Cerro Negro Gold Project

Mariana Sur

Epithermal quartz fissure veins occur within the southwestern portion of the Mariana Sur prospect area, developed over a presently recognized 200 m wide by 700 m long, northwest-trending structural corridor, about 3km east of the Eureka vein system (Figure 1). These en-echelon veins represent high-level, structurally controlled mineralization within the Eureka-Mariana volcanic-hosted, low sulfidation, epithermal system. The veins display massive, brecciated and locally banded structures, range up to two meters in thickness on the surface, and are hosted within andesitic volcanic breccias. Four holes were drilled in 2008 to test these veins, and the results, while low in gold values, contained several high silver values:

MRC-801: 6m of 144 g/t Ag from 182m
MRC-802: 1m of 328 g/t Ag from 47m and
1m of 376 g/t Ag from 112m
MRC-803: 1m of 175 g/t Ag from 80m and
2m of 472 g/t Ag from 203m
MRC-804: 1m of 2,082 g/t Ag from 122m

Based on these initial results, follow-up drilling is warranted.