PROJECTS - Don Sixto (La Cabeza)

Luna - Discovery Drilling

The discovery of significant new gold mineralisation adjacent to the existing Luna prospect was a combination of a RAB drilling discovery to the south of Luna and a re-appraisal of outcrops west and southwest of Luna. Significantly these two new discoveries are actually linked and this new zone (referred to as Luna Extensions ) has a strike length in excess of 500 meters.

The new mineralization that outcrops west and southwest of the known Luna prospect was an area not previously sampled by Exeter geologists. Two sets of quartz veins were mapped at surface over a length of 250 meters, and extensively sampled by continuous rock chip sample traverses (as a prelude to sawn channel sampling).

Significant assay results from the continuous rock chip sample traverses over the Luna Extension are as follows:

Grade Zone From (m) To (m) Width (m) Gold Grade (g/t)
Line 01 Luna 4 14 10 2.1
including 10 12 2 4.4
Line 02 Luna 0 2 2 1.5
and 14 22 8 2.7
including 16 18 2 3.4
including 20 22 2 3.2
Line 03 Luna 10 14 4 3.4
including 12 14 2 6.1
Line 04 Luna 16 20 4 1.6
including 16 18 2 2.3
Line 06 Luna 8.4 11.4 3 1.5
and 17.4 21.4 4 1.2
Line 07 Luna 4.0 8.3 4.3 2.5
including 4.0 6.3 2.3 3.9
Line 08 Luna 6.0 8.5 2.5 2.3
Line 10 Luna 4 6 2 2.7
and 16 20 4 1.0
and 22 33.8 11.8 1.4
and 45.8 47.8 2 1.0
Line 11 Luna 4 33 29 1.8
including 15 25 10 2.5
Line 12 Luna 0 2 2 1.2
and 4 12.5 8.5 1.3
Line 13 Luna 4 13 9 3.0
including 4 6 2 9.1
Line 14 Luna 4 10 6 2.9
Line 15 Luna 2 10 8 1.1
and 16 21.2 5.2 1.4
Line 16 Luna 10 34.5 24.5 1.3
including 12 18.5 6.5 2.5

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

The rock chip traverses were typically on sections 25 meters apart, testing a northwest trending zone of veining, sub-parallel to the main mineralization within the Luna zone. Sawn channel sampling has been planned as follow up to the rock chip traverses. The discovery is thought to be an extension to the Luna Zone but may be a faulted offset to the known deposit.

In February 2006 three RC drill holes tested the outcropping portion of one of the two new vein sets. Significant preliminary assay results are as follows:

Drill Hole Zone From (m) To (m) Width (m) Gold Grade (g/t)
LCP-200 Luna 13 25 12 1.4
including 13 19 6 2.0
LCP-201 Luna 14 23 9 1.8
including 14 20 6 2.5
LCP-202 Luna 17 23 6 1.0

The presence of gold mineralization under sand cover in the previously-unexplored area south of the Luna prospect was first recognized by shallow RAB drilling, in an area approximately 200 meters southeast of the initial discovery that intersected similar quartz veining, with a maximum assay of 8.2 g/t gold. The RAB drilling in this area was drilled in three stages to delineate the zone sufficiently to allow conventional RC drilling. Stage 1 was drilled on a 100 x 100 meter pattern, stage 2 comprised 17 RAB holes drilled on a 50 x 50 meter pattern and the final stage necessitated an additional 13 RAB holes drilled on a 25 x 25 meter pattern. Based on the assay results and geological interpretation of the RAB holes five conventional RC drill holes were planned. The drilling confirmed the presence of significant mineralised veining that is interpreted to be linked to the previously discovered veining west and southwest of the main Luna prospect (refer to the Luna Extensions map).

Significant assay results from the new RC drill holes are as follows:

Drill Hole Zone From (m) To (m) Width (m) Gold Grade (g/t) Silver Grade (g/t)
LCP-207 Luna 27 33 6 2.7 19.3
LCP-209 Luna 26 29 3 1.6 3.7
and 41 47 6 3.3 21.1
including 44 47 3 5.5 33.2
LCP-210 Luna 35 38 3 1.2 8.2
LCP-211 Luna 44 50 6 2.0 na
including 44 47 3 3.3 40.6
LCP-212 Luna 29 32 3 0.8 na

Note: "na" denotes that the interval was not entirely assayed for silver

RC drill holes, LCP-207, LCP-209, LCP-210 and LCP-211 (all drilled to the east), were distributed on three section lines, 50 meters apart and passed through 10 to 20 meters of sand cover before intersecting bedrock (refer to the Luna Extensions map for the location of the drill holes).

Structurally, the new area of the Luna Zone is interpreted as consisting of two northwest striking veins that dip 45-50 degrees to the southwest. Drill hole LCP-212, although low in grade, confirms that the zone of veining continues under sand cover in a southeasterly direction. Drill hole LCP-208, drilled in a westerly direction, intersected no anomalous mineralization, thereby confirming the west-dipping geometry to the zone.

Drilling southeast of Luna also identified additional mineralisation, interpreted to be the southeastern extension of the main Luna zones. Significant assay results are as follows:

Drill Hole Zone From (m) To (m) Width (m) Gold Grade (g/t)
LCP-148 Luna 19 31 12 2.4
LCP-149 Luna 1 4 3 1.3
and 19 25 6 1.0

Additional RC drilling and orientated diamond drilling is being planned to test these areas in greater detail.

La Luna - Resource Drilling

Drill Hole Zone From
(m)		 To
(m)		 Width
(m)		 Gold Grade
(g/t)
LCD- 30 Luna 21.8 27.0 5.2 2.5
29.0 35.0 6.0 3.9
including 32.0 33.0 1.0 12.6
38.0 40.7 2.7 14.3
including 39.0 40.7 1.7 20.8
51.0 52.0 1.0 10.6
LCD-32 Luna 0.0 8.0 8.0 2.5
17.0 23.0 6.0 1.7
25.5 27.35 1.85 2.1
LCD-40 Luna 14.0 17.6 2.6 2.5
21.0 22.0 1.0 7.4
LCD-42 Luna 5.0 7.0 2.0 3.4
9.0 10.0 1.0 1.4
15.0 33.15 18.15 8.4
including 17.0 22.25 5.25 16.9
including 20.6 21.5 0.9 89.0
and 24.0 30.0 6.0 4.5
including 29.0 30.0 1.0 12.4
and 31.0 33.15 2.15 14.8
including 31.9 33.15 1.25 24.4
35.0 46.0 11.0 4.2
including 41.4 46.0 4.6 7.7
57.0 57.87 0.87 9.9
LCD-44 Luna 18.0 21.4 3.4 1.3
37.0 41.0 4.0 1.0
45.0 50.0 5.0 0.9
including 47.0 48.0 1.0 1.8
54.0 56.6 2.6 1.2
LCD-45 Luna 2.1 7.0 4.9 10.9
including 5.5 7.0 1.5 23.9
34.0 38.0 4.0 2.0
Luna 43.0 68.0 25.0 3.3
including 45.8 53.0 7.2 6.5
69.0 70.1 1.1 1.3
LCD-50 Luna 3.0 6.0 3.0 5.5
16.65 48.0 31.35 2.6*
including 19.0 25.0 6.0 6.8
LCD-51 Luna 16.0 26.0 10.0 1.3*
28.0 47.0 19.0 1.7*
52.0 63.0 11.0 1.8*
65.0 70.0 5.0 6.9*
including 66.7 67.4 0.7 43.9
LCD-52 Luna 21.0 25.0 4.0 3.8*
45.0 48.0 3.0 2.3*
LCD-53 Luna 4.0 20.2 16.2 3.7
25.4 37.0 11.6 3.2*
38.0 41.5 3.5 1.1*
42.0 49.0 7.0 1.1*
57.0 59.0 2.0 3.1
LCD-54 Luna 66.0 67.0 1.0 3.2
71.0 72.0 1.0 1.6
74.0 78.0 4.0 1.4*
80.0 81.6 1.6 1.3*
83.4 86.0 2.6 1.9*
87.0 96.0 9.0 1.3*
LCD-57 Luna 14.5 22.0 7.5 4.5*
including 14.5 18.9 4.4 7.0
25.0 29.0 4.0 2.1*
31.0 38.0 7.0 1.0*
47.0 49.0 2.0 1.2
51.0 62.0 11.0 2.9*
64.0 70.0 6.0 1.8*
71.0 82.5 11.5 1.2*
89.92 96.0 6.08 1.4*
98.0 100.34 2.34 1.8*
LCP-105 Luna 96.0 99.0 3.0 1.2
105.0 108.0 3.0 2.2
LCP-114 Luna 15.0 21.0 6.0 18.2
including 15.0 18.0 3.0 34.1
84.0 87.0 3.0 3.0
LCP-115 Luna 12.0 18.0 6 1.4
24.0 51.0 27.0 2.9
including 24.0 33.0 9.0 5.9
including 24.0 27.0 3.0 9.5
LCP-117 Luna 0.0 6.0 6.0 0.9
42.0 51.0 9.0 2.3
including 45.0 3.0 5.3 5.3
54.0 63.0 9.0 1.1
66.0 69.0 3.0 0.9
LCP-120 Luna 9.0 30.0 21.0 5.6
including 18.0 30.0 12.0 8.1
LCP-121 Luna 6.0 15.0 9.0 0.7*
39.0 42.0 3.0 1.1
48.0 66.0 18.0 0.9*
including 54.0 57.0 3.0 1.9
and 60.0 63.0 3.0 1.1
LCP-122 Luna 36.0 39.0 3.0 0.5*
LCD-64 Luna 0 9 9 4.3
88.0 89.7 1.7 2.0
95.0 96.0 1.0 1.2
LCD-65 Luna 4.75 25.00 20.25 3.4
28.0 31.3 3.3 3.2
43.7 45.0 1.3 2.3
60 64 4.0 3.8
68 69.75 1.75 3.4
75.65 81.0 5.35 2.3
83.0 85.0 2 1.0
LCD-66 Luna 50.0 51.0 1 3.1
52 53 1 1.1
58 59 1 13.1
60 70 10 3.7
LCD-67 Luna 6.0 11 5 1.4
12.9 15 2.1 1.4
29 33.9 4.9 4.6
39 41.14 2.14 1.8
47.87 50 2.13 1.6
72 73 1 2.6
76 77 1 2.2
80 81 1 3.2
LCD-68 Luna 0 3 3 2.3
14 16.35 2.35 1.6
20.35 26 5.65 2.1
35 39 4 2.3
45 50 5 1.7
54 62.3 8.3 2.2
68.72 71 2.28 3.8
72 81 9 6.3
85 86 1 1.4
104 105 1 1.1
LCD-69 Luna 9.5 14.9 5.4 1.1
16.75 28.2 11.45 10.2
35 36 1 1.4
LCD-70 Luna 38 39.4 1.4 1.1
82.7 86.65 3.95 1.4
90 91 1 2.0
93.2 94 0.8 3.1
103 103.7 0.7 1.5
107.35 108 0.65 2.5
112 112.9 0.9 1.7
118 121.15 3.15 4.0
LCP-181 Luna 1 34 33 5.2
including 1 16 15 9.6
and 73 82 9 1.1
LCP-182 Luna 1 10 9 0.9
including 1 4 3 1.2
40 46 6 1.3
88 103 15 1.3
including 91 94 3 4.1
LCP-149 Extension Luna 69 72 3 7.7
81 84 3 3.0
Luna 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 Luna are presented below:

Channel Number Zone From (m) To (m) Sample Length 1 (m) Horizontal Length 2 (m) Gold Grade (g/t)
0 Luna 60.0 72.0 12.0 9.0 1.6*
1 Luna 89.1 109.1 20.0 15.5 1.3*
2 Luna 51.0 77.0 26.0 21.5 2.5*
including 57.0 67.0 10.0 7.5 4.7
121.3 141.3 20.0 16.5 4.5*
including 123.3 135.3 12.0 9.5 6.8
2A Luna 56.0 76.0 20.0 17.0 2.0*
including 66.0 76.0 10.0 8.5 4.3
3 Luna 71.4 108.8 37.4 31.5 3.3*
including 77.4 103.4 26.0 22.0 4.4

* Interval calculated at a 0.5 g/t gold cut-off; all others calculated at a 1.0 g/t gold cut-off from uncut gold assays.

Note 1 - Sample length is the actual length of sample collected, irrespective of topography and mineralisation orientation.

Note 2 - Horizontal length is the horizontal distance over which the sample was collected as determined by accurate survey. The true width of mineralisation may be equal to, less than, or, in some cases, greater than the horizontal length, dependant on the orientation of individual mineralised zones and topography.

AMEX : XRA TSX Venture : XRC FRANKFURT : EXB