Upon receipt of preliminary geophysical sections generated in the field, a small trench-sampling

program was completed across a geophysical anomaly corresponding to the “structural corridor”

in the vicinity of the A4 Vein in Zona Central. Twenty-two 3-m-long bulk samples weighing

about 30 kg each were collected from 3 trenches testing a 100-m strike length of the lowresistivity

geophysical response. The trenches were aligned perpendicular to the long axis of one

distinct low-resistivity anomaly and returned 50 to 1130 ppb gold across an alteration zone up to

45 meters wide, including economically significant assays of 553 ppb gold across 9 meters (3

samples). The zone tested by trenching is 100 meters long, and further work is required to

evaluate the much longer strike length indicated by geophysical responses.

Distinct alteration consisting of mm- to cm-wide stockwork calcite veinlets with associated clay,

chalcedony and quartz micro-veinlets was encountered in the trenches. Due to alteration, rock

from the trenches is friable and most of the trench material naturally crumbles to less than 2 cm

upon sampling. The samples were quartered through a Gilsen splitter to obtain a ±8 kg

representative sub sample for laboratory analysis. Samples were analyzed for gold by ALS Labs

in Lima using both atomic absorption and cyanide leach techniques.

Geochemically anomalous gold (50 to 1130 ppb, average 249 ppb) was detected in all samples of

the alteration zone corresponding to the geophysical anomaly. Assays of potential economic

significance (> 200 ppb gold) were obtained from all three trenches, including 9 meters of 553

ppb gold and 6 meters of 360 ppb gold in the longest trench, which spans 45 meters of alteration.

In addition, laboratory tests indicate that 78% of the gold can be extracted by cyanide leach.

The grades and initial recovery results suggest that with further work to expand the Tesoro

disseminated zone, it might be feasible to establish a heap-leach extraction operation to

complement production from the high grade veins.