The Copaquire copper molybdenum property is a potential bulk tonnage and open pit and quarry deposit.  The property is located in the productive West Fissure structure of northern Chile that localizes several of the world's largest copper mines, including the nearby Quebrada Blanca (Teck Cominco) and Collahuasi (Xstrata) producing mines approximately 15 kms east of the Copaquire property.

The Copaquire property consists of two mineralized zones - Sulfato Copper Zone in the north and the Cerro-Moly Molybdenum Zone in the south.

RESOURCE
Drilling in 2007-08 focused on developing a molybdenum copper resource at the Cerro Moly molybdenum zone. The company achieved this goal and in October 2007 released an interim 43-101 compliant resource estimate of the Cerro Moly Deposit:

*Note: Copper Equivalent herein is based upon metal prices of US$3.67/lb Cu, US$33.50/lb Mo. (June 8, 2008) The formula used is Cu Equivalent % = Cu % + (Mo% x Price per pound for Mo/Price per pound for Cu
(see News Release 071001 for 43-101 details)

Initial Metallurgical test results show excellent Molybdeum recovery levels to be between 85-95% for head grades above the 0.02% Mo cutoff grade.  

Drilling continued in 2007 with development drilling focussing on in-fill drilling of Cerro Moly mountain which hosts a significant portion of the resource in order to upgrade  inferred resource categories to measured and indicated.  By concentrating on above-valley floor surface mineralization the company emphasized delineating mineralization that should be relatively inexpensive to mine as a quarry relative to an open pit and more quickly moved to the pre-feasibility stage of development.

Exploration drilling focused on expanding the resource to the north, south, west, and to depth. The depth of mineralization has not yet been determined but below the valley floor drill hole CQ-63 terminated in mineralization at a depth of 512 metres (1,680 feet) and in 0.11%Mo.

Across the valley and to the south of Cerro Moly mountain recent drilling has encountered similar mineralization opening up a new area that may contribute additional large tonnage to the mineralized system. Of particular surprise and interest was hole CQ-87 which encountered significant primary copper mineralization. The potential to develop this new area of significant primary copper-mineralized tonnage to the southwest and west of Cerro Moly will be tested in the next drill program.

With the completion of the 2006-08 drill program the company has greatly increased its knowledge of the Copaquire deposit. Geological modeling of the mineralization at Copaquire indicates that the molybdenum resource that has been developed at Cerro Moly may represent a late stage mineralization of a potentially larger porphyry copper system. This system has a northeasterly structural trend of primary mineralization both at Sulfato North and Sulfato South where a moderate enriched and oxidized (leachable) copper zones have been developed.  Hole CQ-98 with substantial primary copper content (chalcopyrite) attests to this interpretation as does horizontal hole CQ-87 located across the valley to the south of Cerro Moly which also intercepted significant primary copper grades.

SULFATO COPPER ZONE
The Sulfato zone is part of the same system as the Cerro Moly but farther north and about 200 metres higher topographically. This is the more copper rich level of the system which has been converted from primary copper to secondary (leachable) copper by groundwater action. This material is similar in nature to the ore at the nearby (10 km) Teck Cominco's Quebrada Blanca Mine.

A 4,642 metre reverse circulation drill program was completed in 2006 on the Sulfato secondary copper zone. The program was designed to expand upon a 236 metre vertical drill hole intersection grading almost 0.4 per cent copper(leachable) encountered in the company’s 2005 drill program . The results of the 2006 Sulfato drilling has shown that a substantial leachable copper resource may be available near the Sulfato mountain top.  Additional in-fill drilling as well as drilling to depth should allow a copper resource estimate to be published upon completion of the next drill program.

MARTA MOLYBDENUM-COPPER AREA

The adjacent Marta molybdenum-copper area, where underground workings indicate the possibility of high grade shears as well as porphyry bulk tonnage molybdenum-copper mineralization, possibly developed in a set of parallel conjugate structures trending east-southeasterly results in a highly prospective area of potential porphyry copper development where it intersects the Cerro Moly trend. The mineralization drilled to date in Cerro Moly and that found structurally controlled at Marta may thus be distal components of a more substantial copper (molybdenum) porphyry in the south. This predominantly copper district (Collahuasi) dictates that exploration for the presence of significant copper metal to balance off the enormous amount of molybdenum drilled to date on the Copaquire is a realistic pursuit.