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Lorena - a CRD target in Chihuahua

The Lorena Property is located in the municipality of Saucillo, State of Chihuahua, approximately 100 km south of the city of Chihuahua and approximately 10 km east of the main highway on a good paved road.  It is located in a mining district that has recently been known for carbonate replacement deposits ("CRDs") and is 25 km east of the world famous Naica mine operated by Peñoles. 

The main geological formation consists of limestones of Cretaceous age that have been intruded by felsic intrusives, the perceived source of the silver, lead and zinc mineralization. As with other CRDs, including Naica, there is a strong possibility of encountering gold and copper mineralization. The presence of breccias also suggests a process of remobilization and the formation of karst occurrences usually associated with the formation of polymetallic chimney and manto type ore bodies.  It is important to note that there was very little surface expression and no outcrop indications to suggest the rich underlying chimney systems now being exploited at Naica to depths currently exceeding 800m. 

CRDs are typically polymetallic and there are many examples in the Mexican CRD belt. Typical grades for these types of deposits are 2-12% lead, 2-18% zinc, 60-600 g/t silver, trace to 2% copper and trace to 6 g/t gold.  Size averages 10-13 million tonnes ("Mt") with the largest deposits 50+Mt. Orebodies are continuous and average 0.5 to 2Mt in size.  They are typically metallurgically straightforward, amenable to low-cost mining methods, and the environmental footprint is minimal.1 

The Company's initial exploration focus is in the northern area of the claim block, where there are several old mine workings for mercury (an indicator mineral for underlying polymetallic mineralization) located in alteration zones where recrystalization and mineralization is evident. The Company has initiated a NI 43-101 Technical Report by an Independent Geologist and Qualified Person under NI43-101 regulations that will consolidate all the data available in the area. Upon completion of the report, the Company will evaluate the conclusions and recommendations prior to initiating its exploration program. However, it expects that it will commence with a geophysical program to identify targets for subsequent drilling.   



1 Megaw, P.K.M., 1998, Carbonate-hosted Pb-Zn-Ag-Cu-Au replacement deposits:  An exploration perspective, in Lentz, D.R., ed., Mineralized intrusion-related skarn systems:  Mineralogical Association of Canada Short Course, v.26,p, p. 337-357.