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Berenguela


Berenguela is located five kilometers northeast of Santa Lucia on the altiplano of southern Peru. Access is good, with a major paved highway adjacent to the property. A main-line railway passes within five kilometers of the property.

The deposit is composed of flat-lying beds in a folded dolomitic limestone. It was formed as a replacement of limestone where hydrothermal solutions deposited hydrated iron and manganese oxides with silver, copper and minor zinc. The deposit is located at surface and forms a body 500 meters wide, at least 1500 meters long and averages 60 meters thick. Bulk sampling by Asarco Incorporated in the 1960's averaged 27% manganese dioxide, 201 grams of silver per tonne and 1.61% copper.

Kappes, Cassiday & Associates has developed a process of conventional crushing followed by leaching with sulfuric acid and sulfur dioxide. Manganese, copper and silver are then recovered in separate procedures. Testwork on a bulk sample of ore recovered greater than 90% of all three components.

Preliminary geophysical surveys were conducted in 2009 to begin testing at depth for the potential source of the silver-copper-zinc resource at surface. This survey generated a number of geophysical anomalies that have been followed up by an extensive program of detailed geophysical test work, including deep penetrating IP, magnetic, and gravity surveys. This geophysical work will be followed up with a 5,000-meter drill program scheduled to commence at the end of May. A number of intrusive types and new areas of silver-copper-zinc mineralization have been identified on surface. The source of the surface mineralization is currently interpreted to be replacement mantos and breccias either structurally hosted or associated along the margins of felsic intrusives.

For details on the reserves and resources of the Berenguela Project,view the current Mineral Reserves & Resources Summary (16 kb pdf).