Properties - Rio Tendal Zinc ~ Copper ~ Lead ~ Silver Project Project - Argentina

    Abstract:

Our Tendal Project is an advanced Zn-Pb-Cu project in the Province of La Rioja in northwestern Argentina. The property is 100% owned by the Company and consists of two large parcels covering an aggregate total of approximately 36,500 hectares. The Tendal camp was discovered in the early 1900's and was a source of the lead and copper. To the early miners, zinc had no value and so was largely ignored.

Exploration has outlined a stratabound massive sulphide horizon up to 80 metres thick which can be traced along strike for 2 kilometres. Numerous prospect pits and tunnels are located along this major trend. The massive sulphide horizon contains a series of individual stacked massive sulphide lenses up to 4 metres thick. Diamond drilling returned up to 4 metres averaging 5.2%zinc, 3.5% lead, .01% copper and a trace of silver. Further work will be required to confirm the resource potential of the Tendal.

    A Historic Base Metal Camp with Significant Resource Development Potential:

The Tendal zinc, copper, lead, silver property is located in northwestern Argentina in the Province of La Rioja. Located at an elevation of 3,000m, the property is readily accessible by an all season gravel road approximately 50km north of the village of Jague situated on a major highway connecting Argentina and Chile. The property consists of a northern and southern parcel, comprising six mining concessions covering a total of 36,488ha. The Company owns 100% of the mining concessions. Contained within the boundary of the mining concessions are a number of small mining claims or "minas". Four minas, covering a total of 36 hectares are owned by the Company. Third parties have 8 fluorite minas covering 138 hectares as shown below.

The Tendal District consists of Precambrian schists overlain by Ordovician shales which have been intruded by Tertiary porphyries. In 1889, prospectors discovered lead and silver in narrow veins and lenses near the head waters of Rio Tendal. The mineralized veins were exploited by artisan miners using small adits and shafts.

as Yegua Pircada, Verdiona and Catitas. The most economically significant is the Verdiona-Catitas massive sulphide trend which strikes northerly, dip westerly at 50 degrees and can be traced along strike for almost 2 kilometres. The zone is up to 60 metres wide and contains a series of individual stacked lenses range from 1 to 40 metres thick.

The mineralization is oxidized on surface but locally the artisanal workings have exposed the primary sulphide minerals to be sphalerite (zinc), chalcopyrite (copper) and galena (lead with silver).

The Company completed diamond saw channel sampling across the Verdiona and Catitas Zones and bulldozer trenching across the Yegua Pircada Zone. The following summarize the economically significant results across the Verdiona Zone:

Channel Number	Width (m)	Zinc (%)	Lead (%)	Copper (%)	Silver (gpt)
TR-4	18.5	4.5	0.8	0.7	7.5
TR-5 including and	29.0 7.5 10.0	4.4 5.7 3.0	2.8 1.8 4.6	0.1 0.3 0.0	12.7 34.0 10.9
TR-15	13.2	3.7	0.5	0.5	29.0
TR-22 including and	25.0 7.5 10.0	3.9 5.69 3.0	0.2 1.8 4.6	0.3 0.3 0.0	5.8 34.0 10.9

The Company also completed XX,XXXm of diamond drilling on the Verdiona, Yegua Pircada and Catitas Zones. All of the holes intersected massive or disseminated sulphide mineralization and / or alteration typically associated with base metal mineralization.

The potential economic significance of the trench and drill hole assays is demonstrated in the following tables:
 

Grade of Canadian Base Metal Mines
Mine	Zinc (%)	Lead (%)	Copper %	Silver (gpt)
Brunswick	9.70	3.60	0.36	na
Kidd Creek	5.70	0.25	2.90	75.00
Matagami	5.00	na	0.32	na

Typical Grade of Massive Sulphide Lens in Trenches and Intersected in Diamind Drilling
Mine	Width* (m)	Zinc (%)	Lead (%)	Copper (%)	Silver (gpt)
Tendal
TR-22	7.50	5.69	1.75	0.34	34.00
DDH-6	4.41	4.99	0.36	0.04	14.00
Note: * = Typical Mining underground mining width

 

The following two figures are indicative of typical sections across the Verdiona Zone and show drill locations, significant assay results and the inferred geology based on surface and diamond drill hole information (as highlighted in red above).

To Right: Geologists underground in the historic Verdiona tunnel, standing inside the massive sulphide lense cut by Tr - 22 , intersected in DDH- 7 and 8 and shown on Section 2 (see above) Massive sulphides (oxidized) evident by the rusty-brown colour. The light coloured rocks in the upper right corner of the photograph are the hanging wall sediments (schists)

Management believes the Tendal Project hosts a significant base metal resource of potential economic significance