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The blocks within the intrusion show complex prograde (magnetite-garnet-serpentine) and retrograde (specularite-silica/jasperoid) alteration. These blocks are locally mineralized with gold and were either skarned within the intrusion and/or represent previously skarned rocks that were simply transported upwards by the intrusion, suggesting the potential for significant gold bearing skarn alteration at depth.

The intrusion-hosted skarn blocks are mineralized with gold values ranging from below detection to 0.386 grams per tonne, and the intrusion itself carries gold values ranging from below detection up to 0.107 grams per tonne. The widespread persistence of anomalous gold mineralization in this intrusive body is suggestive of good exploration potential in more favorable stratigraphies at depth. Samples are moderately to strongly anomalous in pathfinder elements Ag, As, Bi, Co, Cr, Cu, Mn, Mo, and Sb.

The geophysical data indicates that the Punto Rojo target area lies on a moderately strong magnetic anomaly at the SW end of a linear trend of such anomalies trending NNE into the Northern target area. There is also an associated modest VTEM anomaly that appears perfectly centered on the one kilometer diameter exposed porphyry. Condor estimates that the source of the anomalies may be situated within the 100-400 meter depth range, possibly located in the Morelos-Mezcala contact zone.

Five drill holes totaling approximately 2,500 meters have been designed to test this target.

Target Area II - Northern (Norte Punto Rojo) (Condor TZ-4, TZ-6, TZ-7)

The Northern area is an approximately 5 km long by approximately 2.5 km wide target area that trends NNE from Punto Rojo to the northeast terminus of the Biricu concession claim. The area is defined by a discontinuous trend of NNE-striking small exposures of granodiorite porphyry and possibly associated hornfelsed Mezcala Formation, and a separate trend of jasperoid bodies that follow the approximate Morelos-Mezcala contact zone in parallel to the southeast. Geophysics shows a strong trend of dipole magnetic anomalies which may be indicative of a skarn zone at depth. Condor estimates that the source of the anomalies is in the 100-400 meter depth range which puts this in the area of the Morelos-Mezcala contact zone.

The most important geologic feature is the presence of a large hill of strongly hornfelsed Mezcala Formation in contact with granodiorite porphyry. The El Limon and Los Guajes deposits (Torex Gold Resources Inc.), and the Mina Verde resource (Cayden Resources Inc.), show modest to extensive hornfels alteration above and adjacent to mineralized areas. The string of small granodiorite porphyries and associated ferruginous jasperoid bodies that are found along the Morelos-Mezcala contact zone at the Northern area is very similar to alteration styles seen at Los Filos and Bermejal.

Gold values from below detection to 0.287 grams were found in preliminary sampling of an iron oxide and clay altered area very close to the Mezcala-Chilpancingo highway to the southeast of Punto Rojo. However, gold geochemistry values are low to below detection in the hornfels and the jasperoid alteration sampled to date, but this is common even in the vicinity of known GGB deposits.

Punto Rojo marks the SW terminus of the string magnetic anomalies, and thus appears to be part of the larger Northern target area. The coincidence of geologic, geochemical, and geophysical anomalies makes this a high priority drill target area. Five drill holes totaling approximately 2,500 meters have been designed to test this target.