Geology and Exploration Potential 

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Minera IRL has an active exploration program at Corihuarmi. This entails two different focuses. The near mine exploration has the objective of discovering extensions to the existing orebodies or deposits close to the existing infrastructure. District exploration entails exploration to discover new deposits within the greater tenement holding of some 9,318ha.

Corihuarmi mine is located in the Andean Western Cordillera of Central Peru, developed within a sequence of Tertiary volcanic rocks.  It is associated with a structural corridor of NW-SE strike with an associated hydrothermal alteration signature of approximately 4.5 x 1.3 Km.

Corihuarmi mine is exploiting low grade disseminated gold from a high sulphidation epithermal deposit emplaced within a pyroclastic volcanic rock sequence.

Mining claims within the geologically prospective area comprise 6 properties covering a 3,418-hectare area.

#	Owner	Name	Hectares
1	Minera Irl S.A.	Tupe 2	600
2	Minera Irl S.A.	Tupe 3	600
3	Minera Irl S.A.	Tupe 5	300
4	Minera Irl S.A.	Vera I	800
5	Minera Irl S.A.	Vera II	700
6	Minera Irl S.A.	Vera III	418.65

Minera IRL S.A. has regularly conducted “Green Fields” exploration programs in order to replace ore reserves in Corihuarmi mine.  Exploration has largely focused specifically on areas with silicified outcrops.  These areas comprise the Ely, Cayhua, Laura and Coyllor zones, being considered as low grade gold large tonnage targets.  Numerous geophysically identified prospective areas have additionally been explored by drilling.

In 2008, geological exploration activities consisted of surface channel sampling, geological mapping and geophysical Surveys that were used as a basis for follow-up diamond drilling programs.  The geophysical programs included a ground magnetic survey over 32.2 km along 17 lines and an induced polarization survey over 34.5 km along 17 lines at a 100 m line-separation. Results showed 4 shallow anomalies of high resistivity towards both the North and South of Susan Open Pit, in Cayhua zone and at North and South of Laura zone.

Between August 2008 and February 2009, a diamond drill program was executed comprising of 46 drillholes totaling 5,441.10m: Laura (8 boreholes), Cayhua Alta (9 boreholes), Cayhua Oeste (4 boreholes), Ely (21 boreholes) and other areas (4 boreholes).  

Geological Background

The region around the Corihuarmi Mine has suffered significant erosion through geologic time and the Susan and Diana deposits that are currently being exploited as open pits, are remnants of that erosion.  Extremely fine-grained gold is deposited in highly brecciated, hydrothermally altered, dacitic host rocks in sub-horizontal layers that have been silicically altered to varying degrees of massive and porous silicification (vuggy silica).  Gold is associated with iron oxide filling within cavities and fractures. These silicified bodies are surrounded by an advanced argillic alteration zone (alunite silica).

The local geology of the areas of Laura, Cayhua and Ely, is composed of porphyritic texture rocks of andesitic to dacitic composition and fine to lithic tuff of andesitic composition.  There is a vast patchy texture developed in Laura area.  Hydrothermal alteration styles of interest include massive silica, granular silica, vuggy silica, silica alunite, silica alunite pyrite, silica clay, silica clay pyrite, and argillic pyrite.

The objectives of the exploration program were to identify new gold mineralized areas, prove conceptual geological targets, and discover ore body continuity, with the principal objective being to increase Corihuarmi mine resources and evaluate the economic potential of Laura, Cayhua, and Ely areas. 

Results of the drill program have shown that Laura, Cayhua, and Ely include restricted remnants of high sulfidation altered zones at different erosion levels.  The geological evaluation, although restricted, remains open based on findings of intercepts favoring economic gold mineralization. Such intercepts are controlled and favored by hydrothermal alteration, type of rock and structural control.

In the Cayhua zone there is a resource near the surface and, based upon rock alteration characteristics, metallurgic treatment might be found to be favourable.

In the Laura area, the continuation of a spread of low grade mineralization is suggested by geochemical values over 0.2 g/t Au mainly in the alunite silica and alunite pyrite silica alteration.  The latter suggests a vertical tabular body trend.

For the Cayhua area, the relationship of gold mineralization versus alteration resembles “structures” or “feeder-like geometry”. 

                                                                Drill Master – Diamond Drill Program 2008 - 2009