San Simon Project Summary

San Simon Property

There are numerous lode and alluvial gold occurrences within the 300 km2 San Simon property; however, we have focused on two primary areas of gold mineralization: the Trinidad - Doña Amelia and the Paititi-Buriti zones. A major portion of the project has yet to be thoroughly explored.

Early work included drilling at Trinidad and Paititi in 1996, drilling at Paititi in 1999-2000, and a 197 tonne surface bulk sampling at Paititi in 1999-2000 that yielded an average grade 1.62 grams/tonne gold.

Eaglecrest has most recently drilled for an underground mineable resource in the Doña Amelia zone while also pursuing new targets with open pit mine potential in the Paititi-Buriti zone. Since 2003, Eaglecrest has drilled 328 holes to a maximum depth of 760 meters into the Doña Amelia Zone, which has a 4.2 kilometer strike length. Recent sampling in the Paititi-Buriti region has produced rock-chip samples with gold grades up to 49.5 g/t within the 7 km long zone.

Gold Mineralization Model

Gold mineralization occurs in and around a thrust fault and is associated with quartz veins, hematite and green sericite; drilling has indicated quartz veins up to 15.9 metres thick. The first 3D drill hole Geosoft model, completed in early 2007, demonstrated that gold in the Doña Amelia Zone is located in high-grade vertical gold shoots and pockets concentrated along a the south-dipping, near-vertical, thrust fault zone. After completing the 3D Geosoft model, Eaglecrest drilled 17,997 metres in 80 holes in an effort to delineate gold mineralization in the L463 gold shoot, which is one of at least eight recognized gold shoots in the Doña Amelia Zone at San Simon. One-third of these drill holes returned high-grade intercepts with over 10 grams per tonne gold. In 2010, we plan to complete a NI 43-101 resource calculation for two or more of the Trinidad-Mina Vieja gold shoots.

Mineralization Style

Fine and coarse gold, free and associated with a "mineralized envelope" around the thrust faults which includes hematite, both pervasive and disseminated after arsenopyrite, sericite, and silica flooding. This alteration is now included in core logs as a guide to finding more gold. Gold is found in fractures and in sites that were previously arsenopyrite but are now hematite, thus there was an association of gold to arsenopyrite during the mineralizing event.

Similar Gold Deposits

Crixas Deposit, Brazil (Kinross Gold Corp, 1M oz gold) & Saõ Francisco Deposit, Brazil (Yamana Gold Inc., 1.4M oz gold) and Ashanti type gold deposits in the Birimian greenstone belt, Ghana (production of more than 55 M oz gold over 100 years).