Fernandez Zone
The Fernandez Zone has developed along the eastern edge of the central Diorite intrusion and covers a broad area of more than 325 m extending from the Montanez to the Trovador structures. Modeling of this zone outlined a large fringe of lower grade mineralization hosted for the most part in limestone units that surround a core of higher grade Endoskarn (mineralized Diorite) with stockwork-style mineralization. The Fringe Zone encompasses portions of the adjacent Montanez FW, Central and HW veins; the MID-Zone Vein and the AG Zone, recognized as Resource areas in 2009; and parts of the new Lorenzo and South-Skarn and Panda Zones. The Fernandez zone represents a new style of mineralization, potentially amenable to large-sale, bulk mining or more selective approaches.
Table 3 : Fernandez Zone, Tonnage and Grade Sensitivity to Cut-off Grade Value, San Diego Deposit
-------------===============================================================FERNANDEZZONE Indicated Resources --------------------------------------------------------------- Tonnes Au Ag Pb Zn Cu Ag.EQ(i) (metric) g/t g/t % % % g/t--------------------------------------------------------------------------------------------------------------------------------------------------------CoG 52Endoskarn 9,310,000 0.06 55 0.59 1.33 0.14 100 ---------------------------------------------------------------Fringe 5,485,000 0.06 43 0.74 0.89 0.09 83-------------===============================================================TOTAL CoG 52 14,795,000 0.06 51 0.65 1.17 0.12 94--------------------------------------------------------------------------------------------------------------------------------------------------------CoG 80Endoskarn 6,115,000 0.06 64 0.70 1.58 0.16 117 ---------------------------------------------------------------Fringe 2,465,000 0.06 54 0.96 1.15 0.10 106-------------===============================================================TOTAL CoG 80 8,580,000 0.06 61 0.78 1.45 0.14 114--------------------------------------------------------------------------------------------------------------------------------------------------------CoG 90Endoskarn 4,910,000 0.06 68 0.75 1.68 0.16 124 ---------------------------------------------------------------Fringe 1,750,000 0.06 58 1.05 1.24 0.10 114-------------===============================================================TOTAL CoG 90 6,660,000 0.06 65 0.83 1.56 0.15 122--------------------------------------------------------------------------------------------------------------------------------------------------------CoG 100Endoskarn 3,650,000 0.07 74 0.82 1.81 0.17 135 ---------------------------------------------------------------Fringe 1,135,000 0.07 63 1.17 1.35 0.11 124-------------===============================================================TOTAL CoG 100 4,785,000 0.07 71 0.90 1.70 0.16 132---------------------------------------------------------------------------------------------------------------------------------------------------------------------===============================================================FERNANDEZZONE Inferred Resources --------------------------------------------------------------- Tonnes Au Ag Pb Zn Cu Ag.EQ(i) (metric) g/t g/t % % % g/t--------------------------------------------------------------------------------------------------------------------------------------------------------CoG 52Endoskarn 9,550,000 0.04 57 0.60 1.30 0.12 101 ---------------------------------------------------------------Fringe 19,105,000 0.05 41 0.70 0.97 0.08 81-------------===============================================================TOTAL CoG 52 28,655,000 0.05 46 0.67 1.08 0.10 88--------------------------------------------------------------------------------------------------------------------------------------------------------CoG 80Endoskarn 6,695,000 0.04 65 0.66 1.52 0.13 116 ---------------------------------------------------------------Fringe 7,870,000 0.05 52 0.92 1.30 0.11 106-------------===============================================================TOTAL CoG 80 14,565,000 0.05 58 0.80 1.40 0.12 110--------------------------------------------------------------------------------------------------------------------------------------------------------CoG 90Endoskarn 5,595,000 0.03 69 0.70 1.58 0.14 122 ---------------------------------------------------------------Fringe 5,285,000 0.05 56 1.03 1.44 0.11 116-------------===============================================================TOTAL CoG 90 10,880,000 0.04 63 0.86 1.52 0.12 119--------------------------------------------------------------------------------------------------------------------------------------------------------CoG 100Endoskarn 4,475,000 0.03 73 0.74 1.64 0.14 128 ---------------------------------------------------------------Fringe 3,000,000 0.04 62 1.24 1.62 0.12 132-------------===============================================================TOTAL CoG 100 7,475,000 0.04 69 0.94 1.63 0.13 130--------------------------------------------------------------------------------------------------------------------------------------------------------



