Lluvia de Oro / La Jojoba Project
The Lluvia de Oro / La Jojoba project area is located approximately 100 kilometres due south of Nogales Arizona, 16 kilometres northwest of Magdalena de Kino, Sonora, Mexico. The property is 100% owned by the Company. It totals 5,074.52 hectares in size and includes the Lluvia de Oro gold mine, the La Jojoba gold resource plus a fully commissioned recovery plant complete with a biosulphide process facility (SART circuit) for the treatment and recovery of copper within the solutions.

Property Highlights
  • Extensive property position (5,074.52 hectares),
  • Property wide: Measured and Indicated resources totaling 293,821 contained oz. Au
  • Fully commissioned recovery plant on site and
  • Numerous drill targets defined at both Lluvia de Oro and La Jojoba, scheduled to be tested in 2010.

Geology / Mineralization
The Lluvia de Oro gold-silver-copper mineralization is primarily contained within the upper plate of a detachment fault block of Early Cretaceous sedimentary rocks. The detachment block is approximately 3 km. long, 800 to 1,500 meters wide, and 220 to 234+ meters thick in the central portion. The detachment block lies in structural contact above metamorphosed Jurassic to Mid-Tertiary volcanic, sedimentary and intrusive rocks of the Magdalena Metamorphic Core Complex.

The northeast trending Lluvia Shear Zone is the principal mineralized structure consisting of a broad sub – vertical zone of sheared and structurally dissected rock units that can be traced in discontinuous outcrop for more than 1,700 meters along strike.

Two principal envelopes of bulk-tonnage mineralization have been recognized at Lluvia de Oro and due to their relative positions, the mineralized envelopes are termed the “Upper” and “Lower” zones respectively. In both mineralized envelopes, gold-silver-copper (Au-Ag-Cu) mineralization occurs as diffuse mineralization in rocks pervasively altered by weak to moderately intense hydrothermal alteration. Field evidence indicates that the mineralization is associated, at least in part, with disseminated, and fracture-controlled sulfides, or their oxidation products. Locally, the two mineralized envelopes merge so that the two zones cannot be distinguished. Taken as a whole, the mineralization is bulk-tonnage in nature, with a propensity for higher grade sections to be related to structural controls.

Similar gold mineralization occurs at La Jojoba where the Northeast Zone is associated with breccias, high-angle and low-angle structures which cut through the host rock lithologies in many different directions, and associated with disseminated sulfides in veins and the bulk-tonnage rock lithologies. Specular hematite and siderite veins, quartz-calcite veinlets and breccias (±copper oxides and silicates) are commonly associated with gold-bearing structures and with disseminated sulfides in oxide and sulfide environments.