Precious Metal Deposits Of The Refugio Area, Northern Chile

The Refugio Project is located in the Andes mountains of northern Chile, in the Maricunga Hineral Belt. The Verde, Pancho and Guanaco Au ore bodies have been recognized and are Early Miocene in age. Mineralization consists of fine-grained disseminated gold hosted by dacitic to dioritic subvolcanic porphyries. Alteration comprises massive to veinlet-controlled silicification overprinted on earlier potassic and propylitic alteration and surrounded by later argillic alteration. Geologic relationships suggest that the Refugio ore bodies occur within an Early Tertiary volcano overlying Paleozoic and Mesozoic basement rocks. Geologic reserves at Refugio are approximately 300 million grams (9.7 million ounces) of gold. The Verde deposit contains 185 million tonnes of mineable and leachable ore with an average grade of 0.90 glt Au and is currently in the pre-construction stage after a positive feasibility study. Proven and probable mining reserves at Verde deposit are 101 million tonnes at an average grade of 1.02 glt gold. Additional potential exists at to other deposits within the Refugio property (Pancho and Guanaco) but no reserves have yet been defined due to the limited drilling to date.