Ann: Geophysics Program Completed at Yerbas Buenas Project, page-2

GEOPHYSICS PROGRAM COMPLETED AT YERBAS BUENAS PROJECT
KEY POINTS
 Geophysics survey comprising a close spaced high resolution ground magnetics and passive seismic survey successfully completed and all data now processed indicating a magnetite structure over 1.9km in length

 The 160 line kilometre, 25m and 10m spaced ground magnetics program has confirmed the existence of several large magnetic structures that conform well to the regional magnetite geology of several operating mines in the area.

 Exceptional level of resolution from the 10m spaced ground magnetics over the trial mining area allowing improved targeting of superficial mineralisation for bulk testing.

 Compania Minera del Pacifico S.A (“CAP”), Chiles largest iron ore producer drilled two RC holes to 110m & 150m in 2011 in the area of the trial mining pit which confirmed these intrusive structures to contain magnetite.

 A passive seismic survey over the same area has provided a clear indication of tertiary cover thickness over the anomalies.

 Detailed mapping of various magnetite outcrops and fault structures in the immediate area to the north have demonstrated that the geology of Yerbas Buenas has remarkable similarity to the magnetite, copper and gold mineralisation of the Dominga, Santa Dominga and El Tofo projects which all lie within 15-20kms along the same El Tofo and Atacama fault structures.

 Potential for IOCG with a subvertical structure consistent with other projects located in the El Tofo-Atacama belt