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La Carolina is located in west-central Argentina, 850km northwest of Buenos Aires, Argentina's capital. Mining in the area dates back to the late 1800's when gold and base metals were produced at the Esperanza Mine on the southwest edge of the property, together with some small placer gold operations. Anglo (now Anglogold Ashanti Ltd) drilled 55 shallow holes in 1989 and Geocom Resources Inc (Geocom) drilled 14 holes in 2004 identifying disseminated and vein hosted gold-bearing pyrite, galena and sphalerite in breccia pipes and the rims the volcanic complex. LAT owns 75% of the project while TNR Gold Corp. and Geocom Resources Inc own 12.5% each. Mining rights consist of 13 granted claims covering 2,024ha and 4 claims covering 4,601ha (waiting for government concession) for an aggregate total of 6,625ha.
La Carolina consists of a Tertiary Volcanic complex intruded at the intersection of two major structures in Paleozoic basement. The volcanic rocks consist of a trachy-andesites and trachytes in a diatreme-dome complex that represents the roots of a Tertiary volcanic center. It is not uncommon to have mineral deposits in this setting and the Ballatoc Diatreme in Indonesia, hosting over 4MOz of gold in the Baguio camp,is theclosest analogue. The major structures that host the Carolina volcanism are the ones that host world class gold deposits including Barrick's Veladero (12MOz Au) and Pascua-Lama (17MOz Au).
Gold and base metal mineralization discovered at La Carolina occurs in the volcanic rocks in narrow high grade veins (59.2gpt Au / 1.5m and 0.23% Pb, 0.78% Zn over 28m), breccia pipes (2.5 gpt Au over 138m), and low grade disseminated mineralization hosted in breccias in the contact with a porphyry (0.4gpt Au over 78m). Mineralization is hosted mainly at the rims of the nested diatremes that covers approximately 9kmē; but only 50% of this area has been explored. Clay illite-smectite alteration and low temperature marcasite mineralization suggests paleosurface proximity which, together with a well preserved tuff ring, indicates a poorly eroded system with exploration potential at depth. Mineralization in similar deposits as Baguio extends at depth of 1000m below surface. Over 4000 soil samples collected by Anglo show gold anomalies between 0.1-4.9gpt surrounding the borders of the diatreme. Those anomalies extend for at least 2km along the rims of the diatreme. Carolina mineralization can be defined as low sulphidation epithermal quartz-sulphide Style.
Two geophysical surveys have been carried out in Carolina by LAT. A total of 125.5 line kilometers of a ground magnetometer survey and 69.25 km of Gradient Array Time Domain IP were completed by Quantec Geoscience ("Quantec"). The magnetometer survey defined the extent of the know breccia pipes, volcanic rocks, and porphyries, under the areas of overburden cover. Some of the magnetic anomalies are coincident with the gold in soil anomalies suggesting that part of the mineralization is related to magnetite. The IP survey was designed to identify vertical breccia pipes and structures that host pyrite and silicified zones as indicated by historic diamond drilling. The IP work identified resisitivity and chargeability anomalies around the contacts of the diatreme.
During 2007, the Company completed a 4,500m HQ diamond drill program. The program aimed at six targets: Mogote (6 holes), La Luisa (3 holes), El Camino (1 hole), El Corte (2 holes), La Ilusion (one hole), Olguin (one hole) and La Virgen (2 holes). Assay results show widely distributed gold and base metal mineralization in La Luisa (DDH-03, 12) and Mogote (DDH-06, 21) targets. Significant results are presented below:
 The company has signed a JV agreement with CHC Ventures, a venture capital group out of Buenos Aires. Under the terms of the option, CHC has the right to acquire a 51% interest in the property from LAT's 75% interest by making escalating cash payments totaling US$1,090,000 over 4 years and by expending US$750,000 each year over 4 years (US$3,000,000 in the aggregate) on exploration of the property. No interest is earned by CHC until all its obligations have been satisfied.
LAT and CHC are currently working together in the design of the incoming exploration and drilling program that will include further drilling in Mogote and La Luisa targets as well as the remaining untested targets surrounding the diatreme.
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