AURIFERO

Gold, Silver	Gold, Silver
Location	Navajoa, Sonora
Nearest City	35 km Northwest of the Alamos Silver Project
Nearest Major Mining Projects	15 km Northwest of Cobre Del Mayo's Piedras Verdes copper mine
Geology	Epithermal vein system
Land Package	1,229 has
Exploration Highlights	Hole DMDDH-01 3.1 m of 18.37 g/t Au Hole 07-MN-10 24.5 m of 3.12 g/t Au Hole CI-35 48 m of 1.47 g/t Au Hole CI-09 58 m 3.65 g/t Au Hole CI-34 24 m of 2.42 g/t Au
Access & Infrastructure	Paved and gravel roads, mining labour force, power and water
Project Interest	Under option to acquire 100% interest

Project

The Aurifero gold project contains a swarm of gold- and silver-bearing epithermal veins within a NW/SE-trending zone measuring 3 km long and more than 400 m wide.

A NW-SE trend of structurally controlled ridges and valleys extending from northwest of Aurífero project to the east-southeast of the Piedras Verdes porphyry copper deposit. Gold mineralization in the Aurífero project area is associated with NW-SE fracture zones, veins, and rhyolite dikes, cutting intermediate to felsic tuffs. Quartz-eye rhyolite dikes and strong argillic alteration in a number of the shallow underground workings suggest that mining has been limited to the uppermost levels of a mineralized epithermal system. Aurifero mineralization appears to be spatially and temporally related to the emplacement of fine-grained felsic intrusions (dikes and small stocks), the nature and extent of which were not clearly identified in historical work.

The project has seen numerous campaigns of shallow reverse circulation and core drilling since the 1980s totaling over 8,000 metres. Holes were on average less than 100 m deep; the deepest reaching a vertical depth of 135 m from surface.

The project is 35 km northwest of the Alamos silver project, and 15 km northwest of Cobre Del Mayo's Piedras Verdes copper mine. The total size of the project is 1,229 hectares.

Project terms include completing cash payments of CDN $2,749,000 over 60 months