Chitigua

The Chitigua Project is centred at 7610500mN and 519500mE in the northern portion (Region II) of Chile, 270km northeast of the port city of Antofagasta and 90km north of the regional mining centre of Calama. The Project covers an area of approximately 200 square kilometres.

The Chitigua Project straddles the West Fault over a strike length of 18 km, located between the Quebrada Blanca and El Abra deposits, situated 70km to the north and 30km to the south respectively. The West Fault is a major north-trending crustal structure that can be semi-continuously traced through northern Chile for a distance of several hundred kilometres. The West Fault provides the locus for mineralised intrusions that comprise the northern porphyry copper molybdenum belt. This belt is one of the most heavily mineralised provinces in the world, incorporating some 29 major porphyry occurrences including several of the world’s largest deposits. From south to north these include Escondida, Gaby, Chuquicamata, El Abra, Collahuasi and Quebrada Blanca.

The principal economic target within the Chitigua Project is porphyry copper-molybdenum mineralization, similar to numerous significant examples developed along the West Fault to the north and south. The style and setting of mineralization within the vicinity of Chitigua is most consistent with that evident at the Chuquicamata deposit, where mineralization is hosted by a highly altered, elongate (partially attenuated) porphyry body that has directly intruded along the axis of the West Fault itself.

In April 2010 the Company completed a 420m diamond drill hole and commenced an RC drilling program.

By the end of June 2011 two zones at Chitigua, the Breccia zone and the Church zone, had been drill tested. These zones are 6km apart and are adjacent to the Western Fault.

In the Breccia zone five holes were drilled, two diamond drill holes and three RC holes.

In the Church zone three holes were drilled, one diamond drill hole and two RC holes. A surface trench to the north east of the drill holes was also sampled.

Refer to the news release lodged on SEDAR July 8, 2011 for full details on these drilling programs and analysis results.

Highlights of the drilling program included 46m @ 0.4% Cu from 3m and 23m @ 0.41% Cu from 63m.