Johno, I've tried to make a start on answering some of your...

Johno, I've tried to make a start on answering some of your questions.

"The Geological Potential is Unlimited

Pretty meaningless IMHO, in the same way that my back garden has unlimited geological potential.

•The Peruvian Andes hosts a diverse array of some of the worlds richest gold, copper, zinc, lead and silver deposits.
True. Being in the Andes ticks a box – a good regional address.

•Advanced exploration programs with the potential for a world class multi-million ounce gold discovery.

Advanced exploration or “drilling” as it is also known.

Another good sign that they have mineralised targets to aim for and are prepared to expend some big bucks on drilling. Less advanced exploration would be, for example, geophysics (aeromagnetics, gravity etc) or soil sampling that might reveal geochemical traces that lead to mineralisation.

•Outstanding location for geology and development in one of the world’s prospective gold provinces.

On the face of it, yes, they’re in the right sort of area. The Andes are a good place to go looking for gold.

•Exploration concessions are located adjacent to world class deposits of Barrick and Newmont:
•Barrick’s Lagunas Norte (also known as Alto Chicama)
•Newmont’s part owned world-class Yanacocha mine"

Stretching the chewy a bit on this one. Lagunas Norte is 50+km away and Yanacocha appears to be over 100km away. This is nearology, trying to gain some sort of reflected glory from adjacent properties. If I told you that an unexplored sheep paddock 100km from the Superpit in Kalgoorlie had unlimited potential would this make you invest in it?

"Geology Background
The Cerro Curunday Project has the potential to be a multi-million ounce gold discovery. The deposit style is interpreted as a high sulphidation epithermal system in the top of the ridge line, while the lower slopes represent a transition to a low sulphidation epithermal environment with a strike length of 2.1km.

High sulphidation implies that the mineralising fluids are dominated by saline magmatic water and the intrusive rock (porphyry) source is possibly nearby. Low sulphidation implies that the mineralising fluids are more dominated by meteoric ground waters and are possibly more distant from the magmatic heat source. All this talk of multi-million ounce deposits is very presumptious before you've even got the results from your first drillhole back. Gold can be a very fickle mistress.

Initial Exploration work at Support Drilling
•Extensive sampling campaign with a database of more than 800 samples including grab samples, rock chips, sedimentary stream and trenches/channels.

This is one of the things that most annoyed me about this company. They’ve taken 800 samples, they’ve talked the project up massively, yet they only ever plot 5 or 6 of their assays for us to see. Trench sampling and channel sampling is analogous to drilling a hole in that the sample is taken from a point to another point i.e. it has a length. This vital bit of information is missing.

•Epithermal gold mineralisation over a strike length of 2.1 kms
Presumably this is from mapping and the 800 samples. This is what I infer from what they’ve written, but they could do with some better presented material that clearly demonstrates a synthesis of the geology and the sample assays/geochemistry.

•Channel/trench samples of 14.80g/t, 10.15 g/t and 7.5 g/t

How long are these mineralised intervals. Ten metres, or has someone just cherry-picked a nice bit of quartz from a 10cm vein?

•Alteration and gold mineralisation extends south for 1 km. Prospect lies in a large gold mineralised system.

Finding gold mineralisation over a strike length of 2.1km (and an extra? 1km?) is definitely a positive. Until it’s drill tested they won’t know how large a system they’re dealing with.

•Metallurgical confirms gold in pervasively altered and oxidised rocks of the Cretaceous Chimu formation.

I suppose they deserve a pat on the head for doing some met testwork early on, rather than waiting until the plant is being built. Not sure about the relevance about the Cretaceous Chimu formation to the metallurgy – sounds a bit like they’re trying to blind you with science. The important thing is that the gold can be easily liberated from the ore and leached using conventional methods.

•Tertiary age diorite-monzonite granite intrusions in Mesozoic marine sediments – CLASSIC GOLD/COPPER PORPHYRY"

A hot body of molten rock of 2.6 to 66 million years of age pushed its way into some rocks that had been deposited in a sea 66 to 251 million years ago. Hot, mineralised fluids containing gold and copper were associated with the intrusion and MAY have left economic deposits of gold and copper in the intrusive rock and the adjacent sediments.