Further Exploration Potential

Breccia pipes elsewhere in the district overlie associated porphyry copper systems, thereby becoming a convenient exploration tool for detecting underlying porphyry mineralization. At Sombrero Butte, breccia pipes are present across the entire extent of the property, so it is conceivable that the breccias reflect the footprint of an underlying porphyry copper system. Experience in the district suggests that some of the breccia pipes, especially the ore-grade pipes, are in fact blind to the present surface. Previous operators conducted detailed geological, geochemical and geophysical studies on the property in the late 1990's and documented the presence of a multi-phase porphyry intrusive complex. The Company will continue to test these numerous breccias as well as explore for the suspected deep seated porphyry source for the breccias.