Hi guys.Firstly it’s great news that the company has identified...

Hi guys.

Firstly it’s great news that the company has identified other tenements similar to ours here at Ternera. Can you imagine the future value of these when El Zorro at its current smaller size brings home the bacon?

Secondly, it was mentioned earlier that mining companies in Chile can sit on a concession and land bank for ever. This is not quite true as it depends on the type of concession.

There are two types of concessions. Namely Exploration and Exploitation. The first is valid for two years only and can be extended by another two years but you forfeit 50% of the land area. In other words if you don’t use it you lose it. The second type, explotation is very different. This lasts for an indefinite period of time. As long as the annual licence fees are paid.

Concession costs- Well there are two types of fees. A yearly Procedural fee and an Annual Licence fee. So for an Exploration concession the Procedural fee is Between US$0.36-$2.88 per hectare per year depending on the type of surface and the Annual fee is US$1.44 per hectare. Essentially a minimum of $1.80/hectare.
For an Exploitation concession, the Procedural fee is between US$0.72-$3.59 per hectare. The Annual fee is approx US$7.19 per hectare. Again, a minimum of $7.91/hectare.

So, for us to pick up all of these extra concessions at an exploration level——285 square km is 28500 hectares @ US$1.80 = US$51,300 per year.

Not too shabby for the massive upside potential that lies beneath!

M8