Escondido

The Escondido Project is located in the Santa Cruz Province of Patagonia, Argentina. Geologically, Escondido is situated in the Deseado Massif; a plateau consisting of Middle to Upper Jurassic age volcanic rocks that host fracture controlled low sulfidation epithermal Au-Ag mineralization.

The Escondido Project is contiguous to the Las Calandrias discovery first announced by Mariana Resources Limited in late 2009. Extension of the Las Calandrias mineralization into the Escondido property was confirmed by mapping and surface sampling conducted by Minera IRL, which identified a breccias zone in excess of 100 meters wide with anomalous gold and silver values over a strike length of some 700 meters. This was followed up by geophysical studies which have identified structural and conductivity anomalies in several areas. The first phase of scout drilling was undertaken during the third quarter. Of the 11 holes drilled, 10 intersected gold mineralization demonstrating that a significant portion of the deposit lies within the Minera IRL Patagonia license.

On 15 September 2010, the results of the scout drilling were announced. Best intersections are:

E-D10-02    25.38 meters averaging 1.45 g/t gold and 9.62 g/t silver, including
                     13.75 meters grading 2.39 g/t gold and 14.56 g/t silver)

E-D10-03    100.0 meters averaging 1.19 g/t gold and 7.77 g/t silver, including
                      48.00 meters grading 1.71 g/t gold and 9.17 g/t silver)

E-D10-07    120.40 meters averaging 0.65 g/t gold and 5.70 g/t silver, including
                     14.70 meters grading 1.30 g/t gold and 11.86 g/t silver
                     and 8.40 meters grading 2.45 g/t gold and 8.31 g/t silver)

In December 2010, the widely spaced second-pass scout drilling program was carried out. On the 3 March 2011, results of the drill program were announced, which confirmed that mineralization extends over almost 700 meters of strike from the northern tenement boundary and remains open-ended toward both the east and south-east. Selected intercepts from the second pass Escondido scout drilling are tabulated below.

Hole Number	Intercept			Assay – g/t		Gold Equivalent – g/t*
Hole Number	From	To	Meters	Au	Ag	Gold Equivalent – g/t*
E-D10-020	51.00	84.50	33.50	0.89	2.83	0.91
including	56.15	66.35	10.20	1.83	4.45	1.90
E-D10-022	10.00	62.45	52.45	0.64	9.51	0.80
including	26.00	29.45	3.45	3.53	26.37	3.97
E-D10-024	15.00	32.00	17.00	1.13	8.23	1.27
E-D10-027	20.60	65.00	44.40	0.52	1.79	0.55
E-D10-033	86.25	90.70	4.45	0.82	59.02	1.80

*Gold equivalent grade is calculated by dividing the silver value by 60 and adding this to the gold value.

The results had also been received from an extended IP Gradient Array geophysical survey which shows a wide resistivity anomaly over the remaining 900 meters of untested ground between the current drilling and the eastern boundary of the Escondido tenement block. A substantial, chargeability anomaly coincident with the resistivity has also been identified. The extended geophysics provides another excellent drill target for the next round of drilling in 2011.