EXPLORATION POTENTIAL

Drilling carried out on the Cerro del Gallo deposit to date has defined in most dimensions the limits of the central gold-rich zone.  The broader Cerro del Gallo system, particularly the silver-copper enriched zones that generally lie peripheral to the gold zone, remain open in several directions laterally, as well as down-dip.   Significant opportunities exist to enhance the economics of the deposit by further expanding these zones.

It has been known, since work by Kings Minerals commenced on the San Anton property in 2004, that the Cerro del Gallo 'footprint' is relatively small in comparison to the large alteration halo that surrounds it.  It has been surmised, and a principal Corporate objective is to test, the theory that the mineralized felsic intrusive that forms the core of the Cerro del Gallo deposit represents an apothesis to a much larger intrusive system underlying the broader area.  In this context, the exploration of the broader clay alteration halo (pyrophyllite, alunite, dickite) encompassing Cerro del Gallo, and in particular several strong coincident magnetic and IP anomalies nearby, are priorities.

On the wider San Anton property, more than twenty exploration targets besides Cerro del Gallo have been identified, representing potential porphyry/intrusion-related gold and epithermal vein-breccia deposit types.  These targets include the following: