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02/05/13 2:12 PM

#661 RE: BKMUC #660

$TAON has operations in El Comillo Mine, see map




The El Comillo Mine concession is located in eastern Antioquia department, Colombia, north of capital Bogotá and has 296 hectares. El Comillo is the focus of Tao’s exploration efforts. It is a vein-hosted gold deposit located in a river basin that contains La Tinta Gorge in the sub river basin of the La Blanquita gorge, a tributary of the Nechí River in the municipality of Cáceres.

The bedrock consists of metamorphic rocks of sericite and graphitic aluminous schists. Alteration includes sericitization and chloritization, as well as silicification in the form of quartz. The dominant regional structures are the North Otú and North Bagre faults, with general directions N°1-14°W. Locally two faults which trend north-south and dip 60ºE have been observed. These two faults are concordant with the existing mineralization and it is suggest that they are part of the North Bagre fault system.

At least three veins have been identified in the El Colmillo mineralized zone. These include the El Colmillo vein, La Muela vein and the Lama vein (a third subparallel vein). The first two show their moderate continuity by the presence of old mine workings, some of which have collapsed. In the Lama vein the continuity is recognized by old workings for about 5 m.

The El Colmillo vein has a strike direction that varies from N/75ºE to N30º-N40ºE and it has a thickness of between 0.20m and 3.2m. It is recognized along its course by small tunnels of former workings for a distance of about 300m. Those faults associated with the mineralized veins are regional in extent, suggesting that there is considerable potential for the mineralization to extend along those faults for an additional 1.2 km within the concession area and an additional 1 km outside of the concession.

The mineralization in El Colmillo is vein-hosted and the veins are composed of milky white quartz, with interleaves and interfingerings of schistose host rock. There are only minor amounts of sulfides in the examined levels. Galena is also found locally. This mineralization is cut by faults. Locally there are zones of Fe oxides, carbonate and chlorite alteration. The wallrock contains disseminated sulfides (pyrite) and veinlets of short length and millimetre thickness. The thickness of this disseminated zone is unknown although it is assumed that is not greater than 0.2m into the wallrock on either side of the vein.

The La Muela vein is located about 600m west of the El Colmillo vein and it has a direction NS/80E to N10°E/80° with a thickness that varies between 0.1m and 0.5m, widening to 1.2m. It is composed of milky quartz with interfingerings of host rock with Fe oxide and gouge in the fractures.

The Lama vein has been identified for a distance of about 5m, with a direction N20°E. The vein, composed of quartz, has a thicknesses between 0.1 and 0.4m. Historically production ore grades (head grades) have varied between 10 and 50 g/t gold, with zones of enrichment of up to 250 g/t gold.