Monclova

Monclova is a large property centred over a 12 km² dioritic stock, intruding limestones that are affected by contact metamorphism over a distance of over 1 km from the stock margins. Multiple copper-gold rich skarns have been identified and exposed in bulldozer cuts and small shafts along the stock margins. The Real Viejo Mine area, located near the southwest margin of the stock, contains quartz veins, breccias and silicified zones with high grade silver, lead and zinc. High grade silver was mined from this area during Spanish Colonial times from several small pits and underground workings scattered over an approximate 0.5 km² area. Recent grab and chip sampling of historic workings and dump piles by McAnulty (2008)¹ yielded samples with up to 2,356 g/t silver, up to 14.8% lead and up to 34% zinc¹ . Grab samples are selective samples and are not necessarily representative of the mineralization hosted on the property. All historical workings appear to have targeted linear zones of mineralization that are open in both directions and to depth. Evidence of mining of similar high-grade silver-lead-zinc veins is also found at the Ojo de Agua prospect near the centre of the Property.

Following closing the Company intends to undertake an airborne magnetics – EM survey of the entire property to identify the extent of surface and shallowly-buried magnetite-bearing skarn and sulphide mineralization. The Company will also complete detailed mapping and sampling of historic workings in the Real Viejo silver-lead-zinc vein area and the Ojo de Agua silver-leadzinc vein area. Reconnaissance geochemical sampling and mapping of the rest of the property will also be undertaken.