PROJECTS - Don Sixto (La Cabeza)

Central Vein Zone - Discovery and Resource Drilling

The Central Vein Zone comprises a series of veins, referred to as the Mercedes and Labio vein systems, located midway between the important Cuello and Ojo mineralized zones, where drilling to date has established resources being modelled for early development. None of the veins in the Central Vein Zone were included in previous development studies for the project, the Mercedes vein representing a totally new discovery and having a minimum strike length of 200 meters. The Labio East vein has a strike of +300 meters, whilst Labio West has a strike of +200 meters. Follow up drilling is currently in progress.

Drill Hole Zone From
(m)		 To
(m)		 Width
(m)		 Gold Grade
(g/t)
LCP-162 Mercedes 19 28 9 2.5
including 22 25 3 5
LCP-165 Mercedes 4 7 3 2.7
LCP-184 Mercedes 32 47 15 7.6
including 41 44 3 33.9
LCP-185 Mercedes 54 57 3 10.9
LCD-01 Labio East 32 33 1 4.3
LCD-05 Labio East 25 28 3 10.6
including 27 28 1 18.8
LCD-13 Labio East 74 78 4 0.6
LCP-05 Labio East 64 84 20 0.7
including 67 68 1 1.1
including 72 74 2 1.4
including 75 77 2 2.6
including 82 83 1 1.2
LCP-13 Labio East 12 15 3 2.2
LCP-24 Labio East 39 45 6 7.6
47 49 2 1.2
62 65 3 4.7
68 70 2 2.2
LCP-25 Labio East 23 24 1 0.7
LCP-188 Labio East 30 45 15 24.8
including 30 36 6 60.5
LCP-198 Labio East 36 42 6 8.9
including 33 36 3 16.3
LCP-199 Labio East 30 36 6 7.7
including 30 33 3 11.0
LCD-02 Labio West 49 51 2 2.7
59 61 2 1.0
69 77 8 2.2
LCD-19 Labio West 101 104 3 1.1
LCP-12 Labio West 39 42 3 1.8
LCP-15 Labio West 24 26 2 3.0
34 36 2 1.7
LCP-189 Labio West 18 24 6 4
LCP-194 Labio West 100 106 6 5.1
LCP-11 Labio South 33 36 3 1.6
78 87 9 2.5
96 102 6 2.4
141 144 3 1.4
LCP-38 Labio South 147 150 3 0.8
LCP-45 Labio South 42 45 3 1.1
63 66 3 1.3
LCP-71 Labio South 29 32 3 1.0
50 53 3 2.1
LCD-87 Labio South 16.0 21.0 5.0 4.3
including 18.0 19.2 1.2 9.3
23.0 24.0 1.0 2.1
31.6 33.3 1.7 6.5
including 31.6 32.2 0.6 15.6
52.6 54.0 1.4 8.6
including 52.6 53.3 0.7 15.7
63.0 64.0 1.0 1.2
LCD-94 Labio South 25.0 29.1 4.1 1.9
including 26.0 27.0 1.0 2.1
including 28.0 29.1 1.1 3.4
30.3 33.8 3.5 8.7
including 31.8 33.8 2.0 15.2
Central Vein

Continuous rock chip sampling is performed as a prelude to sawn channel sampling to delineate areas of mineralisation. Significant continuous rock chip sampling for the new discovery Mercedes and the Labio South vein system are presented below:

Rock Chip Number Zone From (m) To (m) Sample Length (m) Gold Grade (g/t)
R/C 0 Mercedes 0 6 6 9.4
R/C 1 Mercedes 12 22 10 2.4
R/C 2 Mercedes 24 29 5 5.9
R/C 3 Mercedes 0 4 4 1.5
and 6 22 16 1.7
R/C 4 Mercedes 2 10 8 3.2
and 12 18 6 1.1
and 20 22 2 1.2
and 23 25 2 3.2
R/C 5 Mercedes 14 22 8 1.6
R/C 6 Mercedes 4 8 4 1.4
R/C 7 Mercedes 0 8 8 1.2
and 10 18 8 2.3
R/C 8 Mercedes 2 8 6 1.9
and 10 14 4 1.9
R/C 12 Labio South 4 9 5 3.0
and 17 19 2 1.5
R/C 13 Labio South 8 18 10 9.1
and 26 30 4 1.1
R/C 14 Labio South 2 8 6 22.0
and 22 28 6 2.2
R/C 15 Labio South 4 6 2 1.7
and 26.4 28.4 2 1.0
and 30.7 34.7 4 1.0
R/C 16 Labio South 0 4 4 1.8

Note: Sample length is actual length of sample collected, irrespective of topography or orientation of mineralization. Cut-off grade for reporting: 0.5 g/t Au .

AMEX : XRA TSX Venture : XRC FRANKFURT : EXB