Breccia Valentina

The Breccia Valentina prospect area is situated approximately 6km to the southeast of the main zone of mineralization defined to date at Cap Oeste, within a subparallel NW trending structural corridor, as shown in the figure.

The Breccia Valentina prospect is centred over a 200m x 300m, NNW trending, brecciated and stockwork veined and intensely clay-pyrite altered, sub volcanic rhyolite dome over which a coincident zone of Au-Ag-As-Sb-Hg anomalous surface geochemistry has been defined.
The brecciated dome is encompassed within a package of pervasively clay-pyrite altered, interbedded ash to lapilli tuff and dominantly rhyolitic flow-banded lapilli-block tuff which locally exhibit fluidized breccia and injection textures.

Peripheral outcropping, silica replaced 1-2m thick fossil plant bearing horizons are interpreted to comprise zones of distal paleosurface hydrothermal outflow, indicative of a shallow paleo-hydrothermal setting, based on highly anomalous pathfinder As-Sb-Hg geochemistry.
Both the rhyolite dome and volcanic stratigraphy are cross cut by a series of at least four steep north easterly dipping, 10-50m wide silicified zones hosting 3-6 m wide, quartz-pyrite matrix hydrothermal breccias enveloped by stockwork to sheeted, crystalline to chalcedonic, crudely banded veining with individual widths attaining up to 15cm.

The better mineralized portions within the zones commonly correlate with visible finely disseminated proustite (ruby silver) which occurs within the matrix of the hydrothermal breccias, within veins and as drusy lined vein cavity fill, lining hypogene kaolinite filled fractures and within the silica poor, clay-pyrite altered rhyolitic clasts and tuff matrix.

Exploration drilling for the discovery of economic high grade Au-Ag mineralization throughout the Breccia Valentina project is targeting structurally controlled phreatic breccia pipes similar in genesis to that of other Pacific Rim Au-Ag deposit examples including the McLaughlin (3 Moz Au) and Toku Tindang (1.7 Moz Au) deposits.

Historic exploration completed between 2001-2004 over the principal zone of interest included rock chip and saw channel trench sampling, electrical geophysics and geological mapping. This work identified a broad 500m x 800m area of anomalous Au-Ag-As-Sb-Hg surface geochemistry, which was subsequently validated during 2007 by saw channel sampling in 8 trenches totalling 1061m and detailed geological mapping by PGSA and external consultants.

Geochemical results from this work returned wide (10-45m) intervals of low grade Au mineralization up to 34m @ 0.89 g/t gold correlating to a sub-parallel series of NW trending zones of hydrothermal brecciation and sheeted veining, centred over the NNW trending brecciated rhyolite dome and peripheral host tuff as shown in the table below.

Breccia Valentina significant Trench Results
Trench No.	Interval (m)	Gold g/t	Distance from TR-20
TR 20	4.0	0.37	00m
TR 19	14.1	0.13	50m SE
TR 04	34.0	0.89	100m SE
including	20.0	1.19
TR 18	54.9	0.47	150m SE
including	4.0	2.96
TR 17	60.0	0.20	200m SE

Following reappraisal of the geology and validated geochemical results a 2,410m, 11 diamond drill program was completed in 2007. Significant results received from the drilling are displayed in the table below.

The drill hole locations are shown in the map.
To date, highly encouraging results indicate several 3-6m wide, high grade steeply northeast dipping zones of hydrothermal brecciation and sheeted veining which are enveloped by 10-50m wide lower grade (< 0.4 g/t Au) haloes of sheeted veining and silica flooding .

Additional exploration drilling is warranted to fully assess the potential of this prospect as well as the structural corridor within which it occurs.

Drill Hole No.	From Metres	Interval metres	Gold g/t	Silver g/t
BVA-002-D	26.0	12.5	2.38	12.05
including	28.0	5.2	3.35	11.73
and	128.0	7.0	2.43	38.00
BVA-007-D	63.00	19.00	0.96	6.57
including	76.00	5.00	1.93	8.30
BVA-009-D	101.00	5.00	1.68	3.36