Intrusion Related Gold Deposit
The San Ricardo property consists of eight claims, two of which known as San Ricardo and San Ricardo 2 covering 50 hectares, are the subject of an option agreement entered into in March 2009 and six of which, known as Teocuitla, Teocuitla 2, Teocuitla 4, Angel, Tlaloc and Aztlan covering 37,236.8884 hectares, were 100% staked by the Company in 2009 and 2010.
San Ricardo is located in a Mexican geologic province that is well known for hosting many gold occurrences and mines of a wide variety of genetic types. The largest of which is the Newmont-Penoles joint venture, the La Herradura mine. Other gold deposits in Sonora include Mulatos, El Chanate and the San Francisco mine.
The Company, through its subsidiary Teocuitla, has a buy-out agreement in place with the property owner and has staked an additional 37,236 hectares around the property to include a number of similar gold occurrences.
The San Ricardo property is subject to the Paget LOI. Pursuant to the Paget LOI, all underground workings were opened up and saw sampled and several hundred metres of trenches have been excavated and saw sampled.