Toro Blanco
| The Toro Blanco project hosts high-sulphidation, epithermal-style gold mineralization and is the Company's top exploration priority. The project is located in the Huancavelica Department of southwest Peru. In 2010, a 19 line-km IP-Resistivity geophysical survey defined an anomalous 2-km by 1.5-km zone at Toro Blanco that returned low to moderate IP values consistent with hydrothermally altered rock containing disseminated, potentially gold-bearing, sulfides. This large IP anomaly is partially coincident with a 2-km by 0.25-km zone of intense alteration associated with permissive hydrothermal breccias, dense quartz stockwork, and anomalous gold, with rock samples yielding up to 0.976 grams of gold per tonne. In 2011, permitting was completed for a planned 8 to 10 hole drill program at Toro Blanco, designed to test a large, high-sulfidation, epithermal gold system with coincident geochemical and geophysical anomalies and intense alteration. Drilling is scheduled for early-2012. Recent alteration analysis of 165 rock samples demonstrates that the clay mineral assemblages present are consistent with the Company's target model, exhibiting a mix of advanced and intermediate argillic alteration coincident with gold and pathfinder element anomalies. These attributes, along with Tertiary-aged volcanics and related coeval intrusions, are comparable to those observed at Peru's most productive epithermal gold camps such as Yanacocha and Pierina. Also in 2011, a Corporate Social Responsibility (CSR) agreement was finalized with local representatives. As part of the CSR, local workers have been hired to assist with road construction along a 26-kilometer route to the Toro Blanco project area. Rae-Wallace acquired a 100-percent interest in the Toro Blanco project on terms described in the Company's press release dated July 8, 2010. | |
