Socompa, Salta

Copper-gold porphyry target located in western Salta province ~70 kms from BHP Billiton's Escondida mine.

•8,679 hectares
•Previously explored by Rio Tinto (late 1990s) and Marifil more recently

Option agreement signed Dec 15th 2010

•Can earn 85% by making vendor payments of $2.4 mm over 48 months ($380k required over first 30 months.
•Interest can increase to 100% through vendor dilution.
•Residual 2% NSR can be purchased for $2mm.

Exploration Model

Hosts a large, ~20 km2, zone of porphyry alteration)

•Possible extension to the Maricunga belt
•Rio Tinto drilled 12 broad spaced holes with Cu-Au intersected.
•The main exploration target is an 800 metre long, structurally controlled quartz vein stockwork in potasic alteration with million ounce, near surface potential.
•Potential for larger system at depth beneath scree cover.
•Closest project to drill ready

Work program

2011

•Access and road building -- Early Q1/2011
•Detailed mapping and rock chip sampling - Q1/2011
•Geophysics survey planned over main porphyry target -- Q1/2011
•Regional reconnaissance - Q2/2011
•Drilling (5,000 metres) -- Q2/2011