Bongara Project

Four exploration projects have currently been identified within the Bongará claim block: Cristal, Alto Cristal, San Jose and Florida. Cristal has multiple drill target areas and we plan to identify other targets for San Jose and Florida.

Cristal & Alto Cristal Projects

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 Mina Grande Project. The Mina Grande 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.Drilling commenced at Cristal in mid-2008 and results were excellent. A 4000 meter program began in April 2011 to confirm and expand the 2008 results.

San Jose & Florida Projects

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 drilling at Florida will take place in the third quarter of 2011.