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geoly31

02/27/07 1:10 PM

#4217 RE: TraderRich #4216

translated SUMMARY

In the denominated mining district High of Lipangue, located to the northwest of the Metropolitan Region of Santiago, in the limit with the Fifth Region, we can find a metallic complex mineralized with copper, gold, silver and molybdenum, in addition to subordinated amounts of lead and zinc in its periphery.

After studying the geologic-mining antecedents available and the development historical-mining of the area, that in the last thirty years has shown to the effort of exploratión and mining development on the part of Don Juan Jose Quijano Fernandez, mainly, and together with the existence of tens of constituted mining properties, it can say that these deposits, you disperse in an area that includes/understands the Stops of Lipangue and its environs, with about 140 km2, corresponds at least to the location on preexisting intrusivas and metasomáticas rocks of a pair of porfíricos bodies; one with mineralización type porphyry of gold-it receives of low sulfidización and another one with mineralización of the type pórfido of molybdenum-receives, which asi, ban caused the main mineralización of all the Mining District Lipangue.

HAPPENED And PRESENT

It is possible to emphasize that within the voluminous existing geologic informatión on this region, product of the intense exploration, emphasizes the report N° 0025 of Limited Howe Chile (A.C.A. Howe International Limited-South American Office) signed by Mr. Robert Cinits, P. Geo., of the 2 of August of 1999.

The associated volumes of mineralizatión to these mineralizadores events already reach to hundreds of million tons of Resources considering the first 1,500 m.s of depth. Although to the date already varies thousands of meters of drillings have been perforated, no of these has still reached, the thousand meters of depth.

The complex mechanics of mineralización of the sector, associated to the location of these porfiricos bodies, has produced gold deposits (with silver and it receives), of molybdenum-gold and of molybdenum-it receives in form of: Porphyries, Stockworks, Brecha-pipes, Mantles, Mantles Skarn type, in addition to zones of fault and mineralized veins.

They are added to these types of mineralización, the auriferous pleasures located as much as above peripheral to these Porphyries. It seems probable that good part but all the gold of these auriferos pleasures, derives from the destruction by stripping of all the types of deposits that contained it in primary form. The mining exploration and prospections carried out during centuries, next to exploracíón artisan miner and semi-industrialist of these deposits from Colonial times, allow to visualize the persistent complex and of exploración mentioned.

As it were already said, the thirty years of exploration are remarkable last, which, in addition to the followed basic geologic exploration of geophysical in some sectors, have impelled the road construction and improvement of the accesses (to see photos), besides to run thousands of metres of caverns, ditches and trenches of sampling. In individual, the diligent sampling of thousand of metres of witnesses of drillings in the last years has been and is united to the study of mica andpetrográficathe composition qu í of these rocks.

Since the traditional emphasis of the samplings has been to know the absolute concentratión of the mena or menas that look for (law) is lost often the opportunity to know valuable ógicos andmetalogénicos antecedents petrol the same ones. Only in the last years the vital importance of the ógicos studies has been included/understoodpetrol relatives to the origin of rocks cut by the drillings, tunnels and ditches, that without a doubt will allow to focus better ubicación of the mineralized bodies that begin to be. The Petrográfico Study of the 6 of November of year 2,000 (to see references) in spite of restricting itself to 25 samples, is a formidable support in this respect and must continue executing studies of this type in massive and systematic form.

A fact that in first instance seems amazing for the geologic-mining knowledge that existed until several decades ago with respect to the sector, are the verified today existence of high laws of gold, molybdenum, silver and receives below the first 60 to 120 meters of depth in all the area. In effect: in general the laws measured in the surface grow of 5 to 20 times from the indicated depths.

Another fact that contributed to the little understanding of the type of existing mineralización in the area rue the fact that it appeared metallic mineralización in deposits classified in very different form, without seeing them like the product of a single and complex mineralizador event of Porfidico character that, as it evolved, was nailing mineralización in the sector according to diverse mechanisms of location.

THE FUTURE

The exploration that follows the present knowledge of the area, without doubt will have to lean in effective models which they include topographical datas and metalogénicos concepts that allow to order them and to understand them in exact form comopor example:

a) Intrusiones sequential on a stratified rock system preexisting. These layers partial or are totally digested by these intrusive ones, producing, in some cases, metasomatismo and simultaneous mineralización, either, mineralizaci orinjectedn even scattered of some of such plutones (Porrfidos with scatteredmineralizacior n).



b) Part of the metalica mineralizatión that arrives at stratified rocks preexisting, is deposited in form of skarn and/or layer type, following banks or layers of "permeable" rocks that were diferencialmente apt for the passage of the mineralizadores fluids.

c) The excess of gases (water steam, HiS, boron and others) to high temperature, that as excessive of the cooling of plutones escaped of such through diatremas and/or zones of shear, also conformed zones of
weakness in which one located part of the mineralización of gold, silver and molybdenum of the area in form of veins and pseudoconcordant irregular handbags elongados with the rest of stratification. The petrográficos studies
of 25 polished rock cuts they show for example: associations that include quartz, secondary quartz, orthoclase, pyrite, chalcopyrite, bornita, magnetite, esfeno-rutilo, apatite and zircon in some samples, whereas in others they are observed: plagioclasa (oligoclasa secondary), labradorita, clinopiroxeno (diópsido secondary), quartz, magnetite, epidota, chalcopyrite, esfeno, bornita and apatite. Clearly reflected Mineralización that the type and intensity of the hidrotermal phenomenon that successively affected the area.

d) For the same preceding reasons, but in the case of a violent flight of these sobresarurados and sobrewarmed up fluids, we found hidrotermales breaches like breach-pipes, that in a first ánalisis which they served for the escape as such, which, when decompressing itself, deposited an important metalica mineralización in them and adjacent rocks (boxes) in where emphasizes the well-known Lipangue Breach clearly, today partially drilled (to see imagenes following). The mineralización, in many cases, nonsingle is in the matrix of the breaches, but that, sometimes, also in some of its clastos (like for example, the mine Reed). This last one, originated in some cases by metasomatismo of such clastos and in others mineralizaci was clearly preexisting product ofone ón scattered to the breach-pipe.

The gangue of the breaches-pipes aqui is formed by diverse amounts of; clorita, sericita, varieties of silica, something of pirofilita, clays, anhydrite (plaster near surface) and sometimes alunita. All it assembled by a heavy and crystalline quartz crystal matrix that contains sometimes in addition to chalcopyrite-calcosina; until a 15% of pyrite with plans of blende and galena. The chalcopyrite often is replaces by calcosina (to see witness of drilling with sulfides in), which raises the copper laws from the first hundreds of metres of depth. The galena, on the other hand, contains something of silver and gold.

e) Mainly peripheral to the bodies already described are innumerable veins, vetillas and microfractures mineralized with gold, receive and lead sometimes and lead and silver. In addition, crossing all the mineralized complex of the Mining District the Stops of Lipangue, are important gold veins and silver with something of copper in surface with evident rest of artisan operations that they even date from Hispanic and Colonial times, as "Fortune" is the case of the famous gold vein. (to see following images).


f) In the case of the strongly altered rocks hidrotermalmente that are surrounding to the plateau of the Stops of Lipangue, they can be observed clearly in the studied satelite images; that P exists a type of associated hidrotermal alteration to the rest of intrusivas rocks (orrfidos) and that another type different from hidrotermal alteration affects as well to the rest of rocks the estratiflcadas ones near the intrusive ones (skarns).

In the case of skarns, the estratiflcadas rocks nan undergone a intense metasomatismo with contribution among others, of metallic mineralización of interest and abundant orthoclase. Mantles form thus, clearly as also sectors of skarn strongly altered by the flood presence of epidota, clorita and of sericita. This completes mainly derived from the decomposition of the potassium feldspar.

The zones of skarn with copper, gold and silver, peripheral to the detected Porfídicos bodies, appear locating itself on the preexisting estratiflcadas rocks (Formation the Prado and others) and immediately near the ceiling of the intrusive ones that conform the Complex of Intrusive of the Stops of Lipangue.

These skarns have been observed in land and in addition specifically confirmed their existence by varies expert Geologists to this type of deposit, after visiting outcrops and some deep caverns in excavated them. They are thus remarkable, for example;

- skarn of the the Two sector of Marias, formed on a monoclinal of andesiticas rocks and tufas welded that mantea smoothly 20° to the east until putting itself in contact with Porphyries of the Intrusive Complex of the Stops of Lipangue, that arise more to the East. Famous of old by his high gold laws and it receives, it has many developed mining workings in different layers (have recognized with copper and gold, at least seven by on the level of the gorge in where the main mine entrance is located. Today it presents/displays already some recent drillings that show the deepening of the mentioned metallic mineralización and the existence of new mantles. One of these last mantle mentioned presents/displays zones with massive pyrites of considerable volumes, that have not cut by but workings nor soundings still.

- skarn located in the sector the northwest of the plateau of Lipangue to the north of the gold vein Fortune and that arises in slopes of the Southeastern of the Rinconada de Chicauma, near the way that promotes to the vein "Fortune" and Plateau of Lipangue. It is located in almost vertical an andesite sector near the Intrusive Complex of the Stops of Lipangue that arises to the south. Is recognized by a cavern of about 150 recently metres in addition to other workings. Copper and gold are observed (to see photos).

g) Mainly to the south of the Plateau of Lipangue have been some strongly limonitizadas bodies of breach-pipe in their matrix with laws of copper, molybdenum, gold and silver, in the surface samplings. In the used images of satellite they have been here, around a ten of places with diverse intrusivas rocks partial or intensely altered hidrotermalmente aligned in agreement the generic course: NE-SW. These alignments of elongadas rock strips appear like a about seven strip of kilómetres of length by about nine hundred meters wide that contains different intrusivas rocks, as also already known and mentioned breaches you mineralize with copper and molybdenum. The previous thing includes for example the old mines: The Reed (Cu-Mo), the Cobriza (Cu) and Andacollo (Cu), (to see piano Annexed 1 and 1), located in such sectors mentioned by Zamorano (1979), in its report for CODELCO on the geoquímicos samplings and mining and prospectivos works that alii made (to see Annexed). In the works made in the zone of Concordia and Fénix, the mentioned author stated the ample superficial mineralización of chalcopyrite and molibdenita who is developed from the Nose Sand towards the South west, that is to say, within the same bad zoneanor detected satelitely and associated clearly to the existence of a complex porfidicas rock body of kilometric dimensions developed in the middle of an atmosphere of many intrusiones.

In the case of the sector of the mine the Reed (or Reed ) an intense hidrotermal alteratión in his is observed entorao that can correspond with the superior of P orrfidopart of copper and molybdenum that emerges partially flanked by a fault N 32 and/85 SW that put it in contact by the north with a granodioríticas rock strip. Equal thing occurs towards the northeast following the strip at issue. In effect and the subscribed one has been specially pleasing to have access to a valuable study of the geologist Mr. And Tidy Finch (of that I was proud student) relative to the macrocospic study and microscopic of three originating intrusivas rock samples of the old workings of the mine Reed (6 the Reed) that was provided him by the geologist Mr.. Francisco Ortiz after a visit to the area. They emphasize among others the following thing:

- In the denominated quartz-diorite sample "Cavern", for example, says that this presents/displays a clear magmatic bandeamiento "primary characteristic of the rock determined by a intrusión mechanism".

- In the denominated sample "Reed", a granitoide with intense metasomatismo of potassium feldspar (pink orthoclase) that practicamente almost flock the characteristics of the original rock, ademas of the contribution from 5 to 7% of pennita, a clorita product of the digestion of the original ferromagnesianos. Little sericita was seen, y the súlfuros molibdenita, chalcopyrite and pyrite appears a delayed phase in the middle of abundant orthoclase-albita-epidota-clorita.

- the intensity of the alteration changed the external aspect of the original rock that has experienced hidrotermales metasomáticos replacements with an evident injection of copper and molybdenum (to see annexed).

Thus then, it is clear that necesana becomes an exploration of detail of these outcrops throughout the mentioned strip that includes geofisica immediately (induced polarization and magnetometria) followed of an intense campaign of drillings (on twenty thousand meters in each sector).

The strip contains in addition, faults of equal course that are alternated with intrusivas rocks and breaches that show sterile clastos next to others with scattered mineralización which they seem to come from an underlying Porphyry, with scattered mineralización of copper and molybdenum with important values of gold and some grams of silver by ton.

The descriptions of the types of mineralización before mentioned are indicating that a forceful exploration of this District needs geologic mapeo detailing of surface, together with geologic mapeos in depth, of the abundant already existing mining works (tunnels, resentments and drillings). A Geologic Map of this type just will allow to understand better the location of the mining resources that are appearing in depth, like also in the surface. Servira of base also to a geophysical one, like the made one by Geodatos in the Lipangue Breach in October of 1998.

Respect to this last one, is possible to say that the effect of the silicificación of the superior parts of the breaches is clearly in her, in where the súlfuros began to appear just from the 100 metres of depth in the drillings that have been made. Boxworks of clorita-limonita-sericita in the middle of heavy and semiporous quartz grains with rest of gold with increasing laws as they are reached the 50-60 metres of depth, is the result of the leaching of the parts superior of the exposed breaches to meteoric waters. Little súlfuros, even near the surface, survive encapsulations in the middle of quartz crystals. The zones with súlfuros increase the electrical conductivity in depth, explaining, partly, the zones of high conductivity in the geophysical profiles already conducted.

i) the gold and the molybdenum show laws elevated in the places in which they are ban found. The existence of abundant sericita, potassium feldspar, epidota, clorita, chalcopyrite, molibdenita, magnetite, quartz, in addition to blende, auriferous galena and pyrite, appear in an associated context to granodioritas and intrusive monzonitas of quartz crossing and stratified rocks preexisting.

The mentioned associations allow to aflrmar that we are indeed before a mineralización of type "PORFIDO OF ORO-COBRE" that includes the Lipangue Breach in the plateau of the Stops of Lipangue and a mineralización of type "PORFIDO OF MOLIBDENO-COBRE" in flanks located immediately to the south of the mentioned plateau, including from the sector of the old mines: The Cobriza, Carrizo and Andacollo until the denominated Hill White Stones (1659 m.s.n.m.) inclusively (about seven kilometros altogether), reason why all the new efforts of Exploration and Operation of this zone would have to be adapted to these circumstances.



REFERENCES

- Cinits, Robert. 1999. REPORT N° 0025. It stops: Limited Howe Chile (A.C.A. Howe International Limited-South American Office). Dated the 2 of August of 1999, (*)

- GEODATOS, 1998. Geofisico study by means of Induced Polarization. Projects "Lipangue the Two Breccia" and "Marias", Lampa Sector; Metropolitan Region, Santiago, Chile. With 12 pag. and 41 fig. Para Medinah Energy Chile S.A..

- Tidy Finch, Enrique, 2005. Petrografico study of samples "Cavern", "Reed" and "Resentment". Mr. Francisco Ortiz. 6 pag. and 6 fotografias. National corporation of Cobre. CODELCO.

- Vancouver Petrographies Ltd., 2.000. Petrographic report on 25 polished thin sections. Lipangue and the Two Marias Gold-Copper Properties, Metropolitan Region, Chile. For: Medinah Mining, Inc. Nov. 6, 2.000.(°)

- Vancouver Petrographies Ltd., 2.001. Petrographic report on 17 polished thin sections. For Report: Them Price, Medinah Mining, Inc. Feb. 16, 2.001.

- Zamorano Or, Rogelio, 1979. Pre-report on the mines of the Mining Compania "Donates Shelter of Lipangue". CODELCO, inedito, 9 pag., 4 pianos. Dated the 10 of September of 1979, Santiago, Chile.



CONCLUSIONS
1. - In this sector of study they have been located: a deposit that can be classified like of type PORFIDO OF COBRE-ORO (in the zone of the plain of the Stops of Lipangue) and, in addition, a PORFIDO OF MOLIBDENO-COBRE in the contiguous area immediately located to the south of the previous one.

2. - The types of mineralización found altogether include; scattered porphyries, stockwork, zones of shear, breach-pipe, mantles, skarn, mineralized faults, veins and laundries of gold.

3. - The efforts of exploration already made, have crystallized in the formation of mining legal societies that have valuable antecedents of Resources and Reserves. Some of these Reserves already in detail have been appraised and today they compromise in the Metal Bags of the United States (U.S.A.).

4. - The volume of identified Mineral Resources to the date, already reaches to varies hundreds of million tons, mainly assigned to added porphyries and skarn altogether.

5. - Present the estrategica and tactical exploration of the owners, aims to continue raising reserves from the Mining Resources already identified.

6. - The methods of exploration to use to raise Reserves contemplate:

to - Mapeo detailedgicoGeol or
b. - Geophysical Methods of exploraciorn
c. - Campaigns of drillings.

7. - All the aforesaid sample clearly that we are as opposed to an old and famous Mining District here that today presents/displays a potential of Resources, with which can without a doubt be classified like of World-wide Class.




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