The Rumiñahui Property

Salazar Resources owns 100% of 9 concessions at Rumiñahui project that covers a total area of 32,676 hectares of prospective Au-Cu-Ag. The Rumiñahui property is located about 100 kilometres northwest of Quito. The Rumiñahui prospect is considered to be a possible Epithermal gold quartz type system.

Introduction

The Rumiñahui Property was originally explored by informal placer gold miners. While traversing along the San Francisco River the informal miners discovered a large shear zone with narrow quartz veins with high gold grades and accessory copper and silver. On the west side of the river the miners discovered an area with two converging quartz veins with high grade gold (maximum 18 g/t gold). The informal miners excavated two short exploration adits from which they mined a very limited amount of gold ore. Also there is very little waste rock as the miners tried to limit their work to only the quartz veins and not the barren wall rock. The only mining concession in the present property is the Moncayo claim previously owned by Joye Cuenca, Monica Molina and Ulvio Moncayo. None of the rest of the Rumiñahui Property was previously claim staked. A previous rock sampling program was conducted by Fredy Salazar, and an employee of Newmont (1997) who also mapped the large quartz-sulphide shear zone.

n general this property has under gone very preliminary exploration work that consisted only of limited mapping (on going) and sampling of one old gold prospect (San Francisco Anomaly)and a new quartz sulphide vein (Sune Anomaly), which is about one kilometer south, with interesting gold, copper and silver values.

San Francisco Anomaly

The details of the exploration work done by Newmont (1997) are found in the introduction and apply to this prospect. The main conclusion is that the area was cut by major shear zone with auriferous, multiple quartz-pyrite-chalcopyrite veins. Newmont geologist took channel samples across a 50m wide zone that assayed 3.08 g/t Au. This is a high priority area for follow-up work.

An original twelve samples were taken by B. Rosero (Curimining) from the San Francisco gold prospect previously worked by informal miners. The results indicate that the concentrates of the massive quartz veins contained substantial concentrations of gold. Samples are from mined ore and bagged concentrate samples respectively. The remainder of the samples came from various quartz veins in the vicinity of the main quartz veins being exploited.

Samples confirm that the large quartz shear/sulphide zone contains parts with high grade gold and copper (8.01 g/t, 1.79 % copper). A composite sample of white quartz veins with minor or no sulphides contain low concentrations of gold (1.09 g/t). In addition a composite sample, taken from inside an adit across the San Francisco River, contained 14.50 g/t with low silver and a 0.38% copper. The examination of chromium, nickel, and magnesium results suggests that the host rock has a strong mafic to ultramafic affinity not previously reported. A much more detailed mapping and rock chip sampling program would have to be conducted to determine the geology of the host rocks and the sources of the mineralizing fluids.

San Francisco Gold Anomaly (cont'd)

The Curimining geologists collected 109 rock chip channel and composite samples principally along the outcrops that are exposed along the San Francisco River and the Quebrada and other small tributaries. The total area prospected is about 100m X 100m in an area explored by earlier prospectors who did not leave any written record of their work. The assay results have identified three single channel gold anomalies in the bedrock.

The main anomaly (55m of 2.76 g/t Au) is found along the central part of the area on the east side of the river and includes an area under cut by Tunnel 2 (excavated by previous prospectors). In this area Newmont in 1997 collected a channel sample over 50m that assayed 3.8 g/t gold.
A smaller anomaly (8m assaying 3.04 g/t Au, 0.11% Cu) is found on the west side of the river in an area under cut by Tunnel 1 (previous prospectors).
About 50m to the northeast, also on the east bank of the river, is a gold anomaly 10m wide grading 1.33 g/t Au.

The distribution of the higher concentrations of gold suggests that the gold mineralization follows a general northeast-southwest direction. The precise controls on the mineralization such as structure and rock type will require much more exploration work such as mapping, trenching and drilling.

The work program for 2007 includes: Cutting grids, stream sediment sampling, rock geochemistry, geological mapping and geophysics (IP).

Sune Anomaly

The Sune Prospect is a massive brecciated quartz vein with pyrite and chalcopyrite within a granite-tonalite stock. Little information is available at the present time. Check samples were taken from a massive quartz vein 1-2m wide and over 100m long with sulphides. These samples were taken about 100m apart. The results confirm the low grade gold and moderate copper mineralization. It is also very anomalous in bismuth and arsenic. Soil sampling and IP geophysics will be used to localize drill targets in this area