Drill Results

Dimensions of the Discovery Zone tested to date are approximately 200 meters by 300 meters in plan by 440 meters vertically. Mineralization remains open to the West, North, East and to depth. The mineralized zone tested to date covers approximately 10% of the 3D IP Geophysical target which comprises a large "L" shaped area of chargeability, with one "arm" measuring 1.6 km and the other 900 meters, and with widths ranging from 250 to 600 meters.

Kootenay currently 2 to 3 years of funds to systematically test a large target area within the IP Anomaly and the numerous new targets identified in recent exploration.

Drill results are summarized in the following table:

Drill Hole	From (m)	To (m)	Interval (m)	Ag (g/t)	Au (g/t)	AgEq (Ag,Au) (g/t)	Pb (%)	Zn (%)	Pb+Zn (%)
KP-01-07*	53.48	57.25	3.77	236.80	0.72	289.82	0.47	0.35	0.81
KP-02-07*	71.15	100.75	29.60	215.60	1.23	306.17	0.94	2.39	3.33
KP-04-07*	110.60	130.57	19.97	18.84	0.49	54.92	0.21	0.19	0.39
KP-05-07*	66.37	81.34	14.97	329.50	1.81	462.78	1.79	2.60	4.39
KP-06-07*	111.58	136.72	25.14	209.40	0.97	280.83	0.89	1.12	2.01
Incl.	117.87	121.93	4.06	492.70	1.63	612.73	1.49	2.59	4.08
Incl.	130.73	136.72	5.99	462.30	0.93	530.78	2.05	2.58	4.64
KP-07-07*	47.12	62.15	15.03	27.95	0.60	72.13	0.47	0.83	1.29
KP-07-07*	23.64	66.45	42.81	20.85	0.36	47.36	0.27	0.44	0.71
Incl.	23.64	25.95	2.31	128.90	0.92	196.65	1.13	2.03	3.15
KP-08-07*	0	45.15	45.15	23.10	0.58	65.81	0.11	0.28	0.39
Incl.	17.47	45.15	27.68	36.09	0.87	100.15	0.17	0.32	0.49
KP-09-07*	54.80	87.46	32.66	212.90	2.34	385.21	1.72	2.21	3.93
Incl.	61.85	68.55	6.70	671.20	3.46	925.98	3.29	4.59	7.88
Incl.	60.35	80.25	19.90	345.10	3.36	592.52	2.78	3.59	6.37
KP-10-07*	106.10	135.00	28.90	31.32	0.24	48.99	0.28	0.15	0.44
KP-12-07*	127.20	127.74	0.54	158.50	3.83	440.53	2.15	2.95	5.10
KP-12-07*	111.20	115.00	3.80	95.49	1.30	191.22	1.16	1.59	2.75
KP-12-07*	58.61	60.35	1.74	26.53	0.60	70.71	0.72	0.75	1.47
KP-13-07	49.70	92.23	42.53	8.61	0.47	43.22	0.02	0.02	0.05
KP-14-07*	58.88	62.17	3.29	11.33	0.11	19.43	0.53	0.66	1.20
KP-15-07*	64.20	65.40	1.20	942.10	1.51	1053.29	6.26	6.44	12.70
KP-15-07*	119.91	124.18	4.27	8.47	0.27	28.35	0.46	0.20	0.66
KP-16-07*	10.55	22.23	11.68	17.87	0.15	28.92	0.24	0.27	0.51
KP-17-07*	8.38	188.75	180.37	16.67	0.23	33.61	0.32	0.37	0.70
Incl.	27.40	38.85	11.45	55.54	1.12	138.01	1.18	1.28	2.46
Incl.	12.95	75.90	62.95	36.27	0.53	75.30	0.72	0.84	1.57
KP-18-07*	18.75	23.37	4.62	34.61	0.29	55.96	0.55	1.10	1.65
KP-18-07	14.35	21.95	7.60	22.10	0.98	94.26	0.32	0.63	0.95
KP-18-07*	91.23	96.12	4.89	35.07	0.24	52.74	0.70	0.59	1.29
KP-18-07*	161.12	182.95	21.83	9.62	0.42	40.55	0.09	0.27	0.35
KP-19-07*	8.90	153.00	144.10	36.62	0.17	49.14	0.38	0.46	0.85
Incl.	126.61	153.00	26.39	134.50	0.24	152.17	1.35	1.53	2.88
KP-20-07*	35.55	381.92	346.37	28.12	0.38	56.10	0.56	0.74	1.30
Incl.	343.58	348.34	4.76	76.81	2.20	238.81	1.76	3.25	5.01
Incl.	215.35	302.05	86.70	52.37	0.43	84.03	1.10	1.28	2.38
Incl.	215.35	381.92	166.57	40.54	0.45	73.68	0.86	1.06	1.92
Incl.	35.55	83.10	47.55	30.10	0.67	79.44	0.55	0.73	1.28
KP-21-07	16.80	20.20	3.40	1.13	1.15	85.81	0.02	0.01	0.03
KP-22-07*	44.40	202.05	157.65	48.93	0.51	86.48	0.70	0.95	1.65
Incl.	190.85	197.93	7.08	212.20	2.58	402.18	3.06	3.60	6.66
Incl.	71.05	75.95	4.90	49.67	1.71	175.59	0.93	3.09	4.03
Incl.	152.25	202.05	49.80	95.53	0.95	165.48	1.36	1.76	3.12
KP-22-07*	6.30	26.10	19.80	8.02	0.16	19.80	0.09	0.13	0.22
KP-23-08*	6.55	444.00	437.45	28.20	0.44	60.60	0.53	0.63	1.16
Incl.	67.45	79.10	11.65	143.50	1.14	227.45	2.82	2.11	4.93
Incl.	6.55	196.47	189.92	52.30	0.64	99.43	0.97	1.04	2.00
Incl.	333.65	444.00	110.35	13.93	0.46	47.80	0.27	0.50	0.77
KP-24-08*	3.00	438.00	435.00	13.96	0.20	28.69	0.22	0.28	0.50
Incl.	131.83	193.64	61.81	55.65	0.76	111.61	0.84	0.98	1.82
Incl.	338.30	419.40	81.10	9.40	0.10	16.76	0.19	0.37	0.56
KP-25-08*	2.01	388.65	386.64	46.15	0.44	78.55	0.78	0.76	1.54
Incl.	225.80	233.65	7.85	335.40	2.46	516.55	6.12	4.01	10.13
Incl.	201.00	298.67	97.67	100.40	0.77	157.10	1.74	1.50	3.24
Incl.	117.70	388.65	270.95	62.44	0.57	104.41	1.07	1.03	2.10
KP-26-08*	176.60	364.40	187.80	36.94	0.53	75.97	0.65	0.66	1.31
Incl.	200.75	302.40	101.65	53.00	0.82	113.38	0.92	0.94	1.85
Incl.	200.75	230.65	29.90	87.11	1.02	162.22	1.48	1.45	2.93
KP-27-08*	0	419.88	419.88	31.86	0.43	63.52	0.57	0.67	1.24
Incl.	11.15	83.85	72.70	52.27	1.06	130.32	0.85	0.97	1.82
Incl.	15.61	43.33	27.72	76.98	1.24	168.29	1.10	1.18	2.27
Incl.	109.80	345.95	236.15	34.75	0.36	61.26	0.66	0.74	1.40
Incl.	200.45	266.35	65.90	61.36	0.78	118.80	1.13	1.20	2.33
KP-28-08*	22.10	33.67	11.57	13.67	0.22	29.87	0.43	0.62	1.05
KP-28-08*	87.61	164.20	76.59	20.75	0.23	37.69	0.36	0.52	0.89
Incl.	119.94	164.20	44.26	24.78	0.33	49.08	0.44	0.67	1.11
KP-28-08*	195.78	234.50	38.72	22.76	0.58	65.47	0.35	0.53	0.88
KP-28-08*	392.71	416.00	23.29	23.71	0.33	48.01	0.47	1.13	1.59
KP-29-08*	19.13	38.02	18.89	24.33	0.19	38.32	0.51	0.79	1.30
KP-29-08*	166.35	434.56	268.21	28.49	0.42	59.42	0.54	0.65	1.18
Incl.	166.35	357.40	191.05	34.83	0.50	71.65	0.65	0.72	1.37
Incl.	288.15	336.50	48.35	36.76	0.99	109.66	0.85	0.94	1.79
Incl.	323.00	335.00	12.00	84.99	2.77	288.96	1.99	2.02	4.01
KP-30-08*	70.00	75.00	5.00	21.68	0.11	29.78	0.49	0.60	1.09
KP-30-08*	123.57	129.76	6.19	16.06	0.22	32.26	0.26	0.45	0.71
KP-30-08*	202.19	351.27	149.08	31.01	0.40	60.46	0.43	0.41	0.84
Incl.	277.26	312.40	35.14	50.14	0.65	98.00	0.90	0.76	1.67
KP-30-08*	381.64	425.10	43.46	25.26	0.25	43.67	0.55	0.73	1.28
KP-31-08*	206.90	219.66	12.76	12.59	0.11	20.69	0.24	0.37	0.60
KP-31-08*	226.00	236.71	10.71	23.62	0.14	33.93	0.45	0.59	1.04
KP-31-08*	275.45	357.90	82.45	16.41	0.19	30.40	0.28	0.30	0.58
Incl.	275.45	291.23	15.78	34.50	0.52	72.79	0.63	0.68	1.30
KP-32-08*	198.95	327.30	128.35	26.66	0.52	64.95	0.49	0.50	0.98
Incl.	267.56	327.30	59.74	32.54	0.60	76.72	0.60	0.57	1.17
KP-32-08*	354.70	366.97	12.27	16.89	0.12	25.73	0.35	0.37	0.72
KP-32-08*	407.25	411.08	3.83	21.03	0.36	47.54	0.44	0.56	1.01
KP-33-08*	164.35	295.71	131.36	42.21	0.50	79.03	0.60	0.71	1.31
KP-33-08*	164.35	264.00	99.65	52.84	0.62	98.49	0.77	0.89	1.66
KP-33-08*	310.64	386.20	75.56	37.17	0.45	70.31	0.68	0.68	1.36
Incl.	323.69	386.20	62.51	40.95	0.50	77.77	0.75	0.71	1.46
KP-34-08*	215.28	284.60	69.32	30.46	0.39	59.18	0.38	0.41	0.79
KP-35-08*	287.60	385.00	97.40	50.79	0.40	80.24	0.97	1.24	2.21
Incl.	311.74	335.95	24.21	89.81	0.59	133.26	1.94	2.25	4.19
Incl.	321.90	335.95	14.05	111.60	0.76	167.56	2.51	2.86	5.37
KP-36-08*	88.15	396.89	308.74	30.27	0.36	56.78	0.52	0.58	1.10
Incl.	208.35	295.80	87.45	41.83	0.49	77.91	0.72	0.89	1.62
Incl.	259.95	295.80	35.85	60.31	0.59	103.76	1.05	1.25	2.31
Incl.	332.14	373.98	41.84	32.46	0.59	75.91	0.72	0.71	1.43
KP-37-08*	83.92	123.70	39.78	54.85	0.44	87.25	0.84	1.01	1.85
Incl.	108.45	123.70	15.25	142.20	0.76	198.16	1.76	2.03	3.78
KP-37-08*	155.95	167.20	11.25	22.00	0.37	49.25	0.34	0.48	0.82
KP-37-08*	244.70	251.83	7.13	44.39	1.22	134.23	1.12	1.26	2.38
KP-37-08*	280.00	308.71	28.71	41.80	0.30	63.89	0.61	0.72	1.34
Incl.	305.30	307.06	1.76	163.10	1.14	247.05	2.64	3.12	5.76
KP-37-08*	316.50	336.97	20.47	23.27	0.38	51.25	0.34	0.40	0.73
KP-37-08*	359.81	360.96	1.15	57.19	2.14	214.77	1.09	0.03	1.12
KP-39-08*	293.21	311.94	18.73	37.58	0.27	57.46	0.60	0.66	1.26
KP-39-08*	328.84	341.82	12.98	37.51	0.27	57.39	0.62	0.50	1.13
KP-39-08*	450.85	520.24	69.39	16.44	0.17	28.96	0.47	0.37	0.84
Incl.	492.00	513.63	21.63	22.89	0.26	42.04	0.67	0.47	1.13
Incl.	463.70	483.34	19.64	20.16	0.15	31.21	0.54	0.57	1.10
Incl.	450.85	483.34	32.49	17.29	0.17	29.81	0.48	0.43	0.92
KP-39-08*	575.30	590.30	15.00	18.57	0.17	31.09	0.38	0.64	1.02
KP-39-08*	590.30	621.00	30.70	30.67	0.32	54.23	0.74	0.94	1.68
KP-40-08*	100.00	133.50	33.50	69.38	0.83	130.50	0.31	0.49	0.80
KP-40-08*	174.00	241.50	67.50	12.44	0.23	29.38	0.13	0.18	0.31
KP-40-08*	320.50	395.50	75.00	19.73	0.32	43.29	0.53	0.45	0.98
Incl.	344.50	395.50	51.00	23.11	0.39	51.83	0.62	0.54	1.16
Incl.	338.50	395.50	57.00	22.46	0.37	49.71	0.62	0.53	1.16
KP-41-08*	523.50	565.50	42.00	22.73	0.08	28.62	0.54	0.49	1.03
KP-41-08*	550.50	561.00	10.50	45.76	0.18	59.01	1.26	0.88	2.14
KP-43-08*	129.50	138.50	9.00	47.35	0.22	63.55	0.97	1.37	2.34
KP-43-08*	152.00	156.00	4.00	0.25	1.66	122.49	0.02	0.05	0.07
KP-43-08*	195.00	228.00	33.00	5.31	0.24	22.98	0.11	0.23	0.34
KP-44-08*	1.00	106.50	105.50	34.26	0.47	68.87	0.65	0.70	1.35
Incl.	1.00	52.50	51.50	43.23	0.64	90.36	0.73	0.79	1.53
Incl.	1.00	33.00	32.00	48.87	0.82	109.25	0.86	0.94	1.80
KP-44-08*	123.00	126.00	3.00	92.05	0.58	134.76	1.34	1.33	2.67
KP-44-08*	130.50	136.50	6.00	111.30	0.48	146.65	0.65	0.75	1.39
KP-44-08*	180.50	185.00	4.50	87.40	0.73	141.15	1.26	1.87	3.13
KP-44-08*	202.00	321.00	119.00	52.30	0.35	78.07	1.15	1.10	2.25
Incl.	222.00	294.00	72.00	70.57	0.41	100.76	1.55	1.54	3.09
Incl.	222.00	319.50	97.50	61.76	0.38	89.74	1.36	1.31	2.68
KP-45-08*	117.00	201.00	84.00	7.60	0.25	26.01	0.09	0.10	0.19
Incl.	117.00	150.00	33.00	7.53	0.31	30.36	0.08	0.09	0.17
KP-46-08*	171.00	172.50	1.50	125.30	1.92	266.68	2.71	3.14	5.84
KP-47-08*	29.00	31.00	2.00	687.10	2.27	854.25	1.37	2.60	3.97
KP-50-08*	162.00	163.50	1.50	2.00	2.69	200.08	0.12	0.24	0.36
KP-52-08*	154.50	157.50	3.00	67.25	2.03	216.73	0.94	0.88	1.82
KP-52-08*	247.50	250.50	3.00	29.80	0.98	101.96	0.45	0.42	0.88
KP-52-08*	331.50	334.50	3.00	20.30	0.83	81.42	0.38	0.40	0.78
KP-53-08	0	15.00	15.00	14.42	0.12	23.32	0.13	0.09	0.22
KP-53-08	135.00	193.50	58.50	32.24	0.27	52.31	0.64	0.62	1.26
Incl.	135.00	153.00	18.00	73.67	0.45	106.75	1.56	1.43	2.99
Incl.	142.50	148.50	6.00	194.50	0.98	266.66	4.22	3.73	7.95
KP-54-08	212.00	313.00	101.00	26.21	0.37	53.72	0.40	0.34	0.74
Incl.	262.00	277.00	15.00	40.85	1.11	122.44	0.68	0.34	1.03
Incl.	262.00	303.00	41.00	40.75	0.72	93.68	0.61	0.52	1.13
Incl.	262.00	313.00	51.00	40.76	0.62	86.66	0.60	0.53	1.13
KP-55-08	3.00	16.50	13.50	77.39	2.78	282.39	0.62	0.45	1.08
Incl.	3.00	9.00	6.00	167.20	5.92	603.20	1.31	0.32	1.62
Incl.	3.00	13.50	10.50	98.64	3.50	356.59	0.78	0.44	1.22
KP-55-08	37.50	48.00	10.50	23.06	0.25	41.35	0.33	0.25	0.58
KP-56-08	0	34.50	34.50	74.83	1.73	202.00	1.26	1.16	2.42
Incl.	9.00	18.00	9.00	173.40	3.28	414.93	2.57	2.67	5.24
Incl.	0	18.00	18.00	111.90	2.55	299.82	1.78	1.41	3.19
Incl.	0	24.00	24.00	100.70	2.31	270.43	1.63	1.49	3.12
KP-57-08	81.00	90.00	9.00	8.21	0.43	40.22	0.16	0.18	0.35
KP-57-08	123.00	139.50	16.50	86.10	0.52	124.18	1.90	1.89	3.79
Incl.	130.50	138.00	7.50	157.80	0.95	227.78	3.61	3.54	7.15
Incl.	129.00	139.50	10.50	127.70	0.78	185.25	2.86	2.88	5.74

Notes to table:
1. Weighted averages for intervals including lost or unsampled intervals were calculated using zero values for the missing intervals
2. Prices used in calculating AgEq: Au $810/oz, Ag $11/oz
3. For drill holes KP-01-07 to KP-36-08: If an assay value was below the detectable limit the grade of the limit was used in calculations.
4. For holes drilled after KP-36-08: If an assay value was below the detectable limit a value halfway between the detectable limit and zero was used:
Au < 2 ppb = 1 ppb; Ag < 0.5 ppm = 0.25 ppm; Pb < 0.01% = 0.005%; Zn < 0.01% = 0.005%
5. Grades assume 100% recovery

Note: Maps, cross sections and a complete listing of assay intervals and drill hole coordinates can be viewed on the Kootenay website at www.kootenaygold.ca

Mineralization continues to occur as pyrite, galena, sphalerite, and possible silver sulfosalts within veins, veinlets, fractures, disseminations and as breccia infilling. In addition to the andesite significant mineralization has now been observed in diorites and sediments.

Drilling
Drilling is all core and has been contracted to BDW International out of Guadalajara Mexico and all core has been HQ sized.

Sampling and Assaying
All core samples are cut by a rock saw with one half being returned to the core box for reference and the other being bagged in a plastic sample bag which is labeled, tagged, documented and sealed with wire. Each sample is placed in a rice sack and sealed with a zip tie. All samples are recorded and delivered to International Plasma Labs Ltd. ("iPL") sample preparation lab in Hermosillo, Sonora, Mexico. Receipt of the samples is signed off at the preparation lab. Pulps of each sample are then prepared and sent to iPL Laboratories in Richmond B.C. Canada an ISO 9001-2000 certified full service laboratory. All of the samples referred to herein are core samples. A QA/QC program which includes the regular insertion by the Company of duplicates, blanks and standards has been instituted. iPL Laboratories also has its own system of replicate analysis and blanks which it provides to the Company. Each pulp is analyzed using iPL's AU(FA/AAS) Ag/Ore-Grade by Multi acid digestion ICP (Cu/Pb/Zn/Ag) assay package. This is a multi acid digestion with gold analyzed with an AA finish with over limits done with gravimetric finish and silver analyzed by ICP (inductively coupled plasma) and a gravimetric finish on over limits while zinc was analyzed by ICP and lead by fire assay.

Certain technical engineering data is also being collected from the core including RQD (Rock Quality Designation), recovery, photographs and specific gravity measurements. Specific gravities of mineralized core are ranging from 2.7 to 3.15 grams per cubic centimeter (tonnes per cubic meter). They have been measured on site and are being sent out for third party confirmation.

The foregoing geological disclosure has been reviewed and verified by Kootenay's CEO, James McDonald, P.Geo (a qualified person for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects). Mr. McDonald is a director of the Company.


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Promontorio Regional Exploration Discoveries

Regional exploration work over the last 12 months within the 90,000 hectare Promontorio property has identified 7 separate areas of good surface mineralization located 5 to 30 kilometers northerly and 10 kilometers northeasterly from the Promontorio Discovery Zone. Many areas remain to be prospected and it is probable additional areas of mineralization will be found.

The program includes reconnaissance and follow-up on areas with highly anomalous mineralization. The program to date has concentrated north of the Yaqui River on the Promontorio 4 concession. 116 man-days have been spent on the program with 1450 samples collected, 835 from which results have been received.

Mineralization has been located throughout the whole of the area explored. Mineralization is dominated by copper, gold and silver, with associated lead, zinc, arsenic molybdenum, lanthanum, cobalt and bismuth. Alterations vary from argillic-sericitic-silica-pyritic to hematite-magnetite-tourmaline-biotite-epidote-actinolite-chlorite.

Exploration has identified numerous mineralized areas and follow-up has outlined 7 areas that constitute potential project areas. These are Rio Yaqui East, Rio Yaqui West, northwest Promontorio 4 (Champiñon), central Promontoio 4 (Nopalera), Tarayes, Tourmalina and Prom-5. Numerous other anomalous areas were located during the reconnaissance phase of exploration will require follow-up investigations.

Exploration is at an early stage and follow up work will determine if any of the areas have potential to host economically viable mineralization. This follow up work is current and ongoing.

Highlights of what is known of the various areas to date include:

Rio Yaqui East:

In the western part of the area (Vinateria), anomalous copper, gold and silver are related to east/west trending tourmaline-quartz-hematite veins found intermittently for a length of about 4 km. The veins range from centimetre to metre scale. The copper is all secondary, oxidized from pre-existing chalcopyrite.. From 15 samples collected, gold averages 0.762 gpt (to 3.4 gpt) and copper averages 3.1% (to 12%).

The eastern part of the Yaqui River east zone (Aquas Calientes) is underlain by limonitic-quartz stockworks associated with argillic alteration that has porphyry affiliations. Metal values are low in this zone, with gold to 0.261 gpt, silver to 31 gpt and moderate to weak anomalous copper, lead and zinc. Two samples gave 799 and 408 ppm molybdenum.

Rio Yaqui West:

In the western parts of the area, north-south zone veins, stockworks and shears can be traced for 900 metres. Sampling from prospecting grabs in this zone gave anomalous gold (8.0, 4.68 and 0.491 gpt) and silver (280, 152, 98, 91 and 70 gpt) from 17 prospector samples. The samples are anomalous in lead, arsenic and molybdenum.

Intense brecciation associated with strong propylite, argillic, sericitic and silica alteration was traced northwesterly for 1500 metres and ranges up to 400 metres width in the central part of the area. Prospecting samples peripheral to this zone gave values of up to 1.965 gpt gold and 465 gpt silver.

In the eastern sector of the area, an area measuring some 1000 x 500 metres is marked by the presence of quartz-limonitic stockworks returned values of 0.798 and 0.5 gpt gold. Shears with copper mineralization were noted in the preripheral part of the area.

Prom-5

In the northwest corner of the Promotorio 5 concession, to the immediate east of the Yaqui River, reconnaissance exploration has noted the presence of a number of veins with highly anomalous silver (average of 320 gpt from 9 samples taken) and anomalous gold. The veins appear east-west, hosted within and near the contact with granitic rocks.


Nopalera Area

The Nopalera area is a 4 x 4 km area in the central part of the Promontorio 4 concession. A variety of mineralized systems are recognized with anomalous values in gold, silver, copper, lead and arsenic associated with zinc, antimony, bismuth and molybdenum. Lanthanum is strongly anomalous in much of the Nopalera area. The Nopalera area is coincident with a magnetic anomaly adjacent an intrusive contact.

There are five zones with the Nopalera area with values upto 4.94 gpt gold and 494 gpt silver with three of the five areas returning an average of greater than 2.0% copper from prospecting grab samples. The rare earth mineral lanthanum is also very anomalous with values to 1081 ppm.


Champiñon Area

Mineralization in the Champiñon area underlies a northerly trending 6 x 2 km area. Mineralization includes highly anomalous gold, silver and copper and anomalous molybdenum, cobalt, lanthanum and bismuth. Out of 190 prospecting grab samples taken the average gold content is 0.532 gpt and silver is 44 gpt with copper averaging 1.6%. The high for gold is 12.0 gpt gold and 547 gpt for silver


The extent and number of mineralized areas is very encouraging and the next step is to conduct more work over the next several weeks to get a preliminary assessment of the size potential of each of the areas.

Tourmalina Area

In the east central part of the concession, two areas of anomalous copper and molybdenum were located associated with quartz veins and stockworks within the granitic rocks. The westernmost of these anomalies contains anomalous molybdenum (607 ppm) and cobalt (to 904 ppm). To the east, in the Copper Zone, a 150m x 150m area of poor exposure, strong secondary copper mineralization averaged 4% copper from prospecting grab samples values with values in gold to 0.267 gpt, silver to 52 gpt and cobalt (to 237 ppm)

Tarayes Area

The Tarayes area in the north end of the Promontorio 4 concession contains separate vein systems with anomalous gold and silver mineralization. The most western vein is located at an old adit where a northwest trending vein (0.5m) gave grab samples of 180, 8 and 4 grams per tonne of gold and 216, 265 and 26 grams per tonne of silver. A separate system was discovered 2.2 km to the southeast that gave 1.32 grams gold across 1.5 metres.

A summary of all the results from the different zones is as follows: Note that all samples are prospecting grab samples which are deliberately selective to determine areas containing anomalous values:


Geologic Detail of each of the zones is as follows:

Central Promontorio 4: (Nopalera Area)

The Nopalera area is a 4 x 4 km area in the central part of the Promontorio 4 concession. A variety of mineralized systems are recognized with anomalous values in gold, silver, copper, lead and arsenic associated with zinc, antimony, bismuth and molybdenum. Lanthanum is strongly anomalous in much of the Nopalera area. The Nopalera area is coincident with a magnetic anomaly adjacent an intrusive contact.

Alteration systems in Nopalera are crudely zoned. The peripheral parts are typified by argillic-sericitic alteration in association with tourmaline, hematite and magnetite. The central parts of the system are typified by intense tourmaline-quartz-feldspar (albite) alterations with associated hematite and magnetite. Albite is noted locally. Silicification is noted by veins and replacements of fine-grained quartz to opaline silica. The spectrum of alteration assemblages is reflected in a spectrum of mineralized systems. All mineralized systems appear to be genetically linked, marked by the presence of ubiquitous but variable tourmaline and the rare earth element lanthanum.
The most eastern mineralized anomaly is a 500 metres long west northwest trending argillic-sericitic-silica-tourmaline alteration zone to 150 m width. It varies from a silver-rich western part to a gold-rich eastern part. The gold zone comprises goethitic silica breccias with gold to 4.94 gpt associated with arsenic and bismuth. The silver sector comprises silver to 494 gpt (mean of 272 gpt for six samples), gold to 0.544 gpt with lead (mean of 8% for six samples) associated with jarosite. Lanthanum ranges to 832 ppm.

The northern part of the Nopalera zone two areas are defined. The North Zone porphyry is marked moderately anomalous gold (to 0.256 gpt) and silver (to 124 gpt) associated with strong argillic alteration with stockworks of goethite and jarosite limonites. Magnetite veins are noted. Very highly anomalous lanthanum was noted (to 1081 ppm). To the immediate south, in the North Zone Tourmaline, intense tourmaline alteration is associated with fine grained sericite, hematite, quartz, and albite and secondary copper. Values from12 samples averaged 2.7% copper. Zinc, arsenic and lanthanum are elevated and a high of 0.413 gpt gold noted.

The Central Tourmaline Zone on Nopalera is a zone of impressive breccias with altered granitic clasts cemented by tourmaline, quartz and locally copper. From nineteen samples taken, gold averaged 0.265 ppb with a high of 0.840 ppb and silver averaged 135 gpt with a high of 786 gpt. Copper, all of secondary, averaged 2.0%. Lead, zinc, arsenic, bismuth and lanthanum (to 1130 ppm) are all anomalous.

About 1 km south of the central zone, in the South Tourmaline Zone, abundant proximal float of tourmaline, quartz and hematite-magnetite was noted in an area of poor exposure. Of nine samples taken, 5 gave gold greater than 0.100 gpt with highs of 0.530, 1.75 and 3.92 gpt. Copper averaged 2.1% and lead to 6.8%, molybdenum to 1296 ppm, bismuth to 895 ppm, cobalt to 165 ppm and lanthanum to 748 ppm.

The present western limit of the Nopalera area is marked by a zone of strong argillic alteration with isolated quartz veins and stringers. The limonites goethite and jarosite were noted. Proximal float samples gave 0.343 and 0.249 ppb gold.

Northwest Promontorio 4 (Champiñon Area)

Mineralization in the Champiñon area underlies a northerly trending 6 x 2 km area. Mineralization includes highly anomalous gold, silver and copper and anomalous molybdenum, cobalt, lanthanum and bismuth. Alteration assemblages include quartz, tourmaline, hematite, magnetite, actinolite, chlorite and biotite, with local albite, sericite, potash feldspar and clays. Biotite alteration is distributed throughout the mineralized area. Argillic and sericitic alteration is noted in the northern parts of the area. Hematite occurs throughout as specularite, massive, earthy, films, replacements and jasper. Mushketovite (magnetite after specular hematite) and martite (hematite after magnetite) were noted. Mineralization occurs as veins, stockworks, massive, fractures and breccias. Presence of sulphides is evidenced by box-work to massive goethitic and jarositic limonites. Rare pyrite, chalcopyrite and chalcocite have been noted. Copper is mainly secondary.

Thirty-nine of 101 samples of gold gave values greater than 0.1 gpt, with a high of 12.0 gpt. Silver ranged to 547 gpt (22/101 samples >30 gpt). Copper values range greatly, with an average of 1.6% copper for all the samples collected. Molybdenum to 1395 ppm, cobalt to 313 ppm, bismuth to 483 ppm and lanthanum to 2465 ppm are associated with the precious metals and copper. Values of lead and zinc are low.

Alterations and mineralizations are related to a complex of easterly trending dykes cutting diorite and quartz diorite of probable Laramide age. The area is structurally bound within a horst block in fault contact with Tertiary rocks to the east and west. The anomalous zone is coincident with a northerly elongate magnetic high.


Rio Yaqui West:

In the western parts of the area, north-south zone veins, stockworks and shears can be traced for 900 metres. The mineralization is associated with hematite and argillic alteration. Sampling from this zone gave anomalous gold (8.0, 4.68 and 0.491 ppb) and silver (280, 152, 98, 91 and 70 gpt) from 17 prospector samples. The samples are anomalous in lead, arsenic and molybdenum.

In the central sector of the area, a zone of intense brecciation associated with strong propylite, argillic, sericitic and silica alteration was traced northwesterly for 1500 metres and ranges up to 400 metres width. Prospecting samples peripheral to this zone gave values of up to 1.965 gpt gold and 465 gpt silver.

In the eastern sector of the area, an area measuring some 1000 x 500 metres is marked by the presence of quartz-limonitic stockworks. In the central part of this area, samples gave values of 0.798 and 0.500 gpt gold. Shears with copper mineralization were noted in the preripheral part of the area.

Rio Yaqui East:

In the western part of the area (Vinateria), anomalous copper, gold and silver are related to east/west trending tourmaline-quartz-hematite veins found intermittently for a length of about 4 km. The veins range from centimetre to metre scale. These veins are proximal to and appear to be related to splays off a northerly trending Late Tertiary graben boundary faults. The veins are composed of quartz, tourmaline, magnetite, hematite and copper. The copper is all secondary, oxidized from pre-existing chalcopyrite.. From 15 samples collected, gold averages 0.762 gpt (to 3.4 gpt) and copper averages 3.1% (to 12%).

The eastern part of the Yaqui River east zone (Aquas Calientes) is underlain by limonitic-quartz stockworks associated with argillic alteration that has porphyry affiliations. Metal values are low in this zone, with gold to 0.261 gpt, silver to 31 gpt and moderate to weak anomalous copper, lead and zinc. Two samples gave 799 and 408 ppm molybdenum.


Tarayes Area

The Tarayes area is located near the northern boundary of the Promontorio 4 concession. Reconnaissance prospecting has located separate vein systems with anomalous gold and silver mineralization. The most western vein is located at an old adit where a northwest trending vein (0.5m) gave grab samples of 180, 8 and 4 grams per tonne of gold and 216, 265 and 26 grams per tonne of silver. A separate system was discovered 2.2 km to the southeast that gave 1.32 grams per tonne gold across 1.5 metres.

Tourmalina Area

In the east central part of the concession, two areas of anomalous copper and molybdenum were located associated with quartz veins and stockworks within the granitic rocks. A griessen zone occupies the most western of these anomalies. There, the greissen contains anomalous molybdenum (607 ppm) and cobalt (to 904 ppm). To the east, in the Copper Zone, a 150m x 150m area of poor exposure, strong copper mineralization was associated with quartz veins and stockworks in intensely sericite altered granitic rocks. Eight grab samples from this area averaged 4% copper, all of secondary origin. Gold to 0.267 gpt, silver to 52 gpt and cobalt (to 237 ppm) is associated with the copper mineralization.

Prom-5

In the northwest corner of the Promotorio 5 concession, to the immediate east of the Yaqui River, reconnaissance exploration has noted the presence of a number of veins with highly anomalous silver (average of 320 gpt from 9 samples taken) and anomalous gold. The veins appear east-west, hosted within and near the contact with granitic rocks.

Other Areas

About 60% of the Promotorio 4 concession has received a first pass reconnaissance. Within this area, a number of locations with anomalous precious and base metals have been recognized. The anomalies are defined from either one or two samples and from their geologic setting. The program intends to follow-up on these anomalies and will continue the regional reconnaissance program. At present, the reconnaissance program is focusing on the area south of the Yaqui River in the area that is host to the Promontorio Prospect.

Targeted Mineralized Areas as of Feb16, 2009

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