A 7,000 metre reconnaissance reverse circulation drill program is in progress to test targets generated from the company’s previous work on the Tierra de Oro claims. To date, the company’s exploration programs have identified, mapped, sampled, trenched and drilled, to varying degrees, twenty large gold targets.

The wholly-owned property, 63 square kilometers in area, located in Region 3, Chile hosts a shattered granitic body with criss-crossing major structural gold-mineralized shears as evidenced by extensive artisanal pits and workings. The granitic body is oxidized to depths of around 100 metres and may thus be amenable to open pit leaching operations in areas of concentrated structure.

The property is located  48 km south of the Candelaria Mine (400 million tonnes 1 per cent copper, 0.25 grams per tonne gold) discovered by drill-testing induced polarization (IP) anomalies.

The Chanchero zone, one of twenty of the large targets on the property, presents a similar opportunity as it hosts an intense 3D IP anomaly . The large near surface anomaly is elongated northeast-southwest, 2,800 meters long by 1,700 meters wide, and is open at depth. The anomaly is associated with an overlying gold-copper bearing alteration zone that has yielded grab samples ranging between 0.5 and 16.7 grams per tonne gold. The anomaly is located at the center of a structurally controlled copper-gold camp and may be the source of the near surface copper and gold mineralization found in the surrounding areas. The intensity and homogeneity of this chargeability response, coupled with the presence of altered iron oxide-rich porphyritic intrusives hosting copper-gold veins at surface, may indicate a large sulphide rich system is present at moderate depth.

The Tierra de Oro property covers a historic gold camp and lies within the same intrusive/volcanic sequence that hosts several large open pit gold and copper/gold mines.

The gold camp at "Tierra de Oro" is reported to have produced several hundred thousand ounces of gold from surface workings prior to the 1930's and is now considered a strong prospect for the development of a large, bulk tonnage, open pit type deposit.

The property is accessed by well maintained gravel roads and is located 20 km from the Pan American highway, next to the main Chile power grid. With a maximum elevation of only 1,500 meters the region enjoys good climactic conditions for year round exploration.

A) GOLD ZONES

1. Fe-Skarn Zone - is currently a 600 x 1600 metre area of coincident high soil gold and copper values and IP anomalies encompassing numerous old surface and underground vein workings plus extensive placers. Trenching of one part of this zone has returned gold values up to 2.2 gpt over 42 metres width. Drilling 200 metres along strike from the trench intersected 15 metres of 1.9 gpt gold at 85 metres vertical depth below surface chip sample values averaging 2.7 gpt gold over 13 metres width. This sub-zone can be traced via scattered outcrop and old workings for at least 500 metres in either strike direction from the area of drilling. The zone at large can be traced at least a kilometre to the northeastwhere a 25 metre section of 27 gpt gold has been found, and may merge with the Bella Ester Zone one kilometre to the Southwest.

2. Central Gold Zone - is a 500 x 1500 metre area of high gold soil values and IP anomalies also encompassing numerous old vein workings assaying up to 16.4 gpt gold over several metres width. These workings are grouped in several north to northeast elongate sub-zones sub-parallel to dyke swarms. The worked veins are multi-directional and along with finer intervening veinlets form auriferous stockworks 100 to 200 metres wide and 300 to 500 metres long.

3. Bella Ester Zone - is 200 x 1000 metre area of high soil gold and copper values encompassing old workings on a gold bearing manto horizon grading up to 2.43 gpt over 6 metres. The soil anomaly contains gold values up to 10.2 gpt.

4. Chanchero Zone - is a 1000 x 2000 metre area of partially coincident high gold and copper values, which overlies an equally large area of gold and copper bearing, porphyry style alteration. Assays from old workings and outcrop range from 0.5 to 16.7 gpt. The soil anomaly and known mineralization are included within a larger strong IP anomaly. Three holes were drilled in this zone during the first drill program. Two were lost due to heavy water inflow before reaching their targets. The third, on the north edge of the system, cut disseminated pyrite and trace chalcopyrite in propylitically altered intrusives.

5. Inca Gold Zone - is a 100 to 400 metre wide, 1200 metre long, northerly trending zone of strong argillic alteration and auriferous quartz veining which crosscuts the northeast end of the Chanchero Zone. Extensive vein workings occur throughout the zone. Several have been mined to depths of over 75 metres and strikes of several hundred metres. Gold assays from these veins consistently grade 4 to 7 gpt over widths of 1 to 2 metres. The only trench crossing the zone returned 1.1 gpt over 114 metres and terminated in 2.2 gpt material on the west side.

B) COPPER ZONES

1. Las Lomitas Zone - is a 700 to 1600 x 3000 metre arcuate zone of high copper ± silver soil values overlying altered andesitic fragmentals on the flanks of a 12 km long dome with a dioritic intrusive core. Numerous oxide Cu workings on stratabound mantos and sub-vertical structure zones are present throughout the zone. Assays from these workings consistently average 0.5 to 2.5% Cu over 2 to 30 m widths. The surface oxide mineralization is partly underlain by a large IP anomaly, which suggests a deeper intrusive related sulphide source. Several holes drilled on the edge of this chargeability anomaly intersected disseminated chalcopyrite and pyrite in propyplitically altered andesites and diorite porphyry dykes. The core of the zone remains
to be tested in future phases of exploration.

2. Cobalt Horizon - is a 100 - 400 x 2500 metre copper-in-soil high throughout which are mineralized outcrops of altered andesite breccia. Assays from the southwestern half of the horizon range from 1 to 4.5% copper, 10 to 220 gpt silver and 0.02 to 0.2% cobalt. Two shallow holes were drilled in the first phase program to test a strong chargeability high at the southwest end of the zone. Extensive disseminated and vein chalcopyrite and pyrite associated with a silicified diorite porphyry sill was intersected over widths of 30 to 50 metres. Two stronger zones of copper mineralization are indicated by the assays, the upper ranges from 7 metres of 0.56% copper plus 10.3 gpt silver to 8 metres of 0.47% copper plus 14.0 gpt silver. The lower (cobalt) zone was intersected in only one hole and graded 0.37%copper, 0.27% cobalt and 14.3 gpt silver.

3. Teresa Zone - this 4 sq kilometre area of oxide copper-silver workings occurs on the axis of the Lomitas anticline six kilometres northeast of the Lomitas Zone. Numerous old workings on multi-directional mineralized structures and mantos occur throughout the zone in massive, epidotised and vesicular andesites. The andesites contain the most extensive workings wherein grades of 2 to 3% copper over 3 to 5 metre widths are found where copper oxides fill the vesicles in the ande sites.