LAS CARACHAS, MINING DISTRICT

Geographically, Las Carachas Mining District is located in the Northwest extreme of San Juan Province, over the western of Cordón de la Brea, in a zone denominated Cordón de La Brea in Iglesia Department, at an average altitud over sea level of 3800 m. Coordinates are 28°35’ y 69°34’. It is approximately at 390 km of San Juan City. The study area comprehends the Center-North part of Cordón de la Brea which limits at west with the course of Macho Muerto River and at East with Blanco River.

The access to the area can be made by route from San Juan for two alternative roads; for both a four-wheel drive is needed.

LEGAL CONDITION - MINING CANON

The complex is comprised by 7 mines in 20 mining properties that total 120 Hectares.  All Mining Canons are paid.

ORE GRADE AND RESERVES

The reserves of several of the mines that are in this project located in Las Carachas District are 12000 ton, which are indicated and y 54000 that are inferid with ore grades of 12 and 10 % of Leader (Pb) and 520 g/t of Silver (Ag). Data that can be appreciated on the results of the labs carried out in the above mentioned mining properties. In other of the mining properties of the project there have been identified 100.400 ton as total reserves, with ore grades of 12,3 % of Leader; 7,6 % of cinc (Zn) and 570 g/ t of Silver (Ag).