average about 2 to 5 metres in width at the surface.  The workings, mostly shafts, appear to extend from 25 to 80 metres and preliminary mapping indicates that the structures widen at depth.  The main working area occurs on a hill that rises about 250 metres above the adjacent plains.  A principal working, adjacent to the mojonera, lies about 75 metres above the base of this hill and appears to be the lowest working level, and the top of the hill lies some 300 metres to the south.

The age of the workings is uncertain, but they are not recent and it appears that no drilling has ever been done on the ground. Ing. Daniel Nofrietta (Golden Goliath Resources) first visited this property about 20 years ago and at that time asked a 70 year old man who was born in the local village of Tajirachic about the mines.  The local replied that they were already closed down when he was a boy.  Subsequent claim owners (individuals, not companies) only worked the old dumps in a limited way.

Preliminary work by the Company’s geologists included taking 17 chip samples across widths ranging from 1.0 to 2.5 metres and averaging 1.75 metres.  The assays for these samples ranged from 11 to 832 grams silver/tonne with an arithmetic average of 237 grams silver/tonne.

Tertiary volcanic rocks underlie the la Cruz claim, with andesites being overlain by rhyolites and ignimbrites. The rocks are intensely fractured and silicified with fracture fillings of grey quartz.  Silver sulphide mineralization is present along with iron and manganese oxides.  The fractures have predominant trends of north-south, Az 340 and Az 025 with vertical dips and the working following the northeast trend.   A breccia zone that is about 3.5 metres wide on surface characterizes the mineralized trend.  Preliminary examination of the old shafts has been conducted to a depth of 45 metres, but they appear to descend to about 80 metres.

Location & Map The La Cruz property is located in the central part of Chihuahua State, approximately 1.5 hours drive south-southwest of the city of Cuauhtemoc, and has good road access to within a few kilometers of the property. The road follows an arroyo for the last few kilometers, but this section can easily be rehabilitated.  Geographic coordinates for the mojonera are Latitude 28º 02’ 52.14” and Longitude 107º 09’ 56.94”.

Drilling Results

There are no records of any exploration drilling ever having been done on the La Cruz property, in spite of the extensive mine workings a dumps which attest to significant past production.