BOLIVAR
[Overview]
The Bolivar project is the Company's most advanced asset. The former zinc-copper producer is located in the Piedras Verdes mining district, which has a long mining history and significant potential for new discoveries. Several companies are operating or developing mines in the region, while many others are exploring early-stage prospects.
The Bolivar property is composed of eighteen mineral concessions in Chihuahua State, Mexico, approximately 250 km southwest (straight line) of the state capital, Chihuahua and covering approximately 7,549 hectares hectares. Procduction from the Bolivar mine is not subject to any royalties.
Elevations of the Bolivar property range from 1,800 m to 2,000 m above mean sea level. The area has a rugged topography, with topographic relief ranging from 250 m to 500 m.
In 2004, the Company acquired an option on the Bolivar Mine for a total of US$1.2 million, free of royalties from private owners. The property presenteed a rare opportunity for near-term production from high-grade ore. The mine was fully permitted, but had not operated for more than five years. In late 2004, the Company launched a pre-feasibility study at Bolivar, which includes a pilot-mining program initiated in early 2005.
In conjunction with the pilot-mining program at Bolivar, the Company is drilling to define sufficient resource to commission a pre-feasabiltiy study for mill on site at Bolivar, with the study's results expected during the first half of 2007.
Bolivar is a district-scale property considered prospective for new discoveries, including bulk-tonnage copper-skarn deposits, as confirmed by technical reports and field visits by Lawrence D. Meinert. Exploration and development of bulk-tonnage deposits is an essential component of the Company's strategy to become a mid-tier copper-zinc producer.