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Regionally, the Shahuindo property is located in the flexure of a thrust and fold belt. Rocks from a Mesozoic sedimentary clastic sequence intruded by at least three generations of intrusive are found on the property. Mineralization is hosted more specifically in the Carhuaz, Santa and Chimu Formations, which consist respectively of siltstone, lutite and sandstone. Low temperature alteration clays and sulfates found in the oxide layer indicate that the oxidation of the deposit comes from weathering.

The Shahuindo property contains a large-scale epithermal gold and silver system which extends over an area of 8km by 4km and vertically to a depth of at least 400 metres. Gold and silver on the property occurs mostly in the clastic sedimentary sequence, usually associated to structural features (breccias, contact sediments-porphyry, limb or axial plane of antiform, etc). The current mineral resource estimate is defined over 3.8 km along the strike length of one fault system, called the “Central Corridor”.  The Central Corridor consists of several zones of hydrothermal alteration in which 4 resource-bearing zones have been derived. These include from East-South-East (ESE) to West-North-West (WNW) Moyan Alto Zone, East Zone, Central Zone and West Zone. To date, drilling indicates that the oxides are found overlying a thin transition layer, followed by sulfide-rich material (mostly pyrite, with minor sulfosalts).


Mineral Resource Summary, September 2012

Measured & Indicated Mineral Resources

Gold (Oz) Gold (g/t) Silver (Oz) Silver (g/t) Tonnes Gold Grade Eq. (g/t)
Measured Mineral Resources
 Oxide (Reported at 0.2 g/t cut-off) 766,000
0.59 10,530,000 8.1 40,500,000  0.62
 Mixed* (Reported at 0.35 g/t cut-off)  19,000 0.75  850,000   33.7  780,000  0.96
Indicated Mineral Resources            
 Oxide (Reported at 0.2 g/t cut-off) 1,624,000  0.48   21,080,000 6.3   104,840,000 0.51 
 Mixed* (Reported at 0.35 g/t cut-off) 29,000 0.77 910,000 23.8 1,190,000 0.92
Total 2,438,000 0.52 33,370,000 7.1 147,310,000 0.54 

Inferred Mineral Resources

Gold (Oz) Gold (g/t) Silver (Oz) Silver (g/t) Tonnes  Gold Grade Eq. (g/t)
Oxide (Reported at 0.2 g/t cut-off) 124,000 0.40 1,330,000 4.3 9,570,000 0.42
Mixed* (Reported at 0.35 g/t cut-off) - -
0.68 10,000 12.2 20,000 0.76 
Sulphide (Reported at 0.5 g/t cut-off) 1,504,000 0.76 45,220,000 22.9 61,410,000 1.20 
Total 1,628,000 0.71 46,560,000 20.4 71,000,000  1.20

The Mineral Resource calculations were completed by Mine Development Associates of Reno, Nevada under the direction of Paul Tietz C.P.G., an independent Qualified Person (“Q.P.”) pursuant to NI 43-101.

*The Mixed material is classified as a transition zone that contains both oxide and sulphide material.  The cut-off grade was increased for the Mixed material to reflect the lower metallurgical recoveries that have been observed in the metallurgical test results of the transitional material. Mixed ore will be processed as oxides.

Exploration Potential

In June 2010, 3rd party consultant, Dr. Robert Hodder, completed a report focusing on the petrographic reconnaissance of selected samples, which helped to put the Shahuindo mineral deposit in a structural framework. Dr. Hodder's research suggests excellent potential for significant additional mineral discoveries. Click on the link below to view the report.

"The Shahuindo Epithermal Gold Occurence; Petrographic Reconnaissance & Interpretation of Shape and Size"