TARGET AREAS

A structural interpretation was undertaken at up to 1:25,000 scale for a Landsat ETM+ extract centered on the  Fortuna Concessions with the aim of defining the structural framework of the district and the generation of exploration targets.

42 target areas have been identified in the Fortuna Concessions on the basis of the interpretation and Landsat alteration processing.

The exploration target criteria include the presence of major faults, major fault intersections, converging and branching faults, releasing bends, splays along major faults, domal / circular and linear resistant features and alteration anomalies.

Fortuna 1 and 3 appear particularly prospective as they contain clusters of domal / circular features within a zone of NNE –SSW trending major faults which is parallel to the principal mineralized trend in the district.

A number of small domal / circular features are located a long, or close to NNE – SSW trending major faults or on their intersections with NW / WNW trending faults

suggesting that theses tructures may have had an important control on the emplacement of small intrusions within theFortuna Concessions.

Culebrillas y El Buitre (CEB) – massive copper gold porphyry system fully exposed without overburden, typical vertical epithermal mineralization common to the Andes, which is 6km long, 1km wide and 1.4km exposed above the surface of the caldera (and it does not simply end at the surface of the caldera).

Significant anomalies: background is 2 ppb; anomalies are 20 ppb to 400 ppb (the EL Mozo discovery located just outside (10km) from the South East of the Andi 4 concession was made on anomalies of 100 ppb).

Hydrothermal breccia outcrop on S. part and breccia on N. wall of Callebrittas typical of porphyry structure.

Isolated veins examined by Makrominas SA, prior holder of the concessions contained 44 g/t gold & 9.7 g/t silver.

Stream sediment sample taken from the middle of Fortuna 6 contained 1.898 g/t gold.

Silver values around Laguna Tulipas of 2.6 g/ton.

Copper values on Callabrittas porphyry structure of Fortuna 3 of 45 to 175 g/ton.

Molybdenum values around Laguna Tulipas of 13 to 107 g/ton.

Fine gold found in eight pan concentrate samples in streams in S-SW corner of Fortuna 3 concession.