somebody just took 400,000 fpo, page-10

In the Project area, there is a series of low sulphidation epithermal chalcedony-quartz +/- adularia veins and associated breccias hosted in sub-aerial rhyolitic-dacitic lithic tuffs and ignimbrites of Jurassic age. Similar geology is exhibited at the Cerro Vanguardia deposit, which is now being worked by AngloGold and Perez Compani. This deposit is about 280 kilometres south-east of Cerro Negro and has resources in the order of 13,000,000 tonnes at 8.9g/t Au, 110g/t Ag (approximately 3.5 million ounces of Gold).

At the “Vein Zone”, drilling by MIMEX has delineated a 450 metre long by 150 metre wide mineralised zone which is open along strike and at depth. The drilling results show widths and grades which imply a significant potential resource. The Directors of Oroplata consider this potential to be in excess of 500,000 ounces of gold at economic grades. However, further drilling will be necessary in order to establish a resource status for the prospect. Some drill holes have intersected impressive grades and/or widths of mineralisation (CNRC25 – 78m at 4.02g/t Au, CNRC57 – 18m at 4.00g/t Au) and, there are conceptual geological reasons to consider the possibility of “bonanza-grade” mineralisation at modest depths below present intersections: for example, as discovered at Pajingo-Vera Nancy (in Australia), where grades can be in excess of 30g/t Au. The presence of high grades at the “Vein Zone” is suggested with intersections like the 1.2 metres @44.4g/t Au in hole CNDD4 (27.4m-28.6m).