Exploration

PALMAREJO

The Palmarejo District is located in the state of Chihuahua in northern Mexico, approximately 15 kilometers (9.4 miles north of the community of Temoris and approximately 240 kilometers (150 miles) southwest of the city of Chihuahua.
 
The Palmarejo District consists of approximately 12,115 hectares (29,936 acres) covered by mining concessions, of which about 11,817 hectares are owned outright by the Company, with an additional 226 hectares (558 acres) held by means of leases and options to purchase.  The district is located on the western flank of the Sierra Madre Occidental, a mountain range that comprises the central spine of northern Mexico, composed of a relatively flat-lying sequence of Tertiary volcanic rocks, steeply-incised and bisected by numerous perennial and ephemeral water courses. The topography is rugged with only sporadically-spaced roads and trails.
 
The Palmarejo District contains a number of mineralized zones or areas of interest. The most important of these to date is the Palmarejo zone in the far north of the concessions which covers the old Palmarejo gold-silver mine based on the northwest-southeast trending , SW-dipping, La Prieta and La Blanca gold-silver bearing structures. In addition other mineralized vein and alteration systems have been identified on other strongly mineralized corridors, roughly sub-parallel to the Palmarejo zone. The most significant of these additional targets are the Guadalupe (including Animas) and La Patria vein systems in the southern part of the property.

In 2008 we plan to invest nearly $8,0 million in exploration in the district to find new silver and gold mineral and define new mineral reserves.

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