Quila Project

Oxide Gold & Iron Oxide Copper Gold (I.O.C.G.) potential
22,428 Hectares - 100%

Location: The Quila Prospect is located in the central part of the State of Jalisco, Mexico, in the municipality of Ameca, at an elevation of between 1500 and 2000 masl. It is accessed from Guadalajara by a 45 km-long paved highway up to the town of Ameca, and from there either south on good gravel roads to the town of Quila or on paved highway to San Martin de Hidalgo and then west on gravel roads into the hills, all drivable year-round.

History:Numerous old prospects of copper bearing veins are distributed across the property including short underground adits. At some point in the last 30 years a small mill was operating in the central part of the claim, but further information on that project is lacking at this point. Other prospects of gold and barite are located in the south-east portion of the property.

Geology: The area of the Quila Project is located on the northern boundary of the Jalisco Block (a crustal micro plate), where it is partially covered by the younger Trans Mexican Volcanic Belt. The main rock outcropping at higher elevations is an ash to lithic tuff, locally covered by younger basalts which have been intruded by various intrusive rocks such as the granodiorite in the SE corner of the property and a sanadine crystal syenite in the central area. Andesites outcrop in some of the lower river valleys.

Mineralization at the centre of the Quila Project is oxidized copper (bornite and malachite) with gold hosted in epithermal veins occurring along NW trending structures, with the strongest grouping of these veins being spatially related to a strong magnetic high as indicated in Mexican government airborne magnetic studies. At least one of these veins is associated with a fine grained felsic intrusive likely occurring as a dike. A zone of argillic alteration with associated strong stockwork fracturing is also located over the strong magnetic high near the town of Quila. Further mineralization is associated with another zone of argillic alteration located in the SE portion of the property. The SE argillic alteration zone is at least 3 x 5km in size and has barite veins outcropping in its eastern side. Gold prospects are reported on the western side of the SE anomaly. In 2007, mapping and reconnaissance surface sampling were completed throughout the property and several areas were targeted for more detailed follow-up. One drill hole in 2007, tested a prominent chargeability anomaly in the northern portion of the Quila claim, was completed. Drilling intersected several intervals of moderate to strong argillic alteration and pyritic sulphides.

During 2008, 1,020 metres of core drilling in 5 holes at the Altavista prospect. An additional 2 holes were drilled at Texcalame. In the Altavista zone surface sampling returned 3.8 metres of 7.12 gpt gold. The Altavista prospect is underlain by widespread hematite-specularite breccias with variable quartz-chlorite alteration and associated gold and copper mineralization that can be traced in outcrop, float and soil sampling for over 350 metre strike length. In 2008, a total 1,020 metres of core drilling in five holes was completed in the Altavista de Ramos area. Drilling targeted widespread copper-gold-bearing hematite-specularite breccias and quartz-sulphide veins and returned thick intervals of highly anomalous gold and copper in 3 holes ranging from 27.1 metres averaging 0.1g/t Au and 0.15% Cu in drill hole QAL08-05, 10.15 metres averaging 0.02g/t Au and 0.28% Cu in drill hole QAL08-03 and 5.8 meters averaging 0.51 g/t Au and 0.25 % Cu related to a ferriferous structure in drill hole 08QAL-1.

In 2008, drilling in the Texacalame zone intersected a strong fracture zone over 90 metres in length containing traces of chalcopyrite, bornite and native copper. The styles and distribution of alteration and mineralization and particularly the association of copper and gold mineralization with Fe-oxides such as hematite, specularite and magnetite indicate the potential for a large scale iron oxide copper gold target.

The Texcalame prospect is a gravel covered northwest-trending structural zone, up to 200 metres wide, which can be traced in grab and soil samples for over 1 kilometre of strike-length. In 2008 two drill holes were completed for a total of 418.4 metres. Drilling intersected a strong fracture zone over 90 metres in length containing traces of chalcopyrite, bornite and native copper throughout and returned 1 to 7.8 metre thick intervals of strongly anomalous copper ranging from 0.1% to 0.6%. The styles and distribution of alteration and mineralization throughout the entire Quila and Magistral concessions, and particularly the association of copper and gold mineralization with Fe-oxides such as hematite, specularite and magnetite indicate a large scale IOCG-styled target.