Note: Grab samples are selective by nature and are unlikely to represent average grades of the deposit.
The primary objective of the property evaluation was to evaluate the mineral potential of the Property based on the continuity and apparent strike extent of the three Major Veins described in the area, as well as evidence for a series of secondary, subsidiary and/or en echelon, high grade, copper mineralized veins. The primary evidence available to define individual veins are the surface workings excavated to develop them, primarily in the form of limited surface to near sub-surface excavations.
On the basis of this initial property visit, the following conclusions were made:
1. Several samples document anomalous levels of silver and gold, which, together highly anomalous cobalt ( > 4,000 ppm), Lanthanum ( > 2,000 ppm) and Cerium ( > 2,000 ppm), are consistent with the Iron Oxide-Copper-Gold (IOCG) mineral deposit model;
2. The majority of the samples confirm highly anomalous to potentially ore grade copper (by definition, as rock grading in excess of 9% Cu can be shipped to the ENAMI facility at Copiapo as "Direct Shipping Ore");
3. Samples recovered from exploratory trenches, located approximately 6.3 km from the nearest producing veins, are interpreted to indicate potential for identification of additional, well mineralized, copper-bearing veins below the extensive eolian sand cover characterizing the Angela tenures;
4. There is sufficient evidence to support the interpretation that existing production on the Property can be increased, both in terms of continued underground development on existing drifts through the purchase of heavy equipment as well as development of additional production drifts on other high grade, copper mineralized veins identified on the Property;
5. There is evidence that the currently identified "Major Veins" and/or the subsidiary veins identified on and/or adjacent to the Property potentially extend farther in both directions along strike and to greater depth than currently tested in the majority of workings to date;
6. Subsequent work on the Property will be required for both development (i.e. to increase production on multiple veins) and exploration (i.e. make a more thorough evaluation of the mineral potential of the Property);
7. Limited trenching elsewhere on the Property, on an exploratory basis, has demonstrated potential to identify additional well mineralized, high grade, copper-bearing veins well beyond those veins currently known. More specifically, the Major Veins, within the Main Mineralized Trend, are interpreted to extend through the Angela tenures (which are largely covered under a blanket of eolian sand of highly variable thickness) to the southwest; and
8. Further exploration will be required to make a more adequate evaluation of the mineral potential available on the Property.
The Property is interpreted to have considerable potential to increase production on both existing drifts, as well as developing additional drifts for production. In addition, the Property is believed to have considerable potential for discovery of additional high grade copper mineralized veins through a program of systematic exploration of the Property.
A primary mandate of the Company is to increase production from the Property. Therefore, the Company plans to aggressively pursue further evaluation of the ore, coincident with work to identify opportunities to increase development of additional high grade mineralized copper veins.
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