Mineralization

Gold and silver mineralization at the Shahuindo Gold Project consists of several zones of hydrothermal alteration in which 5 resource-bearing zones have been derived. These include from East-South-East (ESE) to West-North-West (WNW) Moyan Alto, East, South Contact, Porphyry and San José Zone.  These zones comprise the Main Mineralized Corridor (MMC).

Two other mineralization corridors, generally parallel to the MMC, are also found on the property. The South Mineralized Corridor is located 1.5 kilometers South-South-West (SSW) of the MMC and encompasses areas of high-grade veins located on top of the Algamarca Anticline.  The North Mineralized Corridor is located 2.5 km North-North-East (NNE) on the MMC, and hosts the Mina Shahuindo (Minas Azules) old gold mine operated intermittently by Minera Algamarca in the 1980’s.

For more information on the geology of the Shahuindo deposit, click HERE to view the "Geological Forum" presentation from November 17th, 2009.

Mineral Resources

In Q4 of 2009, AMEC delivered a Mineral Resource estimate for the Shahuindo Gold Project based on reverse-circulation and core drilling completed since 1994 (See table below).

The complete Mineral Resource estimate can be found in Section 17 of the “NI 43-101 Technical Report on Preliminary Assessment”

The Shahuindo Gold Project contains Indicated Mineral Resources totaling 51.8 million tonnes grading 0.63 grams per tonne gold with 17.9 grams per tonne silver and Inferred Mineral Resources totaling 18.0 million tonnes grading 0.51 grams per tonne gold and 6.1 grams per tonne silver.   

Mineral Resources have an effective date of 30 November, 2009 and were estimated under the supervision of AMEC Senior Geologist Christopher Wright P.Geo. (APGO 0901).  Mineral resources are within an economic life of mine pit and above an economic cut off grade of 0.17 g/t Au for oxide and 0.57 g/t Au for transition and sulphide resources. Block model constructed on whole block grades using 0.20 g/t Au gradeshell.

Upside Potential

In June 2010, 3rd party consultant, Dr. Robert Hodder, completed a report focusing on the petrographic reconnaissance of selected samples, and helps 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"