Ayabaca, Piura, Peru.

The property consists of low-sulfidation gold veins, which according to geological signs, permeable horizons were mineralized. It´s located 43km SE of Piura city. Accessible by road. On the area outcrops underwater volcanic rocks locally alternated with limestone. These volcanic are related to Casma Group, they are altered and gold bearing mineralized. Structurally, volcanic rocks and limestones, structurally dip NE and they are cut by faults and veins striking NS and EW. Grades averaging 1-3 Au g/t were found in this place.

Gold mineralization is associated with highly altered (argillic and silicic) vein/structural zones. Quartz veins, breccia units and centimeter scale silica stockwork hosted with volcanic units and intrusive units throughout the property and in the region in general.

The dominant vein/structural zone trends NW-SE over a mapped distance of 1,500 meters and three sub-parallel vein sets that can reach up to 800 meters have also been mapped. The second main system trends NE-SW and two veins demonstrate up to 700 m strike length with two smaller veins up to 200 meters in length. A third system (E-W) has been defined based on 3 veins up to 300 meters in length and four additional veins up to 200 meters in length. Vein systems and breccia units can range from less than 1 meter to in excess of 4 meters (Zone 1). Small scale workings on the property and nearby are reported to extend to up to 80 m depth along these structures.

Previous workers have mapped 5 separate zones on the property. Zone One can be traced for approximately 400m south-southeast on surface, and has at least three adits/shafts that host small-scale mining.

Previous exploration work done in Zone One indicates that, at the primary outcropping the mineralized breccia unit reaches a width of up to 4.5m, with individual continuous chip samples returning 25.6 g/T Au over 1.10m, 30.6 g/T Au over 1.5m, and 12.3 g/T Au over 1.6m, and 6.19 g/T Au over 2.6m from the hanging wall fractured volcanic unit.

The southern extension of Zone One appears to connect with Zone Four were previous work indicates gold mineralization is present at surface. Zones Two and Three are located 500 meters southeast of the previous mentions targets and again demonstrate both high grade gold vein and disseminated gold targets.