San Simon Project Details

Drilling

San Simon Drilling Eaglecrest resumed exploring the gold mineralization in the Doña Amelia zone in July 2003. The Company drilled 2,024 m in 25 holes in the Doña Amelia Zone gold mineralization in 1996, but between 1997 and 2002 the Company focused exploration on the potential for open pit mineable gold mineralization in the Paititi zone. In October 2003 the Company commenced drilling three north-south sections in the Trinidad area, which have provided promising diamond drill core results. In 2010, we plan to continue drilling in the Trinidad area.

To date the Company has drilled more than 77,000 m in 328 holes with up to 4 core diamond drills. Highlights of the exploration program include:

In January 2007, the company announced it had modeled drill hole assay results in the Doña Amelia zone, and that ore-grade gold is most likely localized in pods or shoots like the ore deposits in the Birimian Belt of Ghana where mines like Ashanti have produced millions of ounces of gold.
In May 2007, Eaglecrest announced that infill and delineation drilling of the L463 shoot intersected high grade gold values – thus validating the new drill program. Highlights included: 10.1 metres of 3.0 grams/tonne gold, including 1.0 metre at 27.5 grams/tonne gold from hole 229; 8.0 metres with 9.0 grams/tonne gold, including 0.9 metres at 59.1 grams/tonne gold from hole 237; and, 8.0 metres with 4.0 grams/tonne gold, including 0.5 metres at 26.5 grams/tonne gold from hole 235.
In late September 2007, Eaglecrest announced the highest grades and most consistent drill results in the 11-year drilling history at San Simon from the infill and delineation drilling of the L463 shoot in the Doña Amelia zone. Highlights included 3.5 metres at 15.8 grams/tonne gold from hole 259; 5.2 metres at 9.4 grams/tonne gold from hole 257; and 4.4 metres at 11.5 grams/tonne from hole 268. From the inception of the infill drilling program in early 2007, one third of the drill holes returned intervals of greater than 10 grams/tonne gold. Management considers these results significant for justifying continuing the infill drilling program.

Surface Trenching

In 2008, as part of the on-going district-wide exploration program, Eaglecrest started a systematic program of mapping and data compilation from old reports. The Paititi-Buriti zone was given highest priority due to it having the strongest, most contiguous gold-arsenic geochemistry in the 2007 soil data set and its proximity to the Company’s existing infrastructure. The Paititi-San Francisco-Buriti trend has potential for multiple near-surface bulk mineable gold resources along a seven–kilometre trend of gold anomalies. Prior trenching, drilling, and surface and underground bulk sampling demonstrates potential for over a million ounces of gold at Paititi alone. More recently, on September 9 and December 2, 2009, the Company announced outcrop samples that had returned up to 49.5 grams per tonne gold at Buriti, which is now known to cover an area no less than 1,000 metres x 2,500 metres. We are currently trenching in these areas in preparation for drilling. In 2010, we plan to complete at least one NI 43-101 resource model in this zone.

Underground Development

The company initiated an underground bulk sampling program in August 2005 to determine the in-situ true gold grade of the quartz vein mineralization by developing the TD-1 decline in the Trinidad area. The purpose is to bulk sample selected diamond drill hole intersections to compare drilled gold grade with bulk sample gold grade. The decline is developed down plunge in the MQV. Underground panel sampling was done on each advance which is subsequently bulk sampled for the in-situ gold grade.

By the end of April 2007 the TD-1 decline had reached a length of 150 m. Additionally, two large drifts, called L484W and L463E have been completed off the main decline. From these drifts multiple raises and declines have been completed in an effort to both test bulk sample gold grades at drill hole intersections, and to test various small-scale mining techniques for later scoping studies of underground mine models. The Company is no longer bulk sampling from this decline, but we believe that significant data was generated. Significant results include the following:

In June 2007, Eaglecrest announced that underground bulk sampling of the L463 shoot intersected the highest grade interval of gold mineralization to date; 57.5 metres of 5.9 grams/tonne gold. Within this interval, 151 tonnes were extracted from a length of 11.7 metres in the L463 drift and averaged 10.0 grams/tonne gold.
In late November 2007, Eaglecrest announced the highest grades from the underground bulk sampling program; high-grade bulk samples were extracted from the D206 decline and the new L448E drift, which is located 15 metres beneath the L463E drift. Both the L463E drift and the L448E drift cut the upper part of the new L463 high grade gold shoot. From the L448E drift, 44.0 metres of 7.0 grams/tonne gold, including 12.7 metres averaging 12.0 grams/tonne gold. Additionally, the sampling of the D206, a bulk sample of 10.5 returned 7.9 grams/tonne gold.

Laboratory

San Simon Eaglecrest has installed a standard Fire Assay laboratory adjacent to the camp. The lab is independently operated by Peruvian ANALAB S.R.L. and has a capacity of 48 hours turn-around time for sample results to allow for a timely calculation of metallurgical balances and bulk samples gold grades. The laboratory was designed and is supervised by Mineral Processing Consulting Engineer Gary Hawthorn, P.Eng. (B.C.)