Liscay
| The Liscay project in southwest Peru is the Company's second exploration priority for 2011. Liscay is a large property (11,800 hectares) that contains several veins indicative of low-sulphidation, epithermal-style, gold-silver mineralization. Prior work at Liscay includes reconnaissance-level geological and alteration mapping, soil-sampling surveys (190 samples), and an orientation-scale geophysical survey (13.5 line-kilometers of IP-Resistivity). About 6-percent of 2,484 property-wide rock samples contained economically significant precious-metal concentrations (greater than 50 g/t silver or 0.5 g/t gold). A shallow orientation drilling program (1,500 meters in 12 holes) focused primarily on the Liscay North claims, returning intercepts as wide as 4.67 meters, true-width (67.3 g/t silver, 0.416 g/t gold) and as high-grade as 192 g/t silver and 2.33 g/t gold (0.17 meters true-width). All ten Liscay North drill holes have precious metal intercepts corresponding to the down-dip extension of known mineralized zones on surface (to a depth of up to 60 meters). The Company plans to map and sample (rock and soil) at Liscay early next year to finalize drill targets. This reconnaissance-level exploration has demonstrated that there is a wide-spread distribution of quartz veins and silicified zones at Liscay, identifying more than 9 kilometers of vein strike length in at least five separate systems. Alteration assemblages (silicification-sericitization), elemental associations (Pb, Hg, Sb, Bi, Cu, Mo), and the geological context (Tertiary-age volcanic host rocks) support the epithermal target model at Liscay Rae-Wallace acquired a 100-percent interest in the Liscay project on terms described in the Company's press release dated July 8, 2010. | |
