Exploration

Opportunity

The Company has significant silver projects and resources:

  • Caracara controls the Princesa silver-lead-zinc Project, south of the Macusani area hosting a NI 43-101 inferred resources totalling 4.6 M tonnes grading 90.88 g/t Ag, 1.66% Pb and 1.69% Zn or silver content equivalent of 28 million ounces.

  • The areas have wide open exploration potential to increase resources characterized by poorly explored high grade Ag-Pb-Zn showings.

  • Possible ripping at start.

  • Low work index means low crushing costs.

  • Best holes include +600 g/t silver.

  • The area has wide open exploration potential to increase resources characterized by poorly explored high grade AG-PB-Zn showings.

The key objectives of Caracara over the next 12 months are as follows:

  • Complete the first phase exploration program on the Princesa Project estimated to total $556,000. This work will include relogging of old drill core and completion of an geological and induced polarization survey across the property.

  • A second phase program totalling $1,163,000 will include 5,000 metres of drilling and will be designed to expand the inferred resources at Princesa and to test known sub-surface silver targets on surface which are proximal to the main Princesa structure.

  • Additional work will include a reconnaissance exploration program on the surrounding properties which total 24,600 hectares. This work will include geophysics, mapping, sampling and trenching of mineralized showings to better define them prior to drilling.

The Princesa-Pilunani-Potoni Grouping

Caracara through its two Peruvian subsidiaries, Solex Del Peru and Alpaca Exploraciones, hold 34 mining concessions covering more than 24,600 hectares divided in 3 claim blocks known as the Princesa, Pilunani and Potoni Grouping. The Princesa Grouping is the flag ship property of Caracara being also the most advanced one of all properties. Princesa hosts an inferred Mineral Resources totaling 4.6 million tonnes at 90.88 g/t Ag, 1.66% Pb and 1.69% Zn or 28 million ounces silver equivalent. More than 20 polymetallic showings have been discovered on the other Caracara's claims and only 2, Pilunani and Nilda, have been crudely drill tested. The area is currently receiving more attention from several other mining companies including Glencore who acquired the Cecilia mine and BHP who just staked more than 600,000 hectares in the Puno department.

Princesa-Pilunani Metallogenical Belt

So far, a minimum of 20 base metal occurrences have been discovered within the limits of the Caracara claims. Of note is that only 2 of these 20 showings, Princesa and Pilunani, have been drilled during the past years.

Metallogenically, these polymetallic deposits occurred within a 40 km-long belt which represent a swarm magmatic-hydrothermal vein/stockwork/replacement system associated with major diatreme adjacent to the the Picotani volcanic centre and controlled by regional contractional structures. Hydrothermal activity took place at ca. 23 Ma, contemporaneously with that at the world-class San Rafael tin mine and Palca 11 W vein systems. The Pb-Zn+/-Ag deposits are therefore members of an exceptionally fertile polymetallic province and thus merit intensive exploration and development. Future exploration work to be carried out on our claims would include detailed mapping at all known prospects, with the specific aim of delimiting the three major features which controlled ore formation: 1) the diatreme; 2) the "pebble breccias"; and 3) the late faults. A major goal should be to clarify the three-dimensional forms of the mineralized breccias, and a rigorous textural classification of the breccias should be developed and employed. The concept that these are intrusive and crosscutting and could exhibit inherently steeply-inclined "bedding" should be borne in mind when interpreting all geological data.