Manto Negro Copper Project

• Sedimentary stratabound oxidized and reduced “Red Bed type” copper deposits
• Analogous to the Zambian and DRC Copper Belt
• Hosted by Cretaceous carbonates and sandstones
• Lensoid mineralized Mantos from 1.5m to over 23m thick
• Mantos: average 0.73% to 5.5% Cu
• Significant strike length on surface over multiple kilometers
• Pipes and veins of richer Cu-Ag sulphide mineralization outcropping at various locations.
• NI 43-101 Technical Report

Manto Negro – Location

• NE Mexico
• Coahuila State
• Chihuahuan Desert
• Cuatro Ciénegas Area
• Easy road access
• Established infrastructure
• Located proximal to mid-size cities with excellent access to skilled mining labour

• Manto Negro is a sediment-hosted stratiform copper-silver-lead-zinc deposit. Mineralization is associated with the contact of the clastic (redbeds) of the San Marcos formation and the overlying limestone of the Cupido formation indicative of a sediment-hosted stratiform copper-silver-lead-zinc deposit of the Kuperschiefer-type (red-bed type).
• Exposed rocks in the Manto Negro area are Lower Cretaceous clastic and carbonate rocks with a few scattered exposures of Permian granitic and Tertiary andesitic intrusive rocks.
• Within the Manto Negro area such lateral potential is indicated by mines and prospects along the contact of the San Marcos – Cupido formations for 40 to 50 kilometers.
• Thickness is variable in this type of deposit. The Pilar Grande Mine (Don Indio concession) (Stratabound:1998) found copper-silver mineralization over a 23m thick stratigraphic interval; at El Granizo estimated copper mineralization was over a thickness of 10m.
• Deposit examples include Spar Lake (Troy), Rock Creek and Montanore (Montana, USA), White Pine (Michigan, USA), Creta (Oklahoma, USA), Zambia-Zaire copper belt (Zaire), and Kupferschiefer district (Germany and Poland).

Northern Property

Middle Property – Don Indio Claim

5 km long section n25°E Don Indio Claim

La Abandonada Mine

Mineralization sampled at surface within a 200 x 10 meter area with grades of 1.5% copper and 42 g/t silver. Open in both strike directions.

“Ojitos”

Feeder 35% Cu 1.2kg/Ton Ag

Manto Negro South

• Over a 9km strike length
• 10 New Copper Prospects
• 3 Target Zones

Grade

• Mantos average range 0.73% to >5.5%
• Higher grade Mantos areas of 6% to 8%
• Feeder zones of up to 33%
• High silver lead zinc credits
• Expect resource grades at 1.5% – 2% range

Size

• Just under 18,000 hectares
• 50 km in length
• Over 35 showings
• 1.7 to 23m in thickness
• Similar to Zambian and DRC copper deposits

Production

• Oxide deposit amenable to leaching
• Good metallurgical recovery of 93% with low acid input