The 100% owned Colina2 Gold project in Central Chile covers an area of approximately 259Ha, located 9km to the northwest of Sociedad Punta del Cobre S.A. (Pucobre) El Espino Copper Mine development.
Following a data review of the soils, drilling and geophysical data available for Colina2, a reinterpretation of the data suggests the gold in soil anomaly may not have been adequately tested previously. The soil data shows a NE-SW trending robust MMI Au in soil anomaly 1150m long with response ratios up to 286. SGS laboratories consider a response ratio for gold over 20 anomalous. (SGS Technical Bulletin 19 MMI Sampling)
A reinterpretation of the magnetic data by a consulting geophysicist shows the anomaly is coincident with a NE-SW trending fault on the eastern side of the anomaly. The soils were collected and assayed in 2006 and the anomaly was tested with one drill hole. This drill hole does not intersect the fault position which is interpreted to control the gold anomaly. The soil anomaly is on the side of a hill which drains to the west resulting in the gold anomaly moving downhill.
A trenching program to test the surface expression of the Au in soil anomaly has been completed. The host rock is an altered grano-diortite intrusive with boxwork textures with hematite-limonite possibly replacing sulfides and magnetite. Some quartz veinlets smaller than 1 mm with a central suture and hematite halo were also observed.
Additionally, two trenches were completed to test the NE-SW orientated copper in soil anomaly with a coincident IP anomaly.
Targeted RC Drilling will follow subject to the success of the above exploration work.