Tchintaby Well Project

(E52/1882 and ELA52/1959) - 80% Encounter, 20% Avoca

A review of the historical drilling and geophysical data has resulted in the identification a number of significant base metals targets at Tchintaby. Drilling in the mid 1990s by CRA Exploration intersected an extensive area of low grade Zn-Cu-Ag mineralisation extending laterally over an area 8km by 5km. A total of 29 holes were drilled by CRA tracing the mineralised horizon to a maximum depth of 200m below surface with the shoot remaining open to the south. Typical holes within the mineralised area returned intersections of 10-15m thickness, grading 0.5-1% Zn, 500-1000ppm Cu and 5-15g/t Ag. The target at Tchintaby is high grade SEDEX zinc mineralisation downdip to the south east of the existing low grade halo defined by CRA.

During December 2007, 3D gravity modelling of the area to the immediate south of the past drilling was completed. Terrain corrections applied to the data have eliminated a number of peripheral features and further enhanced a series of significant mass anomalies. In total, six areas of excess mass have been defined in the Bouguer Gravity image adjacent to the regionally extensive Flint Hill Lineament (see Figure 1). The Flint Hill Lineament is a regional extensive structure that can be traced over 100kms and is interpreted to mirror the location of a long lived basement structure. Some 50km east of this lineament lies the sub-parallel Tangadee Lineament which is associated with the Abra base metal deposit.

It appears the low grade Zn-Cu-Ag mineralisation drilled by CRA at the Andes Prospect is associated with a cluster of gravity features in the north of the project.

Significantly, the holes drilled by CRA do not appear to have tested the highest amplitude gravity features (see figure 2).

Figure 1: Bouguer Gravity Anomalies

Figure 1

Figure 2: Bouguer Gravity Anomalies & Historical Drilling

Figure 2