The company operates the 5,000 tonne per month Chépica gold/copper mine located 300km south of Santiago, Chile. The operation is currently undergoing a mill/mine expansion program.

Geological setting

The geology in the Talca area consists of Late Cretaceous andesitic volcanics and volcanoclastic sediments associated with granitic stocks. In this environment, vein systems  are developed under epithermal to high level mesothermal conditions. Gold, silver - copper mineralization generally occurs in banded or fine grained quartz and or quartz-sulphide veins, breccias and stock work, varying in width from 2 to 20 meters.

Operations

In the 4th quarter of 2011, the Company announced the commencement of gold, silver and copper mining and processing at the Chépica mine. During 2012 the Company has concentrated on development of the underground mine preparing for stoping to commence during 1st quarter 2013. Development ore has been extracted at a feed rate close to the current mill capacity.

As more development faces are opened and stoping commences production will  exceed the current plant capacity. The company has made the commitment to expand the mill to match the mine’s near future output rate. The planning for the expansion is complete and the purchase of the essential large/long lead time items in progress. The expansion is scheduled for completion during the 1st quarter 2013.

Exploration

A surface diamond drill program began in the 4th quarter of 2012 to confirm the depth extensions of the main vein systems identified on surface. The drill campaign of 2,500 m  is expected to last for 3 months.