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Mineral Resources

Famatina

As part of the CRA/RTZ work program of 1994-96, RTZ Consultores completed a resource estimate for the La Mejicana ridge area using the following criteria:

Block model study using kriging
High gold grades (>50 g/t) cut to 15 g/t
Specific Gravity of 2.5 g/cm³
Statistically derived high (>0.4 g/t) and low (<0.4 g/t) grade Au zones
Trend of 340˚ assigned to high grade zones
25 x 15 x 12 m block size
74 x 74 x 25 m search "ellipsoid" for gold
Total of 47 drill holes (a combination of diamond and reverse circulation) used as database

The table that follows shows the results obtained by RTZ.

Cut-off	Tonnes Ore Au	Grade Gold	Cont. Au	Tonnes Ore Cu	Grade Copper	Tonnes Ore Ag	Grade Silver
g/t Au	Mt	g/t	Moz	Mt	%	Mt	g/t
0.0	260	0.5	4.3	182	0.13	195	1.03
0.5	89	0.9	2.6	66	0.18	55	1.31
1.0	23	1.5	1.1	18	0.27	12	1.65
1.5	8	2.1	0.6	6	0.39	4	2.02

In their Independent Technical Report of April 2005, Hatch Ltd. reviewed the RTZ Consultores estimates and concluded that they could be classified as Inferred Resource according to NI43-101 guidelines.

An oxide resource was also estimated by RTZ Consultores using a 25 x 15 x 6 m block size, as follows (also considered to be Inferred by Hatch):

Cut-off	Tonnes Ore Au	Grade Gold	Cont. Au
g/t Au	Mt	g/t	Moz
0.0	9.0	0.47	0.14
0.5	1.82	1.27	0.07
1.0	0.87	1.93	0.05
1.5	0.51	2.39	0.04

Forward Looking Statement