The El Espino Copper Project is an advanced I.O.C.G. (iron oxide copper gold) system which extends for at least 3 km long (N-S) by 2 km wide (E-W) on the El Espino block of claims, within which numerous small and several extensive underground workings are indicative of substantial historical copper and gold production, generally from oxidized near surface mineralization. The old gold and current operating mines within the El Espino block are almost exclusively developed on steeply dipping veins (feeder structures) and drilling by several companies has demonstrated that there is substantial tonnage of copper-gold mineralization hosted in sub-horizontal and lithologically controlled mantos which have been intersected by these feeders. These mantos appear to host the bulk of the mineralized tonnage outlined by previous explorers (North Ltd., Teck-Cominco, Rio Tinto).

Modern exploration at the El Espino Copper Project commenced in early 1990's when Anaconda carried out the initial drilling. Subsequently the Project was explored by other major international mining companies, including Rayrock Resources Inc., Goldfields, North Ltd., Anaconda Mining Co. and Teck-Cominco. Exploration has included detailed geological mapping, geochemical sampling, geophysical surveying and 13,785 meters of drilling, which intersected up to 103 meters of 0.98% Cu and 0.10g/t Au, with numerous intercepts averaging about 30 meters thick and grading over 1% Cu, within a much broader halo of about 0.5% Cu. Variable amounts of associated gold occur with the copper mineralization, e.g. hole F15, with 12m at 1.05% Cu and 2.03g/t Au.

Historic Significant intercepts are tabulated below: