mining investment project, developed by mexican ... - ANZMEX

“MINING INVESTMENT PROJECT, DEVELOPED BY MEXICAN GEOLOGICAL SURVEY”

MINING PROJECTS BY PUBLIC BIDDING IN 2014

Seaport Ensenada

NO.

2

Mexicali

1

3

16

7 8 10 9

Hermosillo Seaport Santa Rosalia

Seaport Isla de Cedros

11

Chihuahua

5

17

15 Monterrey

6 Seaport La Paz

Saltillo

Culiacán

PROJECT

1 2 3

Delia

4

Ixtepec

5 6 7 8 9 10

Red. Las chinacas San juan-la paz El porvenir El indio La fluorita 01 La fluorita 02

11

La india

STATE

SUBSTANCE

Son.

Au

15,170 102 93

Oax.

Au, Ag, Pb, Zn, Cu

3,850

Delia Mexicali fracc. 8 Mexicali fracc. 9

Son. y Chih. B.C.S. Chih. Chih. Coah. Coah.

HA

Au, Ag, Pb, Zn, Cu 10,564 146,329 P2O5 Ag, Cu 33,476 E.T.R. 16,440 CaF2 56,963 31,671 CaF2 CaF2

19,938

SURFACE

334,596

Coah.

18 Durango Cd. Victoria

Seaport Mazatlán

Zacatecas

Seaport Cabo San Lucas Nayarit

NO.

PROJECT

STATE

SUBSTANCE

13 14 15 16 17 18

Jáltipan 1 Jáltipan 2 Red. Rancho Viejo Chupaderos Los Borregos Red. Hidalgo Fracc. 29 Picacho

Ver. Ver. Mich. Jal. N.L. Chih.

S S Au Ag, Pb, Zn Mn

4,006

Querétaro

Guadalajara

23,359

Campeche

Toluca Puebla

13

9,033 16,031 4,100

Seaport De Lázaro Cárdenas

Ag,Zn,Pb,Cu

1,379

Tams.

E.T.R.

4,433

SURFACE

62,341

Seaport Capital

12

Highway

Chilpancingo Oaxaca

4 Tuxtla Gutierrez

Seaport De Acapulco

Coah.

Seaport De Cozumel

Seaport De Veracruz

D.F.

Morelia Colima

Merida

Pachuca

14 Seaport De Manzanillo

Seaport De Progreso

Seaport De Tuxpan

Aguascalientes Guanajuato

HA Seaport Vallarta

12

Seaport De Tampico

San Luis Potosí

Graphic Scale

Seaport Salina Cruz

0

250

Kilometers

500

1. Delia / TecnicalSheet LOCATION

Puerto Peñasco and Plutarco Elías Calles Municipalities, Sonora, México.

PROPERTY

15,365 hectares.

INFRASTRUCTURE

Located 37 kilometers to the Northeast and Southwest respectively of Puerto Peñasco (45,000 habitants) and Sonoyta (12,900 habitants) cities, in Sonora state, connected by 34 kilometers of paved road and 3 km unpaved road. The line high-voltage closest is located 23 km on the federal highway No. 8.

SURFACE RIGHT

The mining property is settled in 5 Ejidos:. Alfredo V. Bonfil Ejido (106 members), Valle Verde (48 members), Gral. Benigno Serratos (84 members), División General Lázaro Cárdenas (61 members), N.C.P.E. Dotación Aquiles Serdán (66 members).

DEPOSIT TYPE MINERALIZATION HOST ROCK ALTERATION ORE GRADE GEOLOGICAL POTENTIAL STATUS GEOLOGICAL STUDIES GEOLOGICAL SETTINGS

SURROUNDING MINES

Orogenic Bulk tonnage Deposit. Gold. Schist, gneisses and deformed granites. Silicification and argitilization. 0.52 g/t. 2’500,000 of gold Ozs. Early stage. Mobile metal ions (MMI), geochemistry and studies of Geophysics (gravity and electromagnetic). Total investment $115,191.18 USD. The area is mainly covered by fine-grained thick-clastic sequences. Founding into the orogenic gold belt, in the gold orogenic deposit type, at Northwest to the Sonora, structurally-controlled by faults systems and fractures. The Project is located 45 kilometer at Northeast from the open pit mines, property of Peñoles Co., “La Herradura”, (resources M&I,I 4.2 million Ozs. of gold), “Soledad-Dipolo” (resources M&I,I 2.36 million Ozs. of gold) “Noche Buena” (resources M&I,I 1.6 million Ozs. of gold) and Aurico Gold “El Chanate” (resources M&I, I 1.73 million Ozs. of gold).

1. Delia

Project

Delia project is located in the Puerto Peñasco and Plutarco Elías Calles municipalities. It is located 37 kilometers north-east and west respectively of the populations of Puerto Peñasco and Sonoyta, in Sonora state, being well connected by 34 kilometers of paved road (Federal Highway No. 3) and 3 kilometers of dirty road. As part of a regional exploration program to identify evidence related to orogenic gold deposits, a high resolution magnetic- radiometric survey and the results indicate that there is a relationship between the anomalous high, low and known deposits so, given the geological regional context, which determines the NW - SE structural evidence.

Graphic Scale 0

2.5 5 Kilometers

10

Were collected 904 soil samples to be analyzed by the method of Mobile Metal Ion (MMI) with separation of 300 meters, in 28 lines in the N45°E direction, and were collected every 500 meters. The Ag, As, Au, Hg, Pd and Sb assays were processed in the laboratory “Australia Minerals” (LAS) for their expertise and efficiency. The gold and silver anomalies show remarkable agreement with the geophysical guidelines.

MMI Gold Anomalies

The response factors were calculated by dividing by 0.02 gold ore grades. A high ratio suggests good chance that an element is present at depth. Any sample with ratio of 10 or greater was considered anomalous. Specifically, a factor of 80 times higher than the background value was calculated. The most important geochemical anomaly spans an area of 2 km2 in south‐central “Delia Project” portion coincides with the projection of intrusive bodies with terrestrial exploration interpreted resistivity and gravimetric. High‐resolution geophysical results, MMI geochemical anomalies and geological structural context analysis on the project, suggest an attractive area for additional exploration.

Times upper the anomal value

0-9

31-40

10-20

> 40

21-30

Graphic Scale

0

1

2.5

Kilometers

5

1. Delia

Project EXPLICATION QUATERNARY Qhoal

Alluvium

Qholi

Litoral

Qhola

Lacustre

Qhopa

Palustre

Qhoeo

Eolian

QptCgp

Conglomerate polimictic

TERCIARY TmB

Basalt

TmTR-Da-A Rhyolitic tuff-Dacite-Andesite JURASSIC JimR-Ar-A

Sandstone-Andesite

PALEOZOIC CipcpCz-Do-Ar Limestone-Dolomite-Sandstone

PROTEROZOIC pTimGn-E

Gneis-Esquisto

ROCAS ÍGNEAS INTRUSIVAS TeoGr

KsTpaGr-Gd Granite-Granodiorite

Graphic Scale 0

10 20 Kilometers

Granite

40

JmsGr

Granite

pTmGr

Granite

Geologically stands at Orogenic Gold Belt of Northwestern Caborca Sonora, a stretch in which important deposits associated with Proterozoic metamorphic and intrusive rocks were emplaced Paleozoic. Examples are mines: “La Herradura”, “Soledad‐dipoles” and “Noche Buena”, which total reserves sum 8 million gold ounces.

Return to general plane

1. Delia

Project EXPLICACIÓN MINING ASSIGNMENT DELIA NORMAL FAULT SHEAR FAULT LINEATION

GEOLOGY CUATERNARY EOLIC SAND-SILT GRAVER-SAND

PROTEROZOIC LOWER-MIDDLE GNEISS-SCHIST

INTRUSIVE IGNOUS ROCKS DIORITE-GRANODIORITE GRANITE GRANITE GRANITE

Graphic Scale

4

2

0

Kilometers

4

4. Ixtepec / TecnicalSheet LOCATION

Ixtepec, Municipality, Oaxaca State, México.

PROPERTY

3,850 hectares.

INFRASTRUCTURE

SURFACE RIGHT DEPOSIT TYPE MINERALIZATION HOST ROCK ALTERATION ORE GRADE GEOLOGICAL POTENTIAL STATUS GEOLOGICAL STUDIES GEOLOGICAL SETTINGS SURROUNDING MINES

Located 7 km at North from Ixtepec City, (26,450 habitants). This city has an unpaved road with length of 7 km, connecting the project, passable all the year. The project is far 70 kilometers northeast from Salina Cruz port and 290 km west of Oaxaca city, with a population of 543,721 habitants. The nearest electrical substation is located in Ciudad Ixtepec, at a distance of 4 km and La Venta Central Eoloeléctrica, at a distance of 5 km. This mining property is seated in the community of Ixtepec (911 community members). Low hydrothermal sulphidation. Au, Ag, Pb, and Zn. Metavolcanic sequence. Argillic. 1 g/t Au, 80 g/t Ag, 2% Pb, and 2.5% Zn. 25 million tons @ 1 g/t Au, 80 g/t Ag, 2% Pb, and 2.5% Zn, 800, 000 Oz Au, 64.5 million oz Ag, 500,000 tons Pb, 625,000 tons Zn. Early Stage with 6 drill holes in 1,167 meters made by the SGM. Drilling, rock samplings as well as channel, geochemistry and geological mapping samples. Total investment $312,666.52 USD. Low to medium temperature, mineralization occurs in a series of sub-parallel veins and veinlet’s and is considered a large-tonnage and low-grade deposit. Located 100 kilometers to the east of the “San José de Gracia” Mine from Golden Trump Resources, with 250,000 tons, with 1.59 g/t Au, and 260 g/t Ag ore grade.

4. Ixtepec Project This Project is connected with Ixtepec city, traveling a distance of 7 km by unpaved road passable in all seasons. Also, is located 70 kilometers northeast of the port of Salina Cruz and 290 kilometers west of the Oaxaca city. The geological potential is estimated at 25 million tons of mineralized rock with an ore grading average of 1 g/t Au, 80 g/t Ag, 2% Pb and 2.5% Zn. It is located 100 kilometers east of Mina “San José de Gracia”, property of Golden Trump Resources, with 250,000 tons with an ore grading average 1.59 g/t Au and 260 g/t Ag. 98°W

96°W

94°W N

18°N

Tuxtepec

18°N Mariscala

Cuicatlan

Huajuapan Teposcolula

Ixtlan

Nochixtlan Tlaxiaco

Etla Zacatepec

OAXACA

Putla

IXTEPEC

Choapan

Santiago Amoltepec

Matías Romero

Zimatlan

Santa María Chimalapa

Ixtepec Ejutla

Pinotepa Nacional

Juchitan Juquila

Tehuantepec

Miahuatlan

Río Grande

Salina Cruz

16°N

16°N Puerto Escondido

Graphic Scale Puerto Ángel

98°W

96°W

94°W

0

50

Kilometers

100

4. Ixtepec Project Oldest rocks in the region are late Jurassic metavolcanic outcropping along a NW‐SE strip, north of the project. They are followed by a Neocomian meta‐sedimentary sequence topped by Albian limestone and dolomite. By Paleocene, clastic rocks are deposited, and by Miocene, a magmatic event takes place during which andesite‐dacite tuff, subvolcanic dacite intrusions and granite granodiorite are emplaced, a suite that is part of the Southern Sierra Madre Magmatic Arch. Ixtepec Height is located in the east flank of a tectonic graben limited by a NW‐SE system of faults along which intrusion of crystalline and hypabyssal rocks into the previous meta‐volcanic, meta‐ sedimentary as well as the andesite and conglomerate sequences. It is possible that during the late sub‐volcanic stage, saturated hydrothermal fluid were circulating to fill the micro‐fractures and faults systems. As a result, quartz veins and veinlets parallel systems are observed bearing galena, sphalerite, pyrite and chalcopyrite in an intense argillic alteration and silicified zone generating an outstanding oxidized and leached aureole. Such arrangement suggests a gold‐silver‐associated high sulfidation conditions.


4. Ixtepec Project EXPLICATION QUATERNARY Qhoar-lm

SAND-SILT

TERCIARY Tm TA-Tda

ANDESITIC TUFF-DACITIC TUFF

TpaeLm-Cgp SILTSTONE-CONGLOMERATE

POLIMICTIC CRETÁCEOUS KaceCz-Do

LIMESTONE-DOLOMITE

JURASSIC Js(?)MV

METAVOLCANIC

INTRUSIVE IGNOUS ROCK Tm Gr-Gd Tm PDa DDH IX-04

GRANITE-GRANODIORITE DACITIC PORPHYRY DRILLHOLE DONE Graphic Scale

0

1

2.5 Kilometers

5

5. Red. Las Chinacas / TecnicalSheet LOCATION

Ascensión, Chihuahua, México.

PROPERTY

10,564 hectares.

INFRASTRUCTURE

Located northeast of the Álamos city, Sonora state, with a population of 24,500 habitants and 325 kilometers southeast of Hermosillo city, Sonora, with a population of 715,000 habitants. Accessed by paved highway up to the Álamos city, from there 66 km for unpaved road until the project. The nearest electrical substation is located 50 km in the town of Álamos, Son.

SURFACE RIGHT

This mining property is found seated between 2 common lands: “Saharibo” (78 common land members) and “La Vinatería” (107 common land members).

DEPOSIT TYPE MINERALIZATION HOST ROCK ALTERATION ORE GRADE GEOLOGICAL POTENTIAL STATUS GEOLOGICAL STUDIES

Polymetallic epithermal low sulphidation (veins and stockwork quartz). Gold, silver and secondary mineralization of copper and zinc. Andesites, tuffs from the river, sandstones and plutonic intrusions. Strong silicification and argitilization. 0.5 g/t Au, 100 g/t Ag, and 1% Cu. 150,000 Ozs. of gold and 25 million Ozs. of silver. Early stage. Geological mapping and rock sampling. Total investment $78,150.82 USD.

GEOLOGICAL SETTINGS

The geological-structural framework, the metal content and the geochemical interpretation, allow a proposal of at least two-stages of mineralization. The first would be an (surface) high temperature event with Au-Cu, widely-held that might constitute a large volume diseminated deposit.

SURROUNDING MINES

Locating 70 km in straight line from the “Mulatos” mine (4.5 million Ozs. of gold, Alamos Gold), at 18 km west of ” Piedras Verdes” (50.3 million tons of copper, Frontera Copper Coporation), at 19 kilometers at south from open pit, “Álamo Dorado” (89 million tons @ 77 g/t Ag, 0.32 g/t Au mineral contain, 220.7 Silver Oz. and 0.9 Oz Gold, Panamerican Silver Corp.) At 60 kilometers south from the “San José de Gracia” Project (Dyna Resource, Inc. 1.2 million gold Ozs.), and 50 km far from “El Sauzal” project, (4.1 million Gold Oz, from Gold Corp.).

5. Red. Las Chinacas Project It is located northwest of the

MEXICALI Tecate Tijuana

ESTADOS UNIDOS DE NORTEAMERICA

N Real del Castillo Sonoyta Ensenada

CD. JUAREZ

ISLA MONTAGUE

San Vicente

BISMARK

Agua Prieta

Nogales

Puerto Peñasco

San Felipe

Altar Caborca

Janos

Santa Ana

San Quintín

Nacozari

Loma de Arena

N. C. GRANDES

Benjamíin Hill

El Rosario

Moctezuma

ISLA ANGEL DE LA GUARDA

HERMOSILLO

Sahuaripa Mazatán

Bahía de los Angeles ISLA SAN ISLA DEL ESTEBAN TIBURON ISLA CEDROS

CHIHUAHUA

Ures

Calamajue

Coyame Namiquipa

OJINAGA

Yécora

Yepachi

Nuri

M. Benavides CHIHUAHUA Julimes

La Junta CUAUHTEMOC

BAJA CALIFORNIA SUR

DELICIAS

La Perla

Guaymas

LAS CHINACAS Cd. Obregón Navojoa

Creel

Carichi

Naica

Nonoava JIMENEZ

Balleza Guachochi

0

100

Gpe. y Calvo

200 Km

town of Alamos and from there you must travel 66 km

CAMARGO

Alamos

Graphic Scale

Access is by paved road to the

Falomir

A. Obregón

Tecoripa

El Arco

the Hermosillo city, Sonora.

Sueco

F. Magón

San Carlos

Punta Prieta

325 kilometers southwest of

Porvenir Cananea Magdalena de Kino

town of Alamos, Sonora and

PAR RAL

until arrive to the project.

3’025,000

730,000

735,000

740,000

3’025,000

5. Red. Las Chinacas Project To TR‐R To TR‐R

Te PA

3’020,000

3’020,000

To TR‐R

To TR‐R

Four geological and mining importance areas were identified: “El Capulín”, “Las Chinacas”, “Yecaroma” and “La Verde”.

Ks Tpa A‐TA

Ks Tpa A‐TA

The prospect “Las Chinacas” the polymetallic epithermal low sulphidation mineralization is emplaced as silicified outcrops, gaps and networks as a result of hydrothermal veinlet filling systems normal lateral faults and shear. The host rock consists of rhyolite and andesitic tuffs, andesite, granodiorite, diorite and sandstone of Late Cretaceous-Pliocene. Mineralization consists of gold, silver, copper and zinc.

Tpa Gd

3’015,000

3’015,000

To TR‐R

Ks Tpa A‐TA Ks Tpa A‐TA

To TR‐R

To TR‐R

Ks Tpa A‐TA

To TR‐R

735,000

730,000

740,000

Graphic Scale 0

ToTR-R

1

RHYOLITIC TUFF RHYOLITE

KsTpaA-TA ANDESITE ANDESITE TUFF

2 Kilomers

4

TePA

ANDESITE PORPHYRY

TpaGd

GRANODIORITE

In the Capulín, are two mineralized structures emerge: the “Tantabique” vein with ore grades average 0.27 g/t Au and 89 g/t Ag and “Las Tinajas”, with an average ore grade 0.15 g/t of gold. Las Chinacas a 2 km2 area intensely oxidized, where advanced argillic alteration seen; an anomaly that has an average of ore grade with 0.17 g/t Au was defined.


5. Red. Las Chinacas Project 735,000

740,000

3025,000

730,000

EL CHIRIVO BLOCK

Yecaroma, is an area where advanced argillic alteration and silicification is observed, in which some silicified outcrops scattered throughout the area are easily identified and also observed dissemination sulphide in the rock. The “Santa Elena” vein reported average content of 0.2 g/t Au and 148 g/t Ag ore grades, the vein “El Jabalí” gave 0.14% Zn and 0.2 % Pb ore grades.

RHYOLITES

3020,000

La Verde, the samples collected in the northern portion reported 1.6 g/t Au, 319 g/t Ag and 2.29% Cu, while in the south gave contents of 0.39 g/t Au, 0.47% Zn and 0.95% Pb. YECAROMA

LAS MILPILLAS BLOCK

Sili‐ OXI Sili‐ OXI

Sili

ANDESITES

3015,000

ARGI‐OXI

Sili‐

LAS OXI CHINACAS

Sili‐ OXI Argi‐

OXI‐Sili

Sili‐ OXI

The geological potential is estimated in 150,000 gold ounces and 25 million silver ounces, with ore grade average of 0.5 g/t Au and 100 g/t Ag.

Argi‐ OXI

OXI

Sili‐ OXI

ARGI‐OXI

Sili‐ OXI

Contact

ESCALA Scale GRÁFICA Graphic Km 0

1

2

3

4

5

Fault

Alteration

ARGI‐OXI

Curvilinear

Within a circle with a 60 km radius around the “Reduction Chinacas Assignment” we can found the following mines; “Mulatos” mine (4.5 million ounces of gold, Álamos Gold), “Piedras Verdes” (50.3 million tons of copper, Frontera Copper Coporation), “Álamo Dorado” open pit (89 million tons at 77 g/t Ag, 0.32 g/t Au containing 220.7 ounces of silver and 0.9 ounces of gold. Panamerican silver Corp), “San José de Gracia” Project (Dyna Resource, Inc. 1.2 million ounces of gold) and “El Sauzal” project, 4.1 million ounces of gold, Gold Corp.

6. San Juan La Paz / TecnicalSheet LOCATION

La Paz, South Baja California State, México.

PROPERTY

146,329 hectares.

INFRASTRUCTURE

Located in the southeastern portion of the South Baja California State, in a N70°W direction and 80 km in straight line from the “La Paz” city, with a population of 219,600. Access is from this city traveling by the federal Road No. 1, and taking a deviation in the kilometer 112, to the project, traveling 6 to 8 km on unpaved road. The line nearest electrical energy is located in the town 13 km Pocitas.

SURFACE RIGHT

This mining property includes 7 common lands: “Ley Federal de Aguas Número Dos”, (293 members), “Ley Federal de Aguas Número Tres ” (306 members), “N.C.P.E. Flor de California” (74 members), “N.C.P.E. Alfredo Vladimir Bonfil” (127 members), “San-Hilario” (78 members), “N.C.P.E. Ignacio Zaragoza” (112 members), “N.C.P.E. Ley Federal de Reforma Agraria Dos” (68 members).


Singenetic marine sedimentary. Phosphorite. San Gregorio formation siliclastic sequence. No observation. 17 % P2O5. Mantles, with 3 kilometers of longitude and 75 centimeters thick. Early stage. Geological mapping and rock sampling. Total investment $102,190.83 USD.

GEOLOGICAL SETTINGS

Marine sediments from Holocene to Paleocene and continental volcanic rocks. The host rock is “San Gregorio formation” and consists of shale, sandstone sequence, limonite, phosphate tufts or siliceous shale and sandstone with enriched phosphorus granular, aged Oligocen-Miocen.

SURROUNDING MINES

Located 20 kilometers at west of the “Rofomex 2” mine, belonging to the Fertinal Group, with an infrastructure to extract and benefit mineral, with a capacity of 15,000 tons per day using the method of flotation with a production of 3,000 tons concentrate per day.

6. San Juan – La Paz Project Located at the southeastern to Baja California Sur State portion, 70° to the northwest and 80 kilometers in a straight line from “La Paz” capital city. The access begins since this city by the federal Highway Number 1, in the 112 kilometer there is the deviation to the project, traveling 6‐ 8 km by unpaved road. The outcrops come into regionally sequences inland marine sediments and volcanic rocks ranging in age from Paleocene to Holocene. The “San Gregorio” Formation of Oligocene ‐ Miocene is composed of sandstone, shale mudstone tuffaceous phosphate or silica (porcelain), siltstone and sandstone containing granular phosphorite and also is the most important unit of rock that contains the mantles of phosphorite. The interest zone its located 20 kilometers west of the Fertinal Rofomex Group 2 mine, which has infrastructure for extraction and processing of ore, with a capacity of 15,000 tons/day using the flotation method with a production of 3,000 tons/day concentrate.

Graphic Scale 0

25 Kilometers

50

6. San Juan – La Paz Project Five areas of importance were identified; “San Hilario”, “Laguna Cota”, “La Matanza”, “Cañada del Cerro” and “El Gavilán”. Structures that are of most interest are a pair of mantles known as “San Hilario”, and can be observed for about 2.5 km, and “Laguna Cota” along almost 3.7 km, both variable toward the NW30°‐ 60° W and dip soft NE from 02° to 04°. The thickness also has variations ranging from 0.20 to 1.50 meters. With the assays results performed to the samples collected, we obtained average ore grade 17 % P2O5 for mantles. It is estimated that the mantles may extend for 20 km to reach the eastern boundary of the project, and lthough not emerge in full; it is the same mineralized horizons that arise and operated in “San Juan de la Costa”. For this reason and geological characteristics of the region, it is estimated geological potential constituted by 3 km long and 0.75 m thick mantles, with an ore grading 17% of phosphorus pentoxide.


6. San Juan – La Paz Project

• Both, lower (1.07 m) and upper (0.54 m wide) mantos extend over 2.5 km. • Lower returned average grade of 15.79 % P2O5 with hights up to 22.5% de P2O5. • Upper content is 17.01 % P2O5 with punctual maximum grade up to 19.9% P2O5..

7. Porvenir / TecnicalSheet LOCATION

Praxedis G. Guerrero and Guadalupe, Chihuahua State México.

PROPERTY

33,476 hectares.

INFRASTRUCTURE

SURFACE RIGHT DEPOSIT TYPE MINERALIZATION

Located 90 kilometers to the southeast of Juárez City, Chihuahua (1´321,004 habitants). The highway through Chihuahua City traveling 47 kilometers; from there you take an unpaved road to the east traveling 43 kilometers. The nearest power line is located 60 km on the highway to Ciudad Juárez. This mining property covers the common land “Guadalupe Victoria” (109 members). Mississippi Valley (MVT). Silver and Copper.

HOST ROCK

Cretaceous limestone.

ALTERATION

Oxidation and argillic.

ORE GRADE

67 g/t Ag, 1.35% Cu.

GEOLOGICAL POTENTIAL STATUS

1.1 million Silver Ozs., 14 million Cu pounds. Early stage.

GEOLOGICAL STUDIES

Geological mapping, shard sampling and lithogeochemical. Total investment $193,173.76 USD.

GEOLOGICAL SETTINGS

The mineralization is controlled by stratification planes of calcareous sedimentary sequences of Cretaceous age.

SURROUNDING MINES

The “Bismark” mine is located 100 kilometers in straight line to the west, with reserves of 7.9 million tons of Cu, Zn, Pb, and Ag.

7. Porvenir

Project

“El Porvenir” project is located in the northern portion of the state of Chihuahua, occupying part of the municipalities of Praxedis Guerrero and Guadalupe. 90 kilometers southeast of Ciudad Juarez, Chihuahua, traveling towards the city of Chihuahua along the highway 47km, hence take a unpaved road eastward traveling 43 kilometers. Mineralization consists mainly of Pb‐Zn‐Cu (Limestones‐mudstones and Limestones) represented by oxides and carbonates as hidrocincite, smithsonite, cerussite and malachite with associations Ag and minor of Ti and Mo. The chip and channel sampling conducted in these mineralized structures was given its surface orientation occurrence, obtained ore grades in veins with 458 ppm Zn, Pb and 171.53 ppm, and for mantles 155 g/t Ag, 2.3 % Cu and 104.5 ppm Zn . The scope of work developed by the SGM on Assignment “El Porvenir”, allowed estimation based on distribution, longitudinal development, thickness of the identified mineralized structures and dimensions of the mineralized trend potential of 500 tons with ore grading of 67 g/t Ag and 1.35 % Cu.

Graphic Scale 0

100

200 Km


7. Porvenir

Project EXPLICATION QUATERNARY

Eolian Silt-Sand Conglomerate polimictic TERCIARY

Rhyolite-Riodacite CRETACEOUS

Limestone-Siltstone Limestone-Shale Sandstone-Shale A.M. Porvenir Valid mining claim Mine

It is located in the physiographic province of the Basin and Range, in the subprovince of Folded Northern Ranges. The geological context is represented from the base to the top, by “Las Vigas” formation (Kvh Ar-Lu). This unit is overlain by the “El Cuchillo” formation (Kbap Cz- Lu) in transitional manner. Subsequently the “Benigno” Formation (Kaim Cz), covered in concordance the Walnut Formation (Kam Cz Lu) and is in turn covered by “Finlay” Formation (Kams Cz). Unconformably covering the previous units, outcrop of semi-consolidated deposits and unconsolidated Quaternary (Holocene), consisting of gravel and sand (Qpt gv -ar). In the project there are two areas of interest, called “El Porvenir Norte” and “El Porvenir Sur”.

Population

Graphic Scale 0

2.5 5 Kilometers

10

In the northern portion are identified and located 24 veins, 10 mantles and 13 zones of stockwork, hosted by sandy, clay and calcareous rocks, belonging to “Vigas”, “Cuchillo” and “Benigno” formations. In the southern portion were identified and located two veins, one breccia, 2 mantles and 2 stockwork zones, hosted in clay- calcareous and calcareous rocks of the “Cuchillo” and “Benigno” formations.

8. El Indio / TecnicalSheet LOCATION

Ahumada, Chihuahua State, México.

PROPERTY

16,440 hectares.

INFRASTRUCTURE

Located 90 kilometers to the southeast of Juárez City, Chihuahua (1´321,004 habitants). Access from “Villa Ahumada” is on federal highway No. 45 to Ciudad Juárez traveling 22 km to the “Estación Lucero” to continue east on a dirty road for the last 43 km.

SURFACE RIGHT

This mining property is covering the private property of “El Panal” Ranch and “San Francisco” Ranch.

DEPOSIT TYPE MINERALIZATION HOST ROCK ALTERATION ORE GRADE GEOLOGICAL POTENTIAL STATUS

Magmatic. Rare earths (REE) and metals. Porphyry Rhyolitic. Silicification, oxidation and argitilization. 993 ppm Σ REE (total rare earths) and 0.33 g/t of Σ platinoids (sum platinoids ). 95,288 tons REE. Early stage.

GEOLOGICAL STUDIES

Geological mapping semi-detailed surface, shrapnel and channel sampling. Total investment $90,909.09 USD.

GEOLOGICAL SETTINGS

Rare earths and metals mineralization is associated with the presence of carbonatitics dikes and drag breccias.

SURROUNDING MINES

The “Bismark” mine is located 100 km in straight line to the west, with reserves of 220 thousand pounds Cu, 370 thousand pounds Pb, 4.8 million pounds Zn and 7.8 million Ag Oz.

8. El Indio Project It is located 90 kilometers southeast of Ciudad Juárez and 50 kilometers northeast of the town of “Villa Ahumada”. In this town, you drive north on Federal Highway No. 45 to the area known as “Estación Lucero” with route 22 kilometers where the deviation is taken east on a dirt road for 43 kilometers. LOCALIZATION

The estimated geological potential in the project is 95,288 tons of rare earth grading 993 ppm ΣREE (Sum rare earths). Additionally, ore grading 0.33 g/t platinoids Σ(Sum platinoids) is reported.

The “Bismark” mine, located 100 kilometers west is in a straight line with reserves of 220,000 pounds of copper, 370 pounds of lead, 4.8 million pounds of zinc and 7.8 million ounces of silver. Graphic Scale 0

100

200 Km

8. El Indio Project The origin of the mineral deposit is Magmatic, and the mineralization consists of Rare Earths Elements (REE) and platinoids. This mineralization is associated with the occurrence of carbonatitics dykes and trailing breccias. The outcrop on the north of the mining claim show an irregular shaped chimney, with 20‐25 m of diameter, rocks composed mottled appearance due to the presence of micro‐matrix amphibole blasts quartzfeldspar and calcite, which in turn is traversed by fine stuffed veinlets ferromagnesian. The veinlets also traverse a system filled with hematite laminations deformed. The arrangement often recalls a dalmatian fur. Associate, a compact ferruginous‐tuffaceous clastic rock look and brown with microfolds evidencing that the original laminations were subjected to ductile deformation was observed. In Mariana zone (a third party property) there is an outcrop of granite porphyry intruded by breccia carbonatite, over an area of 750 x 350 m. Peñoles Mining Co., made five drill holes with 305 meters depth that never passed through the carbonatite breccia. No precious or base metals data exist, nevertheless, but some zinc ore grades (0.02% to 1.1%) and ΣREE 0.16% have been reported, with lanthanum and cerium content of 0.08% and 0.07%. Part of the ferruginous material has been quarried out in the skarn zone.


8. El Indio Project QUATERNARY Eolian

Qho eo Qho lm-ar

Siltstone-Sandstone

Qho gv-ar

Gravel-Sandstone

TERCIARY To BvR-R

Rhyolitic breccia-Rhyolite Rhyolite

To R To Ig-TR

Ignimbrite-Rhyolitic tuff

CRETACEOUS Kam Cz-Lu Kaim Cz

Limestone-Shale Limestone

INTRUSIVE IGNOUS ROCKS Rhyolitic porphyry

To PR

Graphic Scale 0

1.5

3 Kilometers

6

9. La Fluorita 01 / TecnicalSheet LOCATION

Acuña, Coahuila State, México.

PROPERTY

56,963 hectares.

INFRASTRUCTURE

Located directly 130 kilometers to the northeast of the city of Muzquiz, Coahuila State (66,800 habitants). Take the state HWY. No. 20 that goes through the towns of Muzquiz and Boquillas del Carmen, traveling 130 kilometers on paved road, until to “El Melón”, from there it takes the unpaved road northeast touring 92 kilometers. The nearest electrical substation is located 24 km in the Mining Unit Aguachile owned Múzquiz Mining Company, SA de C.V.

SURFACE RIGHT

This mining property is covering 3 common lands: “N. C. P. E. Venustiano Carranza” (109 members), “Dolores” (43 members) and “Melchor Múzquiz” (279 members).

DEPOSIT TYPE MINERALIZATION

Sedimentary and magmatic. Fluorite.

HOST ROCK

Limestone, shale, and rhyolitic porphyry.

ALTERATION

Oxidation and contact methasomathism.

ORE GRADE GEOLOGICAL POTENTIAL STATUS

56% CaF2. 12’487,500 CaF2 tons. Early stage.

GEOLOGICAL STUDIES

Geological mapping semi-detailed surface, shrapnel and channel sampling. Total investment $90,909.09 USD.

GEOLOGICAL SETTINGS

The fluorite is encased between George Town and Buddha formations, which have mainly been exploited.

SURROUNDING MINES

Mexichem Fluor is found 90 kilometers to the south, with Fluorite reserves of 5.0 million tons with an average of 55% CaF2 ore grade. The “Aguachile” Mine is located 50 kilometers to the west with a potential of 3 million tons with 70% contents with fluorite.

9. La Fluorita 01 Project Located in a straight line at 130 kilometers northwest of the Múzquiz city, Coahuila State. Toward by the State Highway 20 that connects the towns of “Boquillas del Carmen” and “Múzquiz”, traveling 130 kilometers by paved road until the area known as “El Melón”, hence take the northwest by a unpaved road traveling 92 kilometers. It is estimated a potential of 12.5 million tons distributed in 5 interest areas. Mexichem Fluor is located 90 kilometers south with 5.0 million tons of fluorite reserves, with an average ore grade of 55% CaF2. “Aguachile” Mine its located 50 kilometers west, with a 3.0 million tons potential with 70% fluorite ore grade. There are two plants currently in operation in the town Melchor Múzquiz, property of “Mexichen S.A. de C.V.”, with capacity of 15 thousand tons per month by the flotation method, producing 105,000 tons of concentrates and other is the “Múzquiz Minera, S.A. de C.V.”, capable of 5,000 tons per month with a production of 30 thousand tons concentrate per year.

EXPLICATION ASIGNMENT “FLUORITA 1”

NAME

SURFACE IN ha.

FLUORITA 1

56,963

Graphic Scale 0

7.5

15 Kilometers

MAPPING LOCALIZATION

30

9. La Fluorita 01 Project The geological setting is controlled by the paleoelement called “Burro‐Peyotes” peninsula, represented by Paleozoic age rocks (?) to recent and affected by a series of intrusive and extrusive volcanic events of Tertiary age. The stratigraphic column in ascending order from oldest to youngest corresponds to; Fm. Glen Rose, Fm. West Nueces, Fm. Edwards, Fm. Mcknight, Fm. Salmon Peak, Fm. Del Rio, Fm. Buddha Fm. Eagle Ford, and Fm. Austin. The igneous rocks outcrops are from: granite, syenite, porphyry rhyolite, rhyolitic‐tuff, andesite and andesitic‐tuff.

Fluorite is considered magmatic and sedimentary origin, hosted in the contact between the “George Town” and “Buddha” formations and in the lithology contact “Salmon Peak” formation, with rhyolite porphyry. Occurs as veins, strata, tabular bodies, lenticular and chimney both direction and depth, its dimensions ranging from 0.20 m to 15.0 m thick, longitudinally have known by mining works up to 800 m and depth can reach 130m works . Contents ranging ore grades go from 50% to 87% of CaF2. The fluorite concentrate is send to the Matamoros city, Tamaulipas State, to the plant “Química Flúor S. A.”, owned by the company Mexichen, S. A. de C. V. where hydrofluoric acid is produced.


9. La Fluorita 01 Project Alluvium

Coluvial Rhyolitic porphyry LimestoneShale ShaleLimestone Limestone ShaleLimestone Limestone ShaleLimestone LimestoneShale Shale LimestoneShale GraniteSianite MINAS MINA INACTIVA

MINA ACTIVA

BANCO DE MATERIAL EN PRODUCCIÓN

ELEMENTOS ESTRUCTURALES ANTICLINAL

FALLA NORMAL

SINCLINAL

RUMBO Y ECHADO FALLA LATERAL

SINCLINAL INFERIDO

MUESTREO (P)7 PETROGRAFÍA

(E)8 ESQUIRLA

(X)10 RAYOS X

(D)12 ROCAS DIMESIONABLES (T)13 ROCA TOTAL (I)14 INCLUSIÓN

CARTAS GEOLOGICO MINERA DEL SGM MANUEL BENAVIDES ESCALA 1:250,000

Graphic Scale 0

2.5

5 Kilometers

10

10. La Fluorita 02 / TecnicalSheet LOCATION

Acuña, Coahuila State, México.

PROPERTY

31,671 hectares.

INFRASTRUCTURE

Located 130 km in straight line to the northeast of Muzquiz City, Coahuila State (66,800 habitants). Taking the state HWY 20, that goes through the towns of Múzquiz and Boquillas del Carmen, traveling 130 kilometers on pavement until meet “El Melón”. From there, take an unpaved road to the northeast traveling 92 kilometers until the project. The nearest electrical substation is located 24 km in the Mining Unit Aguachile owned Múzquiz Mining Company, SA de C.V.

SURFACE RIGHT

This mining property is covering 5 common lands: “N.C.P.E., Venustiano Carranza” (109 members), “Dolores” (43 members), “General Francisco Villa” (74 members), “José María Morelos “(97 members), and N.C.P.E. Escobedo (70 members).

DEPOSIT TYPE MINERALIZATION

Sedimentary and magmatic. Fluorite.

HOST ROCK

Limestone, shale, and rhyolitic porphyry.

ALTERATION

Oxidation and contact methasomathism.

ORE GRADE GEOLOGICAL POTENTIAL STATUS GEOLOGICAL STUDIES

56% CaF2. 5’460,000 tons CaF2. Early stage. Geological mapping semi-detailed surface and mine interior, shrapnel and channel sampling. Total investment $90,909.09 USD.

GEOLOGICAL SETTINGS

The Fluorite is hosted in the contacts between the “Salmon Peak” Limestones with the rhyolitic porphyry, being exploited principally.

SURROUNDING MINES

Mexichem Fluor is founding 70 kilometers to the south, with fluorite reserves of 5.0 million tons with an average 55% CaF2 ore grade. The “Aguachile” mine is located 30 kilometers to the west, with a potential of 3.0 million tons with 70% contents of fluorite.

10. La Fluorita 02

Project

Located in a straight line at 130 kilometers northwest of the Múzquiz city, Coahuila State. Toward by the State Highway 20 that connects the towns of Boquillas del Carmen and Múzquiz, traveling 130 kilometers by paved road until the area known as “El Melón”, hence take the northwest by a unpaved road traveling 92 kilometers. Mineralization consists mainly of fluorite, calcite associations, silica, hematite and limonite, traces of aragonite and clay materials. A potential 5.4 million tons is estimated with an ore grade of 56% CaF2. Mexichem Fluor is located 70 kilometers south of Fluorite reserves of 5.0 million tons at an average ore grade of 55% CaF2. “Aguachile” Mine located 30 kilometers west with a potential of 3.0 million tons with an ore grade 70% fluorite. There is the possibility of locating the continuity of the mineralized bodies of fluorspar mining prospects explored in “La Rosita” and “Juan Valencia”, and in the failure zone of “La Escondida” prospect.

EXPLICATION ASIGNMENT “FLUORITA 2”

NAME

SURFACE IN ha.

FLUORITA 2

31,671

Graphic Scale 0

5

10 Kilometers

MAPPING LOCATION

20

10. La Fluorita 02

Project

The geological context represents a sedimentary sequence consisting of Lower and Superior Cretaceous formations paleoelements features of the “Burro‐Peyotes Península”. These units are affected by intense igneous activity in the Oligocene has its maximum increase, with the formation of characteristic caldrons structures, stocks and ring dikes composition calc‐alkaline type, igneous rocks (rhyolite porphyry and rhyolite) are linked to the genesis of fluorite mineralization. The aerial coverage magnetometry performed by SGM, where 1:250,000 scale mapping clearly reflects the combination of high and low magnetic, indicating the presence of outcropping intrusive bodies and some anomalies that reflect the presence of hidden intrusive bodies. Fluorite mineralization is encased in the lithology contact between the “Salmon Peak” Limestone formation with rhyolite porphyry, which is mainly exploded. The fluorite occurs in veins, chimneys and irregular bodies smaller than the first two, even direction and depth, its dimensions ranging goes from 0.20 m to 15.0 m thick, longitudinally mining works are known by up to 300 m and depth through mining works reaching 100 m. It also often found as veinlet mineralization within rhyolite dike, however these are of reduced thickness and its continuity does not go beyond 2 m.


10. La Fluorita 02

Project

SEDIMENTARY ROCKS FM. BOQUILLAS

FM. EDWARDS

FM. BUDA

FM. WEST NUECES AND GLEN ROSE

FM. DEL RIO

IGNEOUS ROCKS

FM. SALMON PEAK

RHYOLITIC PORPHYRY

FM. McKINGT

GRANITE-SIENITE

NORMAL FAULT FLUORITE

11. La India / TecnicalSheet LOCATION

Melchor Múzquiz and Ocampo, Coahuila State, México.

PROPERTY

19,938 hectares.

INFRASTRUCTURE

Located in a straight line 128 kilometers at Northeast of Múzquiz city, (66,800 habitants) and 219 kilometers to the Northeast in straight line to the Monclova city (216,200 habitants) both in Coahuila State. Through the Múzquiz city, toward the 20 Highway, traveling 156 kilometers on paved highway, going to the southeast by unpaved road which leads to “El Pilote” traveling 9 kilometers to the project. The line closest power to the area are on State Highway No. 20, distant 20 km.

SURFACE RIGHT

This mining property is covering 3 common lands: “N.C.P.A. El Milagro” (73 members), “N.C.P.A. El Milagro” (73 members), “Los Lirios”, (88 members).


SURROUNDING MINES

Sedimentary and magmatic. Fluorite. Limestone, shale, and rhyolitic porphyry. Oxidation and skarnification. 56% CaF2. 15 million tons, with an ore grading from 56 % CaF2. Early stage. Geological mapping semi-detailed surface and mine interior, shrapnel and channel sampling. Total investment $18,388.09 USD. Sedimentary fluorite encased in George Town and Buddha formations contact is which has mainly been exploited. Mexichem Fluor is located 50 kilometers to the Northeast, with Fluorite reserves of 5 million tonsand average grade of 55% of CaF2, the “Aguachile” Mine is located 50 kilometers to the west, with a potential of 3.0 million tons with 70% fluorite.

11. La India Project It is located 128 kilometers, northwest of Muzquiz city, Coahuila State and 219 kilometers, in straight line to the west of Monclova city. Starting in Muzquiz city, you must travel 156 kilometers on State Highway Nu. 20, since here take a deviation to the southeast, conducting to the ranch “El Pilote”, by an unpaved road by 9 kilometers. Given the geological characteristics of the project, the detected current fluorite ore grades, the “La India” project represents a relevant interest.

EXPLICATION

Mexichem Fluor is located 50 kilometers northwest of Fluorite reserves of 5.0 million tons and an average ore grade of 55% CaF2, Mine “Aguachile” is located 50 kilometers west with a potential of 3.0 million tons with an ore grade of 70 % fluorite contents.

CAPITAL OF THE STATE CITY LIMIT OF THE STATE

INTERNACIONAL AIRPORT HIGHWAY ROAD FERROCARRIL LOCATIONS OF THE LOT

Graphic Scale 0

100

200 Km

11. La India Project


EXPLICATION

ToTA ToPR-R

QUATERNARY

Qhoco

Qhoal

Qhoco

KaCz-Do

ToPR-R KcetLu-Cz

KaCz

Qhoal

Alluvium

Qhoco

Colluvial

TERCIARY

ToPR-R

TplCgp ToR

ToR

Qhoco

Conglomerate Polimictic Rhyolite

ToR

KceCz

ToTA

Sk

Andesitic tuff

CRETACEOUS

KaCz KceCz Qhoco ToR

KcossCz-Lu

Limestone-Shale

KcetLu-Cz

Shale-Limestone

KceCz

Limestone

KaCz

Limestone

Sedimentary fluorite that until now has been largely exploited, mainly by its thickness, is located in the contact with the limestone from the “George Town” formation, and the “Del Río Buda” Formation shales and limestone, however, it has been established that there are at least 4 mineralized levels, which corresponds to the “George Town” Formation, under this stratigraphic contact though these are of thickness not greater than 0.70m. Fluorite magmatic origin is in contact between limestone “George Town” and the igneous rock with rhyolite porphyry composition.

ToD ToPR-R

Qhoal

KceCz

KaCz-Do KcetLu-Cz

INTRUSIVE IGNOUS ROCK KaCz

ToD Qhoco

KaCz

Qhoal TplCgp

KaCz-Do

Limestone-Dolomite

KcossCz-Lu

ToPR-R

Rhyolitic porphyry Rhyolite

ToD

ToD

Dacite

METAMORPHISM OF CONTACT Skarn Sk

The economic mineralization is represented by a Fluorite Ore and gangue consists of: quartz, calcite, iron oxides and clay minerals. The geological potential is estimated in 15 million tons, with an ore grading from 56% CaF2. Graphic Scale

0

2.5 Kilometers

5

12. Jáltipan 1/ TecnicalSheet LOCATION

Oluta, Texistepec, Soconusco, Jáltipan de Morelos and Chinameca Municipalities, Veracruz State, México.

PROPERTY

23,359 hectares.

INFRASTRUCTURE

Located 20 km in a straight line from the city of Minatitlan, Ver (157.840 inhab.), and 34 km S65°W direction of the port of Coatzacoalcos, Veracruz, (235.983 inhab.). It has excellent land, air and sea communications. Through highway, railway transitsmico, Minatitlan Airport and the Port of Coatzacoalcos. To supply inputs are Acayucan populations, Jáltipan, Texistepec, Minatitlan and Coatzacoalcos.

SURFACE RIGHT

The mining property is settled on 5 ejidos: El Limón (124 members) Cuajilote Grande y Anexos (127 members), Los Guajes Ayala (1,196 members), El Durazno (311 members), El Carrizal (278 members).


Marine sedimentary. Sulfur. Porous limestone and anhydrite. Not observed Crystalline and amorphous quality sulfur. 16’358,991 ton. indicated resource. Early stage.

GEOLOGICAL STUDIES

Geological-mining semi-detailed exploration supported by diamond drilling. Domes explored: “Ojapa”, “Texistepec-Hornillas” and “Petapa”.

GEOLOGICAL SETTINGS

Sulfur is found in domes structures under the "cap rock" of barren limestone. A wide distribution within the salt basin called the isthmus.

SURROUNDING MINES

Abutting the company batch MEXICHEM, SA de CV is who operates a neighboring sulfur dome Jáltipan 1.

12. Jáltipan 1 99 º

97 º

98 º

96 º

95 º

94 º

288 Km to Veracruz seaport.

Excellent communication pathways land.

To 10 km. Minatitlán.

To 276 km. Salina Crúz Seaport, Oaxaca.

Airport at 50 Km in Coatzacoalcos, Ver.

Railway Transístmico moving large volumes between the Gulf of Mexico and the Pacific Ocean.

Port of Coatzacoalcos, Veracruz to 30 km, annual move charges of around 3 million ton.

It has an area of 23,359 has.

Tropical and humid climate.

Enough water in the rivers and Coachapa and Chiquito.

EDO. DE TAMPS. TAMPS. STATE Tampico A S. L. P. P á nuco

99 º

22 º

MEX

105

22 º

Tempoal

A Tamazunchale

Naranjos

Tantoyuca

MEX

A Pachuca

180

Tuxpan

A Pachuca

21 º

Á lamo

21 º

MEX

MEX

Poza Rica

130

180

A Huauchinango

20 º

Nautla

20 º

Tlapacoyan

A Tlatlauquitepec

MEX

180

Perote

XALAPA

MEX

A Puebla

140

Veracruz

Huatusco

ÓN ASIGNACI MINING ASSIGNMENT JALTIPAN 1

MEX

19 º

126

MEX

150

A Puebla

19 º

C órdoba La Tinaja

98 º

MEX

Orizaba

180

MEX

A Tehuacan

145 D

Tierra Blanca

MEX

San Andr és Tuxtla

Ciudad Alem á n

18 º

A Villahermosa

179

A Tuxtepec

MEX

Coatzacoalcos

180

Isla

18 º

Acayucan

18 º

MEX

145

Sayula

97 º

Minatitl á n

96 º

Graphic Scale 17 º

0

50

100

150

A Juchitan

200

17 º

Kilometers

99 º

98 º

97 º

96 º

95 º

94 º

12. Jáltipan 1 290000

295000

300000

305000

310000

315000

320000

1995000 1990000 1985000 1980000 1975000 1970000

1990000 1980000 1975000 1970000

1985000

1995000

GEOLOGICAL FRAMEWORK Package shale interbedded with sandstone, sand and calcarenite lenses. Porous with thicknesses up to 16 meters, where the sulfur is placed in virgin crystals and amorphous filling cavities, veinlets and disseminated Limestone. Anhydrite mass. The top of the limestone cap is between 50 m to 246 m. These deposits are classified as marine sediment.

1965000

1965000

Graphic Scale

290000

295000

300000

305000

310000

315000

320000

0

5

Kilometers

10

15

12. Jáltipan 1 The mineral composition of the cap in salt domes is variable, but most of the production cap rocks exhibit three general mineralogical areas: 1) An upper zone of sterile limestone. 2)An average transitional area of p orous limestone with sulfur. 3) A lower anhydrite zone. Although these areas are not strictly in that order corresponds to a typical stratigraphic sequence and can graduate to one another. The thicknesses of the sulfur in the cap vary from a few millimeters to more than 200 m. similarly, the depth to which sulfur has been found from near the surface to more than 700 meters. The average depth at which sulfur has been exploited is 297 m. The limestone cap is cut from 50 to 246 meters below the surface. The Jáltipan dome is considered the largest and most valuable sulfur deposit discovered in Mexico. Escala Gráfica 0

5

Kilómetros

10

15

Salt Domes associated with sulfur deposits

12. Jáltipan 1


• Current domestic demand is about 70,000 tons per month, for companies producing fertilizers, however, the trend is the increase to more than 50% of the demand for fertilizer production in the country. The sulfur is mostly used in the manufacture of insecticides, fertilizers, chemicals, among others. • In 2007 the national and international demand for sulfur increased substantially, causing shortage that hit international prices range from $500 a ton, which led to the importance of reactive sulfur in salt domes of Isthmus. •The sulfur requirement in our country has increased, regardless of the value per ton reached for the high purity sulfur. Notably sulfur Istmo Basin is high quality and purity. • Through calculating reserves was performed calculating based on the drilling development using the Isopach method:

•Ojapa Zone •Texistepec-Hornillas Zone •Petapa Zone

1’546,562 13’337,829 1’474,600 TOTAL= 16’358,991 tons of sulfur

13. Jáltipan 2/ TecnicalSheet LOCATION

Soconusco, Jáltipan de Morelos y Chinameca Municipalities, Veracruz State, México.

PROPERTY

4,006 hectares.

INFRASTRUCTURE

Located 20 km in a straight line from the city of Minatitlan, Ver (157.840 inhab.), and 34 km S65°W direction of the port of Coatzacoalcos, Veracruz, (235.983 inhab.). It has excellent land, air and sea communications. Through highway, railway transitsmico, Minatitlan Airport and the Port of Coatzacoalcos. To supply inputs are Acayucan populations, Jáltipan, Texistepec, Minatitlan and Coatzacoalcos.

SURFACE RIGHT

The mining property is settled on 2 ejidos: El Limón (124 members), Cuajilote Grande and Annexes (127 members).


Marine sedimentary. Sulfur. Porous limestone and anhydrite. Not observed. Crystalline and amorphous quality sulfur. 10’286,823 tons indicated resource. Early stage. Explored “Jaltipan” dome.

GEOLOGICAL SETTINGS

Sulfur is found in domes structures under the "cap rock" of barren limestone. A wide distribution within the salt basin called the isthmus.

SURROUNDING MINES

Abutting the company batch MEXICHEM, SA de CV who operates a neighboring sulfur dome Jáltipan 1 and Jáltipan 2.

13. Jáltipan 2 99 º

97 º

98 º

96 º

95 º

94 º

288 Km to Veracruz seaport.

Excellent communication pathways land.

To 10 km. Minatitlán.

To 276 km. Salina Crúz Seaport, Oaxaca.

Airport at 50 Km in Coatzacoalcos, Ver.

Railway Transístmico moving large volumes between the Gulf of Mexico and the Pacific Ocean.

Port of Coatzacoalcos, Veracruz to 30 km, annual move charges of around 3 million tones.

It has an area of 4,006 has.

Tropical and humid climate.

Enough water in the rivers and Coachapa and Chiquito.

EDO. DE TAMPS. TAMPS. STATE Tampico A S. L. P. P á nuco

99 º

22 º

MEX

105

22 º

Tempoal

A Tamazunchale

Naranjos

Tantoyuca

MEX

A Pachuca

180

Tuxpan

A Pachuca

21 º

Á lamo

21 º

MEX

MEX

Poza Rica

130

180

A Huauchinango

20 º

Nautla

20 º

Tlapacoyan

A Tlatlauquitepec

MEX

180

Perote

XALAPA

MEX

A Puebla

140

Veracruz

Huatusco

ÓN ASIGNACI MINING ASSIGNMENT JALTIPAN 2

MEX

19 º

126

MEX

150

A Puebla

19 º

C órdoba La Tinaja

98 º

MEX

Orizaba

180

MEX

A Tehuacan

145 D

Tierra Blanca

MEX

San Andr és Tuxtla

Ciudad Alem á n

18 º

A Villahermosa

179

A Tuxtepec

MEX

Coatzacoalcos

180

Isla

18 º

Acayucan

18 º

MEX

145

Sayula

97 º

Minatitl á n

96 º

Graphic Scale 17 º

0

50

100

150

A Juchitan

200

17 º

Kilometers

99 º

98 º

97 º

96 º

95 º

94 º

13. Jáltipan 2 290000

295000

300000

305000

310000

315000

320000

1995000 1990000 1985000 1980000

1995000 1985000 1980000

1990000

GEOLOGICAL FRAMEWORK Package shale interbedded with sandstone, sand and calcarenite lenses. Porous limestone with thicknesses up to 16 meters, where the sulfur is placed in virgin crystals and amorphous filling cavities, veinlets and disseminated.

1970000

1970000

1975000

1975000

Anhydrite mass. The top of the limestone cap is between 50 m to 246 m.

1965000

1965000

Graphic Scale

290000

295000

300000

305000

310000

315000

320000

0

5

Kilometers

10

15

13. Jáltipan 2 It has an elongated shape oriented northeast‐southwest and its longitudinal axis can be traced up to 12 km and 7 km wide. The tank site is strategically located and has excellent communications by browsing Coachapa‐Coatzacoalcos River, or by sea, since the ports of Salina Cruz, Oaxaca and Coatzacoalcos, Veracruz, are united by the Ferrocarril del Istmo. The nearest airport is Minatitlan, Veracruz.

Salt Domes associated with sulfur deposits.

Graphic Scale 0

5

Kilometers

10

15

13. Jáltipan 2


• Current domestic demand is about 70,000 tons per month, for companies producing fertilizers, however, the trend is the increase to more than 50% of the demand for fertilizer production in the country. The sulfur is mostly used in the manufacture of insecticides, fertilizers, chemicals, among others. • From 1999 to 2003, obtaining sulfur miners means including the Frasch process, decreased significantly, while that obtained by desulfurization has increased. • The sulfur requirement in our country has increased, regardless of the value per tone reached. Notably sulfur Istmo Basin is high quality and purity. • The main uses are in agriculture to produce phosphoric acid, as well as for the preparation of soaps, detergents, water treatment, plastic and synthetic products, paper industry, paints, mining and processing of metals, explosives, petroleum refining, in production of iron and steel, battery acid, among others.

•Indicated resources with drilling are: •10’286,823 tons.

14. Reducción Rancho Viejo/ TecnicalSheet LOCATION

Municipality of Tepalcatepec, Michoacán State, Mexico.

PROPERTY

9,032 hectares.

INFRASTRUCTURE

It is located 5 km northeast of the town of Tepalcatepec in Michoacan, where all services and increased to 20,000 inhabitants. It lies 280 km from the city of Morelia, capital of Michoacan state. There are two paved roads, dirt roads and vehicular gaps spanning the mining assignment. The electrical line runs virtually within the assignmet.

SURFACE RIGHT

The mining property is settled on 7 ejidos: Corongoros (117 members), Las Norias and Annexes, Las Galeras and Annexes, San José-Lázaro Cárdenas, Catarino Torres (749 members), Punta del Agua and Felipe Carrillo Puerto.


SURROUNDING MINES

Hydrothermal, copper-molibdene porphyry Gold, silver, lead, zinc, copper. Metamorphic, vulcanosedimentaria, andesitic dikes and intrusive rock. Argillic, propylitic, phyllic, silicification and potassic (?) 0.52 g/t Au 178,416 oz/Au. Early stage. Geophysics, Geological Mapping, surface sampling in grid of 50 x 50 meters. Mineralization controlled by Vulcan-sedimentary sequences deformed Jurassic-Cretaceous age. The project is located 18 km northeast of the Property Tepal (8.6 million ounces of gold equivalent (Geologix Explorations Inc.). Plants benefit are closest to 137 Km in the town of Huacana, owned by Cia. Minera "The Encinos" SA de C.V. and Cia. Minera "The Huacana" SA of CV, the first active minerals benefits Au, Ag, Cu with a capacity of 250 t/day. The second construction, mineral benefit of Au, Ag, Pb, Cu with a capacity of 60 t/day.

14. Reducción Rancho Viejo

It is located between the states of Jalisco and Michoacan.

A 5 km northeast of the town of Tepalcatepec, which has good infrastructure and increased to 20,000 inhabitants.

It lies 280 km from the city of Morelia, capital of Michoacan state.

Two paved roads traverse the mining assingment, and there are dirt roads that traverse gaps and vehicle allocation.

A 18 km NE of the project Tepal Geologix Explorations Inc.

Guadalajara

Jalisco RANCHO VIEJO

Morelia

Uruapan

Michoacán Colima

Colima El Tepal

Apatzingán Tepalcatepec

Graphic Scale 0

50 100 Kilometers

Lázaro Cárdenas

14. Reducción Rancho Viejo


Mineralized area Mining Assignment Rancho Viejo

Los Zopilotes Area

Samples Collected (2008‐2009) Samples Collected (2010)

The metasedimentary sequences and volcanosedimentary are intruded by a granitic stock and diabase and andesitic dikes. Mineralization is boxed and controlled in the volcansedimentary sequence. The mineral assemblages are present Au-Cu and Pb-Zn; suggesting be related to a porphyry Cu-Au deposit with distal epithermal veins. Andesitic dikes with Cu veins and Pb-Zn dams with staying in the intrusive Jilotlán and veins and disseminations in Varales Formation are observed. The hypogene minerals are: free gold, chalcopyrite, covellite, chalcocite, galena and sphalerite in quartz and calcite gangue. Argillic, propylitic and phyllic alterations developed especially in the Tepalcatepec Formation are presented.

La Laguna Area

The geological, geochemical, geophysical and alterations studies, allow to configure three possible mineralized areas: La Laguna, The Vultures and Camichín.

Camichín Area

In La Laguna area were obtained samples up to 29 g/t Au in quartz microveitlets sulphide stockwork type, hosted in andesite and average content of 0.8 g/t Au.

Piroclastic Flows Volcanosedimentary (Fm. Tepalcatepec) Volcanosedimentary (Fm. Alberca) Granitic Intrusive (Jilotlán) Metasedimentary (Fm. Varales)

In the Zopilotes area samples up to 12.7 g/t Au were obtained, silica glasses encased in shale and average content of 0.6 g/t Au.

Graphic Scale 0

1

2

Kilometers

3

In the Camichín area samples up to 16.6 g/t Au were obtained, in quartz microveitlets hosted in schist and has in average 0.2g/t Au.

15. Chupaderos/ TecnicalSheet LOCATION

Municipality of Sabinas Hidalgo, Nuevo León State, Mexico.

PROPERTY

16,031 hectares.

INFRASTRUCTURE

It is located 100 km north of the City of Monterrey (4'150, 000 inhabitants), 120 km S70°E from the city of Monclova (317.314 inhab.) and 20 km in a straight line to the north of the Sabinas Hidalgo population (32,040 inhab.). The nearest power line high voltage is 27 km and 3 km south of the low voltage.

SURFACE RIGHT

The mining property is settled on 2 ejidos: Las Enramadas (72 members) y San Pedro de la Piedra (39 members).


Missisipi Valley Gold, silver, lead, zinc, copper. Austin Formation, consisting of limestones and shales of the Upper Cretaceous and limestone of the Lower Cretaceous. Coverage is a Holocene colluvium and alluvial deposits. No Observed 155 g/t Ag, 2.5% Pb and 2.5% Zn Based on the geological environment and the manifestations of mineral mining claims adjacent Providence and Pal (The Iguana) owned by Rio Alto Mining Limited, the resource estimate is considered 1% of resources expected by the mining company that is 10 '000, 000 tons. So for allocation were considered Chupaderos 1'000, 000 tons. Early stage. Regional Geology (920 km2), semi-detailed geology (500 hectares), Geophysics (4 km linear).

GEOLOGICAL SETTINGS

Considering the probable existence of stratabound mineralization in the "Cupid" and "Aurora" Lower Cretaceous formations which are as important guides exploration and the possibility of containing a hidden reservoir of economic performance is perceived as a significant element in the area.

SURROUNDING MINES

In the municipality of Ocampo at 300 km, is located beneficiation plant flotation Co. First Majestic Silver Corp., with capacity of 1,000 t/day, lead and silver benefits. In the town of Monclova, SE and 126 km, the smelter is located in Iron Co. Altos Hornos de Mexico, with capacity of 8,000 t/day.

15. Chupaderos 101°

28°

100°

98° 28°

99°

CHUPADEROS

The Chupaderos prospect is located in the town of Sabinas Hidalgo, north of the state of Nuevo León. It comprises an area

27°

27°

COAHUILA

LAMPAZOS

of 16,031 ha. Located 120 Km straight SE of Monclova, Coahuila., and 25 km straight

VILLALDAMA

HYLSA

north of the county seat of Sabinas Hidalgo,

26°

IMMSA

ZINC NACIONAL S.A.

26°

NL. MONTERREY

25°

25°

LINARES

24°

24°

Graphic Scale 0

50

Kilometers

100

23° 101°

100°

99°

98°

15. Chupaderos 380000

385000

390000 KcLu Lm

KcLu Lm

Kcoss Cz-Lu

Qhoal

Kacet Lu-Cz

Qhoco

2960000

2960000

Qhoal

Qhoco

Qhoal Qhoco

North to 15 km, is the Pal mine (The Iguana) silver‐lead‐ zinc, owned by Rio Alto Mining Limited, a consistent body replacement and skarn along the contact zone of granodiorite affecting a Cretaceous limestone.

Qhoco

Kcoss Cz-Lu

Qhoal

2955000

2955000

Qhoal

Kacet Lu-Cz

2950000

2950000

Qhoco

380000

385000

390000

EXPLICATION Qhoal

Alluvium

KcLu Lm

Alluvium

Qhoco Colluvium Kcoss Cz-Lu Limestone-Shale Kacet Lu-Cz Shale-Limestone

Graphic Scale 0

Minign Assignment Chupaderos

1

2

Kilometers

3

Located in the alkaline belt Monclova‐Candela, oriented E‐W, which is the extension of a group of similar rocks described in the Trans‐Pecos Texas province. The Panuco mine known, consist in porphyry Cu‐Mo‐Au related to pegmatite circular gap that is 80 m in diameter and is encased in alkaline diorite intrusion an example closely related to the ore bodies.

The assignmet area is covered by Quaternary colluvium and alluvium, recognizing the NE area of f ences Rancho Arroyo de los Sauces few small outcrops of shales and siltstones of the Upson (Kc Lu‐Lm) Formation outcrops and the Eastern formal limestone ‐ shale of Austin (Kcoss Cz‐Lu) Formation and shale‐limestone of the Eagle Ford (Kcet lu‐Cz) Formation. The latter two formations are part of the anticline Vallecillo.

15. Chupaderos


Aerial magnetic exploration was carried out in 2000‐2003 showed two intense abnormalities, Candela and Chupaderos, the latter located in the eastern valley of the Sierra de Lampazos in an anticline that is open in the Jurassic sediments. Subsequent work by magnetometry‐radiometry high resolution confirmed both anomalies, presumably in response to a deep intrusive mass that has high magnetic susceptibility. Chupaderos anomaly was the only legally protected. Based on the geological environment and the manifestations of mineral mining claims adjacent Providence and Pal (La Iguana) ownership of Mexican Silver Mines Ltd., for the resource estimate is considered 1% of resources expected by the mining company that is 10'000, 000 ton, resulting in several campaigns diamond drilling, surface and interior geology and mine sampling. Considering the latest two mine as a reference, the prospectus is deemed Chupaderos 1'000, 000 ton, grading 155 g / t Ag, 2.5% Pb and 2.5% Zn. 320000

360000

340000

380000

2980000

2980000

LA IGUANA SAN SALVADOR CANDELA 380000

390000

380000

3 390 000

2940000

2940000

Graphic Scale 0

10

Kilometers 320000

2960000

2960000

CHUPADEROS

20

BUSTAMANTE 340000

VILLALDAMA 360000

SABINAS HIDALGO 380000

16. Los Borregos/ TecnicalSheet LOCATION

Municipality of Ascensión, Chihuahua State, Mexico.

PROPERTY

4,100 hectares.

INFRASTRUCTURE

It is located 279 km, with the N28°W direction in a straight line from the city of Chihuahua (348.987 inhabitants), 114 km S56°W of Ciudad Juárez (1'321,004 inhabitants). Locally the S84°E and 62.4 km. village Ascension. The nearest power line high voltage is 80 km east, and low voltage is located 12 kilometers southwest, in Niños Héroes de Chapultepec.

SURFACE RIGHT

The mining property is settled on 2 ejidos: Nueva Victoria (25 members) and Niños Héroes de Chapultepec (80 members).


Hydrothermal (streaks), zones of stockwork and disseminated. Mn, Ag, Cu, Fe, Ba and Mo Diorite, dacite porphyry, rhyolite tuffs, andesitic breccias. Silicification and oxidation. 29.5 % Mn. 815,000 tons of Manganese. Early stage

GEOLOGICAL STUDIES

Semi-detailed geological 4,200 Ha, 120 units channel sampling, 160 units Geochemical Sampling, Geochemistry semi-detailed 900 Ha, Chemical Analysis done 5,600 samples, 54 Petrographic studies, 4 Mineragraphic studies.

GEOLOGICAL SETTINGS

The iron-manganese mineralization is located within a zone of supergene enrichment and where may be present at depth copper sulfides of silver, lead, zinc, and associated tabular structures or dacite porphyry and/or rhyolitic intrusive or self rhyolite.

SURROUNDING MINES

The project is located 34 km SE of the Bismark mine with leach processing plant with capacity of 2,500 t/day and benefits lead and zinc.

16. Los Borregos

CD. JUAREZ

LOS BORREGOS

It is located in Ascension, in the northwestern portion of the state of Chihuahua.

A 294 Km northwest of the city of Chihuahua.

200 Km of Juarez border U.S.A.

30 km unpaved to the Project.

It has an area of 4,100 hectares.

Extreme dry climate with summer rains.

BISMARK Ascensión Porvenir Janos Loma de Arena

N. C. GRANDES

Sueco

F. Magón

OJINAGA

Coyame MADERA

Namiquipa Falomir M. Benavides A. Obregón

CHIHUAHUA

La Junta

Yepachi

Julimes

CUAUHTEMOC DELICIAS Carichi

La Perla

Naica

Creel

CAMARGO Nonoava JIMENEZ

Balleza Guachochi

PARRAL

Gpe. y Calvo

Graphic Scale 0

50

Kilometers

100

16. Los Borregos

Return to general plane QUATERNARY HOLOCENE Q h o g v-ar

Gravel-Sand

TERCIARY OLIGOCENE To Rd

Riodacite

To

Rhyolitic Tuff

RT

T o RB

Rhyolitic Breccias

To Rd T

Riodacitic Tuff

To AT-RT

Andesítica TuffRhyolitic Tuff

T o AB To A

Andesitic Breccia Andesite

EOCENE - OLIGOCENE To To

RP

Rhyolite Porphyry

D aP

Dacític Porphyry

T eD Graphic Scale 0

2

Kilometers

4

Diorite

In this area, outcrops of andesite and tuff; rhyolitic tuff, dacite subvolcanic and Oligocene‐Miocene diorite forming a volcanic field in which extensive parallel en echelon fault system oriented NS and NW probably Miocene or younger‐ encased 77 mineralized veins Mn‐Ag, Ba and Fe. Having conducted a sampling campaign eight prospects were documented: La Consolidad, La Verdun, La Corriente, San Jose, El Pino, La Pilita, Las Mulas and El Dos‐La Tercera. The area is 7 km long and 5.5 km wide and forms a regular rectangle, sufficient to protect both vein systems oriented NS and EW. Mineralization occurs as cryptomelane‐manganese, psilomelane, hollandite, pyrolusite‐associated with hematite, argentiferous galena, malachite and barite oxides. Manganese and iron oxides are primarily exposed in the zone of supergene enrichment, and may expect some sulphides of silver, lead, zinc and copper can begin to appear deep. The district has been productive since World War I and II, with an average grade of 30% Mn; by 1959 and in the 70s, production declined and became intermittent, with average grades of 22% Mn. Old dumps reported from 4 to 37% Mn and from 8 to 109 g/t Ag, traces of molybdenum and up to 11% of Ba.

17. Red. Hidalgo Fracc. 29/ TecnicalSheet LOCATION

Municipality of Castaños, Coahuila, Mexico.

PROPERTY

1,379 hectares.

INFRASTRUCTURE SURFACE RIGHT DEPOSIT TYPE

It is located 58 km directly south of the city of Monclova. It has all the basic infrastructure for the mining operation. 9 km paved and dirt road from km 58 of Monclova-Saltillo, the study area is accessible all year The mining property is settled on the ejido Dolores (141 members). Missisipi Valley

MINERALIZATION

Pb-Zn oxides in the presence of cerussite, anglesite, hemimorphite and galena and sphalerite there sporadically with low silver grades. The associated minerals are barite, calcite and quartz.

HOST ROCK

The mineralization is hosted in the upper horizon of La Mula Formation (Khb-Lu), consisting of dolomitized limestone, limestone, sandstone and limonitic clay horizons. Likewise, the base encase the Cupid (Khap-Cz) Formation comprises dolomitized limestone and interstratified clay horizons.

ALTERATION ORE GRADE GEOLOGICAL POTENTIAL STATUS

silicification, oxidation supergene and dolomitization. 140 g/t Ag, 5 % Zn, 7 % Pb y 0.05 % Cu 80,000 Tons of inferred resources Early stage.

GEOLOGICAL STUDIES

The work done in the project had a regional-semi-detailed range (1,379 hectares), developing and interior surface mine (190 m) mapping, orientation chips sampling and channel mineralized structures (38 samples), chemical analysis and interpretation.

GEOLOGICAL SETTINGS

Sheets, lenticular veins and cloves, encased in dolomitized limestones, associated with fracturing, karst cavities and transform faults of small displacement.

SURROUNDING MINES

In the municipality of Candela, the project NE and 94 km in a straight line, the leaching beneficiation plant is located, with a capacity of 400 t/day, owned by Grupo Minero Panuco, SA de CV and in the town of Cuatrocienegas to NW and 57 Km straight La Luz project is located, with mining exploration work will have reserves of 13,000 tons grading 2.54% Pb, 10.63% Zn and 105 g/t Ag.

17. Red. Hidalgo Fracc. 29 104°

102°

It is located in the eastern center of the state of Coahuila, in the town of Castaños. A 58 km directly south of the city of Monclova.

It is well connected by paths first and second order in the city of Monclova, it has all the basic infrastructure for the mining operation.

9 km paved and dirt road from km 58 of Monclova-Saltillo to accessible allweather study area.

In the municipality of Candela, the NE and 94 km in a straight line, the leaching beneficiation plant is located, with a capacity of 400 t/day, owned by Grupo Minero Panuco, SA de CV, and is also found in copper exploration La Promesa Dos project, located in the NE and 72 km. In the town of Cuatrocienegas to NW and 57 Km straight La Luz project is located, with mining exploration work will have reserves of 13,000 tons grading 2.54% Pb, 10.63% Zn and 105 g /t Ag

100° E.U.A.

CD. ACUÑA

29°

PIEDRAS NEGRAS

LA ENCANTADA (Ag,Pb)

HÉRCULES

28°

HÉRCULES (Fe) SIERRA MOJADA

SABINAS M. MÚZQUIZ OCAMPO CUATROCIÉNEGAS

27°

AHMSA (Fe) MONCLOVA PANUCO

LA LUZ

LA PROMESA 2

26°

HIDALGO FRACCIÓN 29

PEÑOLES (Pb, Zn) PARRAS

TORREÓN VIESCA

SALTILLO

LA MINITA Graphic Scale

25° 0

50

Kilometers

100

17. Red. Hidalgo Fracc. 29

Return to general plane There are mainly tabular structures and grain mantles and irregular lenses (bolsadas). The mantles observed thicknesses of 0.20 to 0.60m, the veins have thicknesses of 0.30 to 0.80m; both with discontinuous longitudinal and erratic development. The mineralization is hosted in the upper horizon of La Mula Formation (Khb-Lu), consisting of dolomitized limestone, limestone, sandstone and limonitic clay horizons. Likewise, the base encase the Cupido Formation (Khap-Cz) dolomitized comprises limestone and interstratified clay horizons. Work in the assignment had a Regional semi-detailed scope, developing and interior mine surface mapping, sampling and channel orientation chips mineralized structures, chemical analysis and interpretation. The alterations observed are silicification, dolomitization supergene and oxidation in the hosted rocks, especially limestone in formations La Mula and Cupido.

EXPLICATION Qhoal

Alluvium

Qhoco

Colluvium

Kcet Lu-Cz

Fm. Eagle Ford

Kace Cz-Lu

Grupo Washita

Ka Lu-Cz

Fm. Kiamichi

Ka Cz-Do

Fm. Aurora

Kap Cz-Lu

Fm. La Peña

Kcoss Lu-Ar

Fm. Las Parras

MEXICAN GEOLOGY SURVEY

Khap Cz

Fm. CupidoF

Khb Lu-Cz

Fm. La Mula

Khb Ar-Lu

Fm. Patula

Kvh Lu-Cz

Fm. Barril Viejo

Mining Assignment

Regional Geological Map Mining Assignmet Hidalgo Fracción 29 0

0.5

1

2

3

Kilometers 1:100,000 NAD 27 Zona 14 Subdirección de Recursos Minerales

Durango, Durango

In the mineralized area Dolores evidence boiling caused by hydrothermal fluids is observed, although it has not shown the influence of a magmatic body within the study area.

Diciember 2012

Mineralization of interest consists of Pb-Zn oxides in the presence of cerussite, anglesite, hemimorphite and galena and sphalerite sporadically with low silver grades. The associated minerals are barite, calcite and quartz

18. Picacho/ TecnicalSheet LOCATION

Municipality of Villa de Casas, Tamaulipas State, Mexico.

PROPERTY

4,433 hectares.

INFRASTRUCTURE SURFACE RIGHT

It is located S59°E to 70 km in a straight line from the city Victoria. It has basic infrastructure of finding well connected with the main centers of distribution and marketing paths. Private Property

DEPOSIT TYPE

Associated magmatic similar to carbonatite rocks in the Oka district in Canada (Eng Akira Hirayama 1984).

MINERALIZATION

Is represented by lanthanides, mainly mineral containing Ce and Y, and possibly mineral monazite Xenotime, fergusonita, Branerita or euxenite.

HOST ROCK ALTERATION ORE GRADE GEOLOGICAL POTENTIAL STATUS

GEOLOGICAL STUDIES

GEOLOGICAL SETTINGS SURROUNDING MINES

Nepheline syenites and carbonatites The central area of the complex is Fenitizada generally uralitization observed in outcrops of gabbro from the middle, occasionally some peripheral areas with skarn. Content averages 4824 ppm lanthanide and 1.3% of rare earth oxides (REO) 3,500 tons. Early stage. Geophysics flight was made covering an area of 252 km2 of by 71 lines with 250 m separation of five lines of control, with a total of 1,294 km line. Works consists in sampling anomalies and geological in semidetailed survey, radiometric survey at every 25 m in the heart of the anomaly Th approximately 2,200 linear meters covering an area of approximately 40 hectares, works in a semi-detailed mapping and systematic sampling of mineralized structures in trenches of previous work, sampling fenitized rock outcrops and associated dikes. Micritic limestones with chert nodules of the Tamaulipas Upper Formation. There is currently no mining infrastructure and does not have the benefit of this mineral in the region

18. Picacho NUEVO LAREDO

Located in the east central portion of the state of Tamaulipas. At S59°E and 70 km in a straight line from the city Victoria.

Access from the city, is performed by the federal road No. 70 Victoria-Soto La Marina, at km 42 is the deviation road to Las Lajillas and project where driving 19 km pavement and 46.2 of dirt road.

It has basic infrastructure of finding well connected with the main centers of distribution and marketing paths.

The elements of interest in this project are known as rare earth lanthanides (REE), these are: Lanthanum, Cerium, Praseodymium, Neodymium, Promethium, Samarium, Europico, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, Scandium, Yttrium.

E.U.A. Mier Cd. Camargo Gustavo Díaz Ordaz REYNOSA Río bravo

MATAMOROS

Valle hermoso

NUEVO LEÓN Villa de Méndez San Fernando de Presas Mainero Villagrán

GULF OF MEXICO

Hidalgo

PICACHO

Abasolo Nuevo padilla Güemez

CD. VICTORIA

Casas

SOTO LA MARINA

Llera de canales Xicoténcatl González

Graphic Scale

Aldama CD. MANTE

S.L.P.

Altamira

0

Cd. Madero TAMPICO

50

Kilometers

100

18. Picacho The structure presented are semicircular approximately 9 Km2. The mineralization is hosted in nepheline syenites and carbonatites. Structurally the study area is a tertiary magmatic complex ring type of about 9 Km2, veinlet-dikes developed, replacement parts and filling cracks. The central area of the complex is Fenitized generally uralitization observed in outcrops of gabbro from the middle, occasionally some skarn peripheral areas. Mineralization is represented by lanthanides minerals containing mainly Ce and Y, and possibly mineral monazite, Xenotime, fergusonite, Branerite or euxenite.

542000

544000

546000

548000

550000

552000

Litology

2590000

2590000

Qal alluvium Nepheline Syenite Gabbro

2588000

2588000

Diorite Tm Gd Si Kace Cz

2586000

Graphic Scale 0

2

4

Kilometers 542000

544000

546000

548000

550000

552000

2586000

Marble

18. Picacho


There were carried out geological exploration, geophysics by flight of 71 lines with a separation of 250 m and five control lines totaling 1,294 km in total linear covering an area of 252 km2, and sampling anomalies to semi-detailed geological survey. Gamma ray radiometric with radiometric survey at every 25 m in the heart of the Th anomaly approximately 2,200 linear meters covering an area of approximately 40 hectares, work in semi-detailed mapping and systematic sampling of mineralized structures in trenches of previous work, sampling fenitized rock outcrops and associated dikes. In previous work Hernandez estimated potential 3'500 tons with average content of 4,824 ppm of lanthanides and 1.3% of rare earth oxides (REO).

Carbonatite

Fenitized Zone Th 1,794 ppm

Th values in lines LB 00 NW SE, L 1,000 NE, L 1,100 NE, L 1,200 NE.