HispanicBusiness

Discussion of Drill Plan for First Half of 2013

As reported in 2012, the La Cantera and Middle Zone deposits remain open at depth, but the near-term goal is to add near-surface resources from the porphyry cluster that occupies the eastern third of the La Mina concession. The porphyry at La Garrucha is one of the strongest magnetic anomalies in the district, and last year's drilling showed the system to be rich in gold, with relatively high silver and molybdenum as compared with the La Cantera and Middle Zone deposits. In February 2012, Bellhaven announced the results from 6 drill holes totaling 2,374 metres from the northwest end of the system. The best intercept reported in 2012 was 64m averaging 0.8 g/t gold equivalent, but that hole bottomed in 25m of 0.95 g/t gold equivalent. In fact, gold, copper, and silver were all increasing towards the bottom of that hole. Two other holes in that program also yielded significant intercepts that extended to the bottom of the holes (Figure 4).

The core of the La Garrucha magnetic anomaly is more than 800m long by 400m wide, extending well beyond current magnetic survey coverage. The anomaly is elongate in a NW-SE direction and extends beyond the La Mina concession to the southeast. The 2013 drilling will offset the previous drilling to the south, stepping southward on nominal 50m spacing between holes (Figure 5). Recent mapping and sampling have identified a series of faults that appear to tie the La Garrucha porphyry to the other known porphyries at La Cantera and Middle Zone. The Company is encouraged by the new interpretation of the airborne magnetic survey indicating a possible connection between La Cantera and La Garrucha at depth, with the overall intensity of the magnetics feature strengthening to the east. These larger systems also appear to align on a major east-west trend that the Company is prospecting as it cuts across the district for at least 5 kilometres.

Cristalina is another high-priority target. It is comprised of a magnetic high flanked by one of the strongest geochemical base-metal anomalies in the district. The magnetic anomaly alone was a secondary target, but coupling the geophysical and geochemical indicators yields a much higher potential prospect. Company geologists believe that the anomaly may represent a buried porphyry deposit covered by volcanic rocks. Since intrusive rocks are not known to outcrop in the area, the geochemical anomaly is particularly impressive in scale. The zinc-arsenic-lead-antimony anomaly is at least 700m long by 300m wide, larger than any other multi-element soil anomaly yet discovered on the project (Figure 6). While the ultimate drill program will be contingent on results, the first drill holes at Cristalina will test both the geochemical and geophysical components of the target on drill fences spaced approximately 100m apart. The anomaly is robust right up to the edge of the current sampling grid in the northeast, suggesting that the anomaly extends further toward the La Garrucha porphyry. Gold, and to a lesser extent, copper, are likely suppressed in soil geochemistry because the porphyry does not come to surface. The recently completed ZTEM survey (see Company news release dated December 13, 2012) is expected to help refine the target for drilling.

The Company will begin receiving data and interpretations from the ZTEM survey during January. These data will provide a useful layer for targeting additional drilling, particularly in areas where gold and copper mineralization does not outcrop.