Ann: Sulphide Mineralisation Intersected at Carac, page-50

re: Ann: Sulphide Mineralisation Intersected ... Key Points from announcement:

“Given the number of large gold-copper porphyry deposits in the Maricunga Belt such as Exeter Resources’ Caspiche Project, Kinross Gold's operating Refugio mine and the Cerro Casale gold-copper deposit, these results from Carachapampa appears significant.

137.85 metres of significant sulphide mineralisation has been intersected in drill hole DDH-CP2B at Carachapampa. Mineralisation still open at the end of the hole.

The initial interpretation is that the mineralisation represents a transition zone from high sulphidation epithermal gold-silver mineralisation to porphyry copper mineralisation.

The mineralisation is hosted in porphyritic dacite and comprises both disseminated sulphides and stockwork veining consisting of pyrite, chalcopyrite and silver sulphosalts.

The drill rig has been repositioned over Diamond Drill Hole DDH CP1 to deepen this hole to 400 metres with drilling to commence on 23 May after moderate snowfall held up drilling for 4 days.

The core has been dispatched to the laboratory with initial results expected in approximately 2 – 3 weeks.

The Company is excited by the significant sulphide mineralisation encountered from DDH-CP2B and hopes that this could well be the Company Maker that all junior explorers are looking for.

“Condor Blanco has always believed in the potential of the Carachapampa project. While it is early days, if DDH-CP2B has passed through the high sulphidation epithermal zone into the upper parts of a porphyry copper system, there appears to be potential for two mineralised systems at Carachapampa.

While a more robust interpretation awaits assay results and the results of the other holes, the initial interpretation is that DDH-CP2B has passed through the high sulphidation epithermal zone into the upper parts of a porphyry copper system.

If this interpretation is correct, there appears to be potential for two mineralised systems at Carachapampa as is the case at a number of deposits in the Maricunga Belt such as Exeter Resource Corporation’s (TSX: XRC) Caspiche Project.

Additional reading:
http://www.exeterresource.com/pdf/reports/Caspiche_discovery_history_paper.pdf

kind regards,
fast41.