The Company’s initial exploration project is at Cristal where multiple zinc oxide and zinc sulphide outcrops have been observed over an area estimated to be 2,000 meters by 1,000 meters.

 

Zinc oxide outcrops at Cristal appear to be similar to the high grade zinc found at Cementos Pacasmayo’s Bongará Project. The Bongará Project is located 6km along strike from the Cristal prospects.

Additionally, zinc sulphide-bearing outcrops suggest possible deep zinc sulphide mineralization at Cristal. One particular feature observed at Cristal is the presence of a sulphide-bearing ore with a zinc oxide envelope. Geochemical sampling and detailed geological mapping at Cristal target areas are in progress and drilling commenced at Cristal in mid-2008.

The San Jose exploration project, located approximately 10km southwest of the Cristal project, was identified based on stream sediment sampling. San Jose consists of mineralization hosted within the Chambará Formation, which is “favourable” to Mississippi Valley-type mineralization. At the Florida project, targets follow the same structural control and stratigraphy observed at Votorantim’s Florida Canyon advanced exploration project. Exploration at the San Jose and Florida projects is underway.