CHARAY PROPERTY
1.0 SUMMARY
The Charay property (pronounced “cha-rye”), also known as "La Mina El Padre", is located at the
north end of the State of Sinaloa, Mexico, approximately 36 km northeast of the city of Los Mochis. The 380
hectare property consists of two production concessions totalling 104 hectares, surrounded by one
exploration concession totalling 276 ha, all of which are held by a Mr Luis Palafox of Hermosillo, Mexico.
Journey Resources Corp. (Journey), through its subsidiary Minerales Jazz S.A. de C.V. (Jazz), has an option
to earn a 100% interest in the Charay property.
Geologically, Charay is classified as a low sulphidation, epithermal, gold-silver quartz vein with low
base metal content. The pertinent points regarding this property are as follows:
a. High-grade, near-vertical, epithermal gold/silver vein system within an andesitic volcanic complex (El
Padre vein): oxidized, hematitic, low-sulphide, banded quartz-vein and silicified breccia with a
prominent silica cap (typical low-sulphidation epithermal features),
b. Vein width in the order of 1.0 to 2.0m; length in excess of 400m, extending to 50m depths, and open
in all directions,
c. Existence of several mineralized and/or silicified structures indicated by workings and geology,
d. Potential for buried bonanza mineralization (indicated by drilling) as well as additional mineralization
on strike,
e. Little or no comprehensive historical exploration. Surprisingly under-explored given the high gold
grades. No workings reach deeper than 35m, no drill intercepts below ~50m depths,
f. A 27-hole drill program in 2005 intersected a 250 m long mineralized section within 50m of surface
on the El Padre vein, at a weighted average of 18.75 gm/T Au and 120.2 gm/T Ag over a true width
of 1.14m, recalculated in 2010 at 20.3 gm/T Au and 123.7 gm/T Ag across 1.29m,
g. Location in an area with established mining logistics (eg, access to local mills, mining expertise,
railway, powerline, and tidewater port),
It is recommended to initiate feasibility studies on this property in 2010/11, with the goal of ultimately
bringing it to production. Feasibility studies will entail a substantial amount of drilling, in conjunction with
metallurgical testing, followed by detailed mine planning if warranted. The currently-defined “bonanza”
portion of the El Padre vein will be the prime focus of close-spaced drilling for the initial phases of
exploration. In the first tranche, fourteen (14) core holes are expected to be drilled on a 50m by 50m grid,
to a depth of 100m, in conjunction with preliminary bulk sampling (for metallurgy), at a projected cost of C$
500,000.00. Following this, a second tranche of drilling is proposed for the higher priority targets defined
in the first tranche. It too can be completed at a cost of C$ 500,000.00. This first phase preliminary program
will initiate a longer-term exploration program directed at i) detailed in-fill drilling of the El Padre vein
system, ii) exploration for the extensions to the El Padre vein, and for other mineralized veins, and iii)
feasibility studies and mine planning. In conjunction with this first phase of exploration, Journey intends to
initiate a pilot-mining program involving 35,000 tonnes of readily-available surface material. A budget for
this work will be announced under separate cover when it becomes available.
Respectfully Submitted,
Phil van Angeren P.Geol
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