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Claims
The Las Bolas property comprises seven claims totaling 656.76 hectares: Los Hilos, Los Hilos II, Los Hilos II Frac.1, Mina de Las Bolas, Don Lazaro, El Manto, Ampliation La Verde.
Exploration Program
The 2007/2008 exploration program on the Las Bolas property will include several thousand metres of diamond drilling in its first phase. These holes will then be followed up with step out and infill drilling. The drill targets include the potential “root zone” of the mineralization found in an underground working that was first opened in December 2006, as well as holes designed to test the Papacho trend below the level of a previous high grade intersection in hole B04-3 (40 feet averaging 154.13 gm silver/tonne and 3.22 gm gold/tonne). Follow up holes will also be drilled near the El Manto mine, where 2006 drilling intersected good gold values associated with a chargeability high.
Geology
The Las Bolas property contains mixed volcanic and sedimentary rocks of the Lower volcanic Sequence and hosts the highest concentration of old mine workings in the Uruachic camp. Numerous adits, some up to 1000 metres in length, enter from the hillside above the valley of the Rio Uruachic from various levels and extend eastward under a pronounced mesa or plateau. At least 14 old vertical shafts also occur on the mesa, extending to unknown depths. Some of the adits may have been access routes to extract high grade ore from the deeper levels of the shafts.
The surface levels and adits of the mesa area are in the oxide zone and many of the old tunnels contain excellent sections of oxide silver mineralization that averages about 325 grams of silver per tonne. This mineralization however, was not the target of the old miners as many of the working simply pass through these zones with no attempt to exploit them. Much higher sulphide mineralization is believed to lie at depth, as evidenced by samples that contain as much as 71,000 grams (over 2,000 ounces) of silver per tonne found in the dumps beside some of the old shafts.
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Location & Map
Las Bolas is located in the centre of the Uruachic camp, at the intersection of thee major regional lineaments. |
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Drilling Results
The 2007- 2008 diamond drilling program at Las Bolas consisted of 26 diamond drill holes totaling 3,551m. The program had three primary targets: 1) manto structures (on the western side of the 1 km square exploration area, around the old El Manto tunnel); 2) high grade silver bearing Iron Oxides and Manganese clay structures (in the central area including the old Las Bolas and Gambusino mine tunnels) and 3) the Frijolar structure (in the southern part of the area including the Frijolar tunnel, which hosts a 35 metre length section averaging 315 g/t Silver.
The program was very successful program in that it expanded the know mineralization in the area of the old Gambusino and Las Bolas tunnels, showed that the previous reverse circulation drill samples were losing fine grained precious metals and discovered an entirely new, high grade target in the area of the old El Manto mine on the western side of the property. This target comprises extensive carbonaceous and dark lutite manto-like units that can carry extremely high silver and gold grades. |
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In the manto structure target area, twelve diamond drill holes, namely BD-08-03 to BD-08-10 &
BD-08-13 to BD-08-16 were drilled to intersect carbonaceous dark lutite manto-like units that
have returned high silver and gold grades in some sections.
The Company was particularly encouraged with intercept in drill hole BD-08-3 , spotted within the new Manto target area, that returned 9.87 gms gold/tonne and 3,090 gms silver/tonne. This intercept is a fine grained, carbonaceous, lutite with intercalated graphite and is a manto-like unit at a depth of approximately 160m that is similar to gold bearing rocks in the Carlin trend in Nevada. A second manto layer was also encountered in this hole at a depth of approximately 95m. Other much wider intersections of lower, but still very good, grades were also encountered with thicknesses up to 4m in subsequent holes over a 700m area. A grab sample taken outside the nearby El Manto tunnel returned 10.70 gms gold/tonne and 929 gms silver/tonne. This important and promising area, coincides with an IP chargeablity anomaly at 150m depth that is spread over approximately 1,033m long and 533m wide.
From the current drilling program the Company has reached the conclusion that the manto horizon precious and base metal concentrations increase to the west and southwest. A 0.9 metre chip sample, taken to the west of the drilling area just across the creek called Rio Uruachic, assayed 0.918 gms/tonne gold and 36 gms/tonne silver. Management will focus future drilling in these directions with the goal of building potentially mineable tonnage.
On the high grade Las Bolas - Gambusino front, the Company successfully completed diamond
drill hole BD-08-19, which tested the northern extension of the Las Bolas Contrapozo (raise).
Previous sampling of this raise returned 1,245 gms/tonne silver over 2.2 meters & 4.95 gms/tonne gold over 1.2 meters. The overall weighted average of the 127 chip samples taken in this area was 0.22 gms/tonne gold and 390.28 gms/tonne silver over 179.51 metres. Drill hole BDD-08-20 returned 7.22 mtres grading 224 gms/tonne silver and 0.1 gms/tonne gold.
Due to market conditions, after completing 26 holes in the Las Bolas area the Company decided
to suspend the drilling of additional holes and concentrate its efforts on compiling the data already obtained and generating the sections needed in order to attempt a mineral inventory. The
mineral inventory estimation will take place, upon review of the existing data, under the supervision of an independent qualified person and will be conducted pursuant to NI 43-101.
standards. The study will greatly assist the Company in developing its 2009 drill program by
defining target areas which can most easily add tonnage to the mineralization.
Recent surface work has also identified a new area, referred to as Las Bolas II, some 500 metres north of the main Las Bolas Gambusino workings on the opposite side of an intrusive body. Mineralization and alteration in this area is almost identical to that found near the old Papacho mine. The surface work, still in progress has also extended the strike length of the Frijolar trend an additional 200 metres to the northwest and is still open.
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