||EL DOMO DEPOSIT
The El Domo deposit covers an area of 250 hectares and is located in the center of the Las Naves concession of 1,460 hectares and is part of one whole body which includes the anomalies Roble 1, Roble, Cade 1 and Cade Sur.
The deposit El Domo is a newly discovered massive - sulphide body; geologically rich in Au, Cu and Zn with 50-100% sulphides. The mineralized body now has a North - South strike length of 850m and an East - West width of between 300-500m, with an average thickness of 10m. The body is sub-horizontal beginning at 50m below surface.
Dr. Warren Pratt was the first to document and describe the Kuroko-type VMS environment and has established a lithostratigraphy for the Las Naves/El Domo area. Dr. Jim Franklin identified a marker unit in the immediate hanging wall of the massive sulphide mineralization and defined the zoned nature of the mineralized system.
Roscoe Postle Associates Inc. of Toronto, Canada (RPA), independent resource estimation consultant for Salazar, has prepared and authorized the release of the Mineral Resource Estimate. The El Domo Mineral Resource Estimate is based on an NSR cutoff value of US$50 per tonne.
The Indicated mineral resource is 5.53 million tonnes at an average grade of 2.4% Cu, 2.5% Zn, 0.3% Pb, 2.8 g/t Au, and 48.4 g/t Ag, containing 292.6 million pounds Cu, 304.8 million pounds Zn, 36.5 million pounds Pb, 498.0 thousand ounces Au, and 8.6 million ounces Ag.
In the Inferred Mineral Resources category there are an additional 1.46 million tonnes at an average grade of 1.9 % Cu, 2.8% Zn, 0.3 % Pb, 2.4 g/t Au, and 52.2 g/t Ag, containing 61.2 million pounds Cu, 90.1 million pounds Zn, 9.6 million pounds Pb, 112.6 thousand ounces Au and 2.45 million ounces Ag.
Table 1: El Domo Mineral Resource Estimate (October 2011)
1. CIM definitions were followed for mineral resources
2. The Mineral Resource Estimate is based on the interpretation of massive and semi-massive sulphide, a NSR cut-off of US$50 per tonne, and a minimum true thickness of 2.0 meters
3. Metal prices used are US$3.50/lb Cu, US$1.15/lb Zn, US$1.15/lb Pb, US$1,400/oz Au, and US$26.00/oz Ag
4. Metallurgical recovery factors assumed were 87% Cu, 88% Zn, 65% Pb, 60% Au and 55% Ag
5. Common industry smelter terms were assumed
6. Bulk density was estimated based on specific gravity determinations for each rock type
November 7, 2011
Table 2: El Domo Significant Drill Holes to Date
Technical Report on the Curipamba Project,
1. Intercepts reported are intersection lengths
2. All drill results above have been previously released
Preliminary Metallurgy Tests:
The gold and silver deportment study was completed by Surface Science Western (SSW) on July 18, 2011. The results shows that 61.3% of the
gold was visible (free) gold while 38.7% was sub-microscopic gold (see Figure 1).
On April 21, 2011 a metallurgical study of El Domo mineralization was completed by G & T Metallurgical Services Ltd:
A preliminary batch testing was carried out with a representative composite sample using conventional flotation processes obtaining a concentrate grade of 22%.
The results of the Rougher Flotation method indicated recoveries of 92% Cu and 57% Zn
The results of the Cleaner Flotation method indicated recoveries of 72% Cu and 57% Zn
Legal and Environmental Milestones:
November 16, 2007: Authorization of the Environmental Impact Study (EIA) for the exploration phase, by the Ministry of Mines and Petroleum
February 10, 2009: Authorization of EIA for the exploration and publication of the Official Registry for exploration phase, by the Ministry of Environment
January 14, 2010: Permits granted for the use of water for the exploration phase, authorized by the National Secretary of Water
Between March and May 2010: Replacement of the mining titles according to the new mining law, and we were granted 25 years of concessions
June 3, 2010: Authorization to reinitiate mining advanced exploration activities, authorized by the Ministry of nonrenewable natural resources (former Ministry of Mines and
May 2011: Granted the Environmental licenses for the Project