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Exploration Properties :: San Anton >> Next Steps
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Discussing Rock Chip Samples & RC Drilling, Cerro del Gallo

NEXT STEPS

San Anton intends to drive the Cerro del Gallo deposit through the development pipeline as quickly as possible.  This is a step-by-step process that requires as a foundation high quality geological, metallurgical, environmental and other data.  These complex data sets then become the inputs to powerful modeling techniques that allow for the visualization and more complete understanding of the deposit, and the evaluation of the most appropriate mine development scenarios.

From the outset, a great deal of care and attention to detail has gone into the work carried out at Cerro del Gallo, particularly the logging and assaying of drill samples and core, to ensure that no backtracking will be necessary as the project moves forward. 

 
 
Metallurgy and Engineering
 

The Company has engaged lead engineering companies – Ausenco Ltd. (ASX:AAX) and Golder Associates Pty. Ltd. of Brisbane, Australia – to assist with the current study being undertaken on its Cerro del Gallo deposit. The study is on schedule for completion by the third quarter 2008. All metallurgical test work for input into the study has been completed, and results are being compiled. Multiple flow sheets will be evaluated and based on the economic evaluation the most beneficial flow sheet will be carried forward into future studies. These flow sheets are based on producing a saleable copper concentrate and the production of gold-silver doré on-site.

Metallurgical testing to date has focused on the investigation of comminution, rougher flotation and cyanide leaching flow sheet options and testing was carried out by SGS Lakefield Oretest Pty. Ltd. (“SGS”) in Perth Australia.

 
 
Expansion Drilling at Cerro del Gallo
 

The Cerro del Gallo deposit remains open in several directions. Expansion drilling results continued to encounter wide intersections of minerlaization which resulted in an expansion of the already significnat mineral resource, primarily in the outer copper-silver domain. The Company is also planning an extensive exploration program to determine if other deposits exist within the 10km² alteration halo that surrounds Cerro del Gallo. Three other large zones of clay alteration similar to Cerro del Gallo have yet to be tested.

 
 
Regional Exploration
 
Work has also commenced on some of the more than 20 other exploration targets elsewhere on the San Anton Property. The main target is the Carmen-Providencia vein system, a north-northwest trending low sulphidation epithermal silver-gold system located approximately two kilometers west of Cerro del Gallo and traceable on surface for three kilometers. Sporadic, small scale local mining has occurred for centuries along the length of the vein system.

First pass drilling designed to test the upper levels of the epithermal vein systems is now completed with encouraging results from the Dolores and Empalizada prospects including 4.6m grading 428g/t Ag and 3.52g/t Au, 1.5m grading 590g/t Ag and 3.40g/t Au, 7.6m grading 168g/t Ag and 1.51g/t Au, and 3.6m grading 359g/t Ag and 1.51g/t Au.

Drilling has also been completed at Espiritu Santo and San Luis Rey, which are further south on the same Carmen-Providencia vein system, as well as at Ave de Gracia vein, between Carmen Providencia and Cerro del Gallo.

A systematic program of both conventional and handheld XRF soil sampling has been completed over a 12.5 square kilometre area of the central and northern part of the Esperanza Inlier centred around the Cerro del Gallo deposit. This was undertaken on 100 x 50m centred spacing whilst parts of the remainder of the Inlier were sampled on 400 x 50m centred spacing. A broad spaced regional stream sediment sampling program has also been completed over the entire Inlier. A regional BLEG (Bulk Leach Extractable Gold) sampling program has also been completed.

It is known that three other large zones of clay alteration similar to Cerro del Gallo exist on the property and have yet to be tested. Ongoing regional reconnaissance exploration will continue with the assessment of the results from the soil, stream sediment and BLEG sampling programmes, combining this with the ongoing geological and structural mapping and the extensive remote sensing database already established for the project area. Drilling has been temporarily suspended allowing time to prioritize exploration targets and accelerate the Cerro del Gallo studies.