The 100% owned Tassa silver-gold prospect, located southeast of Arequipa in southern Peru, was acquired in 2007 by staking of mineral rights. Tassa is located approximately 160 kilometers northwest and 230 kilometers south of the Company's Santa Ana and Corani projects respectively.
Phase II drilling commenced in late October 2011 with an estimated 5,000 meters to be drilled in approximately 10 drill holes. Phase I drilling conducted in 2010 encountered numerous mineralized intercepts including 60 meters averaging 224.2 g/t silver from 24 to 84 meters depth and 40 meters averaging 110.7 g/t silver from 2 to 42 meters depth as well as scattered anomalous gold intercepts with up to 1.24 g/t gold over 2 meters. Phase I drilling tested a 1.5 km by 800 meter anomaly where 852 rock chip samples averaged 30.71 g/t silver. Silver (and gold) mineralization was intersected within multiple phases of breccias which are part of a diatreme breccia complex, strongly fractured rhyolitic volcanics, and brecciated sediments. See the Company's news release dated December 6, 2010.
Furthermore, phase II drilling is focused on new target areas defined within a 4 kilometer by 1 kilometer area where two-meter wide surface sampling has identified anomalous outcrops containing up to 2.51 g/t gold in silicified outcrops and 5.36 g/t gold in structures (assay values range from <5ppb to 5.36 g/t gold) and up to 203 g/t silver in strongly fractured rhyolite, and 8,160 g/t silver in selected structures (assay values range from <0.2 g/t to 8,160 g/t silver). The anomalies occur within the hydrothermal breccia complex and the Mesozoic sedimentary contact zone and overlie strong IP anomalies indicating sulfide mineralization at depths between 100 and 400 meters. See the Company's news release dated October 11, 2011.
Phase II drilling is testing for gold mineralization hosted within underlying favorable breccias and sediments. Seven holes have been drilled to date with anomalous gold intercepts in three of the holes of up to 52 meters containing 0.5 g/t gold. Surface mapping at Tassa continues to identify additional breccias to the north suggesting the continuation of the hydrothermal breccia complex below the Mesozoic sediments further expanding the target area. Stratigraphic studies suggest that the favorable sediments were not reached in phase I drilling; therefore, phase II drilling is testing deeper in the system (in excess of 500 meters depth in some drill holes) where favorable Mesozoic sedimentary formations which host the Canahuire/Chucapaca mineralization are believed to exist in contact with the breccia complexes.
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