To date three drill holes have intersected significant new porphyry-related mineralization. We have intervals starting from near surface and is considered highly prospective.

* Lengths represent down hole core lengths.

Geological Data

La Lenguita Target (500m x 500m) area is defined by rock influenced by strong supergene alteration, phaneritic to aphanitic, dark green to black. The rock exhibits strong silicification with irregular patches of chlorite-magnetite mineralization; millimeter scaled quartz veins with sericite halo; magnetite veins and pyite-molybdenite-covellite veins also present. In some areas there is up to 10% fine grained pyrite. Certain locales have traces of chalcopyrite and malachite. The Manzanillo porphyry is dominated by a strong intermediate argillic overprint, which affects significant portions of the early diorite and rhyodacitic tuffs. The remainder of the intrusive is characterized by chlorite-overprint; hydrothermal biotite is subordinate. Historical accounts in the Manzanillo porphyry target report elevated gold mineralization occurrences.

La Lenguita La Lenguita is situated 500m northeast of La Cumbre and is an exploration drill target area. La Lenguita's geomorphology is characterized by a landform feature trending greater than 300 metres (long axis) and comprised of pervasive silicification and potassic alteration. There were three drill holes drilled from the same platform at La Lenguita located approximately 850 meters south of the Dos Quebradas porphyry and approximately 500 metres east of Manzanillo's new discovery. All holes intercepted gold and copper mineralization with significant intervals intercepted from near surface as in drill hole QAP-DDH-14 which grades 0.70 g/t Au and 0.08% Cu over 43.0m from 14.0m below surface and drill hole QAP-DDH-07 which grades 0.30 g/t Au and 0.07% Cu over 100.7m from 8.4m below surface. These shallow gold and copper intercepts are currently unbracketted. Porphyry-related mineralization was discovered in all the exploratory drill holes indicating porphyry mineralization may be expanded west approximately 500 metres to the new discovery at Manzanillo and north approximately 850 metres to the Dos Quebradas porphyry. This is significant as it demonstrates further evidence that porphyry-related mineralization may be linked between exploration target areas and the La Cumbre and Dos Quebradas porphyry centres.

Manzanillo Manzanillo is an exploration high priority target area. This area is located east of La Lenguita-San Luis and is approximately 600m x 600m in surface area defined by Batero's ground geophysics, geochemical sampling and recent field mapping. Manzanillo is associated with a Miocene intrusive center. This intrusive center is composed by dikes and stocks emplaced in intermediate to felsic volcanic rocks of the Miocene Combia Formation and in Cretaceous basalts. There were three drill holes drilled from the same platform at the Manzanillo target area located approximately 350 meters NNE of the La Cumbre porphyry and approximately 500 meters west of the La Lenguita target area. All drill holes intercepted gold and copper mineralization. Of significance, QAP-DDH-034 intersected from 9.7m below surface the highest grade interval at the project thus far from a zone of newly identified epithermal mineralization returning grades averaging: •3.73 g/t Au and 0.02% Cu over 23.3m including 11.42 g/t Au over 5.8 metres The epithermal mineralization discovered at Manzanillo in drill hole 34 potentially extends the Amarilla Structural Corridor's higher grade epithermal gold mineralization trend 600 metres to the NNW to Manzanillo from recognized epithermal gold mineralization recovered from approximately 600 metres of historic tunnels located in the central zone of the Amarilla Structural Corridor (see Figure 1 and Gold Mines Acquisition news release dated May 10, 2011). These significant, shallow gold intercepts are currently unbracketted, and will be delineated in the Phase 3 drill program. Additionally, porphyry mineralization was also intersected at Manzanillo in holes 26 and 38 lending evidence that the gold and copper mineralization may be expanded south to the La Cumbre porphyry and NNE to the La Lenguita new porphyry discovery. This is significant as it demonstrates further potential that La Cumbre porphyry may extend its boundaries significantly.

At La Lenguita porphyry-related mineralization was discovered in all the exploratory drill holes indicating porphyry mineralization may be expanded west approximately 500 metres to the new discovery at Manzanillo and north approximately 850 metres to the Dos Quebradas porphyry. Significantly, a new discovery in exploration drill hole QAP-DDH-027 intersected high grade epithermal mineralization returning grades: 0.92 g/t gold and 0.08% copper over 19.85 metres including; 9.16 g/t gold and 0.18% copper over 1.55 metres.

This is significant as it demonstrates further evidence that porphyry-related mineralization may be linked between exploration target areas and the La Cumbre and Dos Quebradas porphyry centres.

Click to Enlarge *Lengths represent down hole core lengths.

Click to enlarge

To view Strip Logs click here

Manzanillo target is located approximately 350 NNE of the La Cumbre porphyry and approximately 500 metres west of the La Lenguita target area. Four drill holes have intercepted gold and copper mineralization. Of significance, QAP-DDH-034 intersected from 9.7m below surface the highest grade interval at the project thus far from a zone of newly identified epithermal mineralization returning grades averaging 3.73 g/t Au and 0.02% Cu over 23.3m including; 11.42 g/t Au over 5.8 metres.

Additionally, porphyry mineralization was also intersected in all holes at Manzanillo lending evidence that the gold and copper mineralization may be expanded south to the La Cumbre porphyry and NNE to the La Lenguita new porphyry discovery. This is significant as it demonstrates further potential that La Cumbre porphyry may extend its boundaries significantly.

Click to Enlarge *Lengths represent down hole core lengths.

Click to enlarge

To view Strip Logs click here