PROJECTS - Don Sixto (La Cabeza)

El Cuello - Discovery Drilling

Discovery drilling to date at Cuello has delineated to the west and the east of the north trending Central Cuello vein system two new sub-parallel vein systems. Two veins were discovered at Cuello East and four at Cuello West. Cuello East is located about 150 meters east, and Cuello West approximately 100 meters west of the main vein, and all new veins could conceivably be included an a single open pit. This would enhance project economics by replacing waste rock with gold mineralized ore, should a feasibility study be positive.

To date, Cuello West has a minimum strike of 200 meters, but is still open both to the north and south. An RC step-out hole (LCP-175) sited 100 meters north of Cuello West intercepted significant gold mineralisation that is currently interpreted to be northern extension of Cuello West, which if the case increases the potential strike length of the system to near 300 meters. The interpretation for Cuello East suggests a potential minimum strike length of 150 meters.

Better results from Cuello East and Cuello West include:

Cuello East

Drill Hole Zone From
(m)
To
(m)
Width
(m)
Gold Grade
(g/t)
LCP-143 Cuello East 8 17 9 5.5
and 29 32 3 2.3
LCD-62 Cuello East 22 27 5 3.3
and 35 44 9 4.2
LCD-24 Cuello East 148.5 152.35 3.85 2.4
and 156 157 1 5.4
and 162 168.45 6.45 4.7
LCD-83 Cuello East 88 98.5 10.5 6.4
and 192.6 194.7 2.1 3.1
LCP-155 Cuello East 45 51 6 1.6
Channel Cuello East 14 2.4
and 6 30.3

Cuello West

Grade Zone From
(m)
To
(m)
Width
(m)
Gold Grade
(g/t)
LCP-146 Cuello West 0 3 3 3.2
and 27 33 6 1.8
LCP-169 Cuello West 34 37 3 7.8
and 52 55 3 2.0
and 67 73 6 15.5
LCD-61 Cuello West 45 48 3 2.1
and 52 55 3 8.6
and 82 83 1 3.9
LCD-78 Cuello West 19 21 2 4.5
and 45 46.2 1.2 4.8
LCP-81 Cuello West 4.5 6 1.5 1.2
and 44 51 7 2.8
and 53 53.5 0.5 2.5
LCP-175 Cuello North 75 81 6 2.6

El Cuello - Resource Drilling

Drill Hole Zone From
(m)
To
(m)
Width
(m)
Gold Grade
(g/t)
LCD- 31 Cuello 21.0 36.2 15.2 9.4
including 29.0 33.0 4.0 28.4
including 29.0 30.0 1.0 64.7
LCD-33 Cuello 68.0 83.0 15.0 6.7
including 78.0 79.0 1.0 23.8
LCD-35 Cuello 70.8 72.0 1.2 10.0
81.0 82.7 1.7 8.4
LCD-37 Cuello 67.6 69.0 1.4 3.2
LCD-41 Cuello 46.0 48.0 2.0 2.0
LCD-43 Cuello 49.0 52.9 3.9 7.0
including 49.0 51.08 2.08 11.9
including 50.3 51.08 0.83 17.0
LCD-55 Cuello 42.0 46.5 4.5 1.7
48.0 49.9 1.9 3.0
52.0 53.3 1.3 2.4
56.0 66.0 10.0 29.1**
including 56.0 60.0 4.0 66.2**
including 56.0 57.0 1.0 171.0
LCD-58 Cuello 115.37 134.51 19.14 4.0
including 131.0 132.0 1.0 16.0
142.75 146.5 3.75 1.9
LCD-59 Cuello 14.0 17.0 3.0 1.2
98.05 101.0 2.95 4.5
106.0 122.0 16.0 6.0
including 108.0 118.0 10.0 8.5
including 112.0 113.0 1.0 15.6
and 115.32 117.0 1.68 24.0
125.0 126.57 1.57 2.1
133.0 134.0 1.0 1.3
LCD-60 Cuello 78.0 79.0 1.0 5.9
88.55 89.2 0.65 4.4
90.0 91.27 1.27 1.1
96.25 97.8 1.55 5.0
102.0 103.0 1.0 2.2
106.0 107.0 1.0 1.1
LCP-104 Cuello 21.0 27.0 6.0 2.3
LCP-127 Cuello 9.0 15.0 6.0 9.4
including 9.0 12.0 3.0 14.5
LCP-128 Cuello 9.0 15.0 6.0 1.3
LCP-157 Cuello 22 25 3 5.5
LCD-163 Cuello 76.7 79 2.3 1.5
including 77.2 77.75 0.55 4.5
LCP-159 Cuello 54 72 18 0.8
including 57 60 3 1.3
including 63 66 3 1.5
84 90 6 2.2
99 108 9 1.5
LCP-167 Cuello 52 58 6 1.3
67 70 3 1.8
79 82 3 1.2
LCP-168 Cuello 18 36 18 1.1
LCP-172 Cuello 71 83 12 1.3
LCP-173 Cuello 13 16 3 1.7
LCD-79 Cuello 39 42 3 1.3
51 54 3 1.9
115.9 119.8 3.9 2.1
123 129.3 6.3 1.3
137 144 7 1.2
149 151.6 2.6 1.3
156 158 2 1.8
LCD-80 Cuello 21.5 28.1 6.6 2.2
LCD-84 Cuello 26 29 3 1.4
128.4 135 6.6 4.8
138 139 1 3.4
151 155 4 1.3*
156 160 4 4.5*
including 158 159 1 10.1
161 163 2 1.1
175 177 2 1.5*

* Assay results for the intervals 155 - 156 meters and 177 - 178 meters are presently unavailable.
Note: Regular whole core samples of HQ-size diamond drill core, in representative rock types (in both mineralized and unmineralized rocks) have been collected and dispatched to the University of San Juan in Argentina for simple compression tests.

Cuello Deposit

Refer to the note at the base of the drilling section discussing the channel sampling programmes at Don Sixto. Significant sawn channel sampling results for Cuello and Cuello East are presented below:

Channel Number Zone From (m) To (m) Sample Length (m) Gold Grade (g/t)
1 Cuello 6 11 5 12.9
3 Cuello East 2 8 6 1.7
and 22 24 2 1.2
4 Cuello East 34 36 2 2.8
and 50 64 14 2.4
5 Cuello East 6 8 2 1.4
and 22 24 2 1.7
and 26 32 6 2.2
6 Cuello East 12 18 6 30.3
7 Cuello East 4 8 4 1.9
and 14 18 4 6.4

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.

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